NEW YORK, Jan 8, 2026, 06:23 EST — Premarket
- Applied Digital shares fell in premarket trading after the company released fiscal second-quarter results.
- Investors are parsing how quickly new AI-focused data center leases convert into recurring rent and cash flow.
- Funding needs and execution timelines remain the key swing factors into the regular session.
Applied Digital’s shares slipped 2% to $29.56 in premarket trading on Thursday after the company reported quarterly results and updated investors on its AI data-center buildout.
Revenue from continuing operations jumped 250% to $126.6 million for the quarter ended Nov. 30, driven largely by its high-performance computing (HPC) hosting business, the company said. It reported a net loss attributable to common stockholders of $31.2 million, or 11 cents per share, while adjusted EBITDA rose to $20.2 million. 1
A big slice of the revenue lift came from “tenant fit-out” work — the buildout services customers pay for before a site starts producing steady rent — plus early lease revenue after the first 100 megawatts of capacity at Polaris Forge 1 went live in North Dakota. “Inbound demand has increased meaningfully,” CEO Wes Cummins said, adding the company was in advanced talks with another investment-grade hyperscaler — a large cloud company that buys capacity at scale. 2
Applied Digital said it now has two hyperscaler leases across two North Dakota campuses, totaling 600 megawatts and roughly $16 billion of prospective lease revenue over the terms, before any renewals. It also reiterated plans to spin out its cloud unit and combine it with EKSO Bionics to form ChronoScale, with Applied Digital expected to own more than 80% of the combined company at closing. 3
The company also leaned on financing to support construction, including a $2.35 billion private offering of 9.25% senior secured notes due 2030 and a preferred equity facility with Macquarie, disclosures tied to the results showed. Applied Digital filed the earnings release with the U.S. Securities and Exchange Commission on Wednesday in an 8-K signed by CFO Saidal Mohmand. 4
Analyst support has remained firm in the run-up to the quarter, with Northland’s Michael Grondahl reiterating an Outperform rating and a $40 price target in a note that pointed to the company’s pipeline and access to capital as key drivers. He called recent pre-lease financing tied to new sites “very encouraging.” 5
But the stock’s reaction underscores the other side of the trade: lease negotiations can stretch, and the company is still not profitable while it carries a meaningful debt load to fund a capital-heavy buildout. Citizens wrote that investors risk getting ahead of themselves if they start pricing in leasing deals before they are finalized. 6
Traders will look for follow-through at the open — and for any fresh detail on timelines for additional hyperscaler leases and the ChronoScale transaction. Macro data could also steer rate-sensitive growth names on Friday at 8:30 a.m. ET, when the U.S. Labor Department is scheduled to release the December employment report.
