Applied Digital Reports Q1 Fiscal 2027 Revenue Surge but Loss Widens

Applied Digital Corporation (APLD) reported mixed first-quarter fiscal 2027 results, as revenue surged 322% year over year to $341.9 million, easily topping market estimates of $134 million. However, the digital infrastructure developer reported a loss from continuing operations of $0.76 per share, compared to a loss of $0.07 per share in the prior-year period. Market expectations had called for a loss of $0.26 per share.

The company's bottom line was impacted by rising expenses across its business. Selling, general, and administrative costs climbed 289% to $114.7 million due to increased personnel costs, professional fees, and stock compensation. Meanwhile, interest expenses jumped 866% to $77.4 million as total debt reached $6.4 billion against $3.7 billion in cash and equivalents. Additionally, derivative and investment fair-value losses totaled nearly $61 million, driving the overall operating loss to $62.4 million despite an increase in adjusted EBITDA to $64.4 million.

Looking ahead, Applied Digital faces substantial capital requirements to fund its expansion in high-performance computing and artificial intelligence infrastructure. The business has secured around $36 billion in long-term contracted revenues across five campuses and plans to bring more than 600 megawatts of power into service over the next 12 months. Investors will be monitoring how efficiently the company builds out capacity and converts contract commitments into cash-generating operations while managing its heavy balance-sheet leverage.