Applied Digital Corporation Reports 139% Revenue Growth to $126.6 Million in Latest Quarter

Applied Digital Corporation reported significant financial growth in its latest quarterly results, with total revenue reaching $126.6 million for the three months ended February 28, 2026, a 139% increase from $52.9 million in the same period last year. For the nine months ended February 28, 2026, revenue was $352.6 million, up from $175.6 million in the prior year. The increase was primarily driven by the company's high-performance computing (HPC) hosting business, which generated approximately $71 million in the latest quarter, attributed to the full operation of its HPC data center at the Polaris Forge 1 campus.

Despite the revenue growth, Applied Digital reported an operating loss of $85.7 million for the latest quarter, compared to a loss of $18.9 million a year earlier. The increase in losses was largely due to a $59.7 million loss on the classification of the Cloud Services Business as held for sale, as well as a substantial rise in selling, general, and administrative expenses, which surged to $79.7 million from $22.7 million. This increase was driven by higher stock-based compensation and professional service expenses.

In terms of operational metrics, the company has made strategic moves, including the reclassification of its Cloud Services Business from discontinued operations to continuing operations following a proposed business combination with EKSO Bionics Holdings, Inc. This transaction, expected to close soon, will result in the Cloud Services Business becoming a wholly owned subsidiary of EKSO, which will be renamed ChronoScale. The reclassification reflects a shift in management's strategy, as the Cloud Services Business no longer meets the criteria for being classified as held for sale.

Applied Digital's total assets increased significantly to $6.25 billion as of February 28, 2026, compared to $1.87 billion at the end of the previous fiscal year. This growth was fueled by substantial investments in property and equipment, totaling $1.58 billion in the latest nine-month period. The company also reported a notable increase in cash and cash equivalents, which rose to $1.73 billion from $43.9 million, bolstered by financing activities including the issuance of senior secured notes and preferred stock.

Looking ahead, Applied Digital anticipates continued growth driven by its HPC hosting business and the operational ramp-up of its data centers. The company expects to leverage its strong liquidity position, with over $2.1 billion in cash and restricted cash, to support ongoing operations and capital expenditures. However, management remains cautious about potential regulatory changes affecting the AI and blockchain sectors, which could impact future operations.