Applied Digital Corporation (APLD) Earnings Call Transcripts

Applied Digital Corporation's Latest Earnings Call - Q3 FY2026

In the fiscal third quarter of 2026, Applied Digital Corporation (APLD) reported total revenues of $126.6 million, marking a remarkable 139% increase year-over-year. The company achieved an adjusted EBITDA of $44.1 million, signaling strong operational performance. Management highlighted a significant ramp-up in revenue expected over the next 12 months as new facilities come online, while also announcing a strategic merger of its cloud business with EKSO Bionic Holdings to form ChronoScale Corporation. This restructuring is aimed at enhancing growth potential and capital raising capabilities for the cloud segment. Overall, the results and guidance suggest a positive outlook for APLD's stock, driven by robust demand for AI data center capacity and ongoing expansion efforts.

Reported metrics

Guidance from management

Management expects significant revenue growth over the next 12 months as new facilities come online. They also anticipate continued strong demand for their data center services, particularly from hyperscalers.

What management said

Yes. Great question. So right now, so for -- obviously, single A is investment grade. Spreads are anywhere from -- they're sub-300 basis points, so low 2s to mid-2s depends on obviously structure remaining, how the lease is placed, et cetera. But generally, think about it mid-2s historically. And then for the BBs, right, they're generally -- single Bs to BBs can be anywhere from 350 to 450 basis points, once again, d...

Yes. So for ELN-02, a majority of the fit-out revenue has been recognized. There will be a small amount remaining for the first building. And then towards the end, you'll see some ramp on ELN-03 or the second building in PF1 start to ramp up. Once again, timing, right, timing can be lumpy from quarter-to-quarter, and it's a low-margin line item that's nonrecurring.

What analysts pressed on

Analysts expressed concerns about the pace of new lease signings and the potential impact of rising costs on profitability. There was also discussion regarding the timing of revenue recognition for upcoming facilities, with some uncertainty about the speed of contract finalizations.

Main topics on the call

• Revenue Growth — Applied Digital reported total revenues of $126.6 million, a 139% increase from the previous year. CEO Wes Cummins noted, "We are seeing a clear acceleration in demand for high-performance AI data center capacity as hype...
• Adjusted EBITDA Performance — The company achieved an adjusted EBITDA of $44.1 million for the quarter. This reflects the operational efficiency and profitability of its core businesses, indicating strong financial health.
• Cloud Business Merger — Management announced plans to merge the cloud business with EKSO Bionic Holdings to create ChronoScale Corporation. This strategic move aims to enhance growth and capital-raising capabilities, with Cummins stating, "We b...
• Expansion of Data Center Capacity — The company is actively constructing additional facilities, including Delta Forge 1, with initial operations expected in mid-2027. Cummins mentioned, "This first 100-megawatt building represents only 1/10 of the total ca...

Read the full Applied Digital Corporation transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 16 Applied Digital Corporation earnings call transcripts on record, spanning January 9, 2023 to July 27, 2026. Based on this history, Applied Digital Corporation reports quarterly. The most recent call on file is dated July 27, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

APLD

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

IT Services

Calls on record

16

First call

January 9, 2023

Most recent

July 27, 2026

Reporting cadence

quarterly