Applied Digital's annual report for the year to 31 May 2026 states that it had "executed long-term leases representing approximately 1,410 MW of contracted critical IT load across five campuses, representing approximately $36.2 billion of total contracted revenue". Three of those leases are filed with the Securities and Exchange Commission as exhibits. They are the CoreWeave leases, they cover 400 MW, and the company's own table puts them at roughly $11.0 billion. The remaining 1,010 MW and $25.2 billion rests on no filed agreement, and the tenants are named in no filing, described only as an "investment-grade hyperscaler".
That is not an accusation of invention, but a description of where the evidence sits. The Delta Forge announcements went out as Item 7.01 filings, whose express wording is that the material "is being 'furnished' and shall not be deemed 'filed'". No lease was filed as a material definitive agreement, and the $36.2 billion appears nowhere in the financial statements.
What is actually earning
Revenue for the three months to 31 August 2026, the first quarter of a fiscal year ending next May, was $341.9m against $80.9m a year earlier. Of the $262.6m from the HPC segment, $183.5m was tenant fit-out services against $176.1m of cost — a pass-through at four per cent gross margin. Base rent was $65.8m, under a fifth of the revenue line, with $13.3m more in tenant recoveries.
The operating loss was $62.4m and the net loss $184.1m, or $237.1m attributable to common stockholders, $0.82 a share. The press release headlined the continuing-operations figures, $221.0m and $0.76, with the qualifier a paragraph above the bullets rather than on them.
Adjusted EBITDA was $64.4m. Reaching it from a $168.0m loss from continuing operations takes $137.0m of add-backs on top of interest, tax and depreciation, the largest being $59.4m of stock compensation — 92 per cent of the measure it produces. The definition also excludes a subsidiary's results, and says so: doing that "removes revenues and expenses that are part of the Company's consolidated results and continuing operations". For the full year to 31 May 2026 the stock compensation add-back was $219.3m against $107.2m of adjusted EBITDA, twice the measure.
What it owes
Gross debt principal is $6.72bn — three secured note series, a $450m convertible and $182m of revolver and other debt — with $4.26bn due in fiscal 2031, against $2.95bn of cash and $728.0m restricted. Credit where due on the convertible: the company bought capped calls alongside it, about $51.8m for a cap near $14.72 against a conversion price near $9.75.
Outside that sits $2.01bn of redeemable non-controlling interest held by Macquarie, accruing 12.75 per cent a year, compounding, rising to a maximum 16.75 per cent, and charging $60.1m against share premium in one quarter. Economically it is senior, expensive and debt-like, and the "$6.4 billion in debt" in the press release does not include it.
$36.2bn of contracted revenue, of which $11.0bn has a filed lease. About 250 MW of 1,410 MW is live.
Worth saying plainly for anyone still filing this under mining: Applied Digital owns no bitcoin, and "digital asset" appears in neither filing. It hosts for one remaining crypto customer on a contract with about eighteen months left, which it calls "a legacy line of business" — 11 per cent of revenue across 286 MW.
Bear and bull
The bear case is that almost none of this is built. About 250 MW of 1,410 MW was live at the start of this month, the rest is construction risk financed at 6.75 to 9.25 per cent, and the tenants behind $25.2bn are named in no filing.
The bull case is that the filed leases are real, take-or-pay and fifteen years long, and that the contracted book implies about $1.71m per megawatt per year. The capped calls were bought, the covenants are being met, and $2.95bn of unrestricted cash buys time the last cycle of this business did not have. The question is delivery.
| Revenue, Q1 FY2027 | $341.9m (from $80.9m) |
| Of which tenant fit-out services | $183.5m at ~4% gross margin |
| Net loss attributable to common | $237.1m, $0.82 a share |
| Adjusted EBITDA | $64.4m, after $137.0m of add-backs |
| Of which stock compensation | $59.4m |
| Gross debt principal | $6.72bn |
| Redeemable NCI, outside that figure | $2.01bn at 12.75% accruing |
| Contracted revenue, leases filed | $11.0bn of $36.2bn |
| Critical IT load live, contracted | ~250 MW of 1,410 MW |
| Bitcoin held | none |
All figures from filings retrieved from SEC EDGAR on 26 October 2026: the Form 10-Q for the quarter ended 31 August 2026, filed 7 October 2026; the Form 10-K for the year ended 31 May 2026, filed 29 July 2026; and 8-K filings over the preceding six months. Dollars as filed, and fiscal periods are labelled because the year ends 31 May. Adjusted EBITDA and the $36.2bn contracted-revenue figure appear in the filed management discussion but in neither the reviewed nor the audited statements, and the press release carrying them was furnished, not filed. The fit-out, base rent and recovery split comes from that release; the convertible's conversion price and capped-call terms from the 8-K of 5 November 2024. Per-megawatt figures are our arithmetic. Contested: the press release headlines a $221.0m loss and $0.76 a share where the income statement reports $237.1m and $0.82, the difference being discontinued operations; an "$86 billion if all renewal options are exercised" figure and an approximately 1 GW Finland arrangement appear in the press release and no filed document; and the "as of May 31, 2026" lease total includes a lease signed 5 June 2026. Not a recommendation to buy, sell or hold any security.