Applied Digital Corporation (APLD) SEC Filings & Earnings Calls

High net loss and negative GAAP profitability

“Net loss attributable to common stockholders $ (237,082) vs $ (18,502)”

Significant debt and interest expense

“Interest expense increased $69.4 million, or 866%, from $8.0 million ... to $77.4 million” · word for word

Regulatory risk for AI and data centers

“A number of states have recently issued moratoriums on future AI data centers while other states are considering the same.” · word for word

Net loss of $221M remains large despite revenue growth; GAAP profitability not yet achieved.

“Net loss attributable to common stockholders: $221.0 million” · word for word

Heavy reliance on debt financing ($1.59B notes at 7%) increases leverage and interest cost.

“Closed $1.59 billion of 7.000% Senior Secured Notes due 2031” · word for word

Execution risk in delivering 300 MW by end of 2026 and scaling international operations.

“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 2026” · word for word

Key Person Retention Risk

“The talent pool for executive leadership is particularly scarce with strong demand for rarefied talent coming from the entire AI ecosystem.” · word for word

Construction and Delivery Risk

“We reached our first 'ready for service' delivery date and we did so, on time and on budget.” · word for word

Financing Risk

“During the fiscal year, we completed over $5 billion in senior secured financings... all in support of our projects.”

Dilution from convertible instruments and warrants

“Conversion of the Convertible Notes will dilute the ownership interest of existing stockholders or may otherwise depress the price of our common stock.” · word for word

Customer concentration

“We currently serve one crypto mining customer with a remaining contractual term of one and a half years.” · word for word

Construction and development risk

“Our third HPC focused data center facility at Polaris Forge 1, which is expected to provide an additional 150MW of capacity, is currently under construction, with an anticipated ready for service date in calendar year 2027.” · word for word

Debt service burden

“The 2030 9.250% Notes bear interest at a rate of 9.250% per annum”

Net loss still significant at $110.6M for the quarter, though improving YoY.

“Net loss attributable to common stockholders: $110.6 million, down 108% from the prior year comparable period” · word for word

High leverage from $2.15B and $1.59B note offerings at 6.75% and 7.00% interest rates, increasing interest expense risk.

“Completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031. Closed $1.59 billion of 7.000% Senior Secured Notes due 2031.”

Customer concentration risk: three leases with a single hyperscaler represent ~$20B of revenue.

“Together, these deals represent roughly $20 billion in long-term contracted revenue from a single, world-class customer that has now chosen us three times in a row.” · word for word

Insider margin loan risk

“Upon certain collateral shortfall events or events of default, the Lender may require repayment and/or additional collateral and may foreclose on, and dispose of, the pledged securities.” · word for word

Insider margin loan risk

“Upon certain collateral shortfall events or events of default, the Lender may require repayment and/or additional collateral and may foreclose on, and dispose of, the pledged securities.” · word for word

Majority owner control risk

“As of June 26, 2026, the Reporting Person may be deemed to beneficially own 96.1% of the outstanding shares of the Issuer” · word for word

Increased leverage from revolver and notes; potential dilution from preferred equity.

“Credit facility bears interest at SOFR + 2.25%; PEPA allows conversion to common stock.”

Majority owner control risk

“As of June 26, 2026, the Reporting Person may be deemed to beneficially own 96.1% of the outstanding shares of the Issuer” · word for word

High leverage from $1.59B debt with restrictive covenants

“Indenture limits ability to incur additional indebtedness, pay dividends, make investments, etc.”

Completion guarantee exposes parent to construction risk

“Company must provide funds if note proceeds insufficient to complete construction”

No financial terms of lease disclosed

“No financial details provided in the filing”

Execution risk on large-scale data center construction and debt servicing

“Offering subject to market conditions; construction of 150MW facility carries execution risk”

Credit rating dependency for CoreWeave lease assignment

“Lease assignment contingent on subsidiary achieving investment grade credit rating”

High interest rate of 7.000% on $1.59B notes increases interest expense

“7.000% senior secured notes due 2031” · word for word

Secured notes are senior secured obligations

“senior secured notes” · word for word

Control Premium Risk

“As a result of the Transactions, the Reporting Person is deemed to beneficially own a majority of the voting power of all outstanding shares of the Issuer's Common Stock and the Issuer is a "controlled company" within the meaning of Nasdaq's corporate governance standards.” · word for word

Control Premium Risk

“As a result of the Transactions, the Reporting Person is deemed to beneficially own a majority of the voting power of all outstanding shares of the Issuer's Common Stock and the Issuer is a "controlled company" within the meaning of Nasdaq's corporate governance standards.” · word for word

Integration risk of new investment and management services arrangement

“Complex multi-party agreements with Ekso, ChronoScale, and HoldCo”

Dilution risk from private placement

“Issuance of 1,311,407 shares may dilute existing shareholders”

Construction risk remains as campus is still under construction.

“currently under construction” · word for word

Potential dilution from equity awards

“MIP Units represent 5.25% of EKSO shares to be issued”

Customer Concentration

“As of February 28, 2026, this business segment had one customer and generated 14% of total revenue for the fiscal quarter ended February 28, 2026.” · word for word

Cloud Services Segment Uncertainty

“Cloud Services Business operating loss increased $41.9 million, or 406%, from $10.3 million for the three months ended February 28, 2025 to $52.2 million for the three months ended February 28, 2026.” · word for word

Regulatory Risk on AI and Crypto Energy Use

“The amount of energy used for AI and crypto mining has also received significant attention.” · word for word

High Leverage and Debt Service

“On November 20, 2025, our subsidiary APLD ComputeCo, closed a $2.35 billion offering (the “2030 Notes Offering”) of 9.250% senior secured notes due 2030.” · word for word

Dilution Risk from Equity Issuance

“During the three and nine months ended February 28, 2026, 197,750 and 836,550 shares of Series G Preferred Stock, respectively, were converted into 5.6 million and 49.2 million shares of the Company’s common stock, respectively.” · word for word

Net loss of $100.9M; GAAP loss per share $0.36.

“Net loss attributable to common stockholders: $100.9 million.” · word for word

Heavy reliance on debt financing; $2.15B notes at 6.75% interest.

“Completed $2.15B private offering of 6.750% Senior Secured Notes.”

High leverage from $2.15B debt; interest expense will be significant.

“6.750% Senior Secured Notes due 2031; aggregate principal amount $2.15 billion” · word for word

Covenants restrict additional indebtedness, dividends, and asset sales, limiting financial flexibility.

“The Indenture limits the ability of the Issuer and the Subsidiary Guarantors to, among other things: (i) incur or guarantee additional indebtedness; (ii) pay dividends or distributions” · word for word

High leverage from $2.15B debt; interest expense will be significant.

“6.750% senior secured notes due 2031; aggregate principal amount $2.15 billion” · word for word

Off-balance sheet guarantee exposes Applied Digital to up to $2.4B in potential liability if Base Electron defaults.

“Applied Digital’s maximum potential exposure under the Guarantee is effectively limited by the obligations of Base Electron under the Design-Build Agreement, which provides for an anticipated total contract price of approximately $2.4 billion” · word for word

Related-party transaction with Base Electron, formed by executive officers, may raise governance concerns.

“Base Electron is an independent power producer formed by certain executive officers, directors and/or affiliates of Applied Digital” · word for word

High leverage from $2.15B debt; interest expense will be significant.

“senior secured notes due 2031; aggregate principal amount $2.15 billion”

Offering is subject to market conditions; may not close.

“subject to market conditions and other factors” · word for word

Transaction is subject to stockholder approval and other conditions; may not close.

“Closing is subject to certain customary mutual conditions, including: (a) stockholder approval of the Business Combination” · word for word

Ekso Bionics must have at least $15M cash at closing; PIPE investment required.

“Ekso shall have cash and cash equivalents equal to at least $15,000,000, inclusive of net proceeds of the PIPE Investment” · word for word

Regulatory Risk for AI and Crypto

“The regulatory landscape surrounding AI and blockchain hosting services is evolving rapidly, and we anticipate increased scrutiny and potential regulation in the near and long term.” · word for word

Dilution Risk from Equity Issuance

“During the three and six months ended November 30, 2025, 380,800 and 638,800 shares of Series G Preferred Stock were converted into 15.4 million and 43.6 million shares of the Company’s common stock.” · word for word

High Leverage and Debt Service

“Debt obligations of $2.86 billion as of November 30, 2025, with interest payments of $1.09 billion.”

Operating Losses

“Net loss from continuing operations of $26.6 million for the three months ended November 30, 2025.”

High leverage from debt financing

“$2.35B notes at 9.25% interest; $900M preferred equity drawn”

Concentration risk on hyperscaler tenants

“CoreWeave represents 400MW of 600MW total leased capacity”

Transaction is non-binding and subject to due diligence, regulatory approvals, and shareholder approvals; may not close.

“non-binding term sheet; subject to completion of customary due diligence, execution of final binding documents, regulatory and shareholder approvals.”

Execution risk on data center construction and customer leasing.

“our ability to complete construction of our data centers as planned; the lead time of customer acquisition and leasing decisions” · word for word

Financing risk for ongoing and future projects.

“our ability to raise additional capital to fund the ongoing and future data center construction and operations” · word for word

High-interest debt (9.25%) increases financial risk and interest expense burden.

“9.250% senior secured notes due 2030” · word for word

High leverage from $2.35B debt at 9.25% coupon; significant interest expense burden.

“priced its offering of $2.35 billion aggregate principal amount of 9.250% senior secured notes due 2030” · word for word

Debt issuance increases leverage and interest expense risk.

“Offering of $2.35B senior secured notes increases debt burden.”

Debt issuance increases leverage and interest expense risk.

“Offering of $2.35B senior secured notes increases debt burden.”

Potential dilution from increased authorized shares for equity compensation.

“Increase in authorized shares by 15 million to 600 million total.”