Applied Digital (APLD) FY2026 10-K: $36.2B Contracted Lease Book vs a $236M Operating Loss [jeIx4XxDUeN]
Applied Digital (APLD) FY2026 10-K earnings analysis: the $36.2 billion contracted lease book, the $236.5 million operating loss, and the $2.78 billion of construction in progress that has never been switched on. Applied Digital closed fiscal 2026 with 1,410 MW of data center capacity under signed take-or-pay leases and roughly 100 MW of it actually operating. We reconcile the loss line by line from the filing, and both operating segments turn out to be profitable. 📊 The SEC Shared Repository (structured XBRL for every public filer): 🌐 💻 🎟️ New customers: 50% off your first month with code ROBO50 Voiceover by ElevenLabs: Disclosure: the ElevenLabs link is a referral link. TIMESTAMPS 0:00 The ratio: $36.2B signed, 100 MW live 0:23 What is sold: the 1,410 MW contracted lease book 0:48 The top line: revenue $165.6M to $611.3M 1:12 The margin turn: gross margin 5.2% to 35.1% 1:30 Read the cost line: $216.4M of stock compensation 1:56 Bridge the loss: the non-cash add-backs 2:24 The cash result: operating cash flow turns positive 2:46 Both segments profit: HPC hosting from zero to $385.3M 3:14 The unbuilt base: $2.78B of construction in progress 3:40 The coming charge: what depreciation looks like at scale 4:06 What could break: concentration and the CoreWeave SPV 4:34 What it implies: a delivery-based valuation range 5:02 How this analysis was built KEY FINDINGS • 1,410 MW under signed, non-cancellable, take-or-pay 15-year leases worth approximately $36.2 billion, of which roughly 100 MW was operating at May 31, 2026 • Revenue of $611.3 million, up 167%, against a $236.5 million operating loss • $220.1 million of stock-based compensation, up from $22.7 million; the $216.4 million charged to SG&A alone exceeded the year's entire gross profit of $214.5 million • Operating cash flow was positive $89.7 million, against negative $115.4 million in fiscal 2025 • Both reportable segments were profitable: data center hosting $48.3 million on $154.4 million, HPC hosting $39.1 million on $385.3 million from a standing start of zero • Gross property and equipment of $4,313.9 million, of which $2,776.2 million is construction in progress and accumulated depreciation is only $77.6 million • Total D&A fell from $134.7 million to $67.4 million, but depreciation on owned property rose from $12.5 million to $48.5 million; the decline was finance-lease amortization leaving with the divested cloud business • Three customers were 96% of revenue; the largest at 59% was not a customer at all a year earlier WHAT IS CONSTRUCTION IN PROGRESS? Assets a company has bought or built but has not yet put into service do not get depreciated. They sit on the balance sheet at cost in a line called construction in progress, and the depreciation clock only starts when the asset is placed in service. Applied Digital carries $2.78 billion there, so 64% of its property and equipment currently produces no revenue and no depreciation charge. As those campuses come online, both revenue and depreciation step up together, which is why the reported loss can widen even when the business is improving. Disclaimer: this is not investment advice. No price targets. Every figure comes from Applied Digital's Form 10-K for the fiscal year ended May 31, 2026, filed July 29, 2026, except price and consensus figures attributed on screen to stockanalysis.com. #APLD #AppliedDigital #AIDataCenter #CoreWeave #DataCenters #Earnings #SEC #XBRL #StockAnalysis