Applied Digital reported $341.9 million in revenue for its fiscal first quarter ended August 31, 2026, marking a 322 percent increase from the prior year.
Fiscal First Quarter Revenue Surges to $341.9 Million
Applied Digital Corporation released its financial results for the fiscal first quarter ended August 31, 2026, showing a sharp acceleration in top-line growth. Total revenue reached $341.9 million, representing a 322 percent jump compared to the same period a year earlier. The strong showing outperformed Wall Street expectations, driven by rapid expansion across the company’s high-performance computing operations.
Selling, general, and administrative expenses rose to $114.7 million compared to $29.5 million in the prior year period, reflecting the administrative weight of overall business growth.
The digital infrastructure provider operates large-scale data centers built for high-performance computing workloads. Its business model centers on purpose-built computing infrastructure, with accelerated compute applications playing an increasingly significant role in overall operations.
Polaris Forge Campus Expansion Drives HPC Hosting Revenue
High-performance computing hosting revenue totaled $262.6 million for the quarter. This segment figure consisted of $65.8 million in base rent and $183.5 million from tenant fit-out services. Services revenue overall climbed to $262.8 million, up 225 percent from the fiscal first quarter of 2025.
Management pointed to operations at its North Dakota campuses as the primary engine behind the capacity growth. As of August 31, 2026, the company operated its 106-megawatt facility in Jamestown and its 180-megawatt facility in Ellendale at full capacity.
Chairman and CEO Wes Cummins outlined build-out plans during the company’s earnings conference call, which was hosted alongside executives including Matt Glover and Ralf Esper, and Buffy Harakidas, EVP Gateway Group, Inc. Over the next 12 months, we expect to place over 600 megawatts into service versus the 250 megawatts over the past 12 months,
Cummins said.
Through Applied Digital Cares, the enterprise also committed $350,000 in grants across five organizations in Oliver County, North Dakota, home to Polaris Forge 3, to support local schools, first responders, and community facilities.
Adjusted Metrics and Capital Structure Following Financing Deals
To capture the underlying performance of its core infrastructure business, Applied Digital reported adjusted revenue of $300.4 million, which excludes a $41.5 million contribution from its majority-owned subsidiary, ChronoScale Holdings Corporation. Adjusted EBITDA reached $64.4 million, a substantial increase from $500,000 in the prior year quarter, while net operating income stood at $58.8 million.
The company’s balance sheet showed $2.9 billion in cash and cash equivalents, supplemented by $313.4 million in restricted cash at the close of the quarter. Total debt stood at approximately $6.4 billion. Proceeds from a recent secured notes transaction funded the construction of another Polaris Forge building—a 150-megawatt facility—at Polaris Forge 1 and repaid a $300 million bridge facility put in place in May.
Polaris Forge 2 Expands North Dakota IT Load
Management expects initial operations at the Polaris Forge 2 campus in Harwood to bring total delivered critical IT load across North Dakota to 300 megawatts by the end of calendar 2026.