Loss widens, but beats expectations
HPC hosting is now the engine
$36 billion of contracted lease revenue
The growth rests on long-term leases. The company has signed leases for about 1.41 gigawatts of critical IT load across five campuses — Polaris Forge 1/2/3 in North Dakota and Delta Forge 1 in Louisiana plus Delta Forge 2 in Alabama — representing roughly $36 billion in contracted revenue over base terms (about $86 billion including all renewals). Named tenants: CoreWeave at Polaris Forge 1, an investment-grade hyperscaler at Polaris Forge 2, and a tier-one investment-grade hyperscaler at Delta Forge 1/2 and Polaris Forge 3. A new 210-megawatt, 15-year lease at Delta Forge 2 announced in June carries roughly $5.2 billion in base-term contracted revenue.
Capacity ramp and a $1.59 billion raise
Polaris Forge 1 had 175 megawatts live at quarter end (Building 2 Phase 1 was delivered July 1), rising to 250 megawatts after a second 75-megawatt phase was delivered on October 1; the company expects 300 megawatts across its North Dakota campuses by the end of calendar 2026. To fund the buildout, it closed $1.59 billion of 7.000% senior secured notes due 2031, financing a third 150-megawatt HPC building at Polaris Forge 1 and repaying a $300 million bridge facility. As of August 31, the company held $3.7 billion in cash and carried $6.4 billion in debt. The press release offered no explicit forward financial guidance.
Stock fell 6% on earnings day, then bounced
APLD closed down 6% on October 7 — the widening loss spooked some holders — then rose about 3.8% to $24.71 in premarket trading the next day as the revenue beat sank in. The stock is down 15% over the last 52 weeks, trading in a range of $19.00 to $50.72. CEO Wes Cummins said in a statement the company is "building for the long term," focused on "securing durable, high-quality, long-term contracts with proven, tier-one, investment-grade hyperscalers that are leaders in the AI industry."
