Applied Digital Corp. (APLD) AI Stock Summary
Fast-growing AI buildout, still unprofitable
Updated
Snapshot
Applied Digital is a fast-growing AI data center builder: FY 2026 revenue hit $611M, up 184% YoY, but the company lost $244M as it poured money into construction and SG&A ran 54% of revenue. Operating cash flow was actually positive at $90M. It holds $1.59B in cash against $5.1B in debt, a heavy debt load, backed by a $36B contracted lease backlog. The stock sits in the middle of its 52-week range.
What's Happening Right Now
- Fri 25th Sep '26 · Dilution: Applied Digital amended its shelf to register up to 53.1 million resale shares tied to convertible preferred stock and warrants, about 17.6% of shares outstanding, with a $34 conversion floor roughly 20% above the stock's recent price.
- Mon 7th Sep '26 · Analysis: A commentary piece noted that rent on Applied Digital's take-or-pay leases mostly doesn't begin until 2029, as buildings still need to be delivered.
- Tue 1st Sep '26 · Customer risk: Analysts flagged that $20B of the $36B contracted backlog is tied to a single hyperscaler customer, raising concentration risk for future revenue.
- Mon 17th Aug '26 · 10-K filing: Applied Digital's annual report disclosed one customer accounted for 59% of fiscal 2026 revenue and flagged prior material weaknesses in internal controls alongside its $36.2B contracted backlog.
- Mon 27th Jul '26 · Earnings: Fiscal Q4 2026 revenue surged 407% YoY to $258.7M, the company signed roughly $20B in new 15-year hyperscaler leases, closed $3.74B in senior secured notes, and spun off its cloud business into ChronoScale.
Bottom Line
Applied Digital is pouring enormous capital into building AI data centers, locking in a massive $36 billion backlog of future leases, but it remains deeply unprofitable today and has taken on heavy debt to fund the buildout. A large chunk of that backlog depends on a single customer, and the company recently registered more shares for resale tied to convertible preferred stock, adding dilution risk. This is a story about future promise, not current earnings.