Applied Digital Reports Q3 2026 Revenue Up 139% to $126.6M, Posts $100.9M Net Loss Amidst Major AI Factory Expansion and $2.15B Debt Offering
Applied Digital Corporation announced its fiscal third quarter 2026 financial results and significant operational updates, showcasing robust revenue growth alongside substantial investments in its AI Factory platform. Revenues surged 139% year-over-year to $126.6 million, though the company reported a net loss attributable to common stockholders of $100.9 million. However, adjusted net income reached $33.2 million and adjusted EBITDA was $44.1 million, excluding its Cloud Services Business. The company is aggressively expanding its high-performance data center footprint, breaking ground on the 430 MW Delta Forge 1 AI Factory campus and securing $2.15 billion through a private offering of senior secured notes to fund 200 MW at the Polaris Forge 2 campus. These strategic moves, coupled with enhanced credit quality for its CoreWeave leases, underscore Applied Digital's commitment to scaling its AI infrastructure to meet surging demand, with initial operations for Delta Forge 1 expected in mid-2027.
Key Highlights
- Fiscal Q3 2026 revenues reached $126.6 million, representing a 139% increase from the prior year comparable period.
- Reported a net loss attributable to common stockholders of $100.9 million, a 179% decrease (larger loss) year-over-year, or $0.36 per basic and diluted share. Adjusted net income was $33.2 million and Adjusted EBITDA was $44.1 million.
- Broke ground on Delta Forge 1, a 430 MW AI Factory campus spanning over 500 acres, designed to deliver up to 300 MW of critical IT load for high-density AI workloads, with initial operations expected in mid-calendar 2027.
- Completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031 to fund the development and construction of 200 MW of critical IT load at the Polaris Forge 2 AI Factory campus.
- Entered into a $100 million DevCo Facility with Macquarie Equipment Capital to fund initial development costs for new data center projects.
- Restructured leases with CoreWeave for 250 MW (ELN-02 and ELN-03) at Polaris Forge 1, enhancing credit quality through a CoreWeave SPV subsidiary, unconditional springing guarantees from CoreWeave, Inc., and a $50 million letter of credit securing the ELN-02 lease.