Can Applied Digital Get Out From Under Its Debt Overhang?

3 hours ago 2

Rich Duprey

Fri, March 27, 2026 astatine 9:10 AM CDT 5 min read

Applied Digital (APLD) bushed Q2 FY26 estimates with $126.59M gross (56% supra consensus) and $85M successful HPC Hosting gross driven by CoreWeave fit-out work, but indebtedness has surged to $5B aft a $2.15B March 2026 indebtedness offering for Polaris Forge 2 construction. Nvidia (NVDA) invested $2B successful CoreWeave successful January, underscoring the captious value of that tenant relationship.
Applied Digital’s quality to screen $5B successful indebtedness obligations depends wholly connected executing 200 MW capableness additions astatine Polaris Forge 1 and 2 successful 2026 to unlock long-dated lease gross from CoreWeave and Oracle, portion managing attraction hazard astir CoreWeave’s stability.
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Applied Digital (NASDAQ:APLD) reports fiscal third-quarter 2026 results connected April 8, 2026, aft the close. With a $6.9 cardinal marketplace headdress and a indebtedness heap that keeps growing, this quarter's telephone volition beryllium arsenic overmuch astir fiscal operation arsenic it is astir revenue.

Applied Digital's Q2 FY26 report, filed January 7, 2026, delivered a headline-grabbing beat: gross of $126.59M topped the $81.21M statement estimation by astir 56%, and EPS of -$0.11 bushed the -$0.2067 estimation by 46.78%. The HPC Hosting conception drove the surge, pulling successful $85M including $73M successful one-time tenant fit-out gross from CoreWeave (NASDAQ:CRWV) and $12M successful lease revenue. Gross nett grew 126.26% twelvemonth implicit year.

Since that report, though, the superior operation has shifted materially. In aboriginal March, Applied Digital priced a $2.15 cardinal offering of 6.750% elder secured notes owed 2031 done its subsidiary APLD ComputeCo 2, specifically to money improvement and operation of 200 megawatts astatine Polaris Forge 2 successful Harwood, North Dakota. That woody closed astir March 10, 2026. Combined with the $2.6 cardinal successful indebtedness already connected the books arsenic of November 2025, the institution present carries a substantially larger indebtedness load than it did erstwhile it past reported. The banal has pulled backmost 16.13% implicit the past month, sitting astatine $25.72 arsenic of March 26, good beneath the $30.65 terms astatine the Q2 filing.

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Analyst statement estimates for Q3 FY26 are calling for a 48% summation successful gross to $78.5 billion, generating a nonaccomplishment of -$0.21 per share, importantly much than the -$0.08 nonaccomplishment past year. The array beneath reflects the trajectory from anterior quarters to supply discourse for the upcoming print.

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