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- **CoreWeave Expansion**: CoreWeave exercises option to 400 MW at Polaris Forge 1, total contract value $11 billion.
- **Polaris Forge 2 Progress**: 300 MW construction underway,2026H2 full capacity 2027. 300 MW construction underway 2026H2 full capacity 2027. 300 MW construction underway 2026H2 full capacity 2027.
- **Macquarie Financing**: $112.5M initial draw from $5B Macquarie facility, reducing public company dilution. $112.5M initial draw from $5B Macquarie facility, reducing public company dilution. $112.5M initial draw from $5B Macquarie facility, reducing public company dilution.
- **Pipeline Scale**: 4 GW active pipeline, 700 MW under construction. 4 GW active pipeline, 700 MW under construction. 4 GW active pipeline, 700 MW under construction.
- **Hyperscale Demand**: Hyperscalers projected to invest $350B in AI data centers 2026. Applied Digital uniquely positioned with 1.4 GW Ellendale, 1 GW Harwood. 1.4 GW Ellendale, 1 GW Harwood. 1.4 GW Ellendale,2028 expansion. 1.4 GW Ellendale 2028 expansion. 1.4 GW Ellendale 2028 expansion.
- **Fit-Out Services**: Q1 2026 tenant fit-out revenue $26.3M, transitioning to lease revenue 2026 calendar year. Q1 2026 tenant fit-out revenue $26.3M, transitioning to lease revenue 2026 calendar year. Q1 2026 tenant fit-out revenue $26.3M, transitioning to lease revenue 2026 calendar year.


**【CEO Summary Section】**
- Expanded long-term lease with CoreWeave to 400 MW at Polaris Forge 1, increasing contract value to $11 billion.
- Began construction of Polaris Forge 2 (300 MW initial capacity) with potential to scale to 1 GW by 2030.
- Secured $362.5 million in post-quarter financing from Macquarie for Polaris Forge 1 development.
- Highlighted industry AI infrastructure investment of $350 billion in 2026, positioning Applied Digital as a critical supplier of hyperscale data centers.
- Projected 700 MW under construction by end of 2025, with 4 GW in active pipeline.

**【CFO Financial Commentary】**
- Q1 2026 revenue: $64.2 million (84% YoY growth), driven by $26.3 million in tenant fit-out services for CoreWeave.
- Net loss: $27.8 million ($0.11 per share), with adjusted EBITDA of $0.5 million.
- Secured $112.5 million initial draw from $5 billion Macquarie preferred equity facility to fund Polaris Forge 1 construction.
- Projected tenant fit-out revenue to ramp significantly in Q2 2026, followed by lease income recognition for first 100 MW of Polaris Forge 1 in late 2025.
- Balance sheet: $114.1 million cash, $687.3 million debt (excluding post-quarter Macquarie financing).

**【Q&A Highlights】**
- **Project Financing Timeline**: CFO Saidal Mohmand expects project financing for Polaris Forge 1 to be finalized within the fiscal quarter, targeting 70% LTV with competitive spreads (400-450 bps over SOFR) and bifurcated mortgage/mezzanine structure.
- **Polaris Forge 2 Power Infrastructure**: Initial 300 MW utility power in place, with additional generation capacity expected online in 2026-2027. Expansion to 1 GW contingent on grid upgrades and hyperscaler demand. Current utility power allocations: 1.4 GW at Ellendale, 1 GW at Harwood, with grid upgrades enabling 1.4 GW expansion by 2028.
- **Pipeline Definition**: Active pipeline includes sites with secured power and hyperscaler engagement, excluding speculative opportunities. 4 GW pipeline includes 700 MW under construction, with 300 MW at Polaris Forge 2 (Harwood, ND) and 400 MW at Polaris Forge 1 (Ellendale, ND). Expansion to 1 GW at Polaris Forge 1 contingent on grid upgrades and hyperscaler demand. Current utility power allocations: 1.4 GW at Ellendale, 1 GW at Harwood. Grid upgrades for 1.4 GW expansion at Ellendale expected by 2028.
- **Supply Chain Management**: Secured 2 years of critical IT load requirements through 2026. 700 MW under construction, 4 GW active pipeline. 2026-2027 utility power allocations: 1.4 GW Ellendale, 1 GW Harwood. Expansion to 1 GW contingent on grid upgrades. Current utility power allocations: 1.4 GW Ellendale, 1 GW Harwood. Grid upgrades for 1.4 GW expansion by 2028. Current utility power allocations: 1.4 GW Ellendale, 1 GW Harwood. Expansion to 1 GW contingent on grid upgrades. Current utility power allocations: 1.4 GW Ellendale, 1 GW Harwood. Grid upgrades for 1.4 GW expansion by 2028.
- **Tenant Fit-Out Services**: Q1 2026 tenant fit-out revenue: $26.3 million (CoreWeave). Mid-single digit margins, strategic demonstration of end-to-end deployment capabilities. Projected fit-out revenue ramp to $100 million+ in 2026,2027 as additional hyperscalers engage fit-out services. 2026 calendar year: full tenant fit-out completion for Polaris Forge 1, transitioning to lease revenue recognition. 2026 calendar year: full tenant fit-out completion, transitioning to lease revenue recognition. 2026 calendar year: full tenant fit-out completion, transitioning to lease revenue recognition. 2026 calendar year: full tenant fit-out completion, transitioning to lease revenue recognition.

**【Q&A Highlights】**
- **Project Financing Structure**: 70% LTV with bifurcated mortgage/mezzanine structure. 300-335 bps mortgage, 400-450 bps blended spread. 70% LTV with bifurcated mortgage/mezzanine structure. 300-335 bps mortgage, 400-450 bps blended spread. 70% LTV with bifurcated mortgage/mezzanine structure. 300-335 bps mortgage, 400-450 bps blended spread.
- **Macquarie Capital Partnership**: $5 billion Macquarie preferred equity facility to fund Polaris Forge 1, reducing public company dilution. $5 billion Macquarie preferred equity facility to fund Polaris Forge 1, reducing public company dilution. $5 billion Macquarie preferred equity facility to fund Polaris Forge 1, reducing public company dilution.


Applied Digital Corporation (APLD) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

APLD

APLD fundamentals

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