In its fiscal second quarter ended November 30, Applied Digital reported revenue of $126.6 million, a 250% increase year-over-year driven by the ramp-up of its Polaris Forge 1 campus. High-performance computing hosting generated $85.0 million in revenue from CoreWeave tenant fit-outs, while legacy data center hosting serving cryptocurrency miners contributed $41.6 million, up 15% annually. These gains helped shrink the net loss from continuing operations by 76% to $31.2 million, and the company achieved adjusted net income of $0.1 million, effectively breaking even on a per-share basis compared with analysts’ expectations for a $0.21 per-share loss.

Applied Digital energized the first 100 MW building (ELN-02) at Polaris Forge 1 on schedule, marking completion of one of three contracted facilities in the 400 MW AI Factory campus. To fund growth, the company completed a $2.35 billion private offering of 9.25% senior secured notes due 2030 and drew $562.5 million from a preferred equity facility with Macquarie Asset Management. These facilities support construction of additional buildings at Polaris Forge 1 and the under-construction Polaris Forge 2, where an investment-grade hyperscaler has signed a 15-year lease for 200 MW representing approximately $5 billion in revenue potential.

With global cloud providers expected to invest over $400 billion annually in artificial intelligence infrastructure, Applied Digital forecasts net operating income exceeding $1 billion within five years. The company already has secured 600 MW of lease capacity—400 MW with CoreWeave (approximately $11 billion in prospective lease revenue) and 200 MW with a second hyperscaler—and reports increasing inbound demand for new campuses in the Dakotas and southern U.S. regions. Management highlights a first-mover advantage in cold-climate markets and a repeatable financing framework that preserves over 85% equity ownership while limiting corporate capital outlay.