Applied Digital sales quadruple, but rent is a fifth and losses deepen

APLD · Published October 8, 2026 · Filing dated October 7, 2026 · Open the filing ↗

Summary

Applied Digital's sales rose 322% to $341.9 million last quarter. Of that, $183.5 million was building work billed back to tenants, while base rent, the lasting income, was $65.8 million, about a fifth. [C1] Exhibit 99.1, financial highlightsRevenues: $341.9 million, up 322% from the prior year comparable periodApplied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C2] Exhibit 99.1, HPC Hosting updateRevenue from our HPC Hosting business totaled $262.6 million for the quarter, including $65.8 million related to base rent, $183.5 million related to tenant fit-out services, and $13.3 million related to tenant recoveries.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm The building work earns little. The high-performance computing unit, which leases to tenants, booked $183.5 million of service sales against $176.1 million of service costs. Rent is the real prize, yet only 250 of the 1,410 leased megawatts were running after October 1. [C52] Note 19, segment table (Data Center Hosting Business, then HPC Hosting Business)Services and other revenue $37,755 $183,518 Data center rental and other revenue - 79,120 Total segment revenue 37,755 262,638 Costs and expenses: Services and other cost of revenue 23,978 176,100Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C15] Exhibit 99.1, management commentaryOn October 1, 2026, the Company achieved Ready for Service for the second 75 MW phase of Building 2 at Polaris Forge 1, bringing fully operational critical IT load at the campus to 250 MW across two buildings and 10 data halls. The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C55] Note 17, LeasesFollowing the signing of this lease, our aggregate contracted critical IT load is 1,410 MW.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm To build the rest, the company spends far more than it earns. In the quarter it spent $2.07 billion on buildings while operations brought in $63.9 million. It owes $6.72 billion of debt principal, carried at $6.4 billion on its books. [C11] Exhibit 99.1, cash flow statementPurchases of property and equipment and other assets (2,074,698) (249,914)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C10] Exhibit 99.1, cash flow statementCASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES 63,921 (81,531)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C31] MD&A, contractual obligations tableDebt obligations (1) $6,721,605 $108,739 $221,545 $341,453 $354,294 $4,256,666 $1,438,908Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C12] Exhibit 99.1, balance sheet summaryAs of August 31, 2026, the Company had $3.7 billion in cash, cash equivalents, and restricted cash, along with $6.4 billion in debt.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm The company aims to have 300 megawatts running by the end of 2026. A planned power plant partly owned by its leaders needs financing by March 31, 2027, or the plant's owner can cancel its power deal. [C15] Exhibit 99.1, management commentaryOn October 1, 2026, the Company achieved Ready for Service for the second 75 MW phase of Building 2 at Polaris Forge 1, bringing fully operational critical IT load at the campus to 250 MW across two buildings and 10 data halls. The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C48] Part II, Item 5, Other InformationIt is owned and managed by certain officers and directors of the Company, including Messrs. Cummins and Zhang and Dr. Nottenburg, acting in their individual capacities, as well as numerous third parties. In addition, Messrs. Cummins and Zhang serve as the Chief Executive Officer, and President and Secretary of Base Electron, respectively.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

From crypto host to landlord for artificial intelligence

Applied Digital started out renting powered space to crypto miners in North Dakota. That business brought in $37.8 million this quarter, about flat with a year ago. Its last annual report said its one crypto customer had a year and a half left on its deal. [C20] Exhibit 99.1, Data Center Hosting updateDuring the three months ended August 31, 2026, the Company generated $37.8 million in revenue from the Data Center Hosting Business segment, compared to $37.9 million during the three months ended August 31, 2025.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C64] 10-K, Item 1, CustomersWe currently serve one crypto mining customer with a remaining contract term of one and a half years.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm Its growth business builds huge data center buildings and leases them for about 15 years. CoreWeave rents the first campus, Polaris Forge 1. Large cloud firms with strong credit rent the other four. [C76] 10-K, Item 1, CustomersWe currently have three customers in this business segment, each of which is party to approximately fifteen-year leases with us.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C14] Exhibit 99.1, HPC Hosting updatePolaris Forge 1 is leased to CoreWeave, Polaris Forge 2 to an investment-grade hyperscaler, and Delta Forge 1, Polaris Forge 3, and Delta Forge 2 to a tier-one investment-grade hyperscaler.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm One customer made up 56% of sales this quarter. [C51] Note 5, Revenue concentrationCustomer A 56% 32% Customer B 21% -% Customer C 11% 47%Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

On October 6, the stock closed at about $25.37, the latest close in our data. At that price, its 302.4 million shares were worth about $7.7 billion. [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [C29] 10-Q cover pageAs of October 6, 2026, 302,387,140 shares of common stock, $0.001 par value, were outstanding.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm In the year to May 2026, it made $107.2 million of adjusted EBITDA. That measure counts profit before interest, taxes and wear on its assets. [C65] 10-K, MD&A, non-GAAP reconciliationAdjusted EBITDA (Non-GAAP) $107,229 $19,628 $21,922Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C8] Exhibit 99.1, EBITDA definitionis defined as earnings before interest expense, interest income, income tax expense, and depreciation and amortization and excluding results of ChronoScale.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm It also leaves out stock pay, investment gains and losses, and its ChronoScale cloud unit. [C9] Exhibit 99.1, Adjusted EBITDA definitionis defined as EBITDA adjusted for stock-based compensation, non-cash amortization of customer lease incentives, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, loss on change in fair value of derivatives, loss on change in fair value of investmentsApplied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Its rivals include Digital Realty, Equinix and tech giants that build their own sites. Former bitcoin miners such as IREN and Cipher Digital also compete. [C63] 10-K, Item 1, CompetitionWe compete with established data center owners and operators, including Digital Realty Trust, Inc. and Equinix, Inc., as well as hyperscalers that develop their own capacity, independent and private data center developers, and other power-advantaged developers, including companies that have expanded from blockchain hosting into HPC infrastructure, such as IREN Limited, Cipher Digital Inc., TeraWulf Inc.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm

The company pays for its buildings mostly with borrowed and outside money. Its units have sold secured notes, which are bonds backed by a claim on the buildings. They pay 9.25%, 6.75% and 7%. [C33] Note 9, Debt table2030 9.250% Senior Secured Notes (1) 9.25% December 2030 $2,350,000 $2,350,000 2031 6.750% Senior Secured Notes (2) 6.75% March 2031 2,150,000 2,150,000 2031 7.000% Senior Secured Notes 7.00% June 2031 1,590,000 -Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C95] Note 9, 7.000% Senior Secured Notes due 2031by first-priority liens on substantially all of the assets of APLD ComputeCo 3 and the subsidiary guarantorsApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The newest batch was $1.59 billion of the 7% notes. [C18] Exhibit 99.1, recent highlightsClosed $1.59 billion of 7.000% Senior Secured Notes due 2031, issued at par through subsidiary APLD ComputeCo 3 LLC, to fund construction of the third HPC building (150 MW) at Polaris Forge 1 and to repay the $300 million bridge facility.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm The company also sells Series G preferred stock, a special share that buyers later turn into common shares. The conversion price is the greater of two numbers. One is 95% of the lowest daily average price over the prior five trading days, and the other is a floor price. [C70] Post-effective amendment, Series G conversion pricewill equal the greater of (i) 95% of the lowest daily Volume Weighted Average Price for each of the five trading days immediately preceding the conversion dateApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm The floor started at $34.00, but the board may lower it at its sole discretion to as little as $4.48. [C91] Post-effective amendment, Series G floor pricethe initial floor price of $34.00, which may be reduced by the Company at any time in its sole discretionApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [C92] Post-effective amendment, Series G floor pricebut in no event shall the Floor Price be adjusted below $4.48Applied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm

Base Electron is a power company founded by the Applied Digital team. Babcock & Wilcox has a $2.4 billion contract to build it a 1.2 gigawatt plant. [W01] Babcock & Wilcox release, About Base ElectronBase Electron Corp. is a newly formed independent power producer that was founded by the team at Applied Digital for the purpose of developing dedicated, reliable generation intended to support Applied Digital’s long-term campus strategybusinesswire.com · Read October 8, 2026Open source ↗https://www.businesswire.com/news/home/20260304559255/en/Babcock-Wilcox-Receives-Full-Notice-to-Proceed-on-%242.4-Billion-Power-Generation-Project-for-Base-Electron-to-Supply-Power-to-Applied-Digital-AI-Factory-Campuses [W02] Babcock & Wilcox release, first paragraphreceived full notice to proceed on a $2.4 billion design-build agreement with Base Electron, an independent power producer (“IPP”) backed by Applied Digital (NASDAQ: APLD), to deliver 1.2 gigawatts (GW) of new generation capacity.businesswire.com · Read October 8, 2026Open source ↗https://www.businesswire.com/news/home/20260304559255/en/Babcock-Wilcox-Receives-Full-Notice-to-Proceed-on-%242.4-Billion-Power-Generation-Project-for-Base-Electron-to-Supply-Power-to-Applied-Digital-AI-Factory-Campuses Applied Digital owns about 10% of Base Electron, and it also holds Babcock & Wilcox warrants and stock. [C19] Exhibit 99.1, management commentaryBase Electron Corp., an independent power producer in which Applied Digital holds an approximately 10% equity interest, is developing front-of-the-meter generation that could add multiple gigawatts of new power in the Dakotas over time.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C4] Exhibit 99.1, operating resultsLoss on the change in fair value of derivatives was $49.5 million for the three months ended August 31, 2026, due to a decrease of $56.1 million in the fair value of our Babcock & Wilcox Enterprises, Inc.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C5] Exhibit 99.1, operating resultsLoss on change in fair value of investment was $11.4 million for the three months ended August 31, 2026, due to a decrease in fair value of our investment in B&W common stock.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm

The stock closed at $47.28 on May 29, 2026, the last trading day of the fiscal year. At about $25.37 on October 6, it was about 46% lower. [C109] Proxy statement, potential payments table footnotebased upon the closing price of our common stock of $47.28 on May 29, 2026, the last trading day of Fiscal Year 2026Applied Digital definitive proxy statement for the 2026 annual meeting, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044325/formdef14a.htm [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ In recent weeks it rose from about $23.42 on September 15 to $28.54 on September 22, then slid back. Over that span it gained about 8.3%. A fund that tracks the broad stock market gained about 2.9%. [P01] IEX closing pricesAPLD closed at $23.415 on September 15, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P02] IEX closing pricesAPLD closed at $28.54 on September 22, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P04] IEX closing pricesSPY closed at $757.66 on September 15, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P05] IEX closing pricesSPY closed at $779.26 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ Among peers, IREN slipped about 0.4% and Cipher Digital rose about 1.8%. CoreWeave rose about 13.2%. The results came out after the market closed on October 7. [P06] IEX closing pricesIREN closed at $41.595 on September 15, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P07] IEX closing pricesIREN closed at $41.42 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P08] IEX closing pricesCIFR closed at $15.22 on September 15, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P09] IEX closing pricesCIFR closed at $15.5 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P10] IEX closing pricesCRWV closed at $80.85 on September 15, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [P11] IEX closing pricesCRWV closed at $91.51 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [W03] Applied Digital release setting the results callA press release detailing these results will be issued after the market closes on the same day.globenewswire.com · Read October 8, 2026Open source ↗https://www.globenewswire.com/news-release/2026/09/28/3370253/0/en/applied-digital-sets-fiscal-first-quarter-2027-conference-call-for-wednesday-october-7-2026-at-5-00-p-m-eastern-time.html

Growth paid for with debt and new shares

Rent is the part that lasts, and it is growing. The second half of Building 2 went live on October 1, bringing Polaris Forge 1 to 250 megawatts. That is still only about 18% of the 1,410 megawatts under lease. [C15] Exhibit 99.1, management commentaryOn October 1, 2026, the Company achieved Ready for Service for the second 75 MW phase of Building 2 at Polaris Forge 1, bringing fully operational critical IT load at the campus to 250 MW across two buildings and 10 data halls. The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C55] Note 17, LeasesFollowing the signing of this lease, our aggregate contracted critical IT load is 1,410 MW.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Minimum lease payments for the rest of this fiscal year, which ends in May 2027, are $468 million. That is about $156 million a quarter, against $65.8 million of base rent this quarter. The filings give no forecast for building-work revenue. [C50] Note 17, Leases, minimum contracted paymentsMinimum Contracted Payments FY27 $467,961 FY28 1,579,517 FY29 2,360,558 FY30 2,371,420 FY31 2,371,420 Thereafter 26,580,159 Total $35,731,035Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C2] Exhibit 99.1, HPC Hosting updateRevenue from our HPC Hosting business totaled $262.6 million for the quarter, including $65.8 million related to base rent, $183.5 million related to tenant fit-out services, and $13.3 million related to tenant recoveries.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Payments rise to $1.58 billion the next year and $2.36 billion the year after. Over the leases' first terms, the company counts about $36 billion of revenue. [C50] Note 17, Leases, minimum contracted paymentsMinimum Contracted Payments FY27 $467,961 FY28 1,579,517 FY29 2,360,558 FY30 2,371,420 FY31 2,371,420 Thereafter 26,580,159 Total $35,731,035Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C13] Exhibit 99.1, HPC Hosting updateThose leases represent approximately $36 billion of contracted revenue over their initial base terms, or approximately $86 billion if all renewal options are exercised.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm

Of the $237.1 million loss, $221.0 million came from continuing operations. The other $16.1 million came from the Ekso business being sold. The reported loss mixes cash costs with paper ones. [C27] Exhibit 99.1, statement of operationsNet loss attributable to common stockholders Continuing operations $ (221,028) $ (18,502) Discontinued operations (16,054) - Net loss attributable to common stockholders $ (237,082) $ (18,502)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C78] Exhibit 99.1, operating resultsNet loss from discontinued operations was $16.1 million for the three months ended August 31, 2026 and represents the income statement activity related to the Ekso business at ChronoScale which is classified as held for sale and discontinued operations.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm A $49.5 million loss came mainly from Babcock & Wilcox warrants, whose value fell from $90.8 million to $34.7 million. That company's stock dropped from $18.45 to $7.54 in the quarter. Babcock & Wilcox shares lost $11.4 million more. [C4] Exhibit 99.1, operating resultsLoss on the change in fair value of derivatives was $49.5 million for the three months ended August 31, 2026, due to a decrease of $56.1 million in the fair value of our Babcock & Wilcox Enterprises, Inc.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C114] Note 8, Fair Value Measurements tableB&W warrants Level 3 34,727 90,793Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C100] Note 11, B&W warrant valuation inputsStock price $7.54 $18.45Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C5] Exhibit 99.1, operating resultsLoss on change in fair value of investment was $11.4 million for the three months ended August 31, 2026, due to a decrease in fair value of our investment in B&W common stock.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Stock pay was $59.4 million, up from $14.4 million, driven by performance awards and hiring. Interest expense jumped to $77.4 million as debt grew. [C21] Exhibit 99.1, non-GAAP reconciliation tableStock-based compensation (1) 59,391 14,446Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C22] Exhibit 99.1, operating resultsThis increase was primarily due to increases of $51.7 million in stock based compensation due to performance awards and the increase in headcountApplied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C16] Exhibit 99.1, operating resultsInterest expense increased $69.4 million, or 866%, from $8.0 million for the three months ended August 31, 2025, to $77.4 million for the three months ended August 31, 2026 due to an increase in debt arrangements between the periods.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Adjusted EBITDA leaves out stock pay, the investment losses and the ChronoScale unit, and it came to $64.4 million. Base rent alone earned an 89% margin after property costs, or $58.8 million. [C9] Exhibit 99.1, Adjusted EBITDA definitionis defined as EBITDA adjusted for stock-based compensation, non-cash amortization of customer lease incentives, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, loss on change in fair value of derivatives, loss on change in fair value of investmentsApplied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C7] Exhibit 99.1, operating resultsAdjusted EBITDA, a non-GAAP financial measure, was $64.4 million for the fiscal first quarter 2027 compared to an Adjusted EBITDA of $0.5 million for the fiscal first quarter 2026.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C106] Exhibit 99.1, Net Operating Income reconciliationNet Operating Income (Non-GAAP) $58,829 $ - Net Operating Income margin 89% -%Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C111] Exhibit 99.1, Net Operating Income definitionNet Operating Income is HPC Hosting Business base rental revenue, excluding the non-cash amortization of one-time customer lease incentives provided at contract inception, less rental property operating expenses, property taxes, and property insurance expenses.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm

Cash flow tells the harder story. Operations brought in $63.9 million, but the company spent $2.07 billion on buildings, a gap of about $2.0 billion. [C10] Exhibit 99.1, cash flow statementCASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES 63,921 (81,531)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C11] Exhibit 99.1, cash flow statementPurchases of property and equipment and other assets (2,074,698) (249,914)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Cash interest paid was $242.9 million. That is far more than the $77.4 million expensed plus the $35.7 million added to building costs, and the filings do not explain the gap. The company's own table puts contractual interest at $326.5 million for the rest of this fiscal year and $490.0 million next year. [C17] Exhibit 99.1, cash flow supplemental disclosureInterest paid $242,852 $9,039Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C16] Exhibit 99.1, operating resultsInterest expense increased $69.4 million, or 866%, from $8.0 million for the three months ended August 31, 2025, to $77.4 million for the three months ended August 31, 2026 due to an increase in debt arrangements between the periods.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C53] Note 4, capitalized interestCapitalized interest costs were $35.7 million and $8.7 million for the three months ended August 31, 2026 and August 31, 2025, respectively.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C32] MD&A, contractual obligations tableInterest on debt obligations (2) 2,156,434 326,507 490,014 464,054 437,126 391,956 46,777Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Debt principal was $6.72 billion, while the books carry it at $6.4 billion after fees. Cash was $3.68 billion, and $728.0 million of that is restricted, meaning it can only be used for set purposes. So net debt, which is debt minus cash, was about $3.0 billion. [C31] MD&A, contractual obligations tableDebt obligations (1) $6,721,605 $108,739 $221,545 $341,453 $354,294 $4,256,666 $1,438,908Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C12] Exhibit 99.1, balance sheet summaryAs of August 31, 2026, the Company had $3.7 billion in cash, cash equivalents, and restricted cash, along with $6.4 billion in debt.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C112] Note 9, Debt tableDeferred financing costs, net of amortization (345,013) (330,742)Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C23] Exhibit 99.1, cash flow statementCASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUED OPERATIONS $3,677,943 $114,109Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C30] MD&A, Sources of LiquidityAs of August 31, 2026, we had unrestricted cash and cash equivalents of $2.9 billion and restricted cash of $728.0 million.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm That is about 18 times adjusted EBITDA for the last 12 months, and about 12 times this quarter's pace. Interest expense was bigger than adjusted EBITDA, which covered it only about 0.8 times. [C31] MD&A, contractual obligations tableDebt obligations (1) $6,721,605 $108,739 $221,545 $341,453 $354,294 $4,256,666 $1,438,908Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C23] Exhibit 99.1, cash flow statementCASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUED OPERATIONS $3,677,943 $114,109Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C65] 10-K, MD&A, non-GAAP reconciliationAdjusted EBITDA (Non-GAAP) $107,229 $19,628 $21,922Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C6] Exhibit 99.1, non-GAAP reconciliation tableAdjusted EBITDA (Non-GAAP) $64,412 $537Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C7] Exhibit 99.1, operating resultsAdjusted EBITDA, a non-GAAP financial measure, was $64.4 million for the fiscal first quarter 2027 compared to an Adjusted EBITDA of $0.5 million for the fiscal first quarter 2026.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C16] Exhibit 99.1, operating resultsInterest expense increased $69.4 million, or 866%, from $8.0 million for the three months ended August 31, 2025, to $77.4 million for the three months ended August 31, 2026 due to an increase in debt arrangements between the periods.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm

Most of the debt sits in project units, not at the parent. For the 7% notes, the parent only promised that the building will be finished. [C34] Note 9, 7.000% Senior Secured Notes due 2031Other than the completion guarantee, the Company is not a guarantor of any obligations under the 2031 7.000% Notes.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm About 99% of the unrestricted cash, $2.91 billion of $2.95 billion, sits in TopCo 2, the North Dakota unit that Macquarie helps fund. The filing calls TopCo 2 bankruptcy-remote. That means it is legally walled off and holds its own assets, so its cash serves its own projects first. [C39] Note 12, TopCo 2 assets tableAssets: Cash and cash equivalents $2,909,372 Restricted cash 510,963Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C24] Exhibit 99.1, balance sheetCash and cash equivalents $2,949,909 $1,591,988Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C40] Note 12, Variable Interest EntitiesTopCo 2 is a bankruptcy-remote legal entity with separate assets and liabilities.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm But its creditors can still make claims against the parent's general credit. The filings do not say how much of that cash the parent could use for Delta Forge 1 or Delta Forge 2. [C90] Note 12, Variable Interest EntitiesThe creditors of TopCo 2 have recourse to the Company's generalApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The big repayments come late, with $4.26 billion due in the year to May 2031. The credit line is $430.0 million. [C31] MD&A, contractual obligations tableDebt obligations (1) $6,721,605 $108,739 $221,545 $341,453 $354,294 $4,256,666 $1,438,908Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C61] Note 9, revolving credit facility upsizeOn June 26, 2026, the commitments under the 2026 Revolving Credit Facility were increased by $80.0 million, from $350.0 million to $430.0 million.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Of that, $82.4 million was drawn and $241.0 million backed letters of credit. Those are bank promises to pay others if the company does not. That left about $106.6 million unused. [C60] Note 9, revolving credit facilityAs of August 31, 2026, approximately $82.4 million was drawn under the 2026 Revolving Credit Facility and approximately $241.0 million of standby letters of credit were outstanding under the 2026 Revolving Credit Facility.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C61] Note 9, revolving credit facility upsizeOn June 26, 2026, the commitments under the 2026 Revolving Credit Facility were increased by $80.0 million, from $350.0 million to $430.0 million.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm One bank loan needs the stock market value to stay above $2.0 billion, and the company met all its loan tests at August 31. [C35] Note 9, Texas Capital loanrequires the Company's market capitalization to remain above $2.0 billion as of the close of any trading dayApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C36] Note 9, covenant complianceThe Company was in compliance with the applicable financial covenants under all outstanding debt arrangements as of August 31, 2026.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Management says its cash, cash from operations, existing debt facilities and access to capital markets will be enough for at least the next twelve months. In other words, the plan assumes the company can keep selling new debt and stock. [C54] MD&A, Sources of LiquidityWe believe that existing cash balances, cash flows from operations, existing debt facilities, and access to capital markets will provide sufficient liquidity to meet our debt obligations, including any repayment of debt or refinancing of debt, working capital needs, planned capital expenditures, and other contractual obligations, for at least the next twelve months.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

Each big funding deal had two sides. Macquarie's funds paid about $1.8 billion into TopCo 2. In return they got preferred units, which are paid before common owners. [C37] Note 12, Variable Interest Entitiesissuing 1,825,000 preferred units and 144,593 corresponding common units for proceeds of approximately $1.8 billion to MIP HPC Holdings, LLCApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm They also got 13.5% of the unit's common equity and warrants for 2.4 million Applied Digital shares. [C66] 10-K, Note 12, Variable Interest EntitiesMIP HPC Holdings, LLC holdings to 13.5% of TopCo 2's fully diluted common equity.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C86] Note 12, Variable Interest Entitieson October 6, 2025, the Company issued warrants to purchase an aggregate of 2.4 million shares of the Company's common stockApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The preferred units earn a 12.75% yearly dividend that compounds and can rise in steps to as much as 16.75%. The dividend can be paid in extra units instead of cash. [C80] 10-K, Note 16, Redeemable Noncontrolling InterestThe preferred units accrue dividends at a rate of 12.75% per annum, which accrue daily and compound semi-annually, and which, if not redeemed by then, will increase by 87.5 basis points on each of October 7, 2030 and October 7, 2031, and by 200 basis points on October 7, 2035 and each one-year anniversary thereof, up to a maximum rate of 16.75%.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C82] 10-K, Note 16, Redeemable Noncontrolling Interestthe dividends are payable (i) from the initial closing through October 6, 2035, at TopCo 2's election, either in cash or in kindApplied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm The units also carry a minimum payout of 1.80 times the money invested. That is paid before Applied Digital's common holders get anything from that unit. [C83] 10-K, Note 16, Redeemable Noncontrolling InterestAdditionally, the preferred units carry a minimum 1.80 x multiple of invested capital liquidation preference, inclusive of the value of the common unitsApplied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm Macquarie can redeem the units after April 6, 2028. It can force a sale of TopCo 2 if they are still outstanding on October 6, 2032. [C84] 10-K, Note 16, Redeemable Noncontrolling InterestThe preferred units and the common units are redeemable after April 6, 2028Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C85] 10-K, Note 16, Redeemable Noncontrolling InterestIf the preferred units and common units are outstanding on October 6, 2032, or if certain trigger events occurs and are not cured within specified time periods, MIP HPC Holdings, LLC may require TopCo 2 to commence a customary marketed sale processApplied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm The dividend can also rise by however much the weighted all-in rate on certain debt exceeds 8.75% a year. The 2030 notes pay 9.25%. The filings do not say whether the step-up applies now or what rate is accruing. [C81] 10-K, Note 16, Redeemable Noncontrolling InterestThe dividend rate will be further increased (i) by the amount that the weighted average all-in annual interest rate on certain indebtedness exceeds 8.75% per annum for so long as such indebtedness is outstandingApplied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C33] Note 9, Debt table2030 9.250% Senior Secured Notes (1) 9.25% December 2030 $2,350,000 $2,350,000 2031 6.750% Senior Secured Notes (2) 6.75% March 2031 2,150,000 2,150,000 2031 7.000% Senior Secured Notes 7.00% June 2031 1,590,000 -Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Macquarie's stake was carried at $2.01 billion, up from $1.96 billion. This quarter it earned $60.1 million of dividends paid in extra units. And $51.5 million was charged against earnings ahead of common holders. [C87] Exhibit 99.1, balance sheet, temporary equityRedeemable noncontrolling interest 2,010,873 1,956,303Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C38] Note 16, Redeemable Noncontrolling InterestThe carrying value of the redeemable noncontrolling interest was $2.0 billion and $2.0 billion as of August 31, 2026 and May 31, 2026, respectively. The change in redeemable noncontrolling interest consists of $60.1 million of preferred stock dividends paid in-kindApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C88] Exhibit 99.1, statement of operationsNet loss attributable to noncontrolling interest and redeemable noncontrolling interest (51,484) -Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm For the 7% notes, buyers paid $1.59 billion at full face value. In return they get 7% interest and a first claim on the borrowing unit's assets. Principal repayments start at 2.70% of the original amount a year, and the parent promised to finish the building. [C18] Exhibit 99.1, recent highlightsClosed $1.59 billion of 7.000% Senior Secured Notes due 2031, issued at par through subsidiary APLD ComputeCo 3 LLC, to fund construction of the third HPC building (150 MW) at Polaris Forge 1 and to repay the $300 million bridge facility.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C95] Note 9, 7.000% Senior Secured Notes due 2031by first-priority liens on substantially all of the assets of APLD ComputeCo 3 and the subsidiary guarantorsApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C94] Note 9, 7.000% Senior Secured Notes due 2031The initial annual amortization amount will equal 2.70% of the original aggregate principal amount of the 2031 7.000% NotesApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C34] Note 9, 7.000% Senior Secured Notes due 2031Other than the completion guarantee, the Company is not a guarantor of any obligations under the 2031 7.000% Notes.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

Common holders also face more shares. Stock awards, warrants and convertible notes could add about 89.4 million shares. Convertible notes are loans that can turn into stock. [C41] Note 20, Loss Per Sharethe Company had approximately 15.2 million and 14.4 million shares, respectively, of granted but unvested performance stock units and restricted stock unitsApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C42] Note 20, Loss Per Sharethe Company had approximately 28.1 million and 25.5 million warrants outstanding as of August 31, 2026 and August 31, 2025Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C43] Note 20, Loss Per Shareif the Company's Convertible Notes were converted into shares of the Company's common stock as of August 31, 2026, approximately 46.1 million shares were excludedApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm That is about 30% on top of the 302.4 million now out. The count already rose by about 14.5 million since May 31. [C41] Note 20, Loss Per Sharethe Company had approximately 15.2 million and 14.4 million shares, respectively, of granted but unvested performance stock units and restricted stock unitsApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C42] Note 20, Loss Per Sharethe Company had approximately 28.1 million and 25.5 million warrants outstanding as of August 31, 2026 and August 31, 2025Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C43] Note 20, Loss Per Shareif the Company's Convertible Notes were converted into shares of the Company's common stock as of August 31, 2026, approximately 46.1 million shares were excludedApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C29] 10-Q cover pageAs of October 6, 2026, 302,387,140 shares of common stock, $0.001 par value, were outstanding.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C25] Exhibit 99.1, balance sheet, common stock line295,048,903 shares issued and 287,883,603 shares outstanding at May 31, 2026Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Series G works like a credit line that is paid back in stock. The company sold $275.0 million of it this quarter. After the quarter, the last 128,750 preferred shares became 5.2 million common shares. [C44] MD&A, Recent Financing ActivitiesDuring the three months ended August 31, 2026, the Company issued and sold 283,250 shares of Series G Preferred Stock for gross proceeds of $275.0 million.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C45] Note 21, Subsequent EventsSubsequent to the quarter, 128,750 shares of Series G Preferred Stock were converted into an aggregate of 5.2 million shares of the Company's common stock.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm That works out to about $24.76 a share, below the $34.00 starting floor. So the board has lowered the floor, which can go as low as $4.48. [C45] Note 21, Subsequent EventsSubsequent to the quarter, 128,750 shares of Series G Preferred Stock were converted into an aggregate of 5.2 million shares of the Company's common stock.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C72] Post-effective amendment, Series G redemption terms110% of $1,000, the stated value of such Series G Preferred StockApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [C91] Post-effective amendment, Series G floor pricethe initial floor price of $34.00, which may be reduced by the Company at any time in its sole discretionApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [C92] Post-effective amendment, Series G floor pricebut in no event shall the Floor Price be adjusted below $4.48Applied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm By September 25, about $1.2 billion of Series G had already turned into about 60.6 million shares. [C68] Post-effective amendment, Private PlacementsAs of the date of this prospectus, 1,197,050 shares of Series G Preferred Stock were converted into approximately 60.6 million shares of the Company's common stock.Applied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [C72] Post-effective amendment, Series G redemption terms110% of $1,000, the stated value of such Series G Preferred StockApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm As of September 25, the company said $835.0 million of Series G could still be issued under the $2 billion line. At the $34.00 floor that would be 24.6 million common shares, the filing's own example. [C93] Post-effective amendment, Series G remaining capacitythe $835.0 million of shares of Series G Preferred Stock that remain issuable pursuant to the Sixth Amendment would be convertible into an aggregate of 24,558,823 shares of common stockApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [C69] Post-effective amendment, Private PlacementsThe Sixth Amendment amended the PEPA to increase the aggregate commitment amount of the shares of Series G Preferred Stock from $1.590 billion to $2 billion.Applied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm At about $25 a share it would be about 33 million, or about 11% more shares. The filings do not say whether more sales are planned. [C93] Post-effective amendment, Series G remaining capacitythe $835.0 million of shares of Series G Preferred Stock that remain issuable pursuant to the Sixth Amendment would be convertible into an aggregate of 24,558,823 shares of common stockApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [C29] 10-Q cover pageAs of October 6, 2026, 302,387,140 shares of common stock, $0.001 par value, were outstanding.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Warrants average an $8.61 exercise price, far below the stock. [C77] Note 14, Warrants tableOutstanding at August 31, 2026 28,091,029 $8.61 7.60Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/

Counting all claims, the business is valued well above the stock alone. Enterprise value is about $12.8 billion. That is the stock plus debt and preferred claims, minus cash. [C29] 10-Q cover pageAs of October 6, 2026, 302,387,140 shares of common stock, $0.001 par value, were outstanding.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [C31] MD&A, contractual obligations tableDebt obligations (1) $6,721,605 $108,739 $221,545 $341,453 $354,294 $4,256,666 $1,438,908Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C87] Exhibit 99.1, balance sheet, temporary equityRedeemable noncontrolling interest 2,010,873 1,956,303Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C89] Exhibit 99.1, balance sheet, Series E-1 preferred61,831 shares issued and outstanding at August 31, 2026, and 61,909 shares issued and outstanding at May 31, 2026 56,373 56,460Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C23] Exhibit 99.1, cash flow statementCASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUED OPERATIONS $3,677,943 $114,109Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm That is about 50 times a full year at this quarter's adjusted EBITDA pace. It is about 9 times a full year of this quarter's sales. [C6] Exhibit 99.1, non-GAAP reconciliation tableAdjusted EBITDA (Non-GAAP) $64,412 $537Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C113] Exhibit 99.1, statement of operationsTotal revenue 341,875 80,934Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm

On October 4, Applied Digital signed a 15-year deal to buy power from Base Electron. The power will come from a planned 1,200-megawatt gas plant in Center, North Dakota, to serve Polaris Forge 3. [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm It will pay fixed monthly amounts based on capacity, and Base Electron can end the deal if the plant has no financing by March 31, 2027. [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Company insiders own and run Base Electron, and many outside investors also own shares. The insiders include Chief Executive Wes Cummins, President Jason Zhang and director Richard Nottenburg. [C48] Part II, Item 5, Other InformationIt is owned and managed by certain officers and directors of the Company, including Messrs. Cummins and Zhang and Dr. Nottenburg, acting in their individual capacities, as well as numerous third parties. In addition, Messrs. Cummins and Zhang serve as the Chief Executive Officer, and President and Secretary of Base Electron, respectively.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C26] Exhibit 99.1, management commentarysaid Wes Cummins, Chairman and Chief Executive Officer of Applied Digital.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C110] Form 4 of Jason Zhang, reporting owner relationship<officerTitle>President</officerTitle>Form 4 of Applied Digital's President, filed September 14, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000190044526000004/wk-form4_1789418949.xml [C67] 10-K, Risk Factors, conflicts of interestOne of our Board members, Richard Nottenburg, has interests in various companies, some of which provide software services to our crypto hosting business.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm Cummins and Zhang are also Base Electron's chief executive and president. A board committee for Base Electron deals reviewed the contract before the board approved it. [C48] Part II, Item 5, Other InformationIt is owned and managed by certain officers and directors of the Company, including Messrs. Cummins and Zhang and Dr. Nottenburg, acting in their individual capacities, as well as numerous third parties. In addition, Messrs. Cummins and Zhang serve as the Chief Executive Officer, and President and Secretary of Base Electron, respectively.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C47] Part II, Item 5, Other InformationThe Power Purchase Agreement and the credit support agreement were approved by the Company's Board of Directors following review and recommendation by the Board's Base Electron Related Party Transaction Committee.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm At August 31, Applied Digital's stake in and loan to Base Electron totaled $61.3 million. That is $2.0 million of equity and a $59.3 million note payable on demand. Of the note, $37.0 million came from paying to end Applied Digital's guarantee of the plant contract. [C49] Note 12, Unconsolidated VIEAs of August 31, 2026, the carrying value of the Company's investment in Base Electron was $2.0 million and the outstanding balance of the related party promissory note was $59.3 million, which together reflect the Company's maximum exposure to loss.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C98] 10-K, Note 7, Related Party TransactionsOn May 29, 2026, the Guarantee was terminated, effective upon payment of $37.0 million by the Company on behalf of Base Electron which was added to the Second Amended and Restated Demand Grid Promissory Note.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm Applied Digital also handed Base Electron warrants on 5.23 million Babcock & Wilcox shares for no consideration. It has booked no allowance for credit losses on the note. [C99] 10-K, Note 12, Base Electronrepresenting the right to purchase up to 5,230,000 shares of BWE common stock) to Base Electron. The warrants were assigned by the Company to Base Electron in connection with Base Electron's entry into a Design-Build Agreement with B&W for no consideration from Base Electron.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C97] Note 7, Related Party Transactionsno allowance for credit loss and no credit loss expense have been recognized for the three months ended August 31, 2026Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The note allows loans of up to $100.0 million. The quarterly report gives its balance as $58.5 million in one place and $59.3 million in another. [C96] Note 7, Related Party Transactionsfor up to $100.0 million which is payable on-demand. As of August 31, 2026, the principal balance of the Demand Grid Promissory Note was $58.5 millionApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C49] Note 12, Unconsolidated VIEAs of August 31, 2026, the carrying value of the Company's investment in Base Electron was $2.0 million and the outstanding balance of the related party promissory note was $59.3 million, which together reflect the Company's maximum exposure to loss.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Cummins also owns over 7% of Applied Digital, so he has money on both sides. Two insider filings, from September 14 and October 5, show shares held back for taxes as awards vested, not market sales. [C62] 10-K, Risk Factors, conflicts of interestMr. Cummins holds over 7% of our common stock and has a financial interest in the success of our operations.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C75] Form 4 of the President, footnote 1for tax purposes in connection with the immediate vesting of restricted stock unitsForm 4 of Applied Digital's President, filed September 14, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000190044526000004/wk-form4_1789418949.xml [C74] Form 4 of the Chief Financial Officer, footnote 3Represents the withholding of shares of common stock of the Company for tax purposes in connection with the vesting of RSUs, which does not constitute an actual sale or other open market transaction.Form 4 of Applied Digital's Chief Financial Officer, filed October 5, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000162828026065122/wk-form4_1791241026.xml

Babcock & Wilcox, the plant's builder, saw its stock fall from $18.45 to $7.54 during the quarter. The filings give no update on Base Electron's financing beyond the March 31, 2027 deadline. [C100] Note 11, B&W warrant valuation inputsStock price $7.54 $18.45Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [W02] Babcock & Wilcox release, first paragraphreceived full notice to proceed on a $2.4 billion design-build agreement with Base Electron, an independent power producer (“IPP”) backed by Applied Digital (NASDAQ: APLD), to deliver 1.2 gigawatts (GW) of new generation capacity.businesswire.com · Read October 8, 2026Open source ↗https://www.businesswire.com/news/home/20260304559255/en/Babcock-Wilcox-Receives-Full-Notice-to-Proceed-on-%242.4-Billion-Power-Generation-Project-for-Base-Electron-to-Supply-Power-to-Applied-Digital-AI-Factory-Campuses [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The annual report warns that lessees may have the right to end leases if there are significant delays in construction. Polaris Forge 3 is a 300-megawatt lease worth about $7.5 billion, due to start in the second half of 2027. Its dedicated power depends on Base Electron. [C101] 10-K, Risk Factors, lease commencementUnder certain circumstances, lessees may have the right to terminate applicable leases if there are significant delays in construction.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C102] 10-K, Item 1, contracted lease portfolio tablePolaris Forge 3 High investment-grade hyperscaler 300 MW 15 years ~$7.5B 2H27-2H28Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C57] MD&A, HPC Hosting BusinessOur two buildings at our Polaris Forge 3 campus, with an aggregate 300MW capacity, are currently under construction. We anticipate reaching initial ready for service in the second half of calendar year 2027 and full capacity in the second half of calendar year 2028.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

The bull case starts with the contracts. Each lease is take-or-pay and cannot be canceled for convenience without paying the full remaining value. [C79] 10-K, Item 1, contracted lease portfolioon a take-or-pay basis, and is non-cancellable, such that a termination for convenience would require payment of the full remaining contractual value.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm The leases are worth about $36 billion over their first terms, or about $86 billion if every renewal is used. [C13] Exhibit 99.1, HPC Hosting updateThose leases represent approximately $36 billion of contracted revenue over their initial base terms, or approximately $86 billion if all renewal options are exercised.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Base rent earns an 89% margin after property costs. Operating cash flow turned positive at $63.9 million, against $81.5 million used a year earlier. [C106] Exhibit 99.1, Net Operating Income reconciliationNet Operating Income (Non-GAAP) $58,829 $ - Net Operating Income margin 89% -%Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C10] Exhibit 99.1, cash flow statementCASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES 63,921 (81,531)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm Live capacity at the first campus went from 100 to 250 megawatts, with 300 megawatts targeted by the end of 2026. Yet the stock is about 46% below its May 29 close, even though the Delta Forge 2 lease was added in June. [C107] Exhibit 99.1, HPC Hosting updateThe first 100 MW building at Polaris Forge 1 became operational in October 2025.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C15] Exhibit 99.1, management commentaryOn October 1, 2026, the Company achieved Ready for Service for the second 75 MW phase of Building 2 at Polaris Forge 1, bringing fully operational critical IT load at the campus to 250 MW across two buildings and 10 data halls. The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C109] Proxy statement, potential payments table footnotebased upon the closing price of our common stock of $47.28 on May 29, 2026, the last trading day of Fiscal Year 2026Applied Digital definitive proxy statement for the 2026 annual meeting, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044325/formdef14a.htm [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/ [C108] Note 17, LeasesOn June 5, 2026, the Company entered into an approximately 15-year lease (with three five-year renewal options) with a high investment-grade hyperscaler at its Delta Forge 2 210 MW critical IT load campusApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

The strongest bear point is that interest already costs more than adjusted EBITDA. Building costs ran about $2.0 billion ahead of operating cash last quarter, and the plan leans on selling more debt and stock. [C16] Exhibit 99.1, operating resultsInterest expense increased $69.4 million, or 866%, from $8.0 million for the three months ended August 31, 2025, to $77.4 million for the three months ended August 31, 2026 due to an increase in debt arrangements between the periods.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C7] Exhibit 99.1, operating resultsAdjusted EBITDA, a non-GAAP financial measure, was $64.4 million for the fiscal first quarter 2027 compared to an Adjusted EBITDA of $0.5 million for the fiscal first quarter 2026.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C10] Exhibit 99.1, cash flow statementCASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES 63,921 (81,531)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C11] Exhibit 99.1, cash flow statementPurchases of property and equipment and other assets (2,074,698) (249,914)Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C54] MD&A, Sources of LiquidityWe believe that existing cash balances, cash flows from operations, existing debt facilities, and access to capital markets will provide sufficient liquidity to meet our debt obligations, including any repayment of debt or refinancing of debt, working capital needs, planned capital expenditures, and other contractual obligations, for at least the next twelve months.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Dilution is steady, since Series G converts below the market price and Macquarie's claim grows every quarter. One customer brought in 56% of sales. [C70] Post-effective amendment, Series G conversion pricewill equal the greater of (i) 95% of the lowest daily Volume Weighted Average Price for each of the five trading days immediately preceding the conversion dateApplied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044312/formposasr.htm [C38] Note 16, Redeemable Noncontrolling InterestThe carrying value of the redeemable noncontrolling interest was $2.0 billion and $2.0 billion as of August 31, 2026 and May 31, 2026, respectively. The change in redeemable noncontrolling interest consists of $60.1 million of preferred stock dividends paid in-kindApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C51] Note 5, Revenue concentrationCustomer A 56% 32% Customer B 21% -% Customer C 11% 47%Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The power deal sends money to a plant partly owned by company leaders, at a price the filings do not show. If that plant is late, a $7.5 billion lease could be at risk. [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C48] Part II, Item 5, Other InformationIt is owned and managed by certain officers and directors of the Company, including Messrs. Cummins and Zhang and Dr. Nottenburg, acting in their individual capacities, as well as numerous third parties. In addition, Messrs. Cummins and Zhang serve as the Chief Executive Officer, and President and Secretary of Base Electron, respectively.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C101] 10-K, Risk Factors, lease commencementUnder certain circumstances, lessees may have the right to terminate applicable leases if there are significant delays in construction.Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm [C102] 10-K, Item 1, contracted lease portfolio tablePolaris Forge 3 High investment-grade hyperscaler 300 MW 15 years ~$7.5B 2H27-2H28Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm

These are company goals, not results. Polaris Forge 2 should start in the second half of 2026 and fill out in early 2027. Delta Forge 1 should start in the first half of 2027. [C56] MD&A, HPC Hosting BusinessOur two buildings at our Polaris Forge 2 campus, with an aggregate 300MW of capacity, are currently under construction. We anticipate reaching initial ready for service in the second half of calendar year 2026 and full capacity in early calendar year 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm [C58] MD&A, HPC Hosting BusinessOur two buildings at our Delta Forge 1 campus, with an aggregate 300MW capacity, are currently under construction. We anticipate reaching initial ready for service in the first half of calendar year 2027 and full capacity in early calendar 2028.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Polaris Forge 3 should start in the second half of 2027 and reach full size in the second half of 2028. [C57] MD&A, HPC Hosting BusinessOur two buildings at our Polaris Forge 3 campus, with an aggregate 300MW capacity, are currently under construction. We anticipate reaching initial ready for service in the second half of calendar year 2027 and full capacity in the second half of calendar year 2028.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm After the quarter the company signed for up to about 1 gigawatt of potential power in Finland, its first step outside the United States. Management says the deal limits its initial exposure, but the release gives no cost, counterparty or terms. [C103] Exhibit 99.1, management commentaryThe Company also took its first step outside the United States, signing an agreement for up to approximately 1 GW of potential power capacity in Finland.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C104] Exhibit 99.1, management commentaryManagement believes this agreement offers meaningful long-term potential while limiting the Company's initial exposure.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm ChronoScale sold the Ekso business on September 30, 2026, and the filings do not give the price. [C105] Note 21, Subsequent EventsOn September 30, 2026, ChronoScale, through its wholly-owned subsidiary ChronoScale Intermediate LLC, completed the sale of its legacy Ekso businessApplied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm The story breaks if Polaris Forge 2 misses the 300-megawatt goal for 2026. It also breaks if Base Electron misses its March 31, 2027 deadline. [C15] Exhibit 99.1, management commentaryOn October 1, 2026, the Company achieved Ready for Service for the second 75 MW phase of Building 2 at Polaris Forge 1, bringing fully operational critical IT load at the campus to 250 MW across two buildings and 10 data halls. The Company expects initial operations at Polaris Forge 2 in Harwood to increase delivered critical IT load across our North Dakota campuses to 300 MW by the end of calendar 2026Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm And it breaks if rent cannot outgrow the contractual interest due on existing debt. The company's table puts that at $490.0 million in the year to May 2028. [C32] MD&A, contractual obligations tableInterest on debt obligations (2) 2,156,434 326,507 490,014 464,054 437,126 391,956 46,777Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Nearer dates are the annual meeting on November 4, 2026, and the first interest payment on the 7% notes on December 15, 2026. [C73] Proxy statement, notice of annual meetingto be held on November 4, 2026, at 12:00 p.m., Eastern Time.Applied Digital definitive proxy statement for the 2026 annual meeting, filed September 25, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000149315226044325/formdef14a.htm [C59] MD&A, 7.000% Senior Secured Notes due 2031bear interest at a rate of 7.000% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2026.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm Last year's second-quarter results came out on January 7, 2026, so the next report is likely in early January 2027. [W04] Applied Digital fiscal second quarter 2026 results release, datelineDALLAS, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD)globenewswire.com · Read October 8, 2026Open source ↗https://www.globenewswire.com/news-release/2026/01/07/3214952/0/en/applied-digital-reports-fiscal-second-quarter-2026-results.html

What is still unknown

The filings do not give the monthly payment or the power price. They also do not give the size of the credit support Applied Digital signed. They say only that payments are fixed and based on capacity. [C46] Part II, Item 5, Other InformationOn October 4, 2026, the Company entered into a Power Purchase Agreement and a related credit support agreement with Base Electron for the purchase of capacity and energy from an approximately 1,200 MW natural gas-fired generation facility to be developed by Base Electron in Center, North Dakota, which is intended to provide dedicated generation for the Company's Polaris Forge 3 campus. The Power Purchase Agreement has a 15-year delivery term and provides for fixed monthly payments based on target contract capacity, and may be terminated by Base Electron if financial close for the facility has not occurred by March 31, 2027.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

Our price data has no close after the October 7 results, so the market's verdict is not yet measured. The last close we have is about $25.37 on October 6. Our data starts in mid-September, so we cannot give a full-year price range. [P03] IEX closing pricesAPLD closed at $25.365 on October 6, 2026 (IEX)IEX closing prices for APLDOpen source ↗https://iextrading.com/trading/market-data/

The company says it can cover planned building costs for the next twelve months. But it gives no dollar total to finish its campuses. So the filings do not say how much more debt or stock the build will need. [C54] MD&A, Sources of LiquidityWe believe that existing cash balances, cash flows from operations, existing debt facilities, and access to capital markets will provide sufficient liquidity to meet our debt obligations, including any repayment of debt or refinancing of debt, working capital needs, planned capital expenditures, and other contractual obligations, for at least the next twelve months.Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000059/apld-20260831.htm

Beyond CoreWeave, the filings name no tenants. They call them only investment-grade cloud firms. [C14] Exhibit 99.1, HPC Hosting updatePolaris Forge 1 is leased to CoreWeave, Polaris Forge 2 to an investment-grade hyperscaler, and Delta Forge 1, Polaris Forge 3, and Delta Forge 2 to a tier-one investment-grade hyperscaler.Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026)Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1144879/000114487926000057/apldq127earningsrelease.htm

The question that remains

Will APLD list over 305 million shares in its next report?

Our call: We say YES

We find out by January 20, 2027.

Sources

Applied Digital Form 8-K on fiscal first quarter 2027 results, filed October 7, 2026 ↗

Applied Digital earnings release for the quarter ended August 31, 2026 (Exhibit 99.1 to the Form 8-K filed October 7, 2026) ↗

Applied Digital Form 10-Q for the quarter ended August 31, 2026, filed October 7, 2026 ↗

Applied Digital Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026 ↗

Applied Digital post-effective amendment registering Series G conversion shares, filed September 25, 2026 ↗

Applied Digital definitive proxy statement for the 2026 annual meeting, filed September 25, 2026 ↗

Form 4 of Applied Digital's Chief Financial Officer, filed October 5, 2026 ↗

Form 4 of Applied Digital's President, filed September 14, 2026 ↗

Babcock & Wilcox release on its $2.4 billion Base Electron power plant contract, March 4, 2026 ↗

Applied Digital release setting its fiscal first quarter 2027 call, September 28, 2026 ↗

Applied Digital fiscal second quarter 2026 results release, January 7, 2026 ↗

IEX closing prices for APLD ↗

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