olivLaw · US equity research
Applied Digital Corporation APLD
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
Applied Digital (APLD) designs, builds and operates large data centers for high-performance computing, including artificial intelligence, and leases the capacity long term to hyperscalers with investment-grade ratings. Its executed lease portfolio reaches about 1,410 MW and roughly 36.2 billion dollars of contracted revenue over the base terms, while quarterly revenue rose 322% in fiscal first quarter 2027.
At the close of 05 Nov 2026, Applied Digital Corporation (APLD) stock was 14.17 USD (−14.69% on the day), with market capitalisation 4.3 bn USD, beta 2.96, 52-week range 14.17–49.65 USD. Latest reported quarter (Q1 2027): revenue of 341.9 m USD (+322.4% YoY), net income of -184.1 m USD, diluted EPS -0.82 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 31.4
- weak (30–45)
- Bollinger (20, 2)
- 14.70 – 23.78
- below the lower band · %B -0.06 · band width 47.2%
- SMA 50 / 200
- 23.16 / 30.94
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -2.11 / -1.87
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −44.1% | −5.9% | −38.1 pp | — |
| 3 months | −50.9% | −4.6% | −46.3 pp | — |
| 6 months | −65.9% | +0.2% | −66.1 pp | — |
| Year to date | −42.2% | +7.4% | −49.6 pp | — |
| 1 year | −57.2% | +8.2% | −65.4 pp | −25.0% |
| 3 years | +164.4% | +68.4% | +95.9 pp | −34.4% |
| 5 years | unavailable | +56.5% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 31 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 36.2 m | 52.9 m | 51.1 m | 80.9 m | 126.6 m | 126.6 m | 258.7 m | 341.9 m |
| Cost of revenue | 22.7 m | 49.1 m | 54.2 m | 58.8 m | 100.6 m | 72.8 m | 161.5 m | 245.7 m |
| SG&A | 26.0 m | 22.7 m | 41.0 m | 29.5 m | 57.0 m | 79.7 m | 165.3 m | 114.7 m |
| Operating income | -12.8 m | -18.9 m | -44.1 m | -9.8 m | -31.0 m | -85.7 m | -124.8 m | -62.4 m |
| Depreciation & amortisation | 4.7 m | 18.8 m | 55.1 m | 4.2 m | 8.6 m | 20.8 m | 33.8 m | 41.9 m |
| Interest expense | 2.9 m | 8.9 m | 8.5 m | 8.0 m | 11.5 m | -2.4 m | 10.6 m | 77.4 m |
| Pre-tax income | -128.4 m | -35.4 m | -52.6 m | -16.9 m | -26.5 m | -70.6 m | -79.6 m | -166.1 m |
| Income tax | 1.0 k | 117.0 k | -16.0 k | 8.0 k | 15.0 k | -2.0 k | 1.8 m | 1.9 m |
| Net income | -138.7 m | -35.6 m | -52.5 m | -16.9 m | -14.5 m | -70.6 m | -82.4 m | -184.1 m |
| Diluted EPS | -0.66 | -0.16 | -0.23 ≈ | -0.07 | -0.07 | -0.36 | -0.29 ≈ | -0.82 |
| Operating cash flow | -52.3 m ≈ | 5.9 m ≈ | 6.9 m | -81.5 m | -16.3 m ≈ | 55.0 m ≈ | 132.5 m | 63.9 m |
| Capex | 171.0 m ≈ | 257.5 m ≈ | 198.3 m | 249.9 m | 551.6 m ≈ | 775.2 m ≈ | 1.3 bn | 2.1 bn |
| Share repurchases | — | 0 ≈ | 0 | — | — | 0 ≈ | 0 | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2021 | 2022 | 2023 | ⚠ 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 8.5 m | 55.4 m | 165.6 m | 228.6 m | 611.3 m |
| Revenue YoY | unavailable | unavailable | +547.9% | — | +38.0% | +167.5% |
| Net income | -568.0 k | -23.5 m | -44.6 m | -149.3 m | -231.1 m | -184.3 m |
| Net income YoY | unavailable | unavailable | unavailable | — | unavailable | unavailable |
| Diluted EPS | -0.38 | -0.41 | -0.47 | -1.31 | -1.16 | -0.91 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | — | unavailable | unavailable |
| net % | unavailable | -275.1% | -80.6% | -90.2% | -101.1% | -30.2% |
| Free cash flow | -103.0 k | -59.1 m | -72.5 m | -128.0 m | -797.0 m | -2.8 bn |
The series breaks before 2024: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 May 2026
- Cash
- 1.6 bn USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.7 bn USD
- Total assets
- 9.9 bn USD
- Debt / equity
- unavailable
- Current ratio
- 4.01x
- ROE
- -16.6%
- ROA
- -3.1%
- FCF margin
- -454.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 0 | 8.5 m | 55.4 m | 165.6 m | 228.6 m | 611.3 m | SEC (XBRL)· 29 Jul 2026verified |
| Cost of revenue | 0 | 9.5 m | 44.4 m | 148.3 m | 216.8 m | 396.9 m | SEC (XBRL)· 29 Jul 2026verified |
| Gross profit | 0 | -957.0 k | 11.0 m | 17.2 m ≈ | 11.8 m ≈ | 214.5 m ≈ | SEC (XBRL)· 29 Jul 2026derived |
| SG&A | 332.0 k | 19.9 m | 53.9 m | 97.8 m | 107.9 m | 332.1 m | SEC (XBRL)· 29 Jul 2026verified |
| Operating income | -332.0 k | -20.9 m | -42.9 m | -98.3 m | -72.2 m | -236.5 m | SEC (XBRL)· 29 Jul 2026verified |
| Depreciation & amortisation | 1.0 k | 1.1 m | 7.1 m | 79.4 m | 134.7 m | 67.4 m | SEC (XBRL)· 29 Jul 2026verified |
| EBITDA | -331.0 k ≈ | -19.8 m ≈ | -35.8 m ≈ | -19.0 m ≈ | 62.5 m ≈ | -169.1 m ≈ | SEC (XBRL)· 29 Jul 2026derived |
| Interest expense | 236.0 k | 112.0 k | 2.0 m | 26.8 m | 32.1 m | 29.5 m | SEC (XBRL)· 29 Jul 2026verified |
| Pre-tax income | -568.0 k | -21.9 m | -45.0 m | -149.6 m | -231.0 m | -181.5 m | SEC (XBRL)· 29 Jul 2026verified |
| Income tax | 0 | 540.0 k | -523.0 k | 96.0 k | 102.0 k | 1.8 m | SEC (XBRL)· 29 Jul 2026verified |
| Net income | -568.0 k | -23.5 m | -44.6 m | -149.3 m | -231.1 m | -184.3 m | SEC (XBRL)· 29 Jul 2026verified |
| Diluted EPS | -0.38 | -0.41 | -0.47 | -1.31 | -1.16 | -0.91 | SEC (XBRL)· 29 Jul 2026verified |
| Weighted average diluted shares | 1.5 m | 57.1 m | 94.0 m | 114.1 m | 201.2 m | 275.2 m | SEC (XBRL)· 29 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 11.8 m | 38.8 m | 29.0 m | 3.3 m | 44.0 m | 1.6 bn | SEC (XBRL)· 29 Jul 2026verified |
| Receivables | 0 | 227.0 k | 82.0 k | 3.8 m | 6.8 m | 56.3 m | SEC (XBRL)· 29 Jul 2026verified |
| Current assets | 11.8 m | 40.4 m | 45.7 m | 404.1 m | 132.8 m | 4.7 bn | SEC (XBRL)· 29 Jul 2026verified |
| Property, plant & equipment, net | 20.0 k | 64.3 m | 198.2 m | 329.1 m | 1.3 bn | 4.2 bn | SEC (XBRL)· 29 Jul 2026verified |
| Goodwill | — | — | — | — | 0 | 54.5 m | SEC (XBRL)· 29 Jul 2026verified |
| Total assets | 15.1 m | 120.0 m | 264.0 m | 762.9 m | 1.9 bn | 9.9 bn | SEC (XBRL)· 29 Jul 2026verified |
| Accounts payable | 249.0 k | 13.3 m | 6.4 m | 104.5 m | 251.5 m | 395.5 m | SEC (XBRL)· 29 Jul 2026verified |
| Long-term debt | — | 7.2 m | — | — | — | — | SEC (XBRL)· 29 Aug 2022verified |
| Current liabilities | 2.5 m | 29.0 m | 115.5 m | 554.1 m | 499.7 m | 1.2 bn | SEC (XBRL)· 29 Jul 2026verified |
| Total liabilities | 2.5 m | 40.7 m | 194.3 m | 638.0 m | 1.2 bn | 6.2 bn | SEC (XBRL)· 29 Jul 2026verified |
| Equity | -2.6 m | 79.2 m | 69.7 m | 124.8 m | 497.7 m | 1.7 bn | SEC (XBRL)· 29 Jul 2026verified |
| Shares outstanding at year end | — | 99.2 m | — | — | — | — | SEC (XBRL)· 13 May 2022verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -83.0 k | -872.0 k | 58.7 m | 13.8 m | -115.4 m | 89.7 m | SEC (XBRL)· 29 Jul 2026verified |
| Capex | 20.0 k | 58.3 m | 131.3 m | 141.8 m | 681.6 m | 2.9 bn | SEC (XBRL)· 29 Jul 2026verified |
| Free cash flow | -103.0 k ≈ | -59.1 m ≈ | -72.5 m ≈ | -128.0 m ≈ | -797.0 m ≈ | -2.8 bn ≈ | SEC (XBRL)· 29 Jul 2026derived |
| Investing cash flow | -3.3 m | -45.9 m | -132.1 m | -172.4 m | -667.7 m | -2.9 bn | SEC (XBRL)· 29 Jul 2026verified |
| Financing cash flow | 15.1 m | 81.3 m | 70.6 m | 146.8 m | 874.7 m | 6.9 bn | SEC (XBRL)· 29 Jul 2026verified |
| Share repurchases | — | — | 0 | 0 | 31.3 m | 0 | SEC (XBRL)· 29 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 4.3 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 32.0% | 0 (on a fixed band) | 14% |
| EBIT margin · Quality | -35.6% | 37 (vs peers) | 11% |
| FCF margin · Quality | -521.8% | 0 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 122.6% | 100 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 167.5% | 92 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.6x | 100 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -104.0% | 0 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 0.0% | 33 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth97/100 · 2/2 factors with a value
- Quality11/100 · 3/3 factors with a value
- Returns33/100 · 1/1 factors with a value
- Valuation· partial0/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
APPLIED DIGITAL CORPORATION (APLD). Latest full fiscal year: 2026; data up to 2026-08-31.
Figures computed from the financial statements: revenue 611.3 m USD in 2026; YoY growth 167.5%; net margin -41.2%; ROE -26.6%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 122.6%
- Revenue growth (YoY): 167.5%
- Current ratio: 2.6x
What contradicts it
- Gross margin: 32.0%
- FCF margin: -521.8%
- FCF yield: -104.0%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 121.2 bn | 28.1 | 77.0% | 20.1% | +6.7% | +20% / +34% |
| WDAYWorkday, Inc. | 44.0 bn | 40.6 | 16.0% | 12.3% | +13.1% | −7% / −26% |
| VRSKVerisk Analytics, Inc. | 27.1 bn | 32.1 | — | 27.7% | +6.6% | −6% / −12% |
| APLDApplied Digital Corporation | 4.3 bn | — | -26.6% | -41.2% | +167.5% | −57% / +164% |
| FIVNFive9, Inc. | 2.6 bn | 51.0 | 6.9% | 4.5% | +10.3% | +74% / −55% |
| DXCDxc Technology Company | 2.4 bn | 22.3 | 3.7% | 0.9% | −1.8% | +15% / −34% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| GLOBGlobant S.A. | 2.2 bn | 21.5 | 5.1% | 4.2% | +1.6% | −23% / −78% |
| EVTCEVERTEC, Inc. | 2.0 bn | 22.4 | 14.4% | 9.0% | +10.2% | +18% / −8% |
| CLVTClarivate PLC | 1.5 bn | — | -8.2% | -15.1% | −4.0% | −38% / −70% |
| INODInnodata Inc. | 1.3 bn | 28.2 | 35.4% | 13.8% | +47.6% | −33% / +471% |
| LZLegalZoom.com, Inc. | 983.5 m | 48.4 | 12.1% | 2.6% | +10.9% | −36% / −48% |
| PLTKPlaytika Holding Corp. | 884.0 m | — | — | -9.8% | +8.1% | −43% / −73% |
| YEXTYext, Inc. | 757.2 m | 39.7 | 27.8% | 5.9% | +6.1% | −9% / +15% |
| NRDSNerdWallet, Inc. | 723.4 m | 14.7 | 14.4% | 6.1% | +21.7% | −24% / −3% |
| CARSCars.com, Inc. | 706.1 m | 18.1 | 9.3% | 5.9% | +0.6% | +17% / −27% |
| NXTTNext Technology Holding Inc. | 668.7 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| OOMAOoma, Inc. | 484.7 m | 46.0 | 11.7% | 3.6% | +6.5% | +56% / +51% |
| SOPHSOPHiA GENETICS SA | 453.4 m | — | -110.0% | -102.2% | +18.6% | +35% / +65% |
| EGHT8x8, Inc. | 328.3 m | 44.4 | 5.1% | 1.0% | +2.9% | +16% / −27% |
| MOVECorvex, Inc. | 145.4 m | — | -9.6% | -623.5% | −57.3% | −32% / −94% |
| TCXTucows Inc. | 133.8 m | — | — | -17.9% | +7.7% | −45% / −44% |
| BIRDSmartbird, Inc. | 73.5 m | — | -164.0% | -72.8% | −19.7% | −74% / −93% |
| DTCXDatacentrex, Inc. | 40.1 m | — | -36.2% | -165.4% | +939,640.5% | −75% / −81% |
| GLEGlobal Engine Group Holding Limited | 39.4 m | — | -27.2% | -72.8% | −4.7% | −51% / unavailable |
1- and 3-year price returns: for APLD from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Applied Digital (APLD) designs, builds and operates large data centers for high-performance computing, including artificial intelligence, and leases the capacity long term to hyperscalers with investment-grade ratings. Its executed lease portfolio reaches about 1,410 MW and roughly 36.2 billion dollars of contracted revenue over the base terms, while quarterly revenue rose 322% in fiscal first quarter 2027.
SWOT
Strengths
- The company has long-term contracts with top-tier investment-grade customers, which gives high visibility on future revenue 1. It holds large sites with access to power and a standardized construction model that can shorten delivery times 1.
- Revenue growth in fiscal first quarter 2027 shows that deliveries at new campuses are already turning into reported figures 3. Relationships with several hyperscalers and with CoreWeave reduce reliance on any single large customer 13.
- The company has shown it can finish buildings on time, including at Polaris Forge 1, where live capacity rose during fiscal first quarter 2027 3.
Weaknesses
- The business relies heavily on borrowed capital and bond issues, and high debt can limit financial flexibility 1. The company also guarantees subsidiary obligations, which could create liquidity pressure 1.
- The legacy hosting segment depends on one mining customer whose contract is nearing its end, and its revenue, though stable, is limited 1. The fiscal first quarter 2027 net result was a significant loss attributable to common stockholders 3.
- The company has reported material internal control weaknesses in the past, since remediated, which raises questions about the quality of its reporting processes 1.
Opportunities
- Expansion into Finland and other markets could open new growth sources if projects follow plan 3. Power agreements in North Dakota could expand capacity available to existing campuses 3.
- If hyperscalers shift demand toward regions with cheap power, the campuses already under control could become more valuable 3. The ChronoScale partnership and GPU compute deals could add revenue streams 3.
- Renewal options in the contracts could substantially extend revenue duration if customers exercise them 1.
Threats
- Delays in construction, the supply chain or permitting could push back capacity delivery and revenue recognition 1. Trade tariffs could raise the cost of electrical and cooling equipment 1.
- Competition from hyperscalers and established operators could lower pricing or market share 1. Energy-use rules and local moratoriums could block new projects 2.
- Dependence on a small number of suppliers and on power could expose the company to outages or price increases 1.
Risks
- Dependence on large customershigh
Revenue is concentrated in a few customers, and losing or renegotiating a contract could materially affect results 1. An internal transfer of the CoreWeave contract showed that contract structures can change 1.
- Heavy funding and debt needshigh
Building campuses requires large capital, and the company might not find financing on acceptable terms 1. Refinancing debt at maturity could become more expensive 1.
- Construction and delivery delaysmedium
If building deliveries slip, contracted revenue could start later, while penalties or extra costs could rise 13.
- Geographic concentration in North Dakotamedium
Operations are concentrated in North Dakota, so changes in state regulation, climate or the grid could affect the whole portfolio 1.
- Regulation of AI and energymedium
New rules on AI and energy use could impose efficiency requirements or moratoriums on new centers, with hard-to-predict effects 12.
Investment thesis
What would need to be true (bull case)
- If hyperscaler demand for HPC capacity stays strong, the contracted portfolio could keep growing and revenue could follow the same path 13.
- Long-duration contracts with investment-grade customers offer a predictable revenue base, if deliveries follow the schedule 1.
- Control over power and sites in North Dakota could become more valuable as new capacity becomes hard to obtain elsewhere 3.
What would break the thesis
- Heavy debt and continuing financing needs could limit flexibility if capital markets become more expensive 1.
- Concentration of customers and sites could amplify the impact of any delay or contract change 1.
- The net loss in fiscal first quarter 2027 shows that profitability still depends on finishing projects, not only on revenue 3.
What to watch
- Delivery pace of the third building at Polaris Forge 1 and of the Polaris Forge 2 campus2027
- Trend in net loss and cash flow from construction spendingfiscal 2028 quarters
- New customer contracts or the expansion into Finlandnext annual report
- Any federal or state rules on AI and energy use for data centers2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Applied Digital presents itself as a designer, developer, owner and operator of data centers built specifically for high-performance computing workloads, including artificial intelligence and machine learning 1. The company calls these campuses AI factories and delivers the capacity to investment-grade hyperscalers and other large compute customers through long-term lease and hosting contracts 1. Its standardized model covers site selection, design, construction and operations, and the company has moved from blockchain hosting toward a dedicated HPC platform 1.
The company focuses on controlling large sites with cheap power and interconnection rights, which it regards as the main constraint on new HPC capacity 1. Campuses are designed for high density with liquid cooling, and revenue is tied to long-duration contracts, many with investment-grade hyperscalers 1. Since May 2026 the cloud business has been separated into a listed entity, ChronoScale, which Applied Digital consolidates as a majority-owned subsidiary 13.
The reporting structure has two segments: HPC Hosting, the growth direction, and Data Center Hosting, a legacy line with a single crypto-mining customer that could make up a shrinking share as HPC expands 1. On development, Polaris Forge 1 in Ellendale is the flagship campus, and in fiscal first quarter 2027 the company reported further buildings coming into service and a new bond issue to fund construction 23.
Segments
HPC Hosting
The HPC Hosting segment began generating revenue in fiscal 2026, with 385.3 million dollars recognized that year from services and data center rental 1. In fiscal first quarter 2027 segment revenue was 262.6 million dollars and segment operating profit was 33.4 million dollars 3. Quarterly revenue is largely tenant fit-out services, so results are sensitive to construction timing 3.
Data Center Hosting
The Data Center Hosting segment brought in 154.4 million dollars in fiscal 2026 and ran at full capacity at its Jamestown and Ellendale facilities in North Dakota 1. In fiscal first quarter 2027 revenue was 37.8 million dollars, roughly flat year over year 3. The company describes the segment as tied to a single customer with about one and a half years left on its contract, so it is a source of income that could decline gradually 1.
Market context
Power remains the gating factor, and the company argues that the northern US, especially North Dakota, can add new capacity at scale 3. Over the long term part of the growth could depend on rules for energy use and scrutiny of data centers now under discussion at federal and state level 2. The blockchain hosting market is smaller and more competitive, and the company does not expect growth there 1.
Trends
- Rising demand for HPC and AI capacitytailwind
Hyperscaler demand for high-density capacity could support the company's long-term contracts, which are already largely with investment-grade customers 1. If this demand holds, the contracted portfolio could keep growing 1.
- Power scarcity and grid accessmixed
Energy and interconnection are seen as the biggest constraints on new capacity, and the company holds sites with access to power 1. An agreement with an independent power producer in North Dakota could open additional capacity, but project delivery depends on permits and grid infrastructure 3.
- Regulation and scrutiny of energy useheadwind
US and EU authorities are weighing new rules on AI and on data center energy consumption, and some states have moved toward moratoriums on new centers 2. If these rules expand, they could delay projects or raise development costs 12.
- Geographic expansion and construction budgetsmixed
The company is extending its portfolio to Louisiana, Alabama and Finland, which could reduce dependence on a single state but adds construction and financing complexity 13. Rising equipment and supply chain costs could weigh on margins of new projects 1.
Competitive position
The company competes for power-advantaged sites, large customers and capital with established data center operators, hyperscalers building their own capacity, and independent developers 1. An important group comes from former crypto-mining operators that have expanded into HPC, and rivalry is intense for sites with affordable power 1.
The company's stated advantage is control of large sites with interconnection rights and contracts with top-tier customers, which could make its position harder for rivals to replicate 13. The lack of a long track record of large-scale operation could, however, be a disadvantage against established operators 1.
- Digital Realty TrustDLR
Established data center owner and operator, named by the company as a direct rival in building and running data center capacity 1.
- EquinixEQIX
Large data center and colocation operator, named as a rival for large-customer infrastructure 1.
- Hyperscalers building their own data centers
Potential customers can develop their own capacity, which reduces demand for outside hosting 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Should You Sell Your APLD Stock Now?Yahoo Finance — News · 23 Sept 2026 · EN
- Wells Fargo Starts Applied Digital (APLD) at Overweight and Calls it a Top IdeaYahoo Finance — News · 22 Sept 2026 · EN
- APLD’s 250MW Question: The Deal That Could Unlock Applied Digital Stock’s Next Leg UpYahoo Finance — News · 22 Sept 2026 · EN
- Applied Digital and TeraWulf Climb 5% as Oversold AI Capacity Names Bounce; Cipher Digital Edges HigherYahoo Finance — News · 17 Sept 2026 · EN
- Is Applied Digital Stock a Buy?Yahoo Finance — News · 17 Sept 2026 · EN
- Jim Cramer Called This Stock “Terrific” and Said “No Thank You” to APLD Stock. Here’s WhyYahoo Finance — News · 13 Sept 2026 · EN
- TeraWulf Drops 4% on Profit Taking After a 44% YTD Run; Applied Digital Falls 3%, IREN Pulls BackYahoo Finance — News · 10 Sept 2026 · EN
- IREN Surges 7% on Conditional ERCOT Status for 2GW Sweetwater Hub, Applied Digital Climbs 6%Yahoo Finance — News · 08 Sept 2026 · EN
- Analyzing Applied Digital vs. IREN: Accelerating Upward Trajectories vs. Sequential Contractions in Quarterly Revenue GenerationYahoo Finance — News · 06 Sept 2026 · EN
- Applied Digital and Cipher Just Sank Together. Did Rising Yields Expose AI’s Weakest Business Model?Yahoo Finance — News · 03 Sept 2026 · EN
- Applied Digital Sinks 7%, IREN Tumbles 13% as Data Center Selloff Broadens Past One NameYahoo Finance — News · 28 Aug 2026 · EN
- TeraWulf Jumps 6% as NVIDIA’s Guidance Reignites the Compute Trade, Applied Digital Gains 5%Yahoo Finance — News · 27 Aug 2026 · EN
- Applied Digital and IREN Climb 6% as the Digital Infrastructure Bid Broadens Past Bitcoin, Core Scientific Gains 4%Yahoo Finance — News · 25 Aug 2026 · EN
- Applied Digital vs. TeraWulf: Which AI Data Center Stock Is the Better Buy?Yahoo Finance — News · 23 Aug 2026 · EN
The latest news item in our archive is from 23 Sept 2026; the newest SEC filing is from 07 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report07 Oct 2026
- Current report07 Oct 2026Results of operations · Financial statements and exhibits
- Proxy statement25 Sept 2026
- Annual report29 Jul 2026
- Current report27 Jul 2026Results of operations · Financial statements and exhibits
- Current report26 Jun 2026Material agreement · Creation of a direct financial obligation · Item 3.02 · Financial statements and exhibits
- Current report (amendment)17 Jun 2026Material agreement
- Current report16 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report09 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Current report09 Jun 2026Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-05-31 · SEC / Applied Digital Corporation · 29 Jul 2026
- [2] Form 10-Q, quarter ended 2026-08-31 · SEC / Applied Digital Corporation · 07 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Applied Digital Corporation · 07 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.