Applied Digital Anticipates $75–78M Q3 Revenue, 42–48% Growth and $16B Backlog
Analysts expect Q3 revenue of $75–78 million, up ~42–48% year-over-year, driven by Polaris Forge ramp-up and HPC hosting, with EPS narrowing to -$0.10 to -$0.11. Leases for ~600 MW of capacity underpin ~$16 billion in 15-year prospective revenue, but construction delays, supply-chain issues and leverage pose risks.
1. Q3 Revenue and EPS Outlook
Analysts project Q3 revenue of $75–78 million, representing ~42–48% growth year-over-year, with EPS improving to a loss of $0.10–$0.11 per share as new data center capacity comes online.
2. Polaris Forge Expansion and Contract Backlog
The Polaris Forge campus has secured long-term leases for approximately 600 MW of capacity, expected to generate around $16 billion in revenue over 15-year terms through deals with CoreWeave and a major U.S. hyperscaler.
3. Financial Risks and Operational Challenges
Key risks include potential construction delays, supply-chain disruptions and high leverage; recent lease restructurings added a $50 million letter of credit and parent guarantees to bolster credit support.