Applied Digital said Wednesday that revenue for its fiscal first quarter more than quadrupled from a year earlier to $341.9 million as more of its North Dakota AI data center capacity came online, according to the company's earnings release on GlobeNewswire. The company still reported a net loss of $221 million.

What Happened

Revenue for the quarter ended Aug. 31 rose 322%. Services revenue was $262.8 million, and data center rental and other revenue, which was zero a year earlier, came to $79.1 million. The net loss attributable to common stockholders was $221.0 million, or 76 cents a share.

Applied Digital also reported figures that exclude ChronoScale, a separately listed company it controls that runs its former cloud services business and now offers accelerated computing. On that basis, adjusted revenue was $300.4 million, the adjusted net loss was $4.1 million, or 1 cent a share, and adjusted EBITDA was $64.4 million. The company ended the quarter with about $3.7 billion in cash, cash equivalents and restricted cash and $6.4 billion in total debt.

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At Polaris Forge 1, its campus in North Dakota, the company completed the second 75 MW phase of its second building, bringing live capacity there to 250 MW. The campus is leased to CoreWeave. Across five campuses in North Dakota, Louisiana and Alabama, Applied Digital says it has leased about 1.41 GW. That includes a 15-year, 210 MW lease with an unnamed investment-grade hyperscaler at Delta Forge 2 in Alabama, announced in June and worth about $5.2 billion in contracted revenue over its base term.

To pay for growth, a subsidiary closed $1.59 billion of 7% senior secured notes due 2031. The proceeds will fund a third, 150 MW building at Polaris Forge 1 and repay a $300 million bridge loan. Applied Digital also signed a power purchase agreement with Base Electron for capacity from a roughly 1,200 MW natural gas plant in North Dakota, and ChronoScale announced plans with Microsoft for a 50 MW AI compute deployment built on Nvidia GB300 NVL72 systems.

CEO Wes Cummins said the company aims to be the category leader in designing, building, deploying and running purpose-built AI factories.

Why It Matters

Applied Digital's revenue now depends mostly on how quickly it can hand finished, powered buildings to tenants, and the quarter showed that pipeline turning into income. The gap between the GAAP loss and the near-breakeven adjusted result shows how much of the red ink sits in ChronoScale, which the company reports alongside its core leasing business.

The financing terms also matter. A 7% coupon on secured debt reflects what lenders are charging to fund AI campuses tied to long leases, and Applied Digital now carries $6.4 billion of debt against those contracts. Securing gas-fired power in North Dakota addresses the constraint most developers cite: getting enough electricity to new sites.

Context

Applied Digital began as a host for cryptocurrency mining and has turned itself into a developer of AI data centers for hyperscalers and cloud providers. The Primary Wire reported Tuesday that the company has lined up as much as 1 GW of capacity in Finland for what would be its first campus outside the U.S. The company says its leases carry about $36 billion in contracted revenue over base terms.

What to Watch

Investors will track construction of the third building at Polaris Forge 1, progress at Delta Forge 2 and whether the hyperscaler tenant there is named. ChronoScale's losses, and whether the Microsoft deployment narrows them, will determine how quickly reported results converge with the adjusted figures.