Applied Digital exits fiscal 2026 with a 1.41 GW contracted HPC portfolio, roughly 1.7 GW of additional marketing capacity, an investment-grade-rated CoreWeave tenant at Polaris Forge 1, and project-level debt arranged at the subsidiary level for each campus, the structure of a capital-intensive build-to-suit operator rather than a speculative developer. The HPC Hosting Business generated $385.3 million in segment revenue for the year, all of it in the second half, against $0 in fiscal 2025. The Data Center Hosting Business, a legacy 286 MW bitcoin-mining hosting operation running at full capacity, contributed $154.4 million (up 7.1% year over year) and $48.3 million of segment operating profit (down 24% from a $63.9 million fiscal 2025 figure that included a one-time $25.0 million gain on the Garden City facility disposition). The HPC segment swung from a $(12.1) million operating loss in fiscal 2025 to a $39.1 million profit in fiscal 2026, a 424% increase driven by tenant fit-out services revenue (which carried little margin) and the first full quarter of base-rent revenue. Net Operating Income margin on the HPC base-rent line was 91% in both Q4 and the full year, an unusually high property-level reading that reflects the early-stage occupancy of just one building.
Three forward reads from the report shape the thesis. First, $36.2 billion in base-term contracted revenue across 1,410 MW is the headline anchor, but the timing of that revenue is concentrated in 2027-2042, with no material base-rent contribution until additional buildings reach Ready for Service at Polaris Forge 1, then Polaris Forge 2, then the three new Delta Forge 1, Polaris Forge 3, and Delta Forge 2 campuses. Second, customer concentration is acute: one hyperscaler (the same one) anchors all three new 15-year take-or-pay leases plus a third sequential relationship in fiscal 2026 alone, and CoreWeave anchors 400 MW at Polaris Forge 1. Management's own long-term NOI target of $1 billion within five years is the binding operational milestone, not a near-term earnings per share target. Third, the capital structure has been re-engineered around the build: long-term debt of $4.96 billion at year-end, redeemable noncontrolling interest of $1.96 billion tied to the Macquarie Asset Management unit-purchase agreement (with up to $4.9 billion of additional preferred-unit capital available), and a Series G convertible preferred stock line that grew to a $2.0 billion commitment by late June 2026. Cash and restricted cash sits at $4.15 billion, so net debt is roughly $0.82 billion against the $4.96 billion gross debt stack, a profile that looks conservative on a net basis but masks a heavy forward construction-funding pipeline.