Applied Digital Corporation's stock bounced back strongly after it revealed a staggering 407% increase in quarterly revenue, driven by its expanding AI infrastructure business. The company also reported multiple long-term hyperscaler lease agreements and significant financing achievements, all boosting investor confidence.
Significant Revenue Jump and Financial Highlights
In its fiscal fourth quarter, Applied Digital's revenue soared to $258.7 million, up from a modest figure a year earlier, marking a 407% surge. For the entire fiscal year, revenue topped $611.3 million, reflecting a 167% year-over-year increase. Adjusted revenue for the quarter stood at $240.4 million.
Despite posting a net loss of $110.6 million attributable to common shareholders, the company reported an adjusted net income of $12.9 million during the quarter. Adjusted EBITDA increased to $42.4 million, while net operating income reached $39.9 million. On a full-year basis, adjusted EBITDA climbed to $107.2 million with adjusted net income at $36.1 million.
During this period, Applied Digital completed the spin-off of its cloud services segment, retaining about 96% ownership in ChronoScale Holdings Corporation. The latter now operates as a publicly traded entity, although still consolidated for financial reporting.
Major Lease Deals and Expanding AI Data Center Capacity
The company secured two 15-year take-or-pay contracts with a leading U.S.-based investment-grade hyperscaler, each covering 300 megawatts of IT capacity and valued at around $7.5 billion in base-term revenue. These projects include Delta Forge 1 in Louisiana and Polaris Forge 3 in North Dakota.
Shortly after quarter-end, Applied Digital signed an additional 15-year agreement for 210 megawatts at Delta Forge 2, adding roughly $5.2 billion in base-term revenue. This expansion is slated to support operations starting in the first half of 2028. Collectively, these three deals amount to close to $20 billion in contracted revenue.
Currently, Applied Digital controls approximately 1.4 gigawatts of contracted IT capacity spread across five campuses. These contracts represent about $36 billion in lease revenue during their initial terms, with renewal options potentially pushing the total value beyond $86 billion.
The company has also raised billions by issuing notes and expanding its credit facility, underpinning its ambitious growth plans. Applied Digital's progress aligns with growing demand in the AI sector, illustrating how infrastructure providers are capturing a larger share of hyperscale computing needs.
Applied Digital’s trajectory highlights the accelerating investment in AI data centers amid shifting technology spending patterns.
