Applied Digital Posts 250% Jump In Its Quarterly Revenue

Applied Digital’s HPC hosting business contributed $85 million. Its data center hosting contributed $41.6 million, up 15% year-over-year.

• The company posted revenue of $126.6 million beating analyst estimates of $81.2 million, according to data from Fiscal.ai.
• Applied Digital has signed leases with two hyperscalers across two campuses in North Dakota with CoreWeave and a U.S. based investment-grade hyperscaler.
• Its adjusted earnings per share came in at breakeven ($0.00). Analysts had expected a loss of $0.12 per share.

Applied Digital on Wednesday reported that its second quarter (Q2) revenue more than tripled helped by robust growth in its high-performance computing business. 

The company posted revenue of $126.6 million, a 250% jump from the prior year comparable period. It also beat analyst estimates of $81.2 million, according to data from Fiscal.ai.

“The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy. We believe our first-mover advantage, combined with our proven ability to execute technically complex data center construction, positions Applied Digital with a strong competitive advantage,” said Wes Cummins, Chairman and Chief Executive Officer.   

The company’s adjusted earnings per share came in at breakeven ($0.00). Analysts had expected a loss of $0.12 per share. 

Shares in Applied Digital were up nearly 1% in after-market hours of trading. 

Strong High-Performance Computing Business

Applied Digital’s HPC hosting business contributed $85 million to the company’s revenue. Its data center hosting contributed $41.6 million, up 15% year-over-year. 

Applied Digital’s High-Performance Computing (HPC) Hosting Business designs, builds, and operates next-generation data centers, providing massive computing power to support HPC applications in a cost-effective model.

It said operations have commenced at its first HPC data center at Polaris Forge 1 with 100 MW of capacity. A second 150 MW HPC data center is under construction at the same campus and is expected to come online in calendar 2026, while a third 150 MW facility is anticipated in calendar 2027.

Lease Agreements

Applied Digital has signed leases with two hyperscalers across two campuses in North Dakota with CoreWeave and a U.S. based investment-grade hyperscaler. These lease agreements bring total leased capacity to 600 MW and aggregate prospective lease revenue to approximately $16 billion before exercise of any renewal options.

CoreWeave paid about $85.0 million this quarter, including $73.0 million for tenant fit-out activities and Applied Digital recognized $12.0 million in partial-quarter lease revenue, it said in a statement. 

How Did Stocktwits Users React?

Retail sentiment around APLD trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

Shares in Applied Digital have rallied nearly 200% over the past year. 

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