Applied Digital Reports Q1 2027 Earnings with Strong Revenue Growth and Expansion Plans
Applied Digital posted a significant revenue increase in the first quarter of 2027, reporting $341.9 million compared to the prior year period due largely to growth in tenant fit-out services and high-performance computing rental income. Despite this, the company reported a net loss of $221.0 million driven by stock-based compensation expenses and noncash losses from investment fair value adjustments. Adjusted EBITDA rose sharply to $64.4 million as hosting operations scaled up. The firm highlighted its contracted revenue reaching $36 billion across five campuses with long-term leases, while also disclosing a cash balance of $2.9 billion plus restricted funds totaling $700 million. The company has ambitious expansion plans including 600 megawatts in near-term capacity and aims for up to 4 gigawatts by the end of calendar year 2030. However, management acknowledged challenges such as local moratoriums on data center developments and potential impacts from fluctuating interest rates. Applied Digital also secured a long-term power purchase agreement for 1,200 megawatts in North Dakota starting in 2030 and is exploring international expansion with up to one gigawatt of capacity planned in Finland. The company's financial strategy includes issuing senior notes due in 2031 to fund construction projects.
Topics: adjusted_revenue cash_balance debt ebitda net_loss revenue