Applied Digital Corporation - Common Stock

Capex has accelerated significantly into FY2026, with property and equipment net increasing from $1.25 billion at May 31, 2025, to over $3.0 billion by February 28, 2026. (1 exceeded across 1 tracked commitment)

The company successfully energized its first 100 MW HPC data center (Building 2) for CoreWeave in November 2025, contributing to a significant revenue inflection. (2 met across 2 tracked commitments)

The company completed the Series E-1 offering and significantly expanded its capital raising through a new Series G Preferred Stock program. (1 exceeded, 1 in progress across 2 tracked commitments)

The company executed a 15-year lease agreement with a U.S. based investment grade hyperscaler for 200 MW of capacity at the Polaris Forge 2 campus. (1 met, 1 in progress across 2 tracked commitments)

The commitment from Macquarie Asset Management (MAM) was significantly upsized to $4.9 billion under the Amended and Restated Unit Purchase Agreement. (1 revised, 2 met across 3 tracked commitments)

The HPC Hosting segment is rapidly expanding as the primary growth engine, with revenue increasing from zero in the prior year to $71.0 million this quarter as the Polaris Forge 1 campus became operational. It now accounts for 56% of total revenue. (1 expanding across 1 engine)

Customer concentration remains extreme, with one customer accounting for 93% of revenue from continuing operations, up from 56% in the previous period. (2 shifted, 2 stable)

The segment revenue share decreased significantly as the company shifted from providing compute power to providing 'fit-out' services (preparing data centers for tenants). While revenue grew, the segment reported an operating loss compared to prior profitability. (1 shifted, 1 expanding across 1 engine)

The segment has been officially reclassified as a discontinued operation and is held for sale. It is no longer part of the company's continuing operations as management executes a strategic shift toward large-scale data center infrastructure. (1 exited, 1 contracting, 1 stable)

The segment has been reclassified as discontinued operations and is held for sale, representing a strategic exit from direct cloud computing services to focus on infrastructure hosting. (2 exited, 1 shifted)

The company has broken ground on its first 100 MW HPC facility in Ellendale and is planning a total of 400 MW capacity across three buildings at that campus. (1 new trend, 4 accelerating across 5 signals, 1 leading indicator)

While the HPC segment is being built out, the Cloud Services segment (AI/ML compute) has officially launched and begun generating revenue, showing a rapid ramp-up from zero. (5 accelerating across 5 signals)

While the massive $2.35B figure refers to total potential needs, the company successfully closed a $125 million CIM Promissory Note and a $160 million PIPE (Private Investment in Public Equity) involving NVIDIA, significantly de-risking near-term capex. (2 new trend, 3 accelerating across 5 signals)

The company has moved from identifying an anchor tenant to executing a Letter of Intent (LOI) for a massive 400 MW lease, doubling the previously noted traction size. (3 accelerating, 2 new trend across 5 signals)

The company is securing long-term power access, a critical moat in AI infrastructure, through a strategic investment in B&W to develop massive power generation capacity. (1 steady, 1 new trend across 2 signals, 2 leading indicators)

Exposure remains absolute for current revenue, as 100% of continuing operations revenue currently comes from the Data Center Hosting Business serving crypto miners. (1 stable, 1 easing)

Regulatory risk is intensifying. California passed the Transparency in Frontier Artificial Intelligence Act in September 2025, and the U.S. Energy Information Administration is increasing scrutiny on data center energy usage. (1 intensifying)

Cash outflow pressure is intensifying. Estimated interest on debt obligations is $102.7 million and preferred share dividends are $37.8 million through FY2030. (2 intensifying)

This risk is intensifying as the company issued more preferred stock and took on more debt. Preferred dividends for the six months ended Nov 2025 were $3.1 million compared to $0.7 million in the prior year, and interest obligations have ballooned. (1 intensifying)

Cost pressures are intensifying as interest expense rose 33% year-over-year and preferred dividend obligations increased from $44k to $1.57M following the issuance of Series E and G shares. (1 intensifying)