Applied Digital Has 1,410 Megawatts Under Contract and Lost $110 Million Last Quarter

Applied Digital reported fiscal fourth-quarter and full-year results at 20:05 UTC on 27 July. It is one of the cleanest available scoreboards on whether the AI data centre landlords can convert enormous contracted capacity into cash, and the answer so far is: the capacity is real, the cash is not there yet.

The two halves of the release

Quarterly revenue was $258.7 million, up 407% year on year, with adjusted EBITDA of $42.4 million. The quarterly net loss was $110.6 million, or 39 cents a share. For the full year, revenue was $611.3 million, up 167%, against a net loss of $249.2 million. Contracted critical IT load stands at 1,410 MW across five campuses, representing roughly $36 billion of contracted revenue on 15-year terms. Polaris Forge 1 has 175 MW live. Recent leases include two 300 MW agreements worth about $7.5 billion each with a single investment-grade hyperscaler, and a 210 MW lease worth about $5.2 billion at Delta Forge 2.

How it is funded

$2.15 billion of 6.750% notes due 2031, $1.59 billion of 7.000% notes due 2031, and a $550 million revolver. As of 31 May the company held $4.2 billion in cash and restricted cash against $5.0 billion of total debt.

Three numbers to handle carefully

The $86 billion figure in circulation is contracted revenue with renewals — options that may never be exercised. The contracted figure is $36 billion. Adjusted net income of $12.9 million sits in the same quarter as a GAAP net loss of $110.6 million; the gap is the whole argument. And of the installed capacity, 286 MW is bitcoin mining hosting, not AI — 106 MW at Jamestown and 180 MW at Ellendale, North Dakota. The separately cited 1.2 GW of Base Electron gas capacity is a development-stage venture in which Applied Digital holds roughly 10%; it is not the company's capacity.

What the shape tells you

This is a landlord model with hyperscaler counterparties, 15-year terms and debt-funded construction. The backlog is the asset and the interest is the cost, and the crossover depends entirely on delivery schedules holding. Which is the same question hanging over the whole sector this week.