APLD·AI/HPC data-center development & leasing ('AI factory' campuses); build-to-suit power+shell landlord to neoclouds/hyperscalers

Applied Digital

ConvictionModerate

Own/develop energized, grid-connected data-center campuses and lease critical-IT capacity (measured in MW) to GPU tenants under long-dated (~15-year) take-or-pay leases. The economic engine is the spread between contracted lease revenue and the combined debt-service + preferred-dividend + depreciation cost of the built campuses. Unlike a neocloud (CoreWeave/Nebius), Applied Digital does NOT own the GPUs or operate the cloud — it supplies the building, power, and cooling the tenant racks GPUs into, so it carries build-execution, power-interconnect, financing, and tenant-credit risk rather than direct GPU-obsolescence risk. Effectively a leveraged, single-theme (AI-capex) real-asset landlord transitioning toward a data-center REIT.

Revenue

$126.6MQ3 FY26, qtr ended Feb 28 2026); ~$352.6M first 9M FY26; ~$319M LTM [fact]

Rev growth

+139% YoYQ3 FY26); LTM ~+66% YoY [fact]

Gross margin

n/d as a clean line — early-ramp campusesfirst 100MW building energized this year) plus a divesting Cloud Services segment muddy consolidated gross margin; adj. EBITDA margin ~35% ($44.1M / $126.6M, Q3 FY26) is the cleaner operating tell [fact/estimate]

Op margin

Negative — GAAP net loss ~-$100.9Min Q3 FY26 (net margin ~-80%), driven by ~$48.9M stock-based comp + a ~$59.7M non-cash write-down on the Cloud Services reclassification/divestiture, plus depreciation and interest [fact]

Market cap

~$10.1B equity cap~285.8M shares); enterprise value ~$11B (net debt ~$0.8B: ~$2.7B total debt less ~$1.9B cash incl. restricted, Q3 FY26). Excludes the up-to-$5B Macquarie perpetual preferred, which sits outside common equity/debt [fact/estimate]

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position

Scaling the AI Cloud

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Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.

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Not investment advice — analyst work product for a qualified professional.· intel vintage Jul 2026· sign in (free) for the analyst summary; Pro unlocks full intelligence