Applied Digital Corp.
For the period ended May 31, 2026. Filed Jul 29, 2026.
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FY2026 · Filed Jul 29, 2026
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Consolidated Statements of Operations
(In thousands, except share and per share data)
| Fiscal Year Ended | |||
|---|---|---|---|
| May 31, 2026 | May 31, 2025 | May 31, 2024 | |
| Revenue: | |||
| Services revenue | $496,609 | $226,643 | $150,814 |
| Data center rental and other revenue | 114,702 | — | — |
| Related party revenue | — | 1,926 | 14,761 |
| Total revenue | 611,311 | 228,569 | 165,575 |
| Costs and expenses: | |||
| Services cost of revenue | 396,858 | 216,759 | 148,340 |
| Data center rental and other cost of revenue | 56,771 | — | — |
| Selling, general and administrative (1) | 332,096 | 107,877 | 97,776 |
| Loss (gain) on classification as held for sale (2) | 59,650 | (24,616) | 15,417 |
| Loss on abandonment of assets | 2,398 | 724 | — |
| Loss from legal settlement | — | — | 2,380 |
| Total costs and expenses | 847,773 | 300,744 | 263,913 |
| Operating loss | (236,462) | (72,175) | (98,338) |
| Interest expense, net (3) | 29,516 | 32,139 | 27,517 |
| Gain on change in fair value of derivatives | (75,818) | — | — |
| Gain on change in fair value of investments | (10,840) | — | — |
| Loss on conversion of debt | — | 33,612 | — |
| Loss on change in fair value of debt | — | 85,439 | 7,401 |
| Loss on change in fair value of related party debt | — | — | 8,116 |
| Loss on extinguishment of debt | — | 1,177 | — |
| Loss on extinguishment of related party debt | — | — | 2,507 |
| Loss on change in fair value of warrants | 2,212 | 6,421 | — |
| Loss on change in fair value of related party warrants | — | — | 5,696 |
| Net loss from continuing operations before income tax expenses | (181,532) | (230,963) | (149,575) |
| Income tax expense | 1,787 | 102 | 96 |
| Net loss from continuing operations | (183,319) | (231,065) | (149,671) |
| Net loss from discontinued operations | (1,020) | — | — |
| Net loss | (184,339) | (231,065) | (149,671) |
| Net loss attributable to noncontrolling interest and redeemable noncontrolling interest | (59,665) | — | (397) |
| Preferred dividends | (6,259) | (2,615) | — |
| Net loss attributable to common stockholders | $(250,263) | $(233,680) | $(149,274) |
| Net loss attributable to common stockholders | |||
| Continuing operations | $(249,243) | $(233,680) | $(149,274) |
| Discontinued operations | (1,020) | — | — |
| Net loss attributable to common stockholders | $(250,263) | $(233,680) | $(149,274) |
| Basic and diluted net loss per share attributable to common stockholders | |||
| Continuing operations | $(0.91) | $(1.16) | $(1.31) |
| Discontinued operations | — | — | — |
| Basic and diluted net loss per share attributable to common stockholders | $(0.91) | $(1.16) | $(1.31) |
| Basic and diluted weighted average number of shares outstanding | 275,194,755 | 201,194,451 | 114,061,414 |
(1)Includes related party selling, general and administrative expense of $0.3 million, $0.3 million, and $0.6 million for the fiscal years ended May 31, 2026, May 31, 2025, and May 31, 2024, respectively.
(2)For the fiscal year ended May 31, 2026, amount includes a loss on classification of held for sale of $59.7 million representing the write down of our cloud services business' (the“Cloud Services Business”) assets to their carrying value as of February 15, 2026 when it no longer qualified as held for sale. For the fiscal year ended May 31, 2025, amount includes $25 million received in connection with the sale of our Garden City facility once conditional approval requirements were met and escrowed funds were released. The fiscal year ended May 31, 2024 includes a $15.4 million loss on classification of held for sale related to the sale of the Garden City facility.
(3)For the fiscal year ended May 31, 2026, amount includes related party income of $0.1 million and for the fiscal year ended May 31, 2024, amount includes related party interest expense of $5.7 million.
See accompanying notes to the consolidated financial statements and, specifically, Note 7 - Related Party Transactions for further discussion of related party transactions.
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