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Applied Digital reported $341.9 million in revenue for Q1 fiscal 2027, up 322% year over year, alongside a $221.0 million net loss attributable to common stockholders. CEO Wes Cummins said the company expects to put more than 600 MW of capacity into service over the next 12 months; that is a management forecast, not capacity already delivered.
What Applied Digital reported in Q1 fiscal 2027
The quarter ended August 31, 2026, and the company published results on October 7, 2026. The figures below are Applied Digital’s reported results, not independent estimates. Applied Digital investor relations provides the latest results and company materials; the Q1 fiscal 2027 earnings release is the primary source for the figures.
| Measure | Q1 fiscal 2027 |
|---|---|
| Revenue | $341.9 million, up 322% from the comparable prior-year quarter |
| Net loss attributable to common stockholders | $221.0 million |
| Loss per basic and diluted share | $0.76 |
| Adjusted EBITDA (non-GAAP) | $64.4 million; excludes ChronoScale |
| Net operating income (non-GAAP) | $58.8 million; excludes ChronoScale |
The earnings release consolidates ChronoScale in its GAAP results but excludes it from the specified non-GAAP measures. The figures therefore use different reporting bases and should not be treated as directly interchangeable.
What drove revenue growth
Services revenue included tenant fit-outs
Services revenue was $262.8 million, compared with $80.9 million in the year-earlier quarter. Applied Digital attributed much of the increase to approximately $157.2 million in tenant fit-out services and $23.0 million in ChronoScale-related GPU hardware sales. Fit-out work and hardware sales are not the same as recurring data-center rent, so the 322% total-revenue increase should not be read as a like-for-like increase in recurring rental revenue.
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Rental and other revenue
Data-center rental and other revenue was $79.1 million: $65.8 million of base rent and $13.3 million of tenant recoveries. The release reports these as separate components, making the distinction between rent and service-related activity important when assessing the quarter’s revenue mix.
Why the GAAP loss differs from adjusted operating measures
The $221.0 million net loss attributable to common stockholders is the reported GAAP bottom line. The company also reported $114.7 million in selling, general and administrative expenses, including substantial stock-based compensation, and $77.4 million in interest expense. Other reported fair-value items included a $49.5 million loss on derivatives and an $11.4 million loss on an investment.
Adjusted EBITDA of $64.4 million and net operating income of $58.8 million are non-GAAP measures, and the specified figures exclude ChronoScale. They offer a different view of operations, but they do not erase the GAAP loss, interest costs, stock-based compensation, or fair-value movements. Readers comparing periods or companies should check both the accounting basis and which businesses are included.
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What CEO Wes Cummins said about growth and capacity
On the October 7, 2026 earnings call, Wes Cummins, Applied Digital’s Founder, CEO and Chairman, described the company’s focus as converting contracted capacity into profitable growth while executing construction, expanding existing campuses, and pursuing long-term hyperscaler leases. The published Benzinga earnings-call transcript records his outlook:
“Over the next 12 months we expect to place over 600 megawatts into service versus the 250 megawatts over the past 12 months.”
This is management’s expectation, not a report that 600 MW has already entered service. Delivery depends on execution, development progress, and power supply. Cummins also said the company expected approximately 250 MW of expansion leases to be executed by calendar year-end, at materially higher pricing than prior leases. That, too, was a forward-looking expectation.
He described a long-term power purchase agreement for an approximately 1,200 MW North Dakota facility, with power deliveries expected to begin in 2030. The long lead time underscores why contracted capacity, construction progress, available power, and recognized revenue are distinct milestones rather than interchangeable measures of current operating scale.
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Leases and live capacity
Applied Digital said it signed a 210 MW, 15-year lease at Delta Forge 2, representing approximately $5.2 billion of base-term contracted revenue. Contracted revenue over a lease term is not revenue recognized in the quarter.
At Polaris Forge 1, Phase 1 of Building 2 (75 MW) was ready for service on July 1, 2026. The company reported 175 MW of live campus capacity in its quarter-period highlights. After quarter-end, it said the second 75 MW phase was ready for service, bringing live capacity there to 250 MW. Those dates matter: the latter milestone occurred after the quarter ended.
Debt and compute deployment
The company reported issuing $1.59 billion of 7.000% senior secured notes due 2031. It said proceeds would fund construction of a third 150 MW building at Polaris Forge 1 and repay a $300 million bridge facility. The reported $77.4 million of quarterly interest expense is relevant context for evaluating growth financed through debt.
ChronoScale also announced plans for a 50 MW North American AI compute deployment with Microsoft, using NVIDIA GB300 NVL72 systems and liquid cooling. This is a deployment plan, not a figure for revenue recognized in Q1.
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What to watch when interpreting the results
- GAAP versus adjusted: Compare the $221.0 million GAAP net loss with non-GAAP measures only after accounting for ChronoScale’s exclusion from the specified adjusted figures.
- Revenue mix: Separate tenant fit-outs and GPU hardware sales from base rent and tenant recoveries; the quarter’s growth includes substantial non-rental services activity.
- Contracted versus delivered: Lease capacity and base-term contracted revenue describe commitments, while live capacity and recognized revenue reflect different stages of delivery.
- Execution constraints: Cummins identified power availability as the industry’s largest gating factor and also discussed permitting, zoning, local moratoriums, and community resistance as development conditions. These are management’s views.
- Financing and losses: Consider interest expense, debt obligations, stock-based compensation, and fair-value changes alongside operating measures.
The central question for subsequent quarters is whether Applied Digital can turn contracted projects and announced capacity into delivered, powered facilities and recurring revenue while managing construction and financing costs. The company’s capacity and lease statements are forward-looking, not guarantees of future results.
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