In its fiscal 2026 second quarter, Applied Digital reported a 250% year-over-year increase in revenue to $126.6 million. This surge was driven by full energization of the first building at its Polaris Forge 1 campus in North Dakota, which enabled the company’s high-performance computing hosting business to generate $85 million from its largest client. Its legacy data center hosting segment, focused on cryptocurrency mining customers, also contributed $41.6 million, a 15% increase versus the prior year.

Applied Digital has secured multiple 15-year leases for its North Dakota facilities, underpinning a long-term revenue outlook. A flagship agreement with a leading AI-focused cloud services provider is expected to deliver approximately $11 billion over the lease term. The company is accelerating development of its Polaris Forge 2 campus and has a pipeline of nearly 900 megawatts in advanced discussions. This multi-gigawatt build-out positions Applied Digital to capture growing demand for AI infrastructure from both existing and new hyperscaler clients.

Net loss from continuing operations narrowed by 76% to $31.2 million in the quarter, while adjusted net income—excluding stock-based compensation and restructuring charges—was break-even at $0.1 million, exceeding consensus estimates by $0.2 million per share. To support its rapid expansion, the company issued $2.35 billion of senior secured notes and drew $787.5 million from a strategic partner, enhancing liquidity and enabling acceleration of its AI Factory platform development.