Applied Digital reported fiscal third-quarter 2026 revenue of $126.6 million, lifting apld stock after the company’s last earnings report. The figure was up 139.3% from $52.9 million a year earlier.
That quarter also included a shift in how the company is being valued. Applied Digital said its cloud business was reclassified from held-for-sale and carried a $59.7 million non-cash write-down, even as revenue and adjusted EBITDA improved sharply.
Applied Digital's third quarter
Applied Digital reported adjusted EBITDA of $44.1 million in the third quarter of fiscal 2026, up from $6.3 million in the year-ago quarter. It also reported adjusted net income per diluted share of 9 cents, compared with an adjusted net loss of 1 cent per diluted share in the prior-year period.
The company’s loss per share widened to 36 cents from 16 cents a year earlier. Revenue beat the Zacks Consensus Estimate by 68.73%, while the loss per share missed the estimate by 260%.
Data Center Hosting and HPC
Applied Digital said Data Center Hosting revenue rose to $37.5 million from $35.2 million, while HPC Hosting revenue reached $71.0 million. That HPC total included $44.1 million from base rent, $18.9 million from tenant fit-out services, and $8.1 million from power pass-through arrangements and other ancillary revenue streams.
The Data Center Hosting Business generated about $13.9 million in operating profit on an asset base of $119.6 million. The HPC Hosting Business generated $17.6 million in operating profit during the quarter.
Cloud business changes
Applied Digital consolidated cloud revenues of $18.1 million for the quarter, but the Cloud Services segment reported a loss of $52.2 million. The write-down came after the business was reclassified from held-for-sale.
That change leaves investors focusing on the company’s mix of recurring hosting revenue, fit-out work, and cloud restructuring rather than the top line alone. Applied Digital said Jamestown operated at 106 MW of capacity and Ellendale at 180 MW as of Feb. 28, showing both sites fully deployed at that point.
Shares after earnings
Applied Digital shares had added about 62.4% in the month after the last earnings report. With the company also planning to merge its Cloud Services Business with EKSO Bionics Holdings to form ChronoScale Corporation, and to retain about 97% ownership of ChronoScale upon closing, the market is tracking whether the revenue jump can outlast the cloud write-down and the next phase of restructuring.
