Overview
- Applied Digital reported fiscal Q4 revenue of $258.7 million and adjusted EPS of $0.04, results published in late July that materially beat Street estimates.
- The company disclosed three 15‑year take‑or‑pay leases with a single investment‑grade hyperscaler covering about 810 MW and roughly $20 billion in contracted revenue.
- Applied Digital now has about 1.4 GW of contracted critical IT capacity across five campuses, representing roughly $36 billion in base‑term lease value.
- A large share of the quarter’s revenue—about $152.4 million—came from one‑time tenant fit‑out services, while GAAP net loss and deeply negative free cash flow reflect heavy ongoing capital spending.
- Management completed the ChronoScale spinoff while retaining roughly 96% ownership and closed more than $3 billion of secured note financings plus an expanded revolver, giving the firm capital to accelerate builds but increasing leverage and concentrating execution risk around construction, power procurement and a small number of tenants.