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WebsiteIntroduction
Applied Digital Corp (Nasdaq: APLD) is a Dallas-based designer, builder, and operator of high-performance computing (HPC) infrastructure and cloud services for artificial intelligence (AI), machine learning, and blockchain workloads. Founded in 2021, the company focuses on developing AI data centers utilizing waterless cooling technology and renewable energy sources to enhance sustainability and operational efficiency.
Corporate Structure
Applied Digital employs between 51 and 200 professionals across its headquarters in Dallas, Texas, and its project sites. Wes Cummins serves as Chairman and Chief Executive Officer, supported by Chief Financial Officer M. Saidal Lavanway and Chief Strategy Officer Jason Zhang. The leadership team combines expertise in data center operations with a commitment to community impact through job creation in underserved regions.
AI Data Center by Leif Christoph Gottwald
Developments and News
On October 9, 2025, Applied Digital reported its fiscal first-quarter 2026 results for the period ending August 31, 2025. Key operating updates include:
- A lease agreement with CoreWeave for an additional 150 MW at Polaris Forge 1 in Ellendale, North Dakota, bringing total contracted capacity at that campus to 400 MW and projected revenue of approximately $11 billion over 15-year terms.
- The nearing completion of the first 100 MW building at Polaris Forge 1, with tenant fit-out in progress, and the commencement of construction on the next 150 MW building.
- An initial draw of $112.5 million from a $5 billion preferred equity facility with Macquarie Asset Management to support the completion of Polaris Forge 1 and reduce future equity funding needs.
- $50 million in equipment financing from Macquarie Equipment Capital for the upcoming Polaris Forge 2 campus near Harwood, North Dakota, where 200 MW of the planned 300 MW IT load is expected to come online in 2026.
During the week of October 7–15, Applied Digital executives participated in industry panels: CFO M. Saidal Lavanway spoke at the TMT Finance “AI Leaders Roundup” on October 7, and CEO Wes Cummins will participate in a session at the infra/STRUCTURE Summit, "If AI is the Next Frontier, When is it Coming?", on October 15 at Wynn Las Vegas.
Financial and Strategic Analysis
Stock performance on October 10, 2025, shows APLD trading at $37.54, reflecting a 28.17% increase on a volume of 2,924,348 shares on the Nasdaq. The market capitalization is approximately $7.9 billion, with a five-year beta of 6.59.
In Q1 2026, revenue reached $64.2 million, an 84% increase compared to the previous year, while the net loss attributable to common shareholders was $27.8 million. The adjusted net loss narrowed to $7.6 million, and adjusted EBITDA was reported at $0.5 million. Total cash at the end of the quarter was $73.9 million, with a debt-to-equity ratio of 63.2%. The price-to-sales ratio (trailing twelve months) is 36.9, and the price-to-book ratio is 14.3.
Strategically, Applied Digital’s focus on building from the ground up for AI data centers avoids retrofitting constraints, thereby enhancing scalability. Long-term lease agreements with companies like CoreWeave contribute to capital-intensive campus development and provide visibility into future cash flows. Partnerships with firms such as Macquarie Asset Management mitigate funding risks and facilitate the expansion of Polaris Forge campuses.
Market Position and Industry Context
Applied Digital positions itself as a provider of AI infrastructure, serving hyperscale and enterprise customers that require optimized performance and energy efficiency. The company was recognized as the Best Data Center in the Americas 2025 by Datacloud. With global investments in AI deployment projected to reach $350 billion in 2025, the company provides GPU-as-a-Service and colocation solutions that align with trends in sustainability and total cost-of-ownership considerations in data center operations.
tl;dr
• On October 9, 2025, Applied Digital reported Q1 2026 revenue of $64.2 million, an 84% year-over-year increase; the net loss narrowed to $27.8 million, and adjusted EBITDA was $0.5 million.
• The company secured a 150 MW lease with CoreWeave at Polaris Forge 1, increasing total contracted capacity to 400 MW with projected revenue of approximately $11 billion.
• An initial $112.5 million draw from a $5 billion Macquarie equity facility supports the completion of Polaris Forge 1; $50 million in equipment financing was secured for Polaris Forge 2, which aims to deliver 200 MW of IT load in 2026.
• APLD shares trade at $37.54 (+28.17%); the market cap is approximately $7.9 billion. Upcoming events include the infra/STRUCTURE Summit on October 15.
