NEW YORK, July 27, 2026, 5:17 p.m. EDT — U.S. regular trading ended; active after-hours moves on Nasdaq.
- Shares of Applied Digital rose 5.4% to $27.81 in after-hours trading. The initial indication came after a 3.0% drop during the regular session.
- Revenue for the fiscal fourth quarter totaled $258.7 million. Consensus estimates were between $94.8 million and $104.3 million.
- As of June 30, just 175 MW—12.4% of the contracted 1,410 MW—was operational.
Applied Digital Corporation NASDAQ:APLD gained following a report of higher-than-anticipated adjusted earnings and revenue. Adjusted earnings reached four cents per share, topping analysts’ projected loss range of 19 to 22 cents.
The raw beat made an impact, though its quality was more uneven.
Tenant fit-out activities brought in $152.4 million, making up 58.9% of revenue for the quarter. Associated costs amounted to $145.6 million. The resulting gross profit stood at just $6.8 million, equating to approximately 4.5%.
The table displays data from the company as well as two separate consensus sources. Definitions of estimates vary between providers; percentage differences are based on reported figures.
| Measure | Q4 actual | Published comparison | Calculated context |
|---|---|---|---|
| Revenue | $258.7 million | $94.8 million-$104.3 million | Up 148%-173% |
| Adjusted EPS | $0.04 | $(0.22)-$(0.19) | Improved by 23-26 cents |
| Fit-out revenue / cost | $152.4 million / $145.6 million | — | Gross margin works out to 4.5% |
| Base rent | $44.1 million | First 100-MW building | $1.76 million per MW a year |
| Live / contracted load | 175 MW / 1,410 MW | — | 12.4% of load active |
The perspective under accounting standards is significant. The loss under GAAP allocated to common shareholders expanded to $110.6 million, or 39 cents per share, compared to $53.1 million in the previous year. Adjusted net income stood at $12.9 million.
Much of the discrepancy stemmed from stock compensation. Applied Digital included $127.8 million of related expenses in its adjustments toward its reported profit. Selling and administrative expenses for the quarter rose to $165.3 million.
Recurring rent provided a clearer indicator. The initial 100-MW facility generated base rent of $44.1 million for the quarter.
On an annualized basis, this amounts to approximately $1.76 million per MW. The firm’s 15-year contracted revenue of $36 billion suggests around $1.70 million per MW-year. The values are within 4% of each other.
The close alignment underpins the economics of signed leases, though it does not eliminate the risk associated with buildouts.
By June 30, just 175 MW had become operational, leaving around 1.24 GW of contracted capacity yet to be brought online at multiple campuses.
Chief Executive Wes Cummins stated that “delivering on time is a genuine differentiator.” The company anticipates launching multiple new campuses throughout 2027 and 2028. Applied Digital Corporation
Customer concentration is significant. Applied Digital’s three latest leases with a single, undisclosed hyperscaler account for 810 MW and $20.2 billion. These deals comprise roughly 56% of the company’s base-term contracted revenue.
The size of the construction effort is evident on the balance sheet. Applied Digital held $4.2 billion in cash, equivalents, and restricted cash, compared with $5.0 billion in debt. Capital expenditures for the fiscal year were $2.87 billion, with long-term debt amounting to $4.96 billion.
The increase came after a period of losses. Over the previous five sessions, shares declined by 5.9%, ending Monday at $26.375.
The next test comes in Tuesday’s regular session, where investors will examine project timelines, funding requirements and the process of turning contracted megawatts into rental income.
Risks continue to be significant. Conversion could be impacted by delays, increased expenses, and tenant concentration, and limited cash could exaggerate the actual liquidity at hand. After-hours pricing is subject to change and may be corrected during regular market hours.
