Applied Digital's Q4 2025: Navigating Key Contradictions in Campus Construction, Leasing Dynamics, and Strategic Focus

Campus construction timeline, leasing and pricing trends, customer negotiations and onboarding, campus expansion and groundbreaking, and focus on strategic realignment are the key contradictions discussed in Applied Digital Corporation's latest 2025Q4 earnings call.



Data Center Hosting Growth:
- Applied Digital reported revenue of $38 million for the fiscal fourth quarter of 2025, up 41% year-over-year.
- The growth was driven by an increase in capacity online in the Data Center Hosting Business, particularly in North Dakota.

Lease Agreements and Backlog:
- The company signed a 15-year lease agreement with CoreWeave, securing $7 billion in contracted revenue, positioning itself as a leader in AI and HPC infrastructure.
- This agreement is expected to accelerate the company's plans to achieve $1 billion in annual net operating income over the next 3 to 5 years.

Building Expansion and Efficiency:
- Applied Digital is actively marketing its multi-gigawatt pipeline to diverse customers, with plans to expand its data center capacity.
- The company's building design offers greater flexibility and a repeatable process, reducing projected build times from 24 months to 12 to 14 months, enhancing efficiency and sustainability.

Strategic Financing and Partnerships:
- The company raised $270 million between its ATM and Series G preferred stock, strengthening its financial position for project financing.
- The financing is expected to be finalized over the next 4 to 10 weeks, supporting the development of the Polaris Forge 1 campus in North Dakota.

Cloud Services Strategic Review:
- Applied Digital's Board of Directors is reviewing strategic alternatives for its Cloud Services business, with ongoing discussions and updates to be provided to shareholders.
- The strategic review aims to optimize the company's portfolio and focus on core competencies in data center hosting and infrastructure development.