Applied Digital Corporation is a technology company headquartered in Dallas, Texas, that designs, builds, and operates next-generation data centers and digital infrastructure solutions for high-performance computing (HPC) and artificial intelligence (AI) workloads. Founded in 2001 by Wes Cummins (Chairman and CEO) and Jason Zhang, the company was formerly known as ...Applied Digital Corporation is a technology company headquartered in Dallas, Texas, that designs, builds, and operates next-generation data centers and digital infrastructure solutions for high-performance computing (HPC) and artificial intelligence (AI) workloads. Founded in 2001 by Wes Cummins (Chairman and CEO) and Jason Zhang, the company was formerly known as Applied Blockchain, Inc. and rebranded to Applied Digital Corporation in November 2022. The company initially focused on blockchain infrastructure but pivoted to serve the growing HPC and AI markets, leveraging its expertise in data center design, construction, and operation.
Applied Digital operates through two primary business segments: Data Center Hosting and HPC Hosting. It provides infrastructure services to crypto mining customers and GPU computing solutions for critical AI, machine learning, and other HPC tasks. The company offers full-service data center solutions, including design, construction, and management, with a focus on rapid deployment and proprietary waterless cooling technologies.
Financially, as of the latest data, Applied Digital has a market capitalization of approximately $8.4 billion, with a stock price of $29.22 (as of the provided data). The company's revenue per share is $2.017, but it is currently not profitable, with a negative net profit margin (-42.3%) and negative EBITDA margin. The company has substantial debt (debt-to-equity ratio of 2.865) but maintains a healthy current ratio of 4.01 and a cash ratio of 1.369. Cash per share is $5.573, indicating a strong liquidity position.
Key recent developments include a lease agreement with CoreWeave for an additional 150MW at its Polaris Forge 1 Campus in Ellendale, North Dakota, signaling expansion to meet rising AI infrastructure demand. The company is actively investing in capital expenditures (capex-to-revenue ratio of 4.974) to build out data center capacity, which has led to negative free cash flow despite positive operating cash flow.
With 256 full-time employees, the company is relatively lean but is scaling up (employee count increased by ~25% year-over-year). The leadership team, including Wes Cummins, is focused on capturing opportunities in the AI infrastructure boom. The company's long-term viability depends on converting its heavy investments into profitable operations as new data centers come online and utilization increases. With strong market position and strategic partnerships, Applied Digital aims to be a leading provider in the HPC and AI infrastructure space.
Operator : Good afternoon, and welcome to Applied Digital's Fiscal Fourth Quarter 2026 Conference Call. My name is Pascal Berman, and I will be your operator today. Before this call, Applied Digital issued its financial results for the fiscal fourth quarter ended May 31, 2026, in a press release, a copy of which has been furnished in a report on Form 8-K filed with the Securities and Exchange Commission or SEC, and will be available in the Investor Relations section of the company's website. Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins; and CFO, Saidal Mohmand. Following their remarks, we will open the call for questions. Before we begin, Matt Glover from Gateway Group will make a brief introductory statement. Mr. Glover, you may begin.
Matt Glover : Thank you, operator. Hello, everyone, and welcome to Applied Digital's Fiscal Fourth Quarter 2026 Conference Call. Before management begins formal remarks, we'd like to remind everyone that some statements we are making today may be considered forward-looking statements under the securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC. We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to the applicable GAAP measures in our earnings release carefully as you consider these metrics. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified under the caption Risk Factors in our annual report on Form 10-K and our quarterly reports on Form 10-Q. You may access Applied Digital's SEC filings for free by visiting the SEC website at www.sec.gov. I would like to also remind everyone that this call is being recorded and made available for replay via link in the IR section of Applied Digital's website. Now I'd like to turn the call over to Applied Digital's Chairman and CEO, Wes Cummins. Wes?
Wesley Cummins : Thanks, Matt, and good afternoon, everyone. Thank you for joining our fiscal fourth quarter 2026 earnings conference call. This was a defining quarter for Applied Digital, capping a transformational year for the company. We signed leases for 5 campuses, including 3 in just the past 4 months. We created $36 billion of total …
