Applied Digital Corporation

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq426earningsreleaseasf.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal Fourth Quarter and Full Year 2026 Results DALLAS, TX – July 27, 2026 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the Company") , a U.S.-based designer, developer, owner, and operator of large-scale, purpose-built data centers engineered to support high-performance computing (“HPC”) workloads, including artificial intelligence (“AI”), machine learning, and other accelerated-compute applications, reported financial results for the fiscal fourth quarter ended May 31, 2026. The Company also provided operational updates. During the quarter, the Company completed the separation of its Cloud Services Business in a series of transactions that resulted in the Company owning approximately 96% of the issued and outstanding equity of ChronoScale Holdings Corporation, f/k/a ChronoScale Corporation ("ChronoScale") as of the end of the fiscal year. ChronoScale, a public company, owns and operates our historic cloud services business and is consolidated into our financial statements, but excluded from the non-GAAP financial measures set forth below. Unless otherwise specified, disclosures in this earnings release, including the below, reflect continuing operations only. Fiscal Fourth Quarter 2026 Financial Highlights • Revenues: $258.7 million, up 407% from the prior year comparable period • Net loss attributable to common stockholders: $110.6 million, down 108%

paragraph:7: from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.39, up 63% from the prior year comparable period • Adjusted revenue: $240.4 million • Adjusted net income: $12.9 million • Adjusted net income per diluted share: $0.04 • Adjusted EBITDA: $42.4 million • Net Operating Income: $39.9 million Fiscal Year 2026

paragraph:8: Financial Highlights • Revenues: $611.3 million, up 167% from the prior year comparable period • Net loss attributable to common stockholders: $249.2 million, down 7% from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.91, down 22% from the prior year comparable period • Adjusted revenue: $539.7 million • Adjusted net income: $36.1 million • Adjusted net income per diluted share: $0.11 • Adjusted EBITDA: $107.2 million • Net Operating Income: $90.4 million Adjusted revenue, Adjusted net income (loss) , Adjusted net income (loss) per diluted share , Adjusted EBITDA, and Net Operating Income are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. These non-GAAP measures exclude the results of ChronoScale. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Highlights • Signed a 15-year take-or-pay lease with a new U.S. based, high investment-grade hyperscaler for 300 megawatts ("MW") of critical IT load at Delta Forge 1, a new AI Factory campus in Boyce, Louisiana. The lease provides for approximately $7.5 billion in base-term contracted revenue, with initial operations expected to commence calendar year 2027. • Signed a second 15-year take-or-pay lease with the same high investment-grade hyperscaler for 300 MW at Polaris Forge 3, which provides for approximately $7.5 billion in base-term contracted revenue, with initial operations expected to commence during calendar year 2027. • Completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031 (issued at 98% of par) through its subsidiary APLD ComputeCo 2 LLC. Proceeds will fund development of 200 MW of critical IT load at Polaris Forge 2 in Harwood, North Dakota. • Closed a revolving credit facility of up to $550 million ($350 million committed + $200 million accordion ), arranged by Goldman Sachs and maturing in May 2029, to support pre- and post-lease development across campuses. • Enhanced credit quality on existing CoreWeave leases through a restructured SPV subsidiary, unconditional springing guarantees from CoreWeave, Inc., and a $50 million letter of credit. These changes followed CoreWeave’s investment-grade A3-rated refinancing and provide additional security for the Company’s 9.250% Senior Secured Notes due 2030. • Closed a $300 million senior secured bridge facility led by Goldman Sachs to support development of the fourth building (150 MW) at Polaris Forge 1 (which has been repaid with the proceeds from the Senior Secured Notes Offering described below). • Completed the separation of our cloud services business, combining it with Ekso Bionics Holdings, Inc. to form ChronoScale (Nasdaq: CHRN), an independent publicly traded accelerated-compute platform. Applied Digital currently owns approximately 96% of ChronoScale. Subsequent to the Quarter • Signed a third 15-year take-or-pay lease with the same high investment-grade hyperscaler for 210 MW at Delta Forge 2 (fifth AI Factory campus, third consecutive with this customer) in a new southern state. The lease provides for approximately $5.2 billion in base-term contracted revenue, with initial operations expected in the first half of calendar 2028. • Entered a Memorandum of Understanding with CoreWeave to assign the Building 4 lease at Polaris Forge 1 to a CoreWeave subsidiary upon achieving an investment-grade credit rating. • Closed $1.59 billion of 7.000% Senior Secured Notes due 2031 (issued at par) through our subsidiary APLD ComputeCo 3 LLC. Proceeds from this offering were used to repay the $300 million bridge facility and will fund the construction of the fourth building (150 MW), at Polaris Forge 1. • Upsized the revolving credit facility, bringing the total committed amount to $430 million, with an additional $120 million accordion remaining. • Achieved Ready for Service for Phase 1 of Building 2 (75 MW) at Polaris Forge 1 on schedule, bringing total live capacity at the campus to 175 MW. Management Commentary This was a defining quarter for Applied Digital, capping a defining year. Since the end of last quarter, we have signed three new leases — at Delta Forge 1, Polaris Forge 3, and Delta Forge 2 — all with the same high investment-grade hyperscaler and each in a different state. Delta Forge 1 and Polaris Forge 3 each provides for approximately $7.5 billion in base-term contracted lease revenue, while Delta Forge 2 adds approximately $5.2 billion. Together, these deals represent roughly $20 billion in long-term contracted revenue from a single, world-class customer that has now chosen us three times in a row.

paragraph:9: With these agreements, we have secured 1.4 gigawatts ("GW") of contracted critical IT load, representing approximately $36 billion in total contracted lease revenue — or approximately $86 billion if all renewal options are exercised. We are building five multibillion-dollar AI Factory campuses for two hyperscalers and CoreWeave— a scale that we believe speaks to both the quality of our platform and the trust these customers place in our ability to execute. “Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. “We call it our franchise model — a core team of design, construction, and operations professionals replicated across every campus, in each market. Combined with our proven supply chain and design approvals from every major hyperscaler, we believe this repeatable, differentiated platform is why we have emerged as one of the clear leaders in AI infrastructure.” “We believe delivering on time is a genuine differentiator in this industry,” Cummins continued. “We brought Polaris Forge 1’s first 100 MW online on schedule and have now scaled total live capacity at the campus to 175 MW. We’re not just securing power — we’re turning it into operational AI capacity.” Beyond the contracted portfolio and the approximately 1.4 GW already under construction, Applied Digital is actively marketing an additional 1.7 GW of capacity across multiple states, we see as underscoring robust demand for its AI Factories. To fuel sustainable expansion, the Company is advancing a strategic power initiative. Applied Digital is working with Base Electron Corp., an independent power producer who has engaged Babcock & Wilcox to develop approximately 1.2 GW of front-of-the-meter natural gas-fired generation in the Dakotas, in collaboration with regional utilities. Applied Digital shareholders own approximately 10% of Base Electron Corp. through our investment in Base Electron. This deepens access to abundant, reliable, low-cost power — a critical competitive advantage for both existing campuses and future growth. “We are still in the early innings of what we believe will likely be the largest buildout of critical infrastructure in modern economic history,” Cummins added. “We see demand for high-power-density, purpose-built AI data centers remaining extremely robust. Our approach is simple: Do it the right way. For customers, that means delivering high-quality, GPU-ready facilities on time. For communities, it means creating lasting economic value. When we do right by both, our shareholders win over the long term.” Cummins also pointed to the continued strength of the Company’s Data Center Hosting business: “Our Data Center Hosting business, which operates 286 MW for bitcoin mining across our two North Dakota sites, remains the highest return-on-assets business in the company. We are paid based on the data center capacity provided to our customer, so as long as they are mining, we are paid regardless of where the price of bitcoin trades — which makes this a steady, high-margin source of cash flow.” The Company also completed the separation of its cloud services business during the quarter and currently owns approximately 96% of ChronoScale, a public company trading on Nasdaq under the

paragraph:10: symbol “CHRN.” ChronoScale has continued to build out its leadership team, including the appointments of Raj Jegannathan, previously a Vice President at Tesla, as Chief Technology Officer, and Lawrence Lam, who brings more than twenty years scaling global cloud and AI platforms at companies including Supermicro, as Chief Product Officer. HPC Hosting Update Applied Digital's HPC Hosting Business designs, builds, and operates next-generation, purpose-built AI Factory data centers. As of May 31, 2026, the Company had executed long-term leases representing approximately 1,410 MW of contracted critical IT load across five campuses — Polaris Forge 1, 2, and 3 in North Dakota and Delta Forge 1 and 2 in Louisiana and another southern state — representing approximately $36 billion of total contracted revenue over the initial 15-year base lease terms, or approximately $86 billion if all renewal options are exercised. The first 100 MW data center at Polaris Forge 1 became operational in October 2025, and the Company delivered Phase 1 of Building 2 (75 MW) on June 30, 2026, bringing the total live capacity at the campus to 175 MW. Additional buildings at Polaris Forge 1, along with Polaris Forge 2, Polaris Forge 3, Delta Forge 1, and Delta Forge 2, are in various stages of construction. Revenue from our HPC Hosting business totaled $203.0 million for the quarter, including $44.1 million related to base rent, $152.4 million related to tenant fit-out services, and $6.5 million related to tenant recoveries. This resulted in $26.2 million of segment operating profit for the quarter ended May 31, 2026. Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of May 31, 2026, the Company’s 106 MW facility in Jamestown, ND, and 180 MW facility in Ellendale, ND, were operating at full capacity. During the three months ended May 31, 2026, the Company generated $37.3 million in revenue from the Data Center Hosting Business segment, compared to $38.0 million during the three months ended May 31, 2025. The results were materially consistent year over year due to stable operating conditions across the Company’s data center hosting facilities. We are very pleased with our Data Center Hosting Business, which generated $12.5 million in segment operating profit for the three months ended May 31, 2026 on $113.8 million in reported assets at the end of the period. Cloud Services Business Update On May 5, 2026, we completed the separation of our cloud services business, combining it with Ekso Bionics Holdings, Inc. to form ChronoScale Holdings Corporation, an independent, publicly traded accelerated-compute platform that is trading on the Nasdaq Capital Market under the symbol "CHRN." Applied Digital currently owns approximately 96% of ChronoScale. We consider the Data Center Hosting Business and the HPC Hosting Business to represent our core operations for long-run strategic and performance evaluation purposes as we evolve into a pure-play data center platform moving forward. Accordingly, although we consolidate ChronoScale’s financial results as our majority owned subsidiary, we excluded the results of ChronoScale, including its cloud services business, in our Non-GAAP results presented herein. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Financial Results from Operations for Fiscal Fourth Quarter 2026 Operating Results Services revenue in the fiscal fourth quarter 2026 was $208.2 million compared to $51.1 million, up 308% from the fiscal fourth quarter 2025. The growth was primarily driven by revenue of approximately $152.4 million related to tenant fit-out services within our HPC Hosting Business, which we began providing during the fiscal year ended 2026. Data center rental and other revenue in the fiscal fourth quarter 2026 was $50.6 million as the first HPC data center at our Polaris Forge 1 campus was fully operating during the current quarter. This revenue consisted of $44.1 million related to base rent, and $6.5 million related to tenant recoveries. Services cost of revenues in the fiscal fourth quarter 2026 were $193.1 million compared to $54.2 million, up 256% from the fiscal fourth quarter 2025. This increase was primarily driven by an increase of $145.6 million in expenses associated with tenant fit-out services for our HPC Hosting Business. Data center rental and other cost of revenues in the fiscal fourth quarter 2026 were $25.1 million. Data center rental and other cost of revenue included approximately $14.1 million in depreciation and amortization expense on our first HPC data center at our Polaris Forge 1 campus, $6.4 million in expenses which are reimbursable as tenant recoveries, and $4.5 million in personnel and other expenses directly supporting revenue. Selling, general and administrative expenses in the fiscal fourth quarter 2026 were $165.3 million compared to $41.0 million, up 303% from the fiscal fourth quarter of 2025 driven by the Company’s overall business growth. This increase was primarily due to increases of $116.8 million in stock based compensation due to accelerated vesting of certain employee stock awards as well as grant activity associated with separation of the cloud services business and the increase in headcount, $7.3 million in personnel expenses related to the increase in headcount, and $5.6 million in professional service expense primarily related to legal services provided on discrete transactions and projects, as well as general support of the business. These increases were partially offset by a decrease of $5.4 million in other selling, general, and administrative expense such as travel, computer and software expenses. Interest expense, net in the fiscal fourth quarter 2026 was $10.6 million compared to $8.5 million, up 26%, from the fiscal fourth quarter 2025. As we entered into new debt arrangements during the current fiscal year, there was an increase of $31.9 million in interest expense. The increase in expense was partially offset by an increase of $30.5 million in interest income due to larger balances of funds held in interest-bearing demand deposit accounts. Gain on change in fair value of derivatives was $53.3 million for the three months ended May 31, 2026, due to an increase of $69.9 million in the fair value of our Babcock & Wilcox Enterprises, Inc. (“B&W”) common stock warrant which was partially offset by a decrease of $16.7 million in the fair value of the derivative assets related to the preferred units and corresponding common units held by APLD HPC TopCo 2’s noncontrolling interest. Gain on change in fair value of investment was $4.8 million for the three months ended May 31, 2026, due to the increase in the fair value of our investment in B&W common stock. Net loss from discontinued operations was $1.0 million for the three months ended May 31, 2026 and represents the income statement activity related to the Ekso business at ChronoScale which was classified as held for sale and discontinued operations during the fiscal fourth quarter 2026. Net loss from continuing operations attributable to common stockholders for the fiscal fourth quarter 2026 was $110.6 million, or $0.39 per basic and diluted share. This compares to a net loss attributable to common stockholders from continuing operations of $53.1 million, or $0.24 per basic and diluted share for the fiscal fourth quarter of 2025. Adjusted revenue, a non-GAAP financial measure, was $240.4 million for the fiscal fourth quarter 2026 compared to $38.0 million for the fiscal fourth quarter of 2025. Adjusted net income, a non-GAAP financial measure, was $12.9 million, or $0.04 per diluted share for the fiscal fourth quarter 2026. This compares to an adjusted net loss, a non-GAAP financial measure, of $7.6 million, or $0.03 per diluted share, for the fiscal fourth quarter of 2025. Adjusted EBITDA, a non-GAAP financial measure, was $42.4 million for the fiscal fourth quarter 2026 compared to an Adjusted EBITDA of $1.0 million for the fiscal fourth quarter 2025. Net Operating Income, a non-GAAP financial measure, was $39.9 million for the fiscal fourth quarter 2026. Financial Results for Fiscal Year Ended May 31, 2026 Services revenue increased $270.0 million, or 119%, from $226.6 million for the fiscal year ended May 31, 2025 to $496.6 million for the fiscal year ended May 31, 2026. Our HPC Hosting Business commenced operations at our first HPC data center at our Polaris Forge 1 campus resulting in the recognition of approximately $270.6 million related to tenant fit-out services. Additionally, there was an increase of $12.1 million in revenue generated by our Data Center Hosting Business due to performance improvements compared to the fiscal year ended May 31, 2025. These increases were partially offset by a decrease of $12.4 million in revenue generated from ChronoScale primarily due to a reduction in rates for cloud services. Data center rental and other revenue was $114.7 million for the fiscal year ended May 31, 2026, which is the period during which our HPC Hosting Business commenced operations. This revenue consisted of approximately $99.8 million related to base rent and $14.9 million related to tenant recoveries. Services cost of revenues increased by $180.1 million, or 83%, from $216.8 million for the fiscal year ended May 31, 2025 to $396.9 million for the fiscal year ended May 31, 2026. The increase was primarily due to $258.1 million in expenses associated with tenant fit-out services for our HPC Hosting Business which we began providing during the current fiscal year. This increase was partially offset by decreases of approximately $62.3 million in depreciation and amortization expense and $17.2 million in lease and related expense primarily due to the renegotiations of certain of our leases during fiscal year ended May 31, 2026, as well as due to the Cloud Services Business (one of our three operating business segments at the time) being classified as held for sale until February 15, 2026, which resulted in decreased depreciation and amortization recorded. Data center rental and other cost of revenue was $56.8 million for the fiscal year ended May 31, 2026, which is when we commenced our data center rental operations within our HPC Hosting Business. The primary components of data center rental and other cost of revenue include approximately $32.2 million in depreciation and amortization expenses associated with our HPC Hosting Business, $14.9 million in expenses which are reimbursable as tenant recoveries, $8.5 million in rental property operating expenses, which are not eligible for recovery from our tenant, $0.7 million in property insurance expenses associated with our HPC Hosting Business, and $0.2 million in property tax expenses associated with our HPC Hosting Business. Selling, general and administrative expense increased by $224.2 million, or 208%, from $107.9 million for the fiscal year ended May 31, 2025 to $332.1 million for the fiscal year ended May 31, 2026. The increase was primarily due to the overall growth in the business, with a $198.3 million increase in stock-based compensation primarily due to an increase in grant activity related to the separation of the cloud services business, the increase in headcount and performance stock awards granted during the fiscal year ended May 31, 2026 compared to the fiscal year ended May 31, 2025, $16.0 million increase in professional service expenses primarily related to legal services provided on discrete transactions and projects as well as general support of the business, $15.4 million increase in personnel expenses driven by increases in headcount to support the business, and $6.2 million increase in other selling, general, and administrative expense primarily related to travel, computer and software expenses. These increases were partially offset by a decrease of $11.7 million in lease and related expenses and depreciation and amortization expense, primarily due to the renegotiations of certain of our leases during the fiscal year ended May 31, 2026. Loss (gain) on classification of held for sale changed by $84.3 million, or 342%, from a gain of $24.6 million for the fiscal year ended May 31, 2025 to a loss of $59.7 million for the fiscal year ended May 31, 2026. The loss during the fiscal year ended May 31, 2026 was primarily due to the write down of the Cloud Services Business assets to carrying value as of February 15, 2026 when it no longer qualified as held for sale. Comparatively, the gain during the fiscal year ended May 31, 2025 was due to the sale of our former Garden City facility. Interest expense, net decreased $2.6 million, or 8%, from $32.1 million for the fiscal year ended May 31, 2025 to $29.5 million for the fiscal year ended May 31, 2026. As we entered into more debt arrangements during the current fiscal year, there was an increase of $53.3 million in interest expense. The increase in expense was partially offset by an increase of $52.6 million in interest income due to larger balances of funds held in interest-bearing demand deposit accounts. Gain on change in fair value of derivatives was $75.8 million for the fiscal year ended May 31, 2026, due to an increase of $89.2 million in fair value of our Babcock & Wilcox Enterprises, Inc. (“B&W”) common stock warrant partially offset by a decrease of $13.3 million in fair value of the derivative assets related to the preferred units and corresponding common units held by APLD HPC TopCo 2’s noncontrolling interest. Gain on change in fair value of investments was $10.8 million for the fiscal year ended May 31, 2026, due to an increase of $8.8 million in fair value of our investment in B&W common stock and an increase of $2.0 million in fair value of our investment in Base Electron, a related party. Loss on conversion of debt was $33.6 million for the fiscal year ended May 31, 2025, due to the difference in the fair value compared to the price at which the promissory notes, totaling $92.1 million, entered into with YA II PN, LTD in the year ended May 31, 2024 (the “YA Notes") were converted. There was no such loss recorded in the current fiscal year. Loss on change in fair value of debt was $85.4 million for the fiscal year ended May 31, 2025, primarily due to a loss of approximately $89.6 million related to the change in fair value of the conversion option derivative of the Convertible Notes during the two week period in which we did not have sufficient authorized shares to settle such conversion fully in shares, which was partially offset by a gain of approximately $4.1 million related to the change in the fair value of the YA Notes. Net loss from discontinued operations was $1.0 million for the fiscal year ended May 31, 2026 and represents the income statement activity related to the Legacy Ekso business at ChronoScale classified as held for sale and discontinued operations. Net loss from continuing operations attributable to common stockholders was $249.2 million, or $0.91 per basic and diluted share, for the fiscal year ended May 31, 2026. This compares to a net loss attributable to common stockholders from continuing operations of $233.7 million, or $1.16 per basic and diluted share, for the fiscal year ended May 31, 2025. Net loss from discontinued operations attributable to common stockholders for the fiscal year ended May 31, 2026 was $1.0 million. There was no such activity in the prior fiscal year. Adjusted revenue, a non-GAAP financial measure, was $539.7 million for the fiscal year ended May 31, 2026 compared to $144.2 million for the fiscal year ended May 31, 2025. Adjusted net income from continuing operations attributable to common stockholders, a non-GAAP financial measure, was $36.1 million or $0.11 per diluted share for the fiscal year ended May 31, 2026. This compares to an adjusted net loss attributable to common stockholders of $12.5 million, or $0.06 per basic and diluted share, for the fiscal year ended May 31, 2025. Adjusted EBITDA, a non-GAAP financial measure, was $107.2 million for the fiscal year ended May 31, 2026 compared to an Adjusted EBITDA of $19.6 million for the fiscal year ended May 31, 2025. Net Operating Income, a non-GAAP financial measure, was $90.4 million for the fiscal year ended May 31, 2026. Balance Sheet As of May 31, 2026, the Company had $4.2 billion in cash, cash equivalents, and restricted cash, along with $5.0 billion in debt. Conference Call As previously announced, Applied Digital will host a conference call today, July 27, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. Date: Monday, July 27, 2026 Time: 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) North America Dial-In: 1-833-461-5787 International Dial-In: +1 (585) 542-9983 Conference ID: 735983255 The conference call will be broadcast live and available for replay for one year here . Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. About Applied Digital Applied Digital Corporation (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud -

paragraph:11: designs, develops, owns, and operates large-scale, purpose-built data centers engineered to support HPC workloads, including AI, machine learning, and other accelerated-compute applications. Headquartered in Dallas, TX, and founded in 2021, the Company combines hyperscale expertise, closed-loop cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and future financing plans. These statements use words, and variations of words, such as "intend," “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of Company plans and objectives, including the Company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the Company or its business; (vi) the Company’s plans to obtain future project financing; and (vii) statements regarding ChronoScale. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include, among others: our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under the lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases on acceptable financing terms, or at all; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers; our ability to timely and successfully build new HPC hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties and other factors can be found in the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov , on the Company’s website ( www.applieddigital.com ) under “Investors,” or on request from the Company. Information in this earnings release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our core business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . Management considers the Data Center Hosting Business and the HPC Hosting Business to be its core operations for long-run strategic and performance evaluation purposes. Accordingly, these non-GAAP financial measures exclude the results of our consolidated subsidiary, ChronoScale. ChronoScale is included in our consolidated financial statements and results of continuing operations. Due to its strategic role relative to the Company’s core business, management believes the ChronoScale results may obscure underlying trends in the performance of core operations when included in certain non-GAAP measures. These non-GAAP financial measures are provided as supplemental measures to our performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Excluding the results of ChronoScale in our non-GAAP financial measures removes revenues and expenses that are part of the Company’s consolidated results and continuing operations and should not be viewed as measures or reflections of liquidity or profitability in accordance with GAAP. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this earnings release have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate our business. Adjusted Revenue “Adjusted revenue” is a non-GAAP financial measure that represents total revenue excluding ChronoScale revenue. Adjusted revenue is total revenue excluding total revenue from ChronoScale. Adjusted Operating Income, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per Diluted Share “Adjusted operating income” and “Adjusted net income (loss) from continuing operations attributable to common stockholders” are non-GAAP financial measures that represent operating income and net income (loss) from operations excluding ChronoScale, respectively. Adjusted operating income is Operating loss excluding operating loss from ChronoScale, stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, (gain) loss on classification of held for sale, accelerated depreciation and amortization, loss on legal settlement, restructuring expenses and other non-recurring expenses that management believes are not representative of our expected ongoing costs. Adjusted net income (loss) is Adjusted operating income further adjusted for interest expense directly attributable to ChronoScale, gain on change in fair value of derivatives, gain on change in fair value of investments, loss on conversion of debt, loss on change in fair value of debt, loss on change in fair value of related party debt, loss on change in fair value of warrants, loss on change in fair value of warrants issued to related parties, loss on extinguishment of debt and loss on extinguishment of related party debt. We define “Adjusted net income (loss) per diluted share” as Adjusted net income (loss) divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization and excluding the results of ChronoScale. “Adjusted EBITDA” also excludes results of ChronoScale and is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, (gain) loss on classification as held for sale, loss on abandonment of assets, gain on change in fair value of derivatives, gain on change in fair value of investments, loss on conversion of debt, loss on change in fair value of debt, loss on change in fair value of related party debt, loss on change in fair value of warrants, loss on change in fair value of warrants issued to related parties, loss on extinguishment of debt and loss on extinguishment of related party debt, loss on legal settlement, restructuring expenses, and other non-recurring expenses that management believes are not representative of our expected ongoing costs. Net Operating Income "Net Operating Income" is a non-GAAP financial measure that represents base rental revenue from the HPC Hosting Business. Net Operating Income is HPC Hosting Business base rental revenue less rental property operating expenses, property taxes, and property insurance expenses. "Net Operating Income Margin" is defined as Net Operating Income divided by HPC Hosting Business base rental revenue. Investor Relations Contacts Media Contact Matt Glover or Ralf Esper Buffy Harakidas, EVP Gateway Group, Inc. JSA (Jaymie Scotto & Associates) (949) 574-3860 (856) 264-7827 APLD@gateway-grp.com jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and par value data) May 31, 2026 May 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,591,988 $ 43,950 Restricted cash 2,381,027 72,368 Accounts receivable 56,309 6,830 Prepaid expenses and other current assets (1) 613,692 9,652 Current assets held for sale 19,841 — Total current assets 4,662,857 132,800 Property and equipment, net 4,236,300 1,252,287 Operating lease right of use assets, net 76,922 92,335 Finance lease right of use assets, net 122,523 213,315 Other assets 830,710 179,353 TOTAL ASSETS $ 9,929,312 $ 1,870,090 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 395,474 $ 251,491 Accrued liabilities 548,493 30,121 Current portion of operating lease liability 18,484 16,785 Current portion of finance lease liability 47,585 147,040 Current portion of debt 16,422 10,331 Customer deposits 16,752 16,125 Deferred revenue 4,666 3,594 Current liabilities held for sale 7,426 — Due to customer 10,065 4,807 Other current liabilities 97,489 19,431 Total current liabilities 1,162,856 499,725 Long-term portion of operating lease liability 47,178 58,800 Long-term portion of finance lease liability 10,731 15 Long-term debt 4,959,516 677,825 Other long-term liabilities 5,454 — Total liabilities 6,185,735 1,236,365 Commitments and contingencies (Note 18) Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and 276,673 outstanding at May 31, 2026, and 301,673 shares issued and outstanding at May 31, 2025 6,306 6,932 Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized and issued and 61,909 shares outstanding at May 31, 2026, and 62,485 shares outstanding at May 31, 2025 56,460 57,011 Series G preferred stock, $0.001 par value, 1,030,000 shares authorized, no shares issued and outstanding at May 31, 2026, and 156,000 shares authorized, 78,000 shares issued and outstanding at May 31, 2025 — 72,094 Redeemable noncontrolling interest 1,956,303 — Stockholders' equity: Common stock, $0.001 par value, 600,000,000 shares authorized, 295,048,903 shares issued and 287,883,603 shares outstanding at May 31, 2026, and 234,200,868 shares issued and 224,909,669 shares outstanding at May 31, 2025 296 230 Treasury stock, 7,165,300 shares at May 31, 2026 and 9,291,199 shares at May 31, 2025, at cost (52,737) (31,400) Additional paid in capital 2,432,250 1,009,913 Accumulated deficit (662,333) (481,055) Total stockholders’ equity attributable to Applied Digital Corporation 1,717,476 497,688 Noncontrolling interest 7,032 — Total stockholders' equity including noncontrolling interest 1,724,508 497,688 TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY $ 9,929,312 $ 1,870,090 (1) Includes a related party loan receivable of $58.6 million as of May 31, 2026. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended Fiscal Year Ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Revenue: Services revenue $ 208,190 $ 51,076 $ 496,609 $ 226,643 Data center rental and other revenue 50,558 — 114,702 — Related party revenue — — — 1,926 Total revenue 258,748 51,076 611,311 228,569 Costs and expenses: Services cost of revenue 193,121 54,196 396,858 216,759 Data center rental and other cost of revenue 25,110 — 56,771 — Selling, general and administrative (1) 165,282 41,026 332,096 107,877 Loss (gain) on classification of held for sale (2) — — 59,650 (24,616) Loss on abandonment of assets 55 (45) 2,398 724 Total costs and expenses 383,568 95,177 — 847,773 300,744 Operating loss (124,820) (44,101) (236,462) (72,175) Interest expense, net (3) 10,633 8,451 29,516 32,139 Gain on change in fair value of derivatives (53,276) — (75,818) — Gain on change in fair value of investments (4,768) — (10,840) — Loss on conversion of debt — — — 33,612 Loss on change in fair value of debt — — — 85,439 Loss on extinguishment of debt — — — 1,177 Loss on change in fair value of warrants 2,212 — 2,212 6,421 Net loss from continuing operations before income tax expense (79,621) (52,552) — (181,532) (230,963) Income tax expense (benefit) 1,766 (16) 1,787 102 Net loss from continuing operations (81,387) (52,536) (183,319) (231,065) Net loss from discontinued operations (1,020) — (1,020) — Net loss (82,407) (52,536) (184,339) (231,065) Net loss attributable to noncontrolling interest and redeemable noncontrolling interest (27,615) — (59,665) — Preferred dividends (1,558) (540) (6,259) (2,615) Net loss attributable to common stockholders $ (111,580) $ (53,076) $ (250,263) $ (233,680) Net loss attributable to common stockholders Continuing operations $ (110,560) $ (53,076) $ (249,243) $ (233,680) Discontinued operations (1,020) — (1,020) — Net loss attributable to common stockholders $ (111,580) $ (53,076) $ (250,263) $ (233,680) Basic and diluted net loss per share attributable to common stockholders Continuing operations $ (0.39) $ (0.24) $ (0.91) $ (1.16) Discontinued operations — — — — Basic and diluted net loss per share attributable to common stockholders $ (0.39) $ (0.24) $ (0.91) $ (1.16) Basic and diluted weighted average number of shares outstanding 285,651,622 222,454,578 275,194,755 201,194,451 (1) Includes related party selling, general and administrative expense of $0.1 million for each of the three months ended May 31, 2026 and May 31, 2025, respectively, and $0.3 million for each of the fiscal years ended May 31, 2026 and May 31, 2025, respectively. (2) For the fiscal year ended May 31, 2026, amount includes a loss on classification of held for sale of $59.7 million representing the write down of our cloud services business' (the "Cloud Services Business") assets to their carrying value as of February 15, 2026 when it no longer qualified as held for sale. For the fiscal year ended May 31, 2025, amount includes $25.0 million received in connection with the sale of our Garden City facility once conditional approval requirements were met and escrowed funds were released. (3) For the three months and fiscal year ended May 31, 2026, amount includes related party income of $0.1 million. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) Fiscal Year Ended May 31, 2026 May 31, 2025 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (184,339) $ (231,065) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 67,387 97,945 Stock-based compensation 220,135 22,704 Lease expense 10,106 31,661 Gain on change in fair value of derivatives (75,818) — Gain on change in fair value of investments (10,840) — Loss on extinguishment of debt — 1,177 Amortization of debt issuance costs 6,323 9,563 Loss (gain) on classification of held for sale 59,650 (24,616) Loss on conversion of debt — 33,612 Loss on change in fair value of debt — 85,439 Loss on change in fair value of warrants issued 2,212 6,421 Loss on abandonment of assets 2,398 1,138 Changes in operating assets and liabilities: Accounts receivable (49,268) (2,934) Prepaid expenses and other current assets (36,164) (8,309) Other assets (51,483) 2,979 Customer deposits 627 2,306 Related party customer deposits — (1,549) Deferred revenue 947 (34,080) Related party deferred revenue — (1,692) Accounts payable (1,182) (78,256) Accrued liabilities 106,223 (12,127) Due to customer 5,258 (8,195) Lease assets and liabilities 17,513 (7,524) CASH FLOW PROVIDED BY (USED IN) OPERATING ACTIVITIES 89,685 (115,402) CASH FLOW USED IN INVESTING ACTIVITIES Purchases of property and equipment and other assets (2,865,765) (681,603) Proceeds from sale of investments 5,000 — Proceeds from sale of assets — 25,000 Finance lease prepayments — (6,178) Loans to related parties (58,632) — Purchases of investments (17,000) (4,873) CASH FLOW USED IN INVESTING ACTIVITIES (2,936,397) (667,654) CASH FLOW PROVIDED BY FINANCING ACTIVITIES Repayment of finance leases (99,455) (125,073) Borrowings of long-term debt 4,955,327 650,083 Repayment of long-term debt (521,512) (293,045) Payment of deferred financing costs (171,885) (42,398) Tax payments for restricted stock upon vesting (36,282) (4,116) Proceeds from issuance of common stock 196,366 191,590 Common stock issuance costs (5,950) (10,305) Proceeds from issuance of preferred stock 814,998 198,205 Preferred stock issuance costs (11,897) (13,812) Redemption of preferred stock (1,187) (2,615) Dividends issued on preferred stock (6,259) — Issuance of warrants, at fair value (8,250) — Exercise of warrants 6,265 — Issuance of warrants by subsidiary 4,451 — Proceeds from issuance of SAFE agreement included in long-term debt — 12,000 Repurchase of shares — (31,342) APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) Proceeds from convertible notes — 450,000 Purchase of capped call options — (51,750) Purchase of prepaid forward contract — (52,736) Redeemable noncontrolling interest contributions 1,825,000 — Redeemable noncontrolling interest issuance costs (62,904) — CASH FLOW PROVIDED BY FINANCING ACTIVITIES $ 6,876,826 $ 874,686 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH $ 4,030,114 $ 91,630 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 123,318 31,688 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 4,153,432 123,318 Less: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS 2 — CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUED OPERATIONS $ 4,153,430 $ 123,318 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 263,402 $ 62,712 Income taxes paid $ 241 $ 105 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Operating right-of-use assets obtained by lease obligation $ — $ 20,280 Finance right-of-use assets obtained by lease obligation $ 25,214 $ 113,674 Property and equipment in accounts payable and accrued liabilities $ 556,446 $ 246,472 Conversion of debt to common stock $ — $ 104,945 Conversion of preferred stock to common stock $ 875,185 $ 48,350 Consideration for guarantee of an affiliate's obligations $ 2,000 $ — Issuance of warrants, at fair value $ 104,705 $ 136,292 Cashless exercise of warrants $ 1 $ 5 Non-cash dividends paid in-kind $ 62,726 $ — Acquisition of ChronoScale $ 18,110 $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended Fiscal Year Ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Adjusted Revenue Total revenue (GAAP) $ 258,748 $ 51,076 $ 611,311 $ 228,569 ChronoScale revenue (18,396) (13,063) (71,604) (84,376) Adjusted revenue (Non-GAAP) $ 240,352 $ 38,013 $ 539,707 $ 144,193 Adjusted operating income (loss) Operating loss (GAAP) $ (124,820) $ (44,101) $ (236,462) $ (72,175) Operating loss from ChronoScale 12,118 23,402 37,043 55,331 Stock-based compensation 127,845 11,558 219,289 22,492 Non-recurring repair expenses (1) 41 — 322 173 Diligence, acquisition, disposition and integration expenses (2) 7,034 4,908 27,938 17,269 Litigation expenses (3) 307 48 1,179 1,389 Loss on abandonment of assets 55 369 1,799 1,138 Gain on classification of held for sale — — — (24,616) Accelerated depreciation and amortization (4) — — — 45 Restructuring expenses (5) 377 668 1,469 711 Other non-recurring expenses (6) 1,224 69 5,219 627 Adjusted operating income (loss) (Non-GAAP) $ 24,181 $ (3,079) $ 57,796 $ 2,384 Adjusted operating margin 10 % (8) % 11 % 2 % Adjusted net income (loss) from continuing operations attributable to common stockholders Net loss from continuing operations (GAAP) $ (81,387) $ (52,536) $ (183,319) $ (231,065) Operating loss from ChronoScale 12,118 23,402 37,043 55,331 Interest expense directly attributed to ChronoScale 1,132 3,955 9,583 17,399 Stock-based compensation 127,845 11,558 219,289 22,492 Non-recurring repair expenses (1) 41 — 322 173 Diligence, acquisition, disposition and integration expenses (2) 7,034 4,908 27,938 17,269 Litigation expenses (3) 307 48 1,179 1,389 Loss on abandonment of assets 55 369 1,799 1,138 Gain on classification of held for sale — — — (24,616) Accelerated depreciation and amortization (4) — — — 45 Gain on change in fair value of derivatives (53,276) — (75,818) — Gain on change in fair value of investments (4,768) — (10,840) — Loss on conversion of debt — — — 33,612 Loss on change in fair value of debt — — — 85,439 Loss on change in fair value of warrants 2,212 — 2,212 6,421 Loss on extinguishment of debt — — — 1,177 Restructuring expenses (5) 377 668 1,469 711 Other non-recurring expenses (6) 1,224 69 5,219 627 Adjusted net income (loss) from continuing operations (Non-GAAP) $ 12,914 $ (7,559) $ 36,076 $ (12,458) Diluted weighted average number of shares outstanding (Non-GAAP) (7) 330,239,240 222,454,578 318,968,163 201,194,451 Adjusted net income (loss) from continuing operations per diluted share (Non-GAAP) $ 0.04 $ (0.03) $ 0.11 $ (0.06) APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) EBITDA and Adjusted EBITDA Net loss from continuing operations (GAAP) $ (81,387) $ (52,536) $ (183,319) $ (231,065) Operating loss from ChronoScale 12,118 23,402 37,043 55,331 Interest expense, net 10,633 8,451 29,516 32,139 Income tax expense (benefit) 1,766 (16) 1,787 102 Depreciation and amortization (4) 18,170 4,059 49,433 17,289 EBITDA (Non-GAAP) $ (38,700) $ (16,640) $ (65,540) $ (126,204) Stock-based compensation 127,845 11,558 219,289 22,492 Non-recurring repair expenses (1) 41 — 322 173 Diligence, acquisition, disposition and integration expenses (2) 7,034 4,908 27,938 17,269 Litigation expenses (3) 307 48 1,179 1,389 Gain on classification of held for sale — — — (24,616) Loss on abandonment of assets 55 369 1,799 1,138 Gain on change in fair value of derivatives (53,276) — (75,818) — Gain on change in fair value of investments (4,768) — (10,840) — Loss on conversion of debt — — — — 33,612 Loss on change in fair value of debt — — — 85,439 Loss on change in fair value of warrants 2,212 — 2,212 6,421 Restructuring expenses (5) 377 668 1,469 711 Other non-recurring expenses (6) 1,224 69 5,219 627 Adjusted EBITDA (Non-GAAP) $ 42,351 $ 980 $ 107,229 $ 19,628 Net Operating Income HPC Hosting Business base rental revenue (GAAP) $ 44,062 $ — $ 99,811 $ — Rental property operating expenses (3,382) — (8,545) — Property taxes (198) — (198) — Property insurance expenses (571) — (680) — Net Operating Income (Non-GAAP) $ 39,911 $ — $ 90,388 $ — Net Operating Income margin 91 % — % 91 % — % (1) Represents costs incurred for the non-recurring repair and replacement of equipment at our data center facilities. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. (4) Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. (5) Represents non-recurring expenses associated with employee separations. (6) Represents expenses that are not representative of our expected ongoing costs. (7) Potentially dilutive securities or other contracts to issue common stock are only included for each period if the effect is dilutive to Adjusted net income (loss) from continuing operations per diluted share.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq326earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal Third Quarter 2026 Results DALLAS, TX – April 8, 2026 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads, reported financial results for the fiscal third quarter ended February 28, 2026. The Company also provided operational updates. Fiscal Third Quarter 2026 Financial Highlights • Revenues: $126.6 million, up 139% from the prior year comparable period • Net loss attributable to common stockholders: $100.9 million, down 179%

paragraph:7: from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.36, down 125% from the prior year comparable period • Adjusted revenue: $108.6 million • Adjusted net income: $33.2 million • Adjusted net income per diluted share: $0.09 • Adjusted EBITDA: $44.1 million Adjusted revenue, Adjusted net Income , Adjusted net income per diluted share , and Adjusted EBITDA are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. These non-GAAP measures exclude the results of the Cloud Services Business. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Highlights

paragraph:8: • Broke ground on Delta Forge 1, a 430 MW AI Factory campus spanning more than 500 acres in a strategic southern U.S. market. The project leverages the Company’s proven AI Factory blueprint and is designed to deliver up to 300 MW of critical IT load for high-density AI workloads, with initial operations expected to begin in mid-calendar 2027. • Entered into a $100 million DevCo Facility with Macquarie Equipment Capital, to fund the initial sourcing, planning, development and construction costs for a new data center project and other potential projects. • Appointed the Company's co-founder Jason Zhang as President to strengthen leadership as the Company scales its AI Factory platform. Subsequent to the Quarter • Completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031, issued at 98% of par through its subsidiary APLD ComputeCo 2 LLC. Proceeds will fund the development and construction of 200 MW of critical IT load at the Polaris Forge 2 AI Factory campus in Harwood, North Dakota. • Entered into agreements with CoreWeave intended to enhance the credit quality of the tenants under the 100 MW (ELN-02) and 150 MW (ELN-03) data center leases at the Polaris Forge 1 campus in Ellendale, North Dakota. As part of CoreWeave’s refinancing of related debt obligations, which received an investment-grade A3 rating (compared to CoreWeave Inc.’s BB rating), the Company restructured its leases with CoreWeave through a creditworthy CoreWeave SPV subsidiary, receiving unconditional springing guarantees from CoreWeave, Inc., guaranteeing CoreWeave's SPV's obligations under the restructured leases, and CoreWeave, Inc. posting a $50 million letter of credit securing the ELN-02 lease. These enhancements are expected to provide additional security for the Company’s 9.250% Senior Secured Notes due 2030. Management Commentary Applied Digital continues to differentiate itself in the high-power AI data center industry. Over two years ago, we were among the first to recognize the surging demand and broke ground on our first 100 MW facility. That early investment is now paying off. “We now operate one of the only 100 MW direct-to-chip liquid-cooled data centers online today, and more importantly, it is fully operational. We believe that's what matters to our customers - turning power into live AI capacity, delivered on time and performing as expected. We are also starting to see the earnings power of our platform come through, with a full quarter of revenue from our first building now recognized. That initial 100 MW represents approximately one-sixth of our contracted capacity and one-tenth of what is operating or under construction, but we believe it begins to show what's possible from here as we continue to bring additional capacity online in the coming quarters,” said Wes Cummins, Chairman and Chief Executive Officer. Construction remains on schedule across our North Dakota campuses. At Polaris Forge 1, we have completed construction of ELN-02, the 100 MW data center facility, which is now fully operational, and our 1,200 skilled craft professionals are continuing to advance the next two 150 MW facilities in parallel. At Polaris Forge 2, the 200 MW investment-grade hyperscaler campus, both buildings are progressing well, with foundations largely complete and work shifting to precast erection as mechanical, electrical, and plumbing trades mobilize for interior fit-out. During the quarter, we broke ground on Delta Forge 1, a 300 MW critical IT load AI Factory campus spanning more than 600 acres in a strategic southern U.S. market, with initial operations expected in mid-calendar 2027. Our power pipeline remains robust. While developing large-scale power infrastructure involves many variables, such as new generation, transmission lines, and regulatory approvals, we believe we have currently contracted only a small fraction, roughly one-sixth, of our long-term power potential. With the addition of Delta Forge 1, we are now actively marketing four development sites in total. These include Delta Forge 1 in the southern U.S., one additional site in North Dakota, and two sites in unnamed states. Subject to receiving all necessary approvals for these sites, the total grid power capacity across these locations is approximately 1 GW.

paragraph:9: The campuses are in various stages of negotiation, with some in advanced stages. “We are seeing a clear acceleration in demand for high-performance AI data center capacity, with hyperscalers as aggressive as we have ever seen them,” said Cummins. “Just three months ago, we referenced approximately $400 billion in annual capital expenditures from the largest U.S. hyperscalers. That figure has now been reported to have increased to nearly $700 billion. We believe these enormous investments highlight the intense pressure on power and infrastructure and that these trends will only increase the long-term value of our high-quality, lower-cost sites like those we operate today.” Our Data Center Hosting business, which operates 286 MW for bitcoin mining, continues to deliver strong results and the highest return on assets in the company, generating nearly $14 million in segment operating profit this quarter on $120 million in net assets deployed. As previously announced, we are completing a business combination of our Cloud business with EKSO Bionics Holdings, Inc. (Nasdaq: EKSO) to form ChronoScale Corporation, a dedicated accelerated-compute platform. Upon closing, Applied Digital expects to initially own approximately 97% of the combined entity. We are also proud to invest in our communities. Through Applied Digital Cares, we recently awarded our first round of grants supporting education, health and wellness, innovation, and public safety, including upgrades for local fire departments. We continue to focus on lowering the cost of our project-level debt. We recently completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031, issued at 98% of par, to support the Polaris Forge 2 campus. Additionally, subsequent to quarter-end, we secured meaningful credit enhancements on our CoreWeave leases at Polaris Forge 1 tied to CoreWeave obtaining an investment-grade A3 refinancing for its subsidiary which became our tenant. We believe that, over time, we will be able to further reduce our overall cost of debt as these data centers become stabilized, cash-flowing assets. We expect this progress to serve as a key inflection point that will meaningfully enhance shareholder returns. In summary, we remain focused on long-term execution, building a world-class data center region in the Dakotas with multiple hyperscalers while expanding into other strategic locations. Every new campus is intended to create one of the most valuable annuity streams available, a 15- to 30-year revenue stream backed by some of the strongest credits in the world. We remain confident in our ability to exceed our long-term goal of $1 billion in NOI within five years. HPC Hosting Update Our HPC Hosting Business designs, builds, and operates next-generation data centers, providing massive computing power to support HPC applications in a cost-effective model. Operations commenced at our first HPC data center at Polaris Forge 1 with 100 MW of capacity in the previous quarter. A second 150 MW HPC data center is under construction at the same campus and is expected to come online in calendar 2026, while a third 150 MW facility is anticipated in calendar 2027. On August 18, 2025, we broke ground on Polaris Forge 2, a $3 billion, 200 MW data center campus near Harwood, North Dakota. Initial capacity is anticipated in calendar 2026, with full capacity online by early calendar 2027. On October 22, 2025, we signed an approximately 15-year lease with a U.S. based investment-grade hyperscaler for 200 MW at Polaris Forge 2. As noted above, during the quarter we also broke ground on Delta Forge 1, a 300 MW critical IT load AI Factory campus spanning more than 600 acres in a strategic southern U.S. market, with initial operations expected in mid-2027 Revenue from our HPC Hosting business totaled $71.0 million for the quarter, including $44.1 million related to base rent, $18.9 million related to tenant fit-out services, and $8.1 million related to power pass through arrangements and other ancillary revenue streams. Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to Bitcoin/crypto mining customers. As of February 28, 2026, the Company’s 106 MW facility in Jamestown, ND, and 180 MW facility in Ellendale, ND, were operating at full capacity. During the three months ended February 28, 2026, the Company generated $37.5 million in revenue from the Data Center Hosting Business segment, representing an increase of 7% compared to the $35.2 million during the three months ended February 28, 2025. The growth was primarily driven by performance improvements across the Company’s data center hosting facilities. We are very pleased with our Data Center Hosting Business, which generated $13.9 million in segment operating profit for the three months ended February 28, 2026 on $119.6 million in reported assets at the end of the period. Cloud Services Business Update On December 30, 2025, Applied Digital announced a proposed business combination of its cloud business, operated through the Company's wholly owned subsidiary, Applied Digital Cloud Corporation with EKSO Bionics Holdings, Inc. (Nasdaq: EKSO) ("EKSO") to form ChronoScale Corporation, a dedicated accelerated-compute platform for GPU-optimized AI infrastructure (the "Business Combination"). Upon closing, (i) Applied Digital Cloud Corporation will become a wholly owned subsidiary of EKSO, (ii) EKSO will, immediately after the consummation of the Business Combination, continue as the parent of the combined company, and (iii) EKSO will change its name to ChronoScale Corporation. Applied Digital is expected to own approximately 97% of the combined company, which is expected to be listed on the Nasdaq upon closing and trade under the symbol “CHRN.” We believe that the proposed Business Combination will allow both the cloud compute and data center businesses to scale independently, providing greater strategic and capital flexibility while enhancing long-term shareholder value. The proposed Business Combination is subject to the receipt of customary regulatory approvals and satisfaction of closing conditions and is expected to close in the fourth fiscal quarter of 2026. As Management’s plan for the Cloud Services Business changed in connection with the execution of the definitive agreements for the Business Combination, the Cloud Services Business no longer qualifies as held for sale and discontinued operations. As such, for all periods presented herein, the assets and liabilities associated with the Cloud Services Business have been reclassified on the condensed consolidated balance sheet back to their respective financial statement lines and the results of operations recast as continuing operations on the condensed consolidated statements of operations. We consider the Data Center Hosting Business and the HPC Hosting Business to represent our core operations for long-run strategic and performance evaluation purposes as we evolve into a pure-play data center platform moving forward. Accordingly, we excluded the results of the Cloud Services Business in our Non-GAAP results presented herein. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Financial Results from Operations for Fiscal Third Quarter 2026 Operating Results Total revenues in the fiscal third quarter 2026 were $126.6 million compared to $52.9 million, up 139% from the fiscal third quarter 2025. Approximately $71.0 million of the increase was due to revenue generated related to our HPC Hosting Business, with approximately $44.1 million related to base rent, $18.9 million related to tenant fit-out services and $8.1 million related to power pass through arrangements and other ancillary revenue streams as our first HPC data center at our Polaris Forge 1 campus was fully operating during the current quarter. The remaining increase in revenue was due to performance improvements in our other segments during the three months ended February 28, 2026 compared to the three months ended February 28, 2025. Cost of revenues in the fiscal third quarter 2026 were $72.8 million compared to $49.1 million, up 48% from the fiscal third quarter 2025. The increase was primarily driven by an increase of $18.0 million in expenses associated with tenant fit-out services for our HPC Hosting Business, an increase of $4.8 million in personnel expenses due to the increase in headcount as well as other related costs directly supporting revenue, an increase of $4.1 million in energy costs associated with our Data Center Hosting Business, and an increase of $2.0 million in depreciation and amortization expense due to an increase in owned and leased assets in-service directly supporting revenue. These increases were partially offset by a decrease of $5.2 million in lease and lease related expenses due to the renegotiations of certain of our leases during fiscal year 2026. Selling, general and administrative expenses in the fiscal third quarter 2026 were $79.7 million compared to $22.7 million, up 251% from the fiscal third quarter of 2025 driven by the Company’s overall business growth. This increase was due to increases of $39.3 million in stock based compensation due to accelerated vesting of certain employee stock awards as well as grant activity associated with the increase in headcount, $8.6 million in professional service expense primarily related to legal services provided on discrete transactions and projects, as well as general support of the business, $5.1 million in personnel expenses related to the increase in headcount, and $8.0 million in other selling, general, and administrative expense such as travel, computer and software expenses. These increases were partially offset by a decrease of $3.9 million in lease and lease related expense due to the renegotiations of certain of our leases during fiscal year 2026. Loss on classification of held for sale was $59.7 million for the three months ended February 28, 2026, due to the write down of the Cloud Services Business assets to their carrying value as of February 15, 2026, when it no longer qualified as held for sale. There was no such loss recorded in the prior year comparative period. Interest (income) expense, net in the fiscal third quarter 2026 was interest income, net of $2.4 million compared to interest expense, net of $8.9 million, down 127%, from the fiscal third quarter 2025. The change was due to an increase of $19.3 million in interest income due to an increase in funds held in interest-bearing demand deposit accounts and a decrease of $3.0 million in finance lease interest associated with the renegotiation of the majority of our finance leases during the three months ended February 28, 2026. This decrease was partially offset by increases of $9.9 million in loan interest expense and $1.1 million in issuance costs amortization as we entered into more debt arrangements during the three months ended February 28, 2026. Gain on change in fair value of derivatives was $9.4 million for the three months ended February 28, 2026, due an increase of $6.1 million in the fair value of our Babcock & Wilcox Enterprises, Inc. (“B&W”) common stock warrant and an increase of $3.3 million in the fair value of the derivative assets related to the preferred units and corresponding common units held by APLD HPC TopCo 2’s noncontrolling interest. There was no such gain recorded in the prior year comparative period. Gain on change in fair value of investment was $3.3 million for the three months ended February 28, 2026, due to an increase of $1.3 million in the fair value of our investment in B&W common stock and an increase of $2.0 million in fair value of our investment in Base Electron, a related party. There was no such gain recorded in the prior year comparative period. Net loss attributable to common stockholders for the fiscal third quarter 2026 was $100.9 million, or $0.36 per basic and diluted share. This compares to a net loss attributable to common stockholders of $36.1 million, or $0.16 per basic and diluted share for the fiscal third quarter of 2025. Adjusted revenue, a non-GAAP financial measure, was $108.6 million for the fiscal third quarter 2026 compared to $35.2 million for the fiscal third quarter of 2025. Adjusted net income, a non-GAAP financial measure, was $33.2 million, or $0.09 per diluted share for the fiscal third quarter 2026. This compares to an adjusted net loss, a non-GAAP financial measure, of $2.6 million, or $0.01 per diluted share, for the fiscal third quarter of 2025. Adjusted EBITDA, a non-GAAP financial measure, was $44.1 million for the fiscal third quarter 2026 compared to an Adjusted EBITDA of $6.3 million for the fiscal third quarter 2025. Balance Sheet As of February 28, 2026, the Company had $2.1 billion in cash, cash equivalents, and restricted cash, along with $2.7 billion in debt. Conference Call As previously announced, Applied Digital will host a conference call to day, April 8, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. Participant Dial-In: 1-800-715-9871 Conference ID: 1664159 The conference call will be broadcast live and available for replay for one year here . Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. A phone replay of the call will also be available from 8:00 p.m. Eastern Time on April 8, 2026, through April 15, 2026, at 11:59 p.m. Eastern Time. Replay Dial-In: +1-800-770-2030 Playback Passcode: 1664159# About Applied Digital Applied Digital Corporation (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud - designs, builds and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the Company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and future financing plans. These statements use words, and variations of words, such as "intend," “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of Company plans and objectives, including the Company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the Company or its business; (vi) the Company’s plans to obtain future project financing; (vii) statements regarding the closing of, the proposed Business Combination; (viii) statements regarding the business to be created by the proposed Business Combination, including the anticipated benefits of ChronoScale’s accelerated compute platform; (ix) statements regarding the combined business and (x) statements regarding the proposed Business Combination enabling both the cloud compute and data center businesses’ ability to scale independently and enhancing shareholder value. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include, among others: our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under the lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases on acceptable financing terms, or at all; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers, including without limitation, the datacenter leases with CoreWeave and at our Polaris Forge 2 campus and future tenants; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; conditions in the debt and equity capital markets; and, with respect to the proposed Business Combination - our ability to close the proposed Business Combination, including due to possible delays in receipt of regulatory approvals, difficulties and delays in integrating the combined business resulting from the proposed Business Combination, higher than anticipated transaction costs, our ability to realize the contemplated financial, business or strategic benefits associated with the proposed Business Combination. A further list and description of these risks, uncertainties and other factors can be found in the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov , on the Company’s website ( www.applieddigital.com ) under “Investors,” or on request from the Company. Information in this Current Report on Form 8-K is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our core business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . Management considers its Data Center Hosting Business and its HPC Hosting Business to be its core operations for long-run strategic and performance evaluation purposes. Accordingly, these non-GAAP financial measures exclude the results of our Cloud Services Business. The Cloud Services Business is included in our consolidated financial statements and results of continuing operations. Due to its strategic role relative to the Company’s core business, Management believes the Cloud Services Business results may obscure underlying trends in the performance of core operations when included in certain non-GAAP measures. These non-GAAP financial measures are provided as supplemental measures to our performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Excluding the results of the Cloud Services Business in our non-GAAP financial measures removes revenues and expenses that are part of the Company’s consolidated results and continuing operations and should not be viewed as measures or reflections of liquidity or profitability in accordance with U.S. GAAP. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this earnings release have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate our business. Adjusted Revenue “Adjusted revenue” is a non-GAAP financial measure that represents revenue excluding the Cloud Services Business. Adjusted revenue is Total Revenue excluding Total Revenue from the Cloud Services Business. Adjusted Operating Income, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per Diluted Share “Adjusted operating income” and “Adjusted net income (loss)” are non-GAAP financial measures that represent operating income (loss) and net income (loss) from operations excluding the Cloud Services Business, respectively. Adjusted operating income (loss) is Operating income (loss) excluding operating income (loss) from the Cloud Services Business, and stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, (gain) loss on abandonment of assets, gain on classification of held for sale, accelerated depreciation and amortization, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs. Adjusted net income (loss) is Adjusted operating income further adjusted for interest expense directly attributable to the Cloud Services Business, gain on change in fair value of derivative, gain on change in fair value of investment, loss on change in fair value of warrants, loss on conversion of debt, loss on change in fair value of debt, loss on extinguishment of related party debt and interest expense on convertible debt. We define “Adjusted net income (loss) per diluted share” as Adjusted net income (loss) divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization and excluding results of the Cloud Services Business. “Adjusted EBITDA” also excludes results of the Cloud Services Business and is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, gain on classification of held for sale, gain on change in fair value of derivative, gain on change in fair value of investment, (gain) loss on abandonment of assets, loss on conversion of debt, loss on change in fair value of debt, loss on change in fair value of warrants, loss on extinguishment of related party debt, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs. Investor Relations Contacts Media Contact Matt Glover or Ralf Esper Buffy Harakidas, EVP Gateway Group, Inc. JSA (Jaymie Scotto & Associates) (949) 574-3860 (856) 264-7827 APLD@gateway-grp.com jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) February 28, 2026 May 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,730,440 $ 43,950 Restricted cash 198,423 72,368 Accounts receivable 20,753 6,830 Prepaid expenses and other current assets 478,705 9,652 Total current assets 2,428,321 132,800 Property and equipment, net 3,011,751 1,252,287 Operating lease right of use assets, net 77,457 92,335 Finance lease right of use assets, net 135,581 213,315 Other assets 593,708 179,353 TOTAL ASSETS $ 6,246,818 $ 1,870,090 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 377,429 $ 251,491 Accrued liabilities 376,985 30,121 Current portion of operating lease liability 18,101 16,785 Current portion of finance lease liability 51,151 147,040 Current portion of debt 98,174 10,331 Customer deposits 16,752 16,125 Deferred revenue 12,550 3,594 Due to customer 2,658 4,807 Other current liabilities 65,518 19,431 Total current liabilities 1,019,318 499,725 Long-term portion of operating lease liability 45,051 58,800 Long-term portion of finance lease liability 20,502 15 Long-term debt 2,594,501 677,825 Total liabilities 3,679,372 1,236,365 Commitments and contingencies (Note 14) Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and 281,673 shares outstanding at February 28, 2026, and 301,673 shares issued and outstanding at May 31, 2025 6,432 6,932 Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized, 62,500 shares issued and 62,189 shares outstanding at February 28, 2026, and 62,500 shares issued and 62,485 shares outstanding at May 31, 2025 56,728 57,011 Series G preferred stock, $0.001 par value, 1,030,000 shares authorized, no shares issued and outstanding at February 28, 2026, and 78,000 shares issued and outstanding at May 31, 2025 — 72,094 Redeemable noncontrolling interest 923,065 — Stockholders' equity: Common stock, $0.001 par value, 600,000,000 shares authorized, 292,549,415 shares issued and 285,384,115 shares outstanding at February 28, 2026, and 234,200,868 shares issued and 224,909,669 shares outstanding at May 31, 2025 293 230 Treasury stock, 7,165,300 shares at February 28, 2026 and 9,291,199 shares at May 31, 2025, at cost (52,737) (31,400) Additional paid in capital 2,216,722 1,009,913 Accumulated deficit (583,057) (481,055) Total stockholders’ equity attributable to Applied Digital Corporation 1,581,221 497,688 TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY $ 6,246,818 $ 1,870,090 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Revenue: Revenue $ 126,637 $ 52,921 $ 352,562 $ 175,567 Related party revenue — — — 1,926 Total revenue 126,637 52,921 352,562 177,493 Costs and expenses: Cost of revenues (1) 72,832 49,141 235,398 162,562 Selling, general and administrative (2) (3) 79,723 22,723 166,814 66,852 Loss (gain) on classification of held for sale (4) 59,650 — 59,650 (24,616) Loss on abandonment of assets 99 — 2,343 769 Total costs and expenses 212,304 71,864 464,205 205,567 Operating loss (85,667) (18,943) (111,643) (28,074) Interest (income) expense, net (2,387) 8,897 18,883 23,687 Gain on change in fair value of derivatives (9,417) — (22,543) — Gain on change in fair value of investment (5) (3,305) — (6,072) — Loss on conversion of debt — — — 33,612 Loss on change in fair value of debt — — — 85,439 Loss on extinguishment of debt — 1,177 — 1,177 Loss on change in fair value of warrants — 6,421 — 6,421 Net loss before income tax expense (70,558) (35,438) (101,911) (178,410) Income tax (benefit) expense (2) 117 21 118 Net loss (70,556) (35,555) (101,932) (178,528) Net loss attributable to redeemable noncontrolling interest (28,747) — (31,910) — Preferred dividends (1,558) (540) (4,705) (1,213) Net loss attributable to common stockholders $ (100,861) $ (36,095) $ (138,547) $ (179,741) Basic and diluted net loss per share attributable to common stockholders $ (0.36) $ (0.16) $ (0.51) $ (0.93) Basic and diluted weighted average number of shares outstanding 281,982,553 222,454,578 271,670,830 193,405,721 (1) Includes depreciation and amortization of $19.5 million and $17.5 million for the three months ended February 28, 2026 and February 28, 2025, and $30.4 million and $75.4 million for the nine months ended February 28, 2026 and February 28, 2025, respectively. (2) Includes depreciation and amortization of $1.3 million and $1.2 million for the three months ended February 28, 2026 and February 28, 2025, and $3.1 million and $4.1 million for the nine months ended February 28, 2026 and February 28, 2025, respectively. (3) Includes related party selling, general and administrative expense of $0.1 million for each of the three months ended February 28, 2026 and February 28, 2025, and $0.2 million for each of the nine months ended February 28, 2026 and February 28, 2025, respectively. (4) Includes $25 million received in connection with the sale of the Company’s Garden City facility upon the achievement of conditional approval requirements and escrowed funds were released during the nine months ended February 28, 2025. (5) Includes related party gain on change in fair value of investment of $2.0 million for each of the three and nine months ended February 28, 2026. See Note 5 - Related Party Transactions for further discussion of related party transactions. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine Months Ended February 28, 2026 February 28, 2025 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (101,932) $ (178,528) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 33,552 79,540 Stock-based compensation 94,741 10,233 Lease expense 16,310 23,911 Gain on change in fair value of derivatives (22,543) — Gain on change in fair value of investment (6,072) — Loss on extinguishment of related party debt — 1,177 Non-cash interest expense 74,989 11,515 Loss (gain) on classification of held for sale 59,650 (24,616) Loss on conversion of debt — 33,612 Loss on change in fair value of debt — 85,439 Loss on abandonment of assets 2,343 769 Loss on change in fair value of warrants issued — 6,421 Changes in operating assets and liabilities: Accounts receivable (13,923) (10,722) Prepaid expenses and other current assets (88,229) (4,072) Customer deposits 627 2,306 Related party customer deposits — (1,549) Deferred revenue 8,956 (32,795) Related party deferred revenue — (1,692) Accounts payable (171,583) (88,378) Accrued liabilities 64,613 (12,319) Due to customer (2,149) (8,195) Lease assets and liabilities 14,773 (13,557) Other assets (6,983) (757) CASH FLOW USED IN OPERATING ACTIVITIES (42,860) (122,257) CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (1,576,697) (483,340) Proceeds from satisfaction of contingency on sale of assets — 25,000 Finance lease prepayments — (4,840) Investment in companies (17,000) (2,498) CASH FLOW USED IN INVESTING ACTIVITIES (1,593,697) (465,678) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (94,455) (93,992) Borrowings of long-term debt 2,504,863 650,000 Repayments of long-term debt (432,536) (290,535) Payment of deferred financing costs (81,168) (42,903) Tax payments for restricted stock upon vesting (24,838) (2,970) Noncontrolling interest contributions 900,000 — Noncontrolling interest issuance costs (62,018) — Proceeds from issuance of common stock 196,366 191,590 Common stock issuance costs (5,949) (10,253) Proceeds from issuance of preferred stock 739,998 100,489 Preferred stock issuance costs (11,868) (8,914) Redemption of preferred stock (793) — Dividends issued on preferred stock (4,705) (1,213) Warrant issuance costs (8,250) — Exercise of warrants 6,265 — Proceeds from issuance of SAFE agreement included in long-term debt — 12,000 Repurchase of shares — (31,342) Proceeds from convertible notes — 450,000 Purchase of capped call options — (51,750) Purchase of prepaid forward contract — (52,736) CASH FLOW PROVIDED BY FINANCING ACTIVITIES 3,620,912 817,471 Nine Months Ended February 28, 2026 February 28, 2025 NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 1,984,355 229,536 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 123,318 31,688 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD 2,107,673 261,224 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 93,455 $ 54,855 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Operating right-of-use assets obtained by lease obligation — 20,280 Finance right-of-use assets obtained by lease obligation $ 25,214 $ 106,754 Property and equipment in accounts payable and accrued liabilities $ (564,230) $ 142,787 Conversion of debt to common stock $ — $ 104,945 Consideration for guarantee of an affiliate's obligations $ 2,000 $ — Conversion of preferred stock to common stock $ 800,214 $ 53,191 Cashless exercise of warrants $ 1 $ 5 Issuance of warrants, at fair value $ 104,705 $ 50,586 Non-cash dividends paid in-kind $ (31,980) $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended Nine Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Adjusted revenue Total Revenue (GAAP) $ 126,637 $ 52,921 $ 352,562 $ 177,493 Less: Cloud Services Business revenue (18,087) (17,754) (53,207) (71,313) Adjusted revenue (Non-GAAP) $ 108,550 $ 35,167 $ 299,355 $ 106,180 Adjusted operating income Operating loss (GAAP) $ (85,667) $ (18,943) $ (111,643) $ (28,074) Operating loss from the Cloud Services Business 52,194 10,308 24,919 31,928 Stock-based compensation 48,946 9,035 91,444 10,935 Non-recurring repair expenses (1) 107 3 280 173 Diligence, acquisition, disposition and integration expenses (2) 6,145 992 20,904 12,360 Litigation expenses (3) 320 174 872 1,341 (Gain) loss on abandonment of assets (7) — 1,744 769 Gain on classification of held for sale — — — (24,616) Accelerated depreciation and amortization (4) — — — 45 Restructuring expenses (5) 358 43 1,093 43 Other non-recurring expenses (6) 3,219 271 4,001 558 Adjusted operating income (Non-GAAP) $ 25,615 $ 1,883 $ 33,614 $ 5,462 Adjusted operating margin 24 % 5 % 11 % 5 % Adjusted net income (loss) Net loss (GAAP) $ (70,556) $ (35,555) $ (101,932) $ (178,528) Operating loss from the Cloud Services Business 52,194 10,308 24,919 31,928 Interest expense directly attributable to the Cloud Services Business 2,058 4,541 7,897 13,444 Stock-based compensation 48,946 9,035 91,444 10,935 Non-recurring repair expenses (1) 107 3 280 173 Diligence, acquisition, disposition and integration expenses (2) 6,145 992 20,904 12,360 Litigation expenses (3) 320 174 872 1,341 (Gain) loss on abandonment of assets (7) — 1,744 769 Gain on classification of held for sale — — — (24,616) Accelerated depreciation and amortization (4) — — — 45 Gain on change in fair value of derivative (9,417) — (22,543) — Gain on change in fair value of investment (3,305) — (6,072) — Loss on change in fair value of warrants — 6,421 — 6,421 Loss on conversion of debt — — — 33,612 Loss on change in fair value of debt — — — 85,439 Loss on extinguishment of debt — 1,177 — 1,177 Restructuring expenses (5) 358 43 1,093 43 Interest expense on convertible debt (7) 3,094 — — — Other non-recurring expenses (6) 3,219 271 4,001 558 Adjusted net income (loss) (Non-GAAP) $ 33,156 $ (2,590) $ 22,607 $ (4,899) Diluted weighted average number of shares outstanding (Non-GAAP) (8) 382,306,393 222,454,578 325,850,275 193,405,721 Adjusted net income (loss) per diluted share (Non-GAAP) $ 0.09 $ (0.01) $ 0.07 $ (0.03) EBITDA and Adjusted EBITDA Net loss (GAAP) $ (70,556) $ (35,555) $ (101,932) $ (178,528) Operating loss from the Cloud Services Business 52,194 10,308 24,919 31,928 Interest (income) expense, net (2,387) 8,897 18,883 23,687 Income tax (benefit) expense (2) 117 21 118 Depreciation and amortization (4) 18,524 4,375 31,263 13,230 EBITDA (Non-GAAP) $ (2,227) $ (11,858) $ (26,846) $ (109,565) Stock-based compensation 48,946 9,035 91,444 10,935 Non-recurring repair expenses (1) 107 3 280 173 Diligence, acquisition, disposition and integration expenses (2) 6,145 992 20,904 12,360 Litigation expenses (3) 320 174 872 1,341 Research and development expenses (4) — — — — Gain on classification of held for sale — — — (24,616) Gain on change in fair value of derivative (9,417) — (22,543) — Gain on change in fair value of investment (3,305) — (6,072) — (Gain) loss on abandonment of assets (7) — 1,744 769 Loss on conversion of debt — — — — 33,612 Loss on change in fair value of debt — — — 85,439 Loss on change in fair value of related party debt — — — — Loss on change in fair value of warrants — 6,421 — 6,421 Loss on extinguishment of debt — — — — Loss on extinguishment of debt — 1,177 — 1,177 Loss on legal settlement — — — — Restructuring expenses (5) 358 43 1,093 43 Other non-recurring expenses (6) 3,219 271 4,001 558 Adjusted EBITDA (Non-GAAP) $ 44,139 $ 6,258 $ 64,877 $ 18,647 (1) Represents costs incurred for the non-recurring repair and replacement of equipment at our data center facilities. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. (4) Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. (5) Represents non-recurring expenses associated with employee separations. (6) Represents expenses that are not representative of our expected ongoing costs. (7) Represents interest expense excluded from the calculation of Adjusted net income (loss) per diluted share (Non-GAAP) that would occur if the Convertible Notes had been converted into stock at the beginning of the period. This adjustment is only present in periods where its effect would be dilutive. (8) Includes shares that would be issued upon conversion of our outstanding Convertible Notes totaling 46,144,395 shares.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq226earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal Second Quarter 2026 Results DALLAS, TX – January 7, 2026 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads, reported financial results for the fiscal second quarter ended November 30, 2025. The Company also provided operational updates. Fiscal Second Quarter 2026 Continuing Operations Financial Highlights • Revenues: $126.6 million, up 250% from the prior year comparable period • Net loss attributable to common stockholders: $31.2 million, down 76% from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.11, down 82% from the prior year comparable period • Adjusted net income: $0.1 million • Adjusted net income per diluted share: $0.00 • Adjusted EBITDA: $20.2 million Adjusted Net Income from Continuing Operations , Adjusted Net Income from Continuing Operations per Diluted Share , and Adjusted EBITDA are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Highlights

paragraph:7: • Achieved Ready‑for‑Service at Polaris Forge 1, delivering 100 MW on schedule and fully energizing the first building (ELN-02), marking completion of the first of three contracted buildings and advancing the 400 MW AI Factory campus for CoreWeave. • Announced an approximately 15‑year lease with a U.S. based investment‑grade hyperscaler for 200MW of AI and HPC capacity at the under‑construction Polaris Forge 2 campus, with phased delivery across two buildings beginning in 2026, expected to deliver approximately $5 billion in revenue. • Completed a $2.35 billion private offering of 9.25% senior secured notes due 2030, issued at 97% of par, with proceeds allocated to construction of the 100 MW (ELN‑02) and 150 MW (ELN‑03) facilities at Polaris Forge 1, repayment of the SMBC Loan, and establishment of required debt service reserves. • Drew an additional $562.5 million from Macquarie Asset Management under the Company’s preferred equity financing facility of up to $5.0 billion, providing capital for the AI Factories at Polaris Forge 1 and Polaris Forge 2. • Invested $15 million into, and led, a $25 million funding round for Corintis, a developer of advanced direct‑to‑chip liquid‑cooling technology, strengthening Applied Digital’s leadership in high‑density, AI‑optimized data centers and supporting the scale‑up of next‑generation cooling solutions essential for ultra‑high‑performance compute. Subsequent to the Quarter • Drew $337.5 million from Macquarie Asset Management under the Company’s preferred equity financing facility of up to $5.0 billion, providing capital for continued development of Polaris Forge 1. • Entered into a development loan facility with Macquarie Equipment Capital to fund pre‑lease sourcing, planning, and construction activities for new AI Factory campuses, including an initial $100 million intended to support development work for multiple sites and currently engaged in advanced negotiations with another investment‑grade hyperscaler. • Announced plans to spin out Applied Digital Cloud and combine it with EKSO Bionics Holdings (Nasdaq: EKSO) through a proposed business combination to form ChronoScale (the "Business Combination"), a dedicated accelerated‑compute platform for GPU‑optimized AI infrastructure, with Applied Digital expected to initially own over 80% of the combined company upon closing. Management Commentary Applied Digital has now signed leases with two hyperscalers across two campuses in North Dakota. CoreWeave holds 400 MW under contract at Polaris Forge 1, representing approximately $11 billion of prospective lease revenue over the term of its leases, while a U.S. based investment-grade hyperscaler holds 200 MW at Polaris Forge 2, representing approximately $5 billion of prospective lease revenue over the term of its lease. Collectively, these lease agreements bring total leased capacity to 600 MW and aggregate prospective lease revenue to approximately $16 billion before exercise of any renewal options. During the quarter, Polaris Forge 1 reached Ready-for-Service, delivering 100 MW on schedule and fully energizing the first building (ELN-02). This marks the completion of the first of three contracted buildings at the campus and represents a significant milestone in the 400 MW AI Factory buildout for CoreWeave. As a result, CoreWeave paid approximately $85.0 million this quarter, including $73.0 million for tenant fit-out activities, and Applied Digital recognized $12.0 million in partial-quarter lease revenue. Additionally, the legacy data center hosting business contributed over $41.6 million in revenue. “The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy. We believe our first-mover advantage, combined with our proven ability to execute technically complex data center construction, positions Applied Digital with a strong competitive advantage. Having already secured two hyperscalers in the region, inbound demand has increased meaningfully. We are also in advanced discussions with another investment-grade hyperscaler across multiple regions, including additional locations in the Dakotas and select southern U.S. markets. While there can be no assurance of future contracts, we believe we are well positioned to begin construction in the near term on these new sites,” said Wes Cummins, Chairman and Chief Executive Officer. To support these multi-billion-dollar contracts, Applied Digital has established a repeatable financing framework with top-tier financial institutions. This includes a development loan facility with Macquarie Equipment Capital for pre-lease sourcing, planning, and early construction, as well as our previously announced financing arrangement with Macquarie Asset Management. Under the terms of that preferred equity arrangement, upon lease execution with an investment-grade hyperscaler, the Company may access a preferred equity financing facility with Macquarie Asset Management, subject to mutual agreement between the parties, providing up to $4.1 billion of remaining preferred equity capital for these projects. To date, the Company has drawn $900 million in funds under this preferred equity arrangement. These agreements allow Applied Digital to retain over 85% common equity ownership of each site while committing limited corporate capital, significantly reducing the need to access public capital markets. In addition, a special purpose subsidiary of the Company recently completed a $2.35 billion senior secured private notes offering with Morgan Stanley as lead, further strengthening the balance sheet. As of period end, Applied Digital held approximately $2.3 billion in total cash, cash equivalents, and restricted cash, $5.2 billion in total assets, $3.2 billion in liabilities, and approximately $2.1 billion in temporary and stockholders' equity, with the majority of its debt not maturing until 2030. These figures do not include the $382.5 million in proceeds from financings that closed after the quarter ended. “This strong liquidity position gives us flexibility to complete construction, bring assets online, and generate cash flow to refinance and pay down debt. We are committed to maintaining one of the strongest balance sheets in the industry while preserving access to capital and strategic partnerships, which we believe provides a meaningful competitive advantage by reducing both risk and our cost of capital,” said Saidal Mohmand. Applied Digital continues to prioritize responsible development and grid management. Strategic investments in Babcock & Wilcox, focused on power and thermal infrastructure, and Corintis, a developer of advanced direct-to-chip liquid cooling, support high-performance data centers while easing pressure on local utilities. These investments further advance Applied Digital’s thought leadership at the forefront of data center technology and deepen its influence across the ecosystem. The Company is committed to being a positive force in the communities where it operates. During the quarter, Applied Digital launched Applied Digital Cares, a new initiative providing grants to support education, health, innovation, and local community development. In summary, AI infrastructure represents a once-in-a-generation investment opportunity, driven by hyperscaler capital expenditures that now exceed $400 billion annually and are accelerating rapidly. Applied Digital positioned itself early through strategic investments in purpose-built, next-generation data centers. Our initial hyperscaler customers are expected to expand within our existing campuses, while additional customers are anticipated across new sites. This strong demand across our campuses, together with our current expectation for additional leases leads us to expect that we will now exceed our $1 billion NOI target within the next five years. HPC Hosting Update Our HPC Hosting Business designs, builds, and operates next-generation data centers, providing massive computing power to support HPC applications in a cost-effective model. Operations commenced at our first HPC data center at Polaris Forge 1 with 100 MW of capacity. A second 150 MW HPC data center is under construction at the same campus and is expected to come online in calendar 2026, while a third 150 MW facility is anticipated in calendar 2027. On August 18, 2025, we broke ground on Polaris Forge 2, a $3 billion, 200 MW data center campus near Harwood, North Dakota. Initial capacity is anticipated in calendar 2026, with full capacity online by early calendar 2027. On October 22, 2025, we signed an approximately 15-year lease with a U.S. based investment-grade hyperscaler for 200 MW at Polaris Forge 2. Revenue from the HPC Hosting Business was $85.0 million for the quarter and $111.3 million for the six months ended November 30, 2025. Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to Bitcoin/crypto mining customers. As of November 30, 2025, the Company’s 106 MW facility in Jamestown, ND, and 180 MW facility in Ellendale, ND, are operating at full capacity. During the three months ended November 30, 2025, the Company generated $41.6 million in revenue from the Data Center Hosting Business segment, representing an increase of 15% compared to the $36.2 million during the three months ended November 30, 2024. The growth was primarily driven by performance improvements across the Company’s data center hosting facilities. We are very pleased with our Data Center Hosting Business, which generated $16.0 million in segment operating profit for the three months ended November 30, 2025 on $130.8 million in reported assets at the end of the period. Cloud Services Business Update Applied Digital announced a proposed business combination to spin out Applied Digital Cloud (which we have been reporting as discontinued operations since the quarter ended May 31, 2025) and merge it with EKSO Bionics Holdings (Nasdaq: EKSO) ("EKSO") to form ChronoScale, a dedicated accelerated-compute platform for GPU-optimized AI infrastructure. Upon closing, Applied Digital is expected to retain majority ownership of over 80% of the combined company. We believe this separation will allow both the cloud compute and data center businesses to scale independently, providing greater strategic and capital flexibility while enhancing long-term shareholder value. The proposed Business Combination is subject to execution of final binding documents, completion of customary due diligence, customary regulatory and shareholder approvals, and satisfaction of closing conditions. Financial Results from Continuing Operations for Fiscal Second Quarter 2026 Operating Results Total revenues in the fiscal second quarter 2026

paragraph:8: were $126.6 million compared to $36.2 million, up 250% from the fiscal second quarter 2025. Approximately $85.0 million of the increase was due to revenue generated related to our HPC Hosting Business, with approximately $73.0 million related to tenant fit-out services and $12.0 million related to rental revenues as ELN-02 at Polaris Forge 1 fully energized during the current quarter. The remaining $5.4 million increase in revenue is related to the Data Center Hosting Business and is due to performance improvements compared to the three months ended November 30, 2024. Cost of revenues in the fiscal second quarter 2026 were $100.6 million compared to $22.7 million, up 344% from the fiscal second quarter 2025. The increase was primarily driven by an increase of $69.5 million in expenses associated with tenant fit-out services for our HPC Hosting Business, an increase of $3.2 million in energy costs associated with our Data Center Hosting Business, and an increase of $5.2 million in other expenses directly attributable to generating revenue. Selling, general and administrative expenses in the fiscal second quarter 2026 were $57.0 million compared to $26.0 million, up 119% from the fiscal second quarter of 2025 driven by the Company’s overall business growth. This increase was due to increases of $23.8 million in stock based compensation due to accelerated vesting of certain employee stock awards, $4.7 million in professional service expense primarily related to legal services provided on discrete transactions and projects, as well as general support of the business and $2.5 million in personnel expenses for employee costs and other costs attributable to supporting the growth of the business. Interest expense, net in the fiscal second quarter 2026 was $11.5 million compared to $2.9 million, up 292%, from the fiscal second quarter 2025. The increase was primarily driven by a $10.8 million increase in loan interest due to loan activity during the three months ended November 30, 2025. These increases were partially offset by a $2.3 million increase in interest income due to an increase in funds held in money market accounts. Gain on change in fair value of derivative was $13.1 million for the three months ended November 30, 2025, due to the change in fair value of our Babcock & Wilcox Enterprises, Inc. (“B&W”) common stock warrant. There was no such gain recorded in the prior year comparative period. Gain on change in fair value of investment was $2.8 million for the three months ended November 30, 2025, due to the change in fair value of our investment in B&W common stock. There was no such gain recorded in the prior year comparative period. Net loss attributable to common stockholders for the fiscal second quarter 2026 was $31.2 million, or $0.11 per basic and diluted share. This compares to a net loss attributable to common stockholders of $129.0 million, or $0.61 per basic and diluted share for the fiscal second quarter of 2025. Adjusted net income, a non-GAAP financial measure, for the fiscal second quarter 2026, was $0.1 million, or $0.00 per basic and diluted share. This compares to an adjusted net loss, a non-GAAP financial measure, of $1.5 million, or $0.01 per basic and diluted share, for the fiscal second quarter of 2025. Adjusted EBITDA, a non-GAAP financial measure, for the fiscal second quarter 2026 was $20.2 million compared to an Adjusted EBITDA of $6.1 million for the fiscal second quarter 2025. Balance Sheet As of November 30, 2025, the Company had $2.3 billion in cash, cash equivalents, and restricted cash, along with $2.6 billion in debt. Conference Call As previously announced, Applied Digital will host a conference call to day, January 7, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. Participant Dial-In: 1-800-549-8228 Conference ID: 75943 The conference call will be broadcast live and available for replay for one year here . Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. A phone replay of the call will also be available from 8:00 p.m. Eastern Time on January 7, 2026, through January 14, 2026, at 11:59 p.m. Eastern Time. Replay Dial-In: 1-888-660-6264 Playback Passcode: #75943 About Applied Digital Applied Digital Corporation (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud - designs, builds and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the Company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Additional Information and Where to Find It This press release does not contain all of the information that should be considered concerning the proposed Business Combination and is not intended to form the basis of any investment decision or any other decision in respect of the proposed Business Combination. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, SHAREHOLDERS OF EKSO AND OTHER INTERESTED PARTIES ARE URGED TO READ, WHEN AVAILABLE, THE PRELIMINARY PROXY STATEMENT/PROSPECTUS OR INFORMATION STATEMENT, AS THE CASE MAY BE, AND AMENDMENTS THERETO, AND THE DEFINITIVE PROXY STATEMENT/PROSPECTUS OR INFORMATION STATEMENT, AS THE CASE MAY BE, AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”)

paragraph:9: SEC IN CONNECTION WITH EKSO’S SOLICITATION OF PROXIES FROM ITS SHAREHOLDERS TO APPROVE THE PROPOSED BUSINESS COMBINATION AND OTHER MATTERS AS DESCRIBED IN THE PROXY STATEMENT/PROSPECTUS OR INFORMATION STATEMENT, AS THE CASE MAY

paragraph:10: BE, BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT APPLIED DIGITAL, EKSO AND THE PROPOSED BUSINESS COMBINATION. Investors and security holders will also be able to obtain copies of the Proxy Statement/Prospectus or Information Statement, as the case may be, and all other documents filed or that will be filed with the SEC by Applied Digital and EKSO, without charge, once available, on the SEC’s website at www.sec.gov . NEITHER THE SEC NOR ANY STATE SECURITIES REGULATORY AGENCY HAS APPROVED OR DISAPPROVED THE PROPOSED BUSINESS COMBINATION DESCRIBED HEREIN, PASSED UPON THE MERITS OR FAIRNESS OF THE PROPOSED BUSINESS COMBINATION OR ANY RELATED TRANSACTIONS OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE IN THIS PRESS RELEASE. ANY REPRESENTATION TO THE CONTRARY CONSTITUTES A CRIMINAL OFFENSE. Participants in the Solicitation Applied Digital, EKSO and their respective directors and executive officers may be deemed under SEC rules to be participants in the solicitation of proxies from EKSO’s shareholders in connection with the proposed Business Combination. A list of the names of such directors and executive officers, and information regarding their interests in the proposed Business Combination and their ownership of EKSO securities, are or will be contained in EKSO’s filings with the SEC. Additional information regarding the interests of persons who may, under SEC rules, be deemed participants in the solicitation of proxies of EKSO’s shareholders in connection with the proposed Business Combination, including the names and interests of EKSO’s directors and executive officers, will be, if required, set forth in the soliciting materials to be filed by EKSO with the SEC. Investors and security holders may obtain free copies of these documents as described above. No Offer or Solicitation This press release is for informational purposes only and is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed Business Combination and shall not constitute an offer to sell or exchange, or a solicitation of an offer to buy or exchange the securities of Applied Digital Cloud or EKSO, or any commodity or instrument or related derivative, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended (the “Securities Act”), or an exemption therefrom. Investors should consult with their counsel as to the applicable requirements for a purchaser to avail itself of any exemption under the Securities Act. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and future financing plans. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of Company plans and objectives, including the Company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the Company or its business; (vi) the Company’s plans to obtain future project financing; (vii) statements regarding the parties entering into definitive documentation with respect to, and the closing of, the proposed Business Combination; (viii) statements regarding certain filings the parties expect to make with the SEC in connection with the proposed Business Combination, including statements regarding the filing of the preliminary and definitive proxy statement or information statement to solicit shareholder votes of the EKSO shareholders; (ix) statements regarding the business to be created by the proposed Business Combination, including the anticipated benefits of ChronoScale’s accelerated compute platform; and (x) statements regarding the combined business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include, among others: our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under the lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases on acceptable financing terms, or at all; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers, including without limitation, the datacenter leases with CoreWeave and at our Polaris Forge 2 campus and future tenants; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; conditions in the debt and equity capital markets; and, with respect to the proposed Business Combination - our ability to negotiate and execute definitive documentation with respect to the proposed Business Combination, our ability to close the proposed Business Combination, difficulties and delays in integrating the combined business resulting from the proposed Business Combination, higher than anticipated transaction costs, our ability to realize the contemplated financial, business or strategic benefits associated with the proposed Business Combination. A further list and description of these risks, uncertainties and other factors can be found in the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov , on the Company’s website ( www.applieddigital.com ) under “Investors,” or on request from the Company. Information in this Current Report on Form 8-K is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this earnings release have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude other items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business. Adjusted Operating Income, Adjusted Net Income (Loss) from Continuing Operations, and Adjusted Net Income (Loss) from Continuing Operations per Diluted Share “Adjusted Operating Income” and “Adjusted net income (loss) from continuing operations” are non-GAAP financial measures that represent operating (loss) income and net loss from continuing operations, respectively. Adjusted Operating Income is Operating (loss) income excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, loss (gain) on classification of held for sale, accelerated depreciation and amortization, restructuring expenses and other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Adjusted net income (loss) from continuing operations is Adjusted Operating Income further adjusted for gain on change in fair value of derivatives, gain on change in fair value of investments, loss on conversion of debt and loss on change in fair value of debt. We define “Adjusted net income (loss) from continuing operations per diluted share” as Adjusted net income (loss) from continuing operations divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss (gain) on classification of held for sale, gain on change in fair value of derivative, gain on change in fair value of investment, loss on abandonment of assets, loss on conversion of debt, loss on change in fair value of debt, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs. Investor Relations Contacts Media Contact Matt Glover or Ralf Esper Buffy Harakidas, EVP Gateway Group, Inc. JSA (Jaymie Scotto & Associates) (949) 574-3860 (856) 264-7827 APLD@gateway-grp.com jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) November 30, 2025 May 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,913,436 $ 41,552 Restricted cash 205,121 72,368 Accounts receivable 13,345 3,043 Prepaid expenses and other current assets 272,012 9,430 Current assets held for sale 313,403 304,200 Total current assets 2,717,317 430,593 Property and equipment, net 2,001,450 1,239,941 Operating lease right of use assets, net 656 960 Finance lease right of use assets, net 1,532 17,820 Other assets 508,389 180,776 TOTAL ASSETS $ 5,229,344 $ 1,870,090 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 92,911 $ 247,528 Accrued liabilities 207,454 29,549 Current portion of operating lease liability 632 692 Current portion of finance lease liability 1,366 13,633 Current portion of debt 12,555 10,331 Customer deposits 16,752 16,125 Deferred revenue 29,444 — Due to customer 2,658 4,807 Current liabilities held-for-sale 161,318 216,047 Other current liabilities 38,311 19,432 Total current liabilities 563,401 558,144 Long-term portion of operating lease liability 105 381 Long-term portion of finance lease liability 8 15 Long-term debt 2,594,011 677,825 Total liabilities 3,157,525 1,236,365 Commitments and contingencies (Note 15) Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and 281,673 shares outstanding at November 30, 2025, and 301,673 shares issued and outstanding at May 31, 2025 6,432 6,932 Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized, 62,500 shares issued and 62,260 shares outstanding at November 30, 2025, and 62,500 shares issued and 62,485 shares outstanding at May 31, 2025 56,796 57,011 Series G preferred stock, $0.001 par value, 1,030,000 shares authorized, 43,250 shares issued and outstanding at November 30, 2025, and 78,000 shares issued and outstanding at May 31, 2025 41,990 72,094 Redeemable noncontrolling interest 516,972 — Stockholders' equity: Common stock, $0.001 par value, 600,000,000 shares authorized, 286,248,510 shares issued and 279,083,210 shares outstanding at November 30, 2025, and 234,200,868 shares issued and 224,909,669 shares outstanding at May 31, 2025 287 230 Treasury stock, 7,165,300 shares at November 30, 2025 and 9,291,199 shares at May 31, 2025, at cost (52,737) (31,400) Additional paid in capital 2,014,459 1,009,913 Accumulated deficit (512,380) (481,055) Total stockholders’ equity attributable to Applied Digital Corporation 1,449,629 497,688 TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY $ 5,229,344 $ 1,870,090 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Three Months Ended November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024 Revenue: Revenue $ 126,589 $ 36,163 $ 190,805 $ 69,086 Related party revenue — — — 1,926 Total revenue 126,589 36,163 190,805 71,012 Costs and expenses: Cost of revenues 100,553 22,661 156,158 45,404 Selling, general and administrative (1) 56,993 25,974 86,145 36,966 Gain on classification as held for sale (2) — 192 — (24,616) Loss on abandonment of assets — 141 1,751 769 Total costs and expenses 157,546 48,968 244,054 58,523 Operating (loss) income (30,957) (12,805) (53,249) 12,489 Interest expense, net 11,484 2,929 15,431 5,888 Gain on change in fair value of derivative (13,126) — (13,126) — Gain on change in fair value of investment (2,767) — (2,767) — Loss on conversion of debt — 25,410 — 33,612 Loss on change in fair value of debt — 87,218 — 85,439 Net (loss) income before income tax expenses (26,548) (128,362) (52,787) (112,450) Income tax expense 15 1 23 1 Net (loss) income from continuing operations (26,563) (128,363) (52,810) (112,451) Net (loss) income from discontinued operations 12,113 (10,363) 21,434 (30,522) Net loss (14,450) (138,726) (31,376) (142,973) Net loss attributable to noncontrolling interest (3,061) — (3,061) — Preferred dividends (1,571) (629) (3,146) (673) Net loss attributable to common stockholders (19,082) (139,355) (37,583) (143,646) Net loss attributable to common stockholders Continuing operations $ (31,195) $ (128,992) $ (59,017) $ (113,124) Discontinued operations 12,113 (10,363) 21,434 (30,522) Net loss $ (19,082) $ (139,355) $ (37,583) $ (143,646) Basic and diluted net (loss) income per share attributable to common stockholders Continuing operations $ (0.11) $ (0.61) $ (0.22) $ (0.63) Discontinued operations 0.04 (0.05) 0.08 (0.17) Basic and diluted net loss per share $ (0.07) $ (0.66) $ (0.14) $ (0.80) Basic and diluted weighted average number of shares outstanding 277,423,733 209,560,339 266,599,490 179,119,398 (1) Includes related party selling, general and administrative expense of $0.1 million for each of the three months ended November 30, 2025 and November 30, 2024, and for each of the six months ended November 30, 2025 and November 30, 2024, respectively. See Note 6 - Related Party Transactions for further discussion of related party transactions. (2) Includes $25 million received in connection with the sale of our Garden City facility once conditional approval requirements were met and escrowed funds were released during the six months ended November 30, 2024. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Six Months Ended November 30, 2025 November 30, 2024 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (31,376) $ (142,973) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 12,739 60,761 Stock-based compensation 44,592 542 Lease expense 10,826 15,380 Gain on change in fair value of derivative (13,126) — Gain on change in fair value of investment (2,767) — Amortization of debt issuance costs 11,700 2,424 Gain on classification of held for sale — (24,616) Loss on conversion of debt — 33,612 Loss on change in fair value of debt — 85,439 Loss on abandonment of assets 2,243 769 Changes in operating assets and liabilities: Accounts receivable (15,545) (8,466) Prepaid expenses and other current assets (6,247) (7,153) Customer deposits 627 2,306 Related party customer deposits — (1,549) Deferred revenue 26,002 (31,487) Related party deferred revenue — (1,692) Accounts payable (159,003) (82,849) Accrued liabilities 21,026 (2,515) Due to customer (2,149) (5,647) Lease assets and liabilities 5,207 (19,382) Other assets (2,617) (1,058) CASH FLOW USED IN OPERATING ACTIVITIES (97,868) (128,154) CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (801,490) (225,847) Proceeds from satisfaction of contingency on sale of assets — 25,000 Finance lease prepayments — (5,270) Investment in companies (17,000) (1,422) CASH FLOW USED IN INVESTING ACTIVITIES (818,490) (207,539) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (70,049) (62,170) Borrowings of long-term debt 2,419,863 275,000 Repayments of long-term debt (430,286) (133,314) Payment of deferred financing costs (78,699) (28,927) Tax payments for restricted stock upon vesting (15,467) — Noncontrolling interest contributions 562,500 — Noncontrolling interest issuance costs (61,819) — Proceeds from issuance of common stock 196,366 191,590 Common stock issuance costs (5,949) (10,233) Proceeds from issuance of preferred stock 589,999 67,085 Preferred stock issuance costs (11,796) (5,947) Redemption of preferred stock (725) — Dividends issued on preferred stock (3,147) (672) Warrant issuance costs (8,250) — Exercise of warrants 6,265 — Proceeds from issuance of SAFE agreement included in long-term debt — 12,000 Repurchase of shares — (31,342) Proceeds from convertible notes — 450,000 Purchase of capped call options — (51,750) Purchase of prepaid forward contract — (52,736) CASH FLOW PROVIDED BY FINANCING ACTIVITIES 3,088,806 618,584 Six Months Ended November 30, 2025 November 30, 2024 NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 2,172,448 282,891 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 123,318 31,688 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 2,295,766 314,579 Less: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS 2 14 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUING OPERATIONS $ 2,295,764 $ 314,565 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 20,643 $ 33,144 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Finance right-of-use assets obtained by lease obligation $ 24,292 $ 97,489 Property and equipment in accounts payable and accrued liabilities $ 176,158 $ 165,721 Conversion of debt to common stock $ — $ 104,945 Conversion of preferred stock to common stock $ 608,297 $ 10,191 Cashless exercise of warrants $ 1 $ 4 Issuance of warrants, at fair value $ 104,705 $ 44,115 Non-cash dividends paid in-kind $ 3,112 $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended Six Months Ended November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024 Adjusted operating income Operating (loss) income (GAAP) $ (30,957) $ (12,805) $ (53,249) $ 12,489 Stock-based compensation 28,051 4,283 42,497 1,900 Non-recurring repair expenses (1) — 139 173 170 Diligence, acquisition, disposition and integration expenses (2) 13,562 8,493 14,759 11,368 Litigation expenses (3) 361 759 551 1,167 Loss on abandonment of assets — 141 1,751 769 Loss (gain) on classification of held for sale — 192 — (24,616) Accelerated depreciation and amortization (4) — — — 45 Loss on legal settlement — — — — Restructuring expenses (5) 304 — 735 — Other non-recurring expenses (6) 293 213 782 287 Adjusted operating income (Non-GAAP) $ 11,614 $ 1,415 $ 7,999 $ 3,579 Adjusted operating margin 9 % 4 % 4 % 5 % Adjusted net income (loss) from continuing operations Net (loss) income from continuing operations (GAAP) $ (26,563) $ (128,363) $ (52,810) — $ (112,451) Stock-based compensation 28,051 4,283 42,497 1,900 Non-recurring repair expenses (1) — 139 173 170 Diligence, acquisition, disposition and integration expenses (2) 13,562 8,493 14,759 11,368 Litigation expenses (3) 361 759 551 1,167 Loss on abandonment of assets — 141 1,751 769 Gain on classification of held for sale — 192 — (24,616) Accelerated depreciation and amortization (4) — — — 45 Gain on change in fair value of derivative (13,126) — (13,126) — Gain on change in fair value of investment (2,767) — (2,767) — Loss on conversion of debt — 25,410 — 33,612 Loss on change in fair value of debt — 87,218 — 85,439 Restructuring expenses (5) 304 — 735 — Other non-recurring expenses (6) 293 213 782 287 Adjusted net income (loss) from continuing operations (Non-GAAP) $ 115 $ (1,515) $ (7,455) $ (2,310) Adjusted net income (loss) from continuing operations per diluted share (Non-GAAP) $ — $ (0.01) $ (0.03) $ (0.01) EBITDA and Adjusted EBITDA Net loss from continuing operations (GAAP) $ (26,563) $ (128,363) $ (52,810) $ (112,451) Interest expense, net 11,484 2,929 15,431 5,888 Income tax expense 15 1 23 1 Depreciation and amortization (4) 8,586 4,712 12,739 8,855 EBITDA (Non-GAAP) $ (6,478) $ (120,721) $ (24,617) $ (97,707) Stock-based compensation 28,051 4,283 42,497 1,900 Non-recurring repair expenses (1) — 139 173 170 Diligence, acquisition, disposition and integration expenses (2) 13,562 8,493 14,759 11,368 Litigation expenses (3) 361 759 551 1,167 Loss (gain) on classification of held for sale — 192 — (24,616) Gain on change in fair value of derivative (13,126) — (13,126) — Gain on change in fair value of investment (2,767) — (2,767) — Loss on abandonment of assets — 141 1,751 769 Loss on conversion of debt — 25,410 — — 33,612 Loss on change in fair value of debt — 87,218 — — 85,439 Restructuring expenses (5) 304 — 735 — Other non-recurring expenses (6) 293 213 782 287 Adjusted EBITDA (Non-GAAP) $ 20,200 $ 6,127 $ 20,738 $ 12,389 (1) Represents costs incurred for the non-recurring repair and replacement of equipment at our Data Center Hosting facilities. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. (4) Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. (5) Represents non-recurring expenses associated with employee separations. (6) Represents expenses that are not representative of our expected ongoing costs.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq126earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal First Quarter 2026 Results DALLAS, TX – October 9, 2025 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads, reported financial results for the fiscal first quarter ended August 31, 2025. The Company also provided operational updates. Fiscal First Quarter 2026 Continuing Operations Financial Highlights • Revenues: $64.2 million, up 84% from the prior year comparable period • Net loss attributable to common stockholders: $27.8 million, down 275% from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.11, down 200% from the prior year comparable period • Adjusted net loss attributable to common stockholders: $7.6 million • Adjusted net loss attributable to common stockholders per diluted share: $0.03 • Adjusted EBITDA: $0.5 million Adjusted Net Loss Attributable to Common Stockholders , Adjusted Net Loss Attributable to Common Stockholders per Diluted Share , and Adjusted EBITDA are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Highlights

paragraph:7: • Finalized a new lease agreement with CoreWeave, Inc. ("CoreWeave"), for an additional 150 megawatts ("MW") at our Polaris Forge 1 campus in Ellendale, North Dakota ("Polaris Forge 1"), which is now fully leased. This new lease agreement with CoreWeave brings Applied Digital’s total anticipated contracted lease revenue for Polaris Forge 1 to approximately $11 billion, which includes $7 billion in revenue from the initial two approximately 15-year leases executed in May of this year. • Nearing completion of our 100 MW building at Polaris Forge 1, which remains on time and on budget, while also initiating the tenant fit-out for CoreWeave. Additionally, we began construction on the next 150 MW building at our Polaris Forge 1 campus. Subsequent to the Quarter • Drew an initial $112.5 million from our $5 billion preferred equity facility with Macquarie Asset Management ("MAM" or "Macquarie") to fund the completion of Polaris Forge 1, reduce future equity funding requirements, and establish a clear pathway to scale additional campuses. • Secured $50 million in funding from Macquarie Equipment Capital, Inc. for our approximately $3 billion, 300 MW IT load AI Factory campus near Harwood, North Dakota ("Polaris Forge 2"). • Broke ground on Polaris Forge 2. The initial 200 MW is expected to begin to come online in 2026 and reach full capacity in 2027, with the campus designed for future expansion. • Raised an additional $200 million from an expanded offering of our Series G Preferred Stock. Management Commentary During the quarter ended August 31, 2025, we signed an additional 150 MW lease for our Polaris Forge 1 campus, bringing the full 400 MW of critical IT load under contract with CoreWeave and securing approximately $11 billion in prospective lease revenue over the approximately 15 year terms. We believe this campus has the potential to expand significantly, with additional power allocations expected to push capacity beyond 1 gigawatt ("GW") starting in 2028 to 2030. “We feel this third lease validates our platform and execution, positioning Applied Digital as a trusted strategic partner to the world’s largest technology companies,” said Wes Cummins, Chairman and CEO of Applied Digital. “With hyperscalers expected to invest approximately $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era.” In addition, we broke ground on our second North Dakota campus, near the City of Harwood, named Polaris Forge 2, which will initially have two 150 MW buildings, where we plan to utilize 200 MW for IT loads in its initial phase of delivery. We believe this campus could ultimately scale to 1 GW, pending future power agreements. We are currently in advanced discussions with an investment-grade hyperscaler and have aligned on many of the key lease terms with them. Should the lease be executed, the customer would hold first right of refusal on the full 1 GW of capacity, contingent on securing additional power. When signed, the initial 200 MW alone would bring our total leased capacity to 600 MW across two sites with two major hyperscalers. Once both campuses are anchored by long-term hyperscaler commitments, we feel Applied Digital will be strongly positioned to lead the next wave of AI infrastructure development, supported by multi-year lease agreements that provide scale and visibility. Our team remains focused on securing capital at the lowest possible cost, building repeatable financing structures, and positioning the Company to scale development across the United States. As reflected on our balance sheet, we’ve now built and funded over $1.6 billion in property and equipment. Building on that momentum, we continue to make significant progress on project finance for our Polaris Forge 1 campus. As we recently disclosed, under our agreement with Macquarie Asset Management, one of the world’s leading infrastructure finance firms, we have secured a structure that permits us to recycle into future developments a portion of the substantial equity we have invested in the campus. We remain on track in our project financing process, as briefly discussed on our last earnings call. We continue to evaluate expansion opportunities across new states and regions, which should position us to move quickly as demand continues to scale. We are also committed to minimizing our environmental impact through advanced design innovations, including our closed-loop, direct-to-chip liquid-cooling design that lowers water use to less than a single household. In addition, we are investing in infrastructure upgrades intending to ease pressure on local utilities and responsibly manage electric demand at each site. Our vision is for Applied Digital to be known as a job creator, tax contributor, and trusted community partner because we believe growth only matters if it's done the right way. Looking ahead, we believe Applied Digital is poised to capitalize on a generational opportunity. With a multi-GW pipeline, active and increasing hyperscaler interest, and long-term contracted visibility, we are positioned to scale rapidly at a moment when demand for advanced infrastructure is reaching unprecedented levels worldwide. We believe we are on a projected annualized NOI run rate of approximately $500 million once Polaris Forge 1 is fully operational. The tenant signing at our second campus should put us firmly on the path toward our $1 billion NOI target within the next five years. At this trajectory, we believe we are positioned to become a leading force in the future of AI infrastructure and on track to evolve into the next AI-focused data center REIT as the business continues to mature. HPC Hosting Update Applied Digital’s HPC Hosting Business continues to advance rapidly. Our first 100 MW facility at Polaris Forge 1 remains on track to be operational in calendar Q4 2025, with technical fit-out activities underway this quarter and continuing into next. These installations contributed approximately $26 million in revenue this quarter and are expected to ramp significantly next quarter as we approach the building's ready-for-service date. While these are one-time, low-margin installation payments, they are a meaningful signal of our ability to deliver the full suite of data center capabilities. We believe they also reflect the trust our customer places in us as a full-stack developer of AI data centers. Lease revenues are expected to ramp later this year as equipment installation is completed. Our second 150 MW facility is scheduled for mid-2026, followed by our third 150 MW facility planned for 2027. All three facilities are designed to deliver ultra-low-cost, highly efficient liquid-cooled infrastructure, featuring a closed-loop, direct-to-chip liquid cooling system expected to achieve a Design PUE of 1.18 and near-zero water consumption. Combined with abundant, low-cost energy and more than 200 days of naturally occurring free cooling annually, we estimate a 100 MW customer could save up to $2.7 billion over 30 years compared to traditional data centers. Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to Bitcoin/crypto mining customers. As of August 31, 2025, the Company’s 106 MW facility in Jamestown, N.D., and 180 MW facility in Ellendale, N.D., are operating at full capacity. During the three months ended August 31, 2025, the Company generated $37.9 million in revenue from the Data Center Hosting Business segment, representing an increase of 9% compared to the $34.8 million during the three months ended August 31, 2024. The growth was primarily driven by increased capacity online across the Company’s Data Center Hosting facilities. We are very pleased with our hosting business as it continues to operate more efficiently, and with Bitcoin prices hitting all-time highs, we believe demand for these services remains robust. Cloud Services Business Update As we announced in the prior fiscal year, at the direction of our Board of Directors we are reviewing strategic options for this business. That process remains ongoing, and we will provide an update once we have more information to share with shareholders. Financial Results from Continuing Operations for Fiscal First Quarter 2026 Operating Results Total revenues in the fiscal first quarter 2026 were $64.2 million compared to $34.8 million, up 84% from the fiscal first quarter 2025. The increase was primarily due to $26.3 million of revenue generated related to tenant fit-out services associated with our HPC Hosting Business. The remaining $5.0 million increase in revenue is related to the Data Center Business and is due to performance improvements compared to the three months ended August 31, 2024. Cost of revenues in the fiscal first quarter 2026 were $55.6 million compared to $22.7 million, up 144% from the fiscal first quarter 2025. Approximately $25.0 million of the increase in cost of revenue was associated with tenant fit-out services for our HPC Hosting Business while the remaining increase was associated with our Data Center Hosting Business and other expenses directly attributable to generating revenue. Selling, general and administrative expenses in the fiscal first quarter 2026 were $29.2 million compared to $11.0 million, up 165% from the fiscal first quarter of 2025 driven by the Company’s overall business growth. This increase was due to increases of $16.6 million in stock based compensation due to accelerated vesting of certain employee stock awards and $3.9 million in personnel expenses for employee costs and other costs attributable to supporting the growth of the business. These increases were partially offset by a $2.3 million decrease in professional service expenses primarily related to a decrease in legal services during the three months ended August 31, 2025. Loss on abandonment of assets in the fiscal first quarter 2026 were $1.8 million compared to $0.6 million, up 179% from the fiscal first quarter of 2025 driven by the write down of assets to their fair value upon disposal. Interest expense, net in the fiscal first quarter 2026 was $3.9 million compared to $3.0 million, up 33%, from the fiscal first quarter 2025. The increase was primarily driven by an increase in loan interest due to loan activity during the three months ended August 31, 2025, partially offset by an increase in interest income due to an increase in funds held in money market accounts. Net loss attributable to common stockholders for the fiscal first quarter 2026 was $27.8 million, or $0.11 per basic and diluted share. This compares to a net income attributable to common stockholders of $15.9 million, or $0.11 per basic and diluted share for the fiscal first quarter of 2025. Adjusted net loss attributable to common stockholders, a non-GAAP financial measure, for the fiscal first quarter 2026, was $7.6 million or adjusted net loss attributable to common stockholders per basic and diluted share of $0.03. This compares to an adjusted net loss attributable to common stockholders, a non-GAAP financial measure, of $0.8 million, or $0.01 per basic and diluted share, for the fiscal first quarter of 2025. Adjusted EBITDA, a non-GAAP financial measure, for the fiscal first quarter 2026 was $0.5 million compared to an Adjusted EBITDA of $6.3 million for the fiscal first quarter 2025. Balance Sheet As of August 31, 2025, the Company had $114.1 million in cash, cash equivalents, and restricted cash, along with $687.3 million in debt. This does not include $362.5 million dollars in proceeds from our financings that occurred subsequent to quarter end. Conference Call As previously announced, Applied Digital will host a conference call today, October 9, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. Participant Dial-In: 1-800-549-8228 Conference ID: 39290 The conference call will be broadcast live and available for replay for one year here . Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. A phone replay of the call will also be available from 8:00 p.m. Eastern Time on October 9, 2025, through October 16th, 2025, at 11:59 p.m. Eastern Time. Replay Dial-In: 1-888-660-6264 Playback Passcode: 39290 # About Applied Digital Applied Digital Corporation (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud - designs, builds and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and the closing of the transaction described herein. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding the datacenter leases and the Polaris Forge 1 and Polaris Forge 2 campus development, including statements regarding expected timeline of operating readiness and construction completion with respect to various Polaris Forge 1 and Polaris Forge 2 facilities, (ii) statements about the high performance compute industry, (iii) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (iv) statements of future economic performance, (v) statements of assumptions underlying other statements and statements about the Company or its business and (vi) the Company’s plans to obtain future financing. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include: our ability to complete construction of the data centers at our Polaris Forge 1 and Polaris Forge 2 campuses; our ability to raise additional capital to fund the ongoing data center construction and operations; our dependence on principal customers, including our ability to execute leases with key customers; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this earnings release have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude other items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business. Adjusted Operating (Loss) Income, Adjusted Net Loss from Continuing Operations Attributable to Common Stockholders, and Adjusted Net Loss from Continuing Operations Attributable to Common Stockholders per Diluted Share “Adjusted Operating (Loss) Income” and “Adjusted net loss from continuing operations attributable to common stockholders” are non-GAAP financial measures that represent operating (loss) income and net (loss) income from continuing operations attributable to common stockholders, respectively. Adjusted Operating (Loss) Income is Operating (loss) income excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, gain on classification of held for sale, accelerated depreciation and amortization, restructuring expenses and other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Adjusted net loss from continuing operations attributable to common stockholders is Adjusted Operating (Loss) Income further adjusted for the loss on change in fair value of debt and preferred dividends. We define “Adjusted net loss from continuing operations attributable to common stockholders per diluted share” as Adjusted net loss from continuing operations attributable to common stockholders divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, gain on classification of held for sale, loss on abandonment of assets, loss on change in fair value of debt, preferred dividends, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs. Investor Relations Contacts Media Contact Matt Glover or Ralf Esper Buffy Harakidas, EVP Gateway Group, Inc. JSA (Jaymie Scotto & Associates) (949) 574-3860 (856) 264-7827 APLD@gateway-grp.com jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) August 31, 2025 May 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 73,911 $ 41,552 Restricted cash Funds for construction 2,851 41,026 Letters of credit 37,342 31,342 Accounts receivable 29,134 3,043 Prepaid expenses and other current assets 188,491 9,430 Current assets held for sale 310,006 304,200 Total current assets 641,735 430,593 Property and equipment, net 1,461,775 1,206,341 Operating lease right of use assets, net 810 960 Finance lease right of use assets, net 16,893 17,820 Other assets 277,782 214,376 TOTAL ASSETS $ 2,398,995 $ 1,870,090 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 172,823 $ 247,528 Accrued liabilities 182,948 29,549 Current portion of operating lease liability 688 692 Current portion of finance lease liability 11,951 13,633 Current portion of debt 382,056 10,331 Customer deposits 16,752 16,125 Deferred revenue 626 — Due to customer 3,054 4,807 Current liabilities held-for-sale 188,215 216,047 Other current liabilities 26,380 19,432 Total current liabilities 985,493 558,144 Long-term portion of operating lease liability 220 381 Long-term portion of finance lease liability 11 15 Long-term debt 305,283 677,825 Total liabilities 1,291,007 1,236,365 Commitments and contingencies Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at August 31, 2025, and 301,673 shares issued and outstanding at May 31, 2025 6,932 6,932 Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized, 62,500 shares issued and 62,260 shares outstanding at August 31, 2025, and 62,500 shares issued and 62,485 shares outstanding at May 31, 2025 56,796 57,011 Series G preferred stock, $0.001 par value, 156,000 shares authorized, no shares issued and outstanding at August 31, 2025, and 78,000 shares issued and outstanding at May 31, 2025 — 72,094 Stockholders' equity: Common stock, $0.001 par value, 400,000,000 shares authorized, 278,584,101 shares issued and shares outstanding at August 31, 2025, and 234,200,868 shares issued and 224,909,669 shares outstanding at May 31, 2025 274 230 Treasury stock, 9,291,199 shares at August 31, 2025 and 9,291,199 shares at May 31, 2025, at cost (31,400) (31,400) Additional paid in capital 1,573,367 1,009,913 Accumulated deficit (497,981) (481,055) Total stockholders’ equity attributable to Applied Digital Corporation 1,044,260 497,688 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY $ 2,398,995 $ 1,870,090 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended August 31, 2025 August 31, 2024 Revenue: Revenue $ 64,216 $ 32,923 Related party revenue — 1,926 Total revenue 64,216 34,849 Costs and expenses: Cost of revenues 55,606 22,743 Selling, general and administrative (1) 29,152 10,993 Gain on classification as held for sale (2) — (24,808) Loss on abandonment of assets 1,751 628 Total costs and expenses 86,509 9,556 Operating (loss) income (22,293) 25,293 Interest expense, net (3) 3,946 2,959 Loss on change in fair value of debt — 6,422 Net (loss) income before income tax expenses (26,239) 15,912 Income tax expense 8 — Net (loss) income from continuing operations (26,247) 15,912 Net (loss) income from discontinued operations 9,321 (20,159) Net loss (16,926) (4,247) Preferred dividends (1,576) (44) Net loss attributable to common stockholders $ (18,502) $ (4,291) Net loss attributable to common stockholders Continuing operations $ (27,823) $ 15,868 Discontinued operations 9,321 (20,159) Net loss $ (18,502) $ (4,291) Basic and diluted net (loss) income per share attributable to common stockholders Continuing operations $ (0.11) $ 0.11 Discontinued operations 0.04 (0.14) Basic and diluted net loss per share $ (0.07) $ (0.03) Basic and diluted weighted average number of shares outstanding 255,892,902 149,099,336 (1) Includes related party selling, general and administrative expense of $0.1 million for each of the three months ended August 31, 2025 and August 31, 2024, respectively. (2) Includes $25 million received in connection with the sale of our Garden City facility once conditional approval requirements were met and escrowed funds were released during the three months ended August 31, 2024. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended August 31, 2025 August 31, 2024 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (16,926) $ (4,247) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,152 34,316 Stock-based compensation 15,465 (2,919) Lease expense 5,381 7,659 Amortization of debt issuance costs 4,851 2,769 (Gain) loss on classification of held for sale — (24,808) Loss on change in fair value of debt — 6,422 Loss on abandonment of assets 1,751 628 Changes in operating assets and liabilities: Accounts receivable (29,525) 1,549 Prepaid expenses and other current assets (6,962) (721) Customer deposits 627 (143) Related party customer deposits — (1,549) Deferred revenue (2,316) (20,807) Related party deferred revenue — (1,692) Accounts payable (77,784) (77,537) Accrued liabilities 28,684 9,738 Due to customer (1,753) 4,209 Lease assets and liabilities (9,598) (8,757) Other assets 1,930 — CASH FLOW USED IN OPERATING ACTIVITIES (82,023) (75,890) CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (249,420) (54,798) Proceeds from sale of assets — 25,000 Finance lease prepayments — (2,808) CASH FLOW USED IN INVESTING ACTIVITIES (249,420) (32,606) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (29,932) (26,049) Borrowings of long-term debt 65 105,000 Repayment of long-term debt (2,416) (5,886) Payment of deferred financing costs (1) (8,484) Tax payments for restricted stock upon vesting (4,497) — Proceeds from issuance of common stock 196,366 31,590 Common stock issuance costs (5,945) (44) Proceeds from issuance of preferred stock 175,000 60,726 Preferred stock issuance costs (4,604) (5,444) Preferred stock issuance costs (225) — Dividends issued on preferred stock (1,576) (44) Exercise of warrants 1 — Proceeds from issuance of SAFE agreement included in long-term debt — 12,000 CASH FLOW PROVIDED BY FINANCING ACTIVITIES 322,236 163,365 NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (9,207) 54,869 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 123,318 31,688 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 114,111 86,557 Less: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS 7 9 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUING OPERATIONS $ 114,104 $ 86,548 Three Months Ended August 31, 2025 August 31, 2024 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 9,039 $ 5,511 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Finance right-of-use assets obtained by lease obligation $ 3,966 $ 13,305 Property and equipment in accounts payable and accrued liabilities $ 132,113 $ 116,440 Conversion of debt to common stock $ — $ 56,201 Conversion of preferred stock to common stock $ 242,480 $ — Issuance of warrants, at fair value $ 121,204 $ 36,479 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended August 31, 2025 August 31, 2024 Adjusted operating (loss) income Operating (loss) income (GAAP) $ (22,293) $ 25,293 Stock-based compensation 14,446 (2,383) Non-recurring repair expenses (1) 173 32 Diligence, acquisition, disposition and integration expenses (2) 1,196 2,876 Litigation expenses (3) 190 407 Loss on abandonment of assets 1,751 628 Gain on classification of held for sale — (24,808) Accelerated depreciation and amortization (4) — 45 Restructuring expenses (5) 431 — Other non-recurring expenses (6) 490 74 Adjusted operating (loss) income (Non-GAAP) $ (3,616) $ 2,164 Adjusted operating margin (6) % 6 % Adjusted net loss from continuing operations attributable to common stockholders Net (loss) income from continuing operations attributable to common stockholders (GAAP) $ (27,823) $ 15,868 Stock-based compensation 14,446 (2,383) Non-recurring repair expenses (1) 173 32 Diligence, acquisition, disposition and integration expenses (2) 1,196 2,876 Litigation expenses (3) 190 407 Loss on abandonment of assets 1,751 628 Gain on classification of held for sale — (24,808) Accelerated depreciation and amortization (4) — 45 Loss on change in fair value of debt (7) — 6,422 Preferred dividends 1,576 44 Restructuring expenses (5) 431 — Other non-recurring expenses (6) 490 74 Adjusted net loss from continuing operations attributable to common stockholders (Non-GAAP) $ (7,570) $ (795) Adjusted net loss from continuing operations attributable to common stockholders per diluted share (Non-GAAP) $ (0.03) $ (0.01) EBITDA and Adjusted EBITDA Net (loss) income from continuing operations attributable to common stockholders (GAAP) $ (27,823) $ 15,868 Interest expense, net 3,946 2,959 Income tax expense 8 — Depreciation and amortization (4) 4,153 4,143 EBITDA (Non-GAAP) $ (19,716) $ 22,970 Stock-based compensation 14,446 (2,383) Non-recurring repair expenses (1) 173 32 Diligence, acquisition, disposition and integration expenses (2) 1,196 2,876 Litigation expenses (3) 190 407 Gain on classification of held for sale — (24,808) Loss on abandonment of assets 1,751 628 Loss on change in fair value of debt (7) — 6,422 Preferred dividends 1,576 44 Restructuring expenses (5) 431 — Other non-recurring expenses (6) 490 74 Adjusted EBITDA (Non-GAAP) $ 537 $ 6,262 (1) Represents costs incurred for the non-recurring repair and replacement of equipment at our Data Center Hosting facilities. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. (4) Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. (5) Represents non-recurring expenses associated with employee separations. (6) Represents expenses that are not representative of our expected ongoing costs. (7) Represents loss on change in fair value of debt due to adjustments to the fair value of the Yorkville Convertible Debt.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq425earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal Fourth Quarter and Full Year 2025 Results DALLAS, TX – July 30, 2025 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications and data center hosting (“Data Center Hosting”), reported financial results for the fiscal fourth quarter and fiscal year ended May 31, 2025. The Company also provided an operational update. During fiscal year 2025, the Company determined its Cloud Services Business met the criteria for held for sale and discontinued operations. As a result, the operations of the Cloud Services Business have been classified as discontinued operations in our consolidated financial statements. Prior period amounts have been retrospectively adjusted to conform to the current period presentation. Unless otherwise specified, disclosures in this earnings release, including the below, reflect continuing operations only and exclude the Cloud Services Business . Fiscal Fourth Quarter 2025 Financial Highlights • Revenues: $38.0 million, up 41% from the prior year comparable period • Net loss attributable to common stockholders: $26.6 million, down 25% from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.12, down 57% from the prior year comparable period • Adjusted net loss attributable to common stockholders: $7.6 million • Adjusted net loss attributable to common stockholders per diluted share: $0.03 • Adjusted EBITDA: $1.0 million Fiscal Year 2025 Financial Highlights • Revenues: $144.2 million, up 6% from the prior year comparable period • Net loss attributable to common stockholders: $161.0 million, up 118% from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.80, up 23% from the prior year comparable period • Adjusted net loss attributable to common stockholders: $12.5 million • Adjusted net loss attributable to common stockholders per diluted share: $0.06 • Adjusted EBITDA: $19.6 million Adjusted Net Loss Attributable to Common Stockholders , Adjusted Net Loss Attributable to Common Stockholders per Diluted Share , and Adjusted EBITDA are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Highlights

paragraph:7: • Announced 250MW AI Data Center Leases With CoreWeave in North Dakota - Over the approximately 15-year lease terms, Applied Digital anticipates generating approximately $7 billion in contracted revenue from the leases. • Since the end of the fourth quarter 2025, CoreWeave exercised its option for an additional 150MW, which would bring the total capacity leased by CoreWeave to 400MW and would add approximately $4 billion in contracted revenue, which would bring total contracted revenue to approximately $11 billion for the approximately 15-year lease terms. • Released white paper,

paragraph:8: AI Factory: A Case Study of Total Ownership , which explains how site selection in regions like the Dakotas and data center design choices can significantly reduce the long-term costs of generative AI infrastructure. • Subsequent to fiscal year end, the Company has raised $268.9 million, from sales of shares of the Company's common stock pursuant to the June 2025 At-the-Market Sales Agreement and sale of shares of its Series G Preferred Stock. Management Commentary During the quarter ended May 31, 2025, we signed two transformative 15-year lease agreements with CoreWeave, an AI hyperscaler, to deliver 250 megawatts of critical IT load at our Ellendale, North Dakota data center campus ("Polaris Forge 1"). These signed lease agreements are expected to generate approximately $7 billion in contracted revenue over the approximate 15-year lease terms. Since the end of the quarter, we’re pleased to announce that CoreWeave has exercised its lease option for an additional 150 MW. When the lease is signed it would bring the total leased capacity to 400 MW of critical IT load and add approximately $4 billion in contracted revenue which would bring the total contracted revenue to approximately $11 billion. Under the option terms, the parties are expected to promptly enter into a new, third lease agreement on substantially the same terms, including the same rent and escalators, as the existing two leases, and the parties are currently finalizing that lease. “These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects,” said Wes Cummins, Chairman and CEO of Applied Digital. “Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt. With the first 100 MW facility scheduled to be operational in Q4 2025, a second 150 MW facility scheduled to come online in mid-2026, and a third 150 MW facility planned for 2027, we believe Polaris Forge 1 will serve as a launchpad for the future of AI infrastructure.” “Building on the momentum from these leases and the surging demand for AI infrastructure, we’re actively marketing our multi-gigawatt pipeline to a diverse group of customers,” said Wes Cummins, Chairman and CEO of Applied Digital. “Over the past two years, we’ve streamlined our processes, enhanced our building design for greater flexibility, and established a repeatable approach supported by a strong supply chain. As a result, we’ve reduced projected build times from 24 months to 12 to 14 months, which we believe will enable us to deliver large-scale projects faster and more efficiently.” “At the same time, we’re highlighting the many advantages of building in the Dakotas, along with our unique design that features an innovative closed-loop, direct-to-chip cooling system. This design is expected to achieve a PUE of 1.18 and a near-zero water consumption, intended to ensure exceptional efficiency and sustainability,” Cummins added. “Combined with abundant, low-cost energy and over 200 days of naturally occurring free cooling annually, management believes a 100 MW data center customer could save up to approximately $2.7 billion over a thirty year period as compared to the current industry data centers in other regions. Our strategic decisions in location and design are intended to position Applied Digital to grow dramatically in the Dakotas and across other regions within our pipeline.” HPC Data Center Hosting Update Applied Digital’s HPC Data Center Hosting business designs, builds, and operates next-generation data centers engineered to deliver massive computing power for high-performance compute (HPC) and AI applications. The Company’s first 100 MW HPC facility at the Polaris Forge 1 campus in Ellendale, North Dakota—a 369,000+ square-foot building—is expected to offer ultra-low-cost, highly efficient liquid-cooled infrastructure and remains on track to be ready for service in the second half of 2025. In addition, construction is already underway on a second 150 MW data center at the campus. With the transformative two 15-year lease agreements now in place, we believe we are advancing toward finalizing project financing to ensure long-term financial stability and support the campus’ continued growth and scalability. “We believe the future is very bright for Applied Digital,” said Wes Cummins, Chairman and CEO. “We’ve sought to build strong relationships with nearly all major hyperscalers and demonstrate our advanced building capabilities by passing what we believe to be the some of the most rigorous technical due diligence and processes imposed by them in the industry. As a result, we have established relationships with several hyperscalers, which should position us for future projects. We’re confident that our multi-gigawatt pipeline and proven design and construction expertise, combined with hyperscalers that appear to be more active than ever in securing land, power, and data center capacity, should continue to drive our growth.” Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of May 31, 2025, the Company’s 106 MW facility in Jamestown, N.D., and 180 MW facility in Ellendale, N.D., are operating at full capacity. During the three months ended May 31, 2025, the Company generated $38.0 million in revenue from the Data Center Hosting Business segment, representing an increase of 41% compared to the $26.9 million during the three months ended May 31, 2024. The growth was primarily driven by increased capacity online across the Company’s Data Center Hosting facilities. We are very pleased with our hosting business as it continues to operate more efficiently, and with Bitcoin prices hitting all-time highs, we believe demand for these services remains robust. Cloud Services Business Update As we announced last quarter, our Board of Directors has determined that we will be reviewing strategic options for this business. That process remains ongoing, and we will provide an update once we have more information to share with shareholders. Financial Results for Fiscal Fourth Quarter 2025 Operating Results Total revenues in the fiscal fourth quarter 2025 were $38.0 million compared to $26.9 million, up 41% from the fiscal fourth quarter 2024. The growth was primarily driven by increased capacity online in the Company's Data Center Hosting Business. Cost of revenues in the fiscal fourth quarter 2025 were $30.2 million compared to $22.8 million, up 33% from the fiscal fourth quarter 2024. The increase was primarily driven by increased capacity online in the Company's Data Center Hosting Business. Selling, general and administrative expenses in the fiscal fourth quarter 2025 were $28.1 million compared to $13.1 million, up 115% from the fiscal fourth quarter of 2024 driven by the Company’s overall business growth. This increase was due to increases of $9.4 million in stock based compensation due to accelerated vesting of certain employee stock awards and expense related to performance stock unit grants, $3.4 million in personnel expenses largely driven by increases in headcount to support the business, and $2.3 million in other expenses related to insurance premiums and computer and software expenses. Interest expense, net in the fiscal fourth quarter 2025 was $4.5 million compared to $13.8 million, down 67%, from the fiscal fourth quarter 2024. The decrease was primarily driven by a $5.2 million decrease in related party loan interest as there were no related party loans outstanding during the fiscal fourth quarter 2025 with the remaining decrease in interest expense due to the capitalization of interest on interest bearing construction loans. Net loss attributable to common stockholders for the fiscal fourth quarter 2025 was $26.6 million, or $0.12 per basic and diluted share. This compares to a net loss attributable to common stockholders of $35.3 million, or $0.28 per basic and diluted share for the fiscal fourth quarter of 2024. Adjusted net loss attributable to common stockholders , a non-GAAP financial measure, for the fiscal fourth quarter 2025, was $7.6 million or adjusted net loss attributable to common stockholders per basic and diluted share of $0.03. This compares to an adjusted net loss attributable to common stockholders , a non-GAAP financial measure, of $17.6 million, or $0.14 per basic and diluted share, for the fiscal fourth quarter of 2024. Adjusted EBITDA, a non-GAAP financial measure, for the fiscal fourth quarter 2025 was $1.0 million compared to an Adjusted EBITDA loss of $0.2 million for the fiscal fourth quarter 2024. Financial Results for Fiscal Year Ended May 31, 2025 Operating Results Total revenues increased $7.6 million, or 6%, from $136.6 million for the fiscal year ended May 31, 2024 to $144.2 million for the fiscal year ended May 31, 2025 which was primarily due revenue increasing by $20.4 million due to our 180 MW Data Center Hosting Facility in Ellendale, ND operating at full capacity during the current year as opposed to the prior year when that facility experienced a power outage during the second half of fiscal year 2024. This was offset by a decrease in related party revenue of $12.8 million, driven by certain related parties terminating their contracts during the first fiscal quarter of fiscal year 2025. Cost of revenues decreased $5.2 million, or 5%, from $106.7 million for the fiscal year ended May 31, 2024 to $101.5 million for the fiscal year ended May 31, 2025. The decrease was primarily driven by a decrease in energy costs due to more favorable pricing during the current fiscal year. Selling, general and administrative expenses increased $38.0 million, or 85%, from $45.0 million for the fiscal year ended May 31, 2024 to $83.1 million for the fiscal year ended May 31, 2025. The increase was primarily driven by business growth, including approximately $14.5 million in higher stock-based compensation due to accelerated vesting of certain employee stock awards and the recognition of expense related to performance stock unit grants, $11.5 million in increased professional service expenses for legal support on transactions and general operations, $8.4 million in elevated personnel costs from increased headcount, and $3.7 million in additional other selling, general and administrative expenses, mainly from insurance premiums and software costs. Gain on classification as held for sale was $24.6 million for the fiscal year ended May 31, 2025 due to the receipt of $25.0 million of funds released from escrow in association with the sale of our Garden City facility. Comparatively, there was a $15.4 million loss on classification as held for sale due to the write down of the Garden City assets to their fair market value as part of the planned sale of that facility during the fiscal year ended May 31, 2024. Interest expense, net decreased $3.0 million, or 17%, from $17.7 million for the fiscal year ended May 31, 2024 to $14.7 million for the fiscal year ended May 31, 2025. The decrease was primarily driven by a $5.7 million decrease in related party loan interest as there were no related party loans outstanding during the fiscal year ended May 31, 2025 as well as an increase of $2.2 million in interest income due to an increase in funds held in money market accounts. This was partially offset by an increase of approximately $4.9 million of interest expense due to the increase in finance leases and debt obligations between periods. Loss on conversion of debt was $33.6 million for the fiscal year ended May 31, 2025, due to the difference in the fair value compared to the price at which the Yorkville Promissory Notes (the "YA Notes") were converted. There was no such activity recorded in the prior year comparative period. Loss on change in fair value of debt increased $78.0 million, or 1,054%, from $7.4 million for the fiscal year ended May 31, 2024 to $85.4 million for the fiscal year ended May 31, 2025. The loss on change in fair value of debt for the fiscal year ended May 31, 2025 was primarily due to a loss of approximately $89.6 million related to the change in fair value of the conversion option derivative of the 2.75% Senior Unsecured Convertible Notes during the two week period in which we did not have sufficient authorized shares to settle such conversion fully in shares. This loss was partially offset by a gain of approximately $4.1 million related to the change in the fair value of the YA Notes. The loss on change in fair value of debt for the fiscal year ended May 31, 2024 was due to the valuation associated with our borrowings under the YA Notes. Net loss attributable to common stockholders was $161.0 million, or $0.80 per basic and diluted share, for the fiscal year ended May 31, 2025. This compares to a net loss attributable to common stockholders of $74.0 million, or $0.65 per basic and diluted share, for the fiscal year ended May 31, 2024. Adjusted net loss attributable to common stockholders was $12.5 million or $0.06 per diluted share for the fiscal year ended May 31, 2025. This compares to an adjusted net loss attributable to common stockholders of $12.7 million, or $0.11 per basic and diluted share, for the fiscal year ended May 31, 2024. Balance Sheet As of May 31, 2025, the Company had $120.9 million in cash, cash equivalents, and restricted cash, along with $688.2 million in debt. Conference Call As previously announced, Applied Digital will host a conference call today, July 30, 2025 , a t 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. Participant Dial-In: 1-800-549-8228 Conference ID: 67205 The conference call will be broadcast live and available for replay for one year here . Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. A phone replay of the call will also be available from 8:00 p.m. Eastern Time on July 30, 2025, through August 7, 2025, at 11:59 p.m. Eastern Time. Replay Dial-In: 1-888-660-6264 Playback Passcode: 67205# About Applied Digital Applied Digital Corporation (Nasdaq: APLD) designs, develops, and operates next-generation digital infrastructure across North America to provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Compute ("HPC") and Artificial Intelligence ("AI"). Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and the closing of the transaction described herein. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding the datacenter leases and the Polaris Forge 1 campus development, including statements regarding expected timeline of operating readiness and construction completion with respect to various Polaris Forge 1 facilities, (ii) statements about the high performance compute industry, (iii) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (iv) statements of future economic performance, (v) statements of assumptions underlying other statements and statements about the Company or its business and (vi) the Company’s plans to obtain future financing. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include: our ability to complete construction of the Polaris Forge 1 HPC data centers; our ability to finalize and execute the new, third lease with CoreWeave pursuant to its option exercise; our ability to raise additional capital to fund the ongoing data center construction and operations; our dependence on principal customers, including our ability to execute leases with key customers, including leases for our Polaris Forge 1 campus; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this Annual Report on Form 10-K have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude other items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business. Adjusted Operating (Loss) Income, Adjusted Net Loss From Continuing Operations Attributable to Common Stockholders, and Adjusted Net Loss From Continuing Operations Attributable to Common Stockholders per Diluted Share “Adjusted Operating (Loss) Income” and “Adjusted net loss from continuing operations attributable to common stockholders” are non-GAAP financial measures that represent operating loss and net loss from continuing operations attributable to common stockholders, respectively. Adjusted Operating (Loss) Income is Operating loss excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, (gain) loss on classification as held for sale, accelerated depreciation and amortization, loss on legal settlement, restructuring expenses and other non-recurring expenses that Management believes are not representative of the Company's expected ongoing costs. Adjusted net loss from continuing operations attributable to common stockholders is Adjusted Operating (Loss) Income further adjusted for the loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on fair value of warrants and warrants issued to related parties, respectively, loss on extinguishment of debt and related party debt, respectively, and preferred dividends. We define “Adjusted net loss from continuing operations attributable to common stockholders per diluted share” as Adjusted net loss from continuing operations attributable to common stockholders divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, (gain) loss on classification as held for sale, loss on abandonment of assets, loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on change in fair value of warrants and warrants issued to related parties, respectively, loss on extinguishment of debt and related party debt, respectively, loss on legal settlement, preferred dividends, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs.

paragraph:9: Investor Relations Contacts Media Contact Matt Glover or Ralf Esper Buffy Harakidas, EVP Gateway Group, Inc. JSA (Jaymie Scotto & Associates) (949) 574-3860 (856) 264-7827 APLD@gateway-grp.com jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and par value data) May 31, 2025 May 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 41,552 $ 3,339 Restricted cash Funds for construction 41,026 — Letters of credit 31,342 21,349 Accounts receivable 3,043 3,847 Prepaid expenses and other current assets 9,430 1,010 Current assets held for sale 304,200 374,599 Total current assets 430,593 404,144 Property and equipment, net 1,275,841 329,103 Operating lease right of use assets, net 960 1,521 Finance lease right of use assets, net 17,820 8,750 Other assets 144,876 19,349 TOTAL ASSETS $ 1,870,090 $ 762,867 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 247,528 $ 104,528 Accrued liabilities 29,549 24,702 Current portion of operating lease liability 692 604 Current portion of finance lease liability 13,633 5,283 Current portion of debt 10,331 10,082 Current portion of debt, at fair value — 35,836 Customer deposits 16,125 13,819 Related party customer deposits — 1,549 Deferred revenue — 6,496 Related party deferred revenue — 1,692 Due to customer 4,807 13,002 Other current liabilities 19,432 96 Total current liabilities 558,144 554,112 Long-term portion of operating lease liability 381 1,072 Long-term portion of finance lease liability 15 3,381 Long-term debt 677,825 79,472 Total liabilities 1,236,365 638,037 Commitments and contingencies Temporary equity Series E preferred stock, 0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at May 31, 2025, and no shares authorized, issued or outstanding at May 31, 2024 6,932 — Series E-1 preferred stock, $0.001 par value, 62,500 shares authorized, 62,500 shares issued and 62,485 shares outstanding at May 31, 2025, and no shares authorized, issued or outstanding at May 31, 2024 57,011 — Series G preferred stock, 0.001 par value, 156,000 shares authorized, 78,000 shares issued and outstanding at May 31, 2025, and 0 shares authorized, issued or outstanding at May 31, 2024 72,094 — Stockholders' equity: Common stock, $0.001 par value, 400,000,000 shares authorized, 234,200,868 shares issued and shares outstanding at May 31, 2025, and 144,083,944 shares issued and 139,051,142 shares outstanding at May 31, 2024 230 144 Treasury stock, 9,291,199 shares at May 31, 2025 and 5,032,802 shares at May 31, 2024, at cost (31,400) (62) Additional paid in capital 1,009,913 374,738 Accumulated deficit (481,055) (249,990) Total stockholders’ equity attributable to Applied Digital Corporation 497,688 124,830 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY $ 1,870,090 762,867 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended Fiscal Year Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Revenue: Revenue $ 38,013 $ 23,020 $ 142,267 $ 121,857 Related party revenue — 3,878 1,926 14,761 Total revenue 38,013 26,898 144,193 136,618 Costs and expenses: Cost of revenues 30,247 22,776 101,451 106,653 Selling, general and administrative (1) 28,096 13,079 83,065 45,020 (Gain) loss on classification as held for sale (2) — (6,306) (24,616) 15,417 Loss on abandonment of assets 369 — 1,138 — Loss from legal settlement — — — 2,380 Total costs and expenses 58,712 29,549 161,038 169,470 Operating loss (20,699) (2,651) (16,845) (32,852) Interest expense, net (3) 4,497 13,814 14,739 17,708 Loss on conversion of debt — — 33,612 — Loss on change in fair value of debt — 4,789 85,439 7,401 Loss on change in fair value of related party debt — 8,116 — 8,116 Loss on extinguishment of debt — — 1,177 — Loss on extinguishment of related party debt — 154 — 2,507 Loss on change in fair value of warrants — — 6,421 — Loss on change in fair value of related party warrants — 5,696 — 5,696 Net loss before income tax expenses (25,196) (35,220) (158,233) (74,280) Income tax expense (benefit) (16) 96 102 96 Net loss from continuing operations (25,180) (35,316) (158,335) (74,376) Net loss from discontinued operations (27,357) (29,441) (72,730) (75,295) Net loss (52,537) (64,757) (231,065) (149,671) Net loss attributable to noncontrolling interest — — — (397) Preferred dividends (1,402) — (2,615) — Net loss attributable to common stockholders $ (53,939) $ (64,757) $ (233,680) $ (149,274) Net loss attributable to common stockholders Continuing operations $ (26,582) $ (35,316) $ (160,950) $ (73,979) Discontinued operations (27,357) (29,441) (72,730) (75,295) Net loss $ (53,939) $ (64,757) $ (233,680) $ (149,274) Basic and diluted net loss per share attributable to common stockholders Continuing operations $ (0.12) $ (0.28) $ (0.80) $ (0.65) Discontinued operations (0.12) (0.24) (0.36) (0.66) Basic and diluted net loss per share $ (0.24) $ (0.52) $ (1.16) $ (1.31) Basic and diluted weighted average number of shares outstanding 224,306,661 124,666,579 201,194,451 114,061,414 (1) Includes related party selling, general and administrative expense of $0.1 million and $0.1 million for the three months ended May 31, 2025 and May 31, 2024, respectively, and $0.3 million and $0.6 million for the fiscal year ended May 31, 2025 and May 31, 2024, respectively. (2) Includes $25 million received in connection with the sale of our Garden City facility once conditional approval requirements were met and escrowed funds were released during the fiscal year ended May 31, 2025. The fiscal year ended May 31, 2024 includes $21.7 million loss on held for sale classification related to the sale of the Garden City facility. (3) For the three months ended and fiscal year ended May 31, 2024, amounts include related party interest expense of $5.2 million and $5.7 million, respectively. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) Fiscal Year Ended May 31, 2025 May 31, 2024 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (231,065) $ (149,671) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 97,945 79,360 Stock-based compensation 22,704 17,362 Lease expense 31,661 13,944 Loss on extinguishment of debt 1,177 — Loss on extinguishment of related party debt — 2,507 Loss on legal settlement — 2,380 Amortization of debt issuance costs 9,563 5,214 (Gain) loss on classification of held for sale (24,616) 15,417 Loss on conversion of debt 33,612 — Loss on change in fair value of debt 85,439 7,401 Loss on change in fair value of related party debt — 13,812 Loss on change in fair value of warrants issued 6,421 — Loss on abandonment of assets 1,138 — Changes in operating assets and liabilities: Accounts receivable (2,934) (3,765) Prepaid expenses and other current assets (8,309) 899 Other assets 2,979 327 Customer deposits 2,306 (8,770) Related party customer deposits (1,549) (2,261) Deferred revenue (34,080) (9,494) Related party deferred revenue (1,692) 168 Accounts payable (78,256) 41,840 Accrued liabilities (12,127) 21,601 Due to customer (8,195) 13,002 Lease assets and liabilities (7,524) (47,479) CASH FLOW (USED IN) PROVIDED BY OPERATING ACTIVITIES (115,402) 13,794 CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (681,603) (141,809) Proceeds from sale of assets 25,000 19,852 Finance lease prepayments (6,178) (50,089) Purchases of investments (4,873) (391) CASH FLOW USED IN INVESTING ACTIVITIES (667,654) (172,437) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (125,073) (59,967) Borrowings of long-term debt 650,083 116,554 Borrowings of related party debt — 28,000 Repayment of long-term debt (293,045) (21,714) Repayment of related party debt — (45,500) Payment of deferred financing costs (42,398) (320) Tax payments for restricted stock upon vesting (4,116) (861) Proceeds from issuance of common stock 191,590 130,849 Common stock issuance costs (10,305) (284) Proceeds from issuance of preferred stock 198,205 — Preferred stock issuance costs (13,812) — Dividends issued on preferred stock (2,615) — Proceeds from issuance of SAFE agreement included in long-term debt 12,000 — Repurchase of shares (31,342) — Proceeds from convertible notes 450,000 — Purchase of capped call options (51,750) — Purchase of prepaid forward contract (52,736) — CASH FLOW PROVIDED BY FINANCING ACTIVITIES 874,686 146,757 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 91,630 (11,886) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 31,688 43,574 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS 123,318 31,688 Less: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS 2,398 — CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUING OPERATIONS $ 120,920 $ 31,688 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 62,712 $ 17,782 Income taxes paid $ 105 $ 5 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Operating right-of-use assets obtained by lease obligation $ 20,280 $ 159,153 Finance right-of-use assets obtained by lease obligation $ 113,674 $ 227,047 Property and equipment in accounts payable and accrued liabilities $ 246,472 $ 85,019 Extinguishment of non-controlling interest $ — $ 9,765 Conversion of debt to common stock $ 104,945 $ 52,060 Conversion of preferred stock to common stock $ 48,350 $ — Loss on legal settlement $ — $ 2,380 Issuance of warrants, at fair value $ 136,292 $ 5,696 Conversion of warrants $ 5 $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended Fiscal Year Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Adjusted operating income (loss) Operating loss (GAAP) $ (20,699) $ (2,651) $ (16,845) $ (32,852) Stock-based compensation 11,558 1,803 22,492 6,973 Non-recurring repair expenses (1) — 645 173 1,224 Diligence, acquisition, disposition and integration expenses (2) 4,908 1,726 17,269 5,545 Litigation expenses (3) 48 929 1,389 1,589 Loss on abandonment of assets 369 — 1,138 — (Gain) loss on classification as held for sale — (6,306) (24,616) 15,417 Accelerated depreciation and amortization (4) — 88 45 4,307 Loss on legal settlement — — — 2,380 Restructuring expenses (5) 668 — 711 — Other non-recurring expenses (6) 69 45 627 169 Adjusted operating (loss) income (Non-GAAP) $ (3,079) $ (3,721) $ 2,383 $ 4,752 Adjusted operating margin (8) % (14) % 2 % 3 % Adjusted net loss from continuing operations attributable to common stockholders Net loss from continuing operations attributable to common stockholders (GAAP) $ (26,582) $ (35,316) $ (160,950) $ (73,979) Stock-based compensation 11,558 1,803 22,492 6,973 Non-recurring repair expenses (1) — 645 173 1,224 Diligence, acquisition, disposition and integration expenses (2) 4,908 1,726 17,269 5,545 Litigation expenses (3) 48 929 1,389 1,589 Loss on abandonment of assets 369 — 1,138 — (Gain) loss on classification as held for sale — (6,306) (24,616) 15,417 Accelerated depreciation and amortization (4) — 88 45 4,307 Loss on conversion of debt — — 33,612 — Loss on change in fair value of debt — 4,789 85,439 7,401 Loss on change in fair value of related party debt — 8,116 — 8,116 Loss on change in fair value of warrants — — 6,421 — — Loss on change in fair value of warrants issued to related parties — 5,696 — — 5,696 Loss on extinguishment of debt — — 1,177 — Loss on extinguishment of related party debt — 154 — 2,507 Loss on legal settlement — — — 2,380 Preferred dividends 1,402 — 2,615 — Restructuring expenses (5) 668 — 711 — Other non-recurring expenses (6) 69 45 627 169 Adjusted net loss from continuing operations attributable to common stockholders (Non-GAAP) $ (7,560) $ (17,631) $ (12,458) $ (12,655) Adjusted net loss from continuing operations attributable to common stockholders per diluted share (Non-GAAP) $ (0.03) $ (0.14) $ (0.06) $ (0.11) EBITDA and Adjusted EBITDA Net loss from continuing operations attributable to common stockholders (GAAP) $ (26,582) $ (35,316) $ (160,950) $ (73,979) Interest expense, net 4,497 13,814 14,739 17,708 Income tax expense (benefit) (16) 96 102 96 Depreciation and amortization (4) 4,059 3,636 17,289 21,477 EBITDA (Non-GAAP) $ (18,042) $ (17,770) $ (128,820) $ (34,698) Stock-based compensation 11,558 1,803 22,492 6,973 Non-recurring repair expenses (1) — 645 173 1,224 Diligence, acquisition, disposition and integration expenses (2) 4,908 1,726 17,269 5,545 Litigation expenses (3) 48 929 1,389 1,589 (Gain) loss on classification as held for sale — (6,306) (24,616) 15,417 Loss on abandonment of assets 369 — 1,138 — Loss on conversion of debt — — 33,612 — — Loss on change in fair value of debt — 4,789 85,439 7,401 Loss on change in fair value of related party debt — 8,116 — 8,116 Loss on change in fair value of warrants — — 6,421 — Loss on change in fair value of warrants issued to related parties — 5,696 — 5,696 Loss on extinguishment of debt — — 1,177 — Loss on extinguishment of related party debt — 154 — 2,507 Loss on legal settlement — — — 2,380 Preferred dividends 1,402 — 2,615 — Restructuring expenses (5) 668 — 711 — Other non-recurring expenses (6) 69 45 627 169 Adjusted EBITDA (Non-GAAP) $ 980 $ (173) $ 19,627 $ 22,319 (1) Represents costs incurred in the repair and replacement of equipment at Ellendale Data Center Hosting facility as a result of the previously disclosed power outage. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. (4) Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. (5) Represents non-recurring expenses associated with employee separations. (6) Represents expenses that are not representative of our expected ongoing costs.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq325earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal Third Quarter 2025 Results DALLAS, TX – April 14, 2025 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications, cloud services (“Cloud Services”), and data center hosting (“Data Center Hosting”), reported financial results for the fiscal third quarter ended February 28, 2025. The Company also provided an operational update. Fiscal Third Quarter 2025 Financial Highlights • Revenues: $52.9 million, up 22% from the prior year comparable period • Net loss attributable to common stockholders: $36.1 million, up 43% from the prior year comparable period • Net loss attributable to common stockholders per basic and diluted share: $0.16, up 69% from the prior year comparable period • Adjusted net loss attributable to common stockholders: $17.8 million • Adjusted net loss attributable to common stockholders per diluted share: $0.08 • Adjusted EBITDA: $10.0 million Adjusted Net Loss Attributable to Common Stockholders , Adjusted Net Loss Attributable to Common Stockholders per Diluted Share , and Adjusted EBITDA are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Operational Highlights

paragraph:7: • On April 10, 2025, the Board of Directors approved a plan to sell the Company's Cloud Services Business. • APLD HPC Holdings LLC closed a $375 million financing with Sumitomo Mitsui Banking Corporation (“SMBC”). The Company used a portion of the proceeds to repay its obligations under the November 2024 M acquarie Promissory Note, and the remaining proceeds are intended to be used to advance the development of the first and second data center buildings at the Ellendale HPC Campus. • Laura Laltrello joined Applied Digital as the Company’s new Chief Operating Officer (COO). The onboarding of Ms. Laltrello is intended to enhance the Company’s position as a leader in next-generation data centers at the forefront of the AI revolution. Management Commentary During the quarter ended February 28, 2025, Applied Digital achieved significant milestones in advancing its strategic objectives, including two transactions with globally renowned financial institutions. First, with Macquarie Asset Management ("MAM")—one of the largest infrastructure investors globally— upon closing of the transaction, MAM will have the right to invest up to $5 billion in capital to support the development of Applied Digital’s next-generation data centers. We believe this investment highlights MAM’s strong confidence in the scalability and value of our platform. Second, with Sumitomo Mitsui Banking Corporation ("SMBC"), one of Japan’s top three banking groups and a global leader in data center financing, Applied Digital closed a $375 million financing arrangement. We believe this arrangement underscores the trust that leading financial institutions place in the value of our data centers, land assets, and power infrastructure pipeline. MAM and SMBC are playing instrumental roles in supporting our ongoing discussions with customers to lease the Ellendale campus. Their support is especially valuable amid the current crosscurrents in the industry and broader economy. We believe the Ellendale campus represents a highly strategic industry asset. We also believe that if we were to transition into a data center REIT in the future, we need to focus our businesses. For that reason, we believe separating the Cloud Services Business from our data center operations better serves the long-term interests of our shareholders. "We are confident in the progress we are making and remain committed to delivering sustainable, long-term value for our investors,” said Applied Digital Chairman and CEO Wes Cummins. HPC Data Center Hosting Update Applied Digital’s HPC Data Center Hosting Business designs, builds, and operates next-generation data centers designed to provide massive computing power and support high-performance computing applications within a cost-effective model. During the prior fiscal year, the Company broke ground on its first 100 MW HPC facility in Ellendale, North Dakota. The new 369,000+ square-foot building will provide ultra-low-cost and highly efficient liquid-cooled infrastructure for HPC applications. Construction remains on schedule and the building will be ready for service in the second half of this calendar year. Applied Digital continues negotiations with multiple US-based hyperscalers to lease up to 400 MW of capacity, inclusive of the Ellendale HPC data center under construction and two forthcoming buildings at the Ellendale Campus. Cloud Services Update Applied Digital’s Cloud Services Business provides high-performance computing power for artificial intelligence and machine learning applications. During the three months ended February 28, 2025, the Company generated $17.8 million in revenues from the Cloud Services Business segment, representing an increase of 220% compared to $5.6 million during the three months ended February 29, 2024. However, our revenue declined $9.9 million sequentially from the second fiscal quarter 2025 revenue of $27.7 million due to moving some GPU capacity to a multi-tenant on-demand model from single-tenant reserve contracts. We encountered technical issues in moving the capacity which have since been resolved. Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of February 28, 2025, the Company’s 106 MW facility in Jamestown, N.D., and 180 MW facility in Ellendale, N.D., are operating at full capacity. During the three months ended February 28, 2025, the Company generated $35.2 million in revenue from the Data Center Hosting Business segment, representing a decrease of 7% compared to the $37.8 million during the three months ended February 29, 2024. Financial Results for Fiscal Third Quarter 2025 Operating Results Total revenues in the fiscal third quarter 2025 were $52.9 million compared to $40.3 million, up 22% from the fiscal third quarter 2024. The growth was primarily driven by the continued expansion of the Company’s Cloud Services Business during the latter period, fueled by the deployment of additional GPU clusters. Cost of revenues in the fiscal third quarter 2025 were $49.1 million compared to $47.1 million, up 4% from the fiscal third quarter 2024. The increase in cost of revenues was primarily driven by the growth in the business as more facilities were energized and additional services were provided to customers compared to the comparable prior year period. Selling, general and administrative expenses in the fiscal third quarter 2025 were $22.7 million compared to $30.0 million, down 24% from the fiscal third quarter of 2024. The decrease was primarily due to GPU cluster deployments, which are now revenue generating and as such, the depreciation and amortization is now captured as a part of cost of revenues. Interest expense, net in the fiscal third quarter 2025 was $8.9 million compared to $4.8 million, up 87%, from the fiscal third quarter 2024. The increase in interest expense, net was primarily driven by an increase in finance leases and interest-bearing loans between periods. Loss on extinguishment of debt in the fiscal third quarter 2025 was $1.2 million due to the extinguishment of the Macquarie Promissory Note that was repaid during the period. There were no such losses recorded in the prior year comparative period. Loss on change in fair value of warrants in the fiscal third quarter 2025 was $6.4 million due to the initial valuation of the STB Warrants issued during the period. There were no such losses recorded in the prior year comparative period. Net loss for common shareholders for the fiscal third quarter 2025 was $36.1 million, or $0.16 per basic and diluted share. This compares to a net loss of $62.8 million, or $0.52 per basic and diluted share. Adjusted net loss, a non-GAAP measure, for the fiscal third quarter 2025, was $17.8 million or adjusted net loss per basic and diluted share of $0.08. This compares to an adjusted net loss, a non-GAAP financial measure, of $28.2 million, or $0.23 per basic and diluted share, for the fiscal third quarter of 2024. Adjusted EBITDA, a non-GAAP financial measure, for the fiscal third quarter 2025 was $10.0 million compared to an Adjusted EBITDA loss of $1.3 million for the fiscal third quarter 2024. Balance Sheet As of February 28, 2025, the Company had $261.2 million in cash, cash equivalents, and restricted cash, along with $689.1 million in debt. Conference Call Applied Digital will host a conference call today, April 14, 2025 , a t 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. Participant Dial-In: 1-800-549-8228 Conference ID: 19309 The conference call will be broadcast live and available for replay for one year here . Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. A phone replay of the call will also be available from 8:00 p.m. Eastern Time on April 14, 2025, through April 21, 2025, at 11:59 p.m. Eastern Time. Replay Dial-In: 1-888-660-6264 Playback Passcode:

paragraph:8: 19309# About Applied Digital Applied Digital Corporation (Nasdaq: APLD) designs, develops, and operates next-generation digital infrastructure across North America to provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Computing ("HPC") and Artificial Intelligence ("AI"). Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and the closing of the transaction described herein. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including our evolving business model, business strategy or estimates or predictions of actions by suppliers, (ii) statements of future economic performance, (iii) statements of assumptions underlying other statements and statements about the Company or its business, and (iv) the Company’s ability to effectively apply the net proceeds from the transactions as described above. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include: our ability to complete construction of the Ellendale HPC data center; our ability to complete the negotiation and execution of the definitive transaction documents required to close the MAM facility; our ability to raise additional capital to fund the ongoing data center construction and operations; our dependence on principal customers, including our ability to execute leases with key customers, including leases for our Ellendale HPC campus; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this Quarterly Report on Form 10-Q have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business. Adjusted Operating Loss, Adjusted Net Loss Attributable to Common Stockholders, and Adjusted Net Loss Attributable to Common Stockholders per Diluted Share “Adjusted Operating Loss” and “Adjusted net loss attributable to common stockholders” are non-GAAP financial measures that represent operating loss and net loss attributable to common stockholders, respectively. Adjusted Operating Loss is Operating loss excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, non-recurring research and development expenses, loss on abandonment of assets, loss/(gain) on classification of held for sale, accelerated depreciation and amortization, loss on legal settlement, as well as other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Adjusted net loss attributable to common stockholders is Adjusted Operating Loss further adjusted for the loss on change in fair value of warrants, loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively and loss on the extinguishment of debt and related party debt, respectively and preferred dividends. We define “Adjusted net loss attributable to common stockholders per diluted share” as Adjusted net loss attributable to common stockholders divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, research and development expenses, loss/(gain) on classification of held for sale, loss on abandonment of assets, loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on change in fair value of warrants, loss on extinguishment of debt and related party debt, respectively, loss on legal settlement and preferred dividends as well as other non-recurring expenses that Management believes are not representative of our expected ongoing costs.

paragraph:9: Investor Relations Contacts

paragraph:10: Matt Glover or Ralf Esper Gateway Group, Inc. (949) 574-3860

paragraph:11: APLD@gateway-grp.com Media Contact

paragraph:12: Buffy Harakidas, EVP JSA (Jaymie Scotto & Associates) (856) 264-7827

paragraph:13: jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) February 28, 2025 May 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 68,743 $ 3,339 Restricted cash Funds for construction 154,139 — Letters of credit 31,342 21,349 Accounts receivable 14,619 3,847 Prepaid expenses and other current assets 5,416 1,343 Current assets held for sale — 384 Total current assets 274,259 30,262 Property and equipment, net 1,002,206 340,381 Operating lease right of use assets, net 153,434 153,611 Finance lease right of use assets, net 235,203 218,683 Other assets 42,245 19,930 TOTAL ASSETS $ 1,707,347 762,867 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 170,517 $ 116,117 Accrued liabilities 19,268 26,282 Current portion of operating lease liability 27,496 21,705 Current portion of finance lease liability 140,135 107,683 Current portion of debt 10,138 10,082 Current portion of debt, at fair value — 35,836 Customer deposits 16,125 13,819 Related party customer deposits — 1,549 Deferred revenue 4,879 37,674 Related party deferred revenue — 1,692 Due to customer 4,807 13,002 Other current liabilities 216 96 Total current liabilities 393,581 385,537 Long-term portion of operating lease liability 104,679 109,740 Long-term portion of finance lease liability 32,232 63,288 Long-term debt 678,988 79,472 Total liabilities 1,209,480 638,037 Commitments and contingencies (Note 10) Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at February 28, 2025, and no shares authorized, issued or outstanding at May 31, 2024 6,932 — Series E-1 preferred stock, $0.001, 62,500 shares authorized, 39,763 shares issued and outstanding at February 28, 2025, and no shares authorized, issued or outstanding at May 31, 2024 36,287 — Stockholders' equity: Common stock, $0.001 par value, 400,000,000 shares authorized, 233,682,359 shares issued and shares outstanding at February 28, 2025, and 144,083,944 shares issued and 139,051,142 shares outstanding at May 31, 2024 230 144 Treasury stock, 9,291,199 shares at February 28, 2025 and 5,032,802 shares at May 31, 2024, at cost (31,400) (62) Additional paid in capital 914,336 374,738 Accumulated deficit (428,518) (249,990) Total stockholders’ equity attributable to Applied Digital Corporation 454,648 124,830 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY $ 1,707,347 762,867 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024 Revenue: Revenue $ 52,921 $ 40,284 $ 175,567 $ 110,993 Related party revenue — 3,064 1,926 10,883 Total revenue 52,921 43,348 177,493 121,876 Costs and expenses: Cost of revenues 49,141 47,061 162,562 102,051 Selling, general and administrative (1) 22,723 30,020 66,852 66,456 Loss/(gain) on classification of held for sale (2) — 21,723 (24,616) 21,723 Loss on abandonment of assets — — 769 — Loss on legal settlement — — — 2,380 Total costs and expenses 71,864 98,804 205,567 192,610 Operating loss (18,943) (55,456) (28,074) (70,734) Interest expense, net (3) 8,897 4,770 23,687 9,522 Loss on conversion of debt — — 33,612 — Loss on change in fair value of debt — — 85,439 — Loss on change in fair value of related party debt — 2,612 — 2,612 Loss on extinguishment of debt 1,177 — 1,177 — Loss on extinguishment of related party debt — — — 2,353 Loss on change in fair value of warrants 6,421 — 6,421 — Net loss before income tax expenses (35,438) (62,838) (178,410) (85,221) Income tax expense 117 — 118 — Net loss (35,555) (62,838) (178,528) (85,221) Net loss attributable to noncontrolling interest — — — (397) Preferred dividends (540) — (1,213) — Net loss attributable to common stockholders $ (36,095) $ (62,838) $ (179,741) $ (84,824) Basic and diluted net loss per share attributable to common stockholders $ (0.16) $ (0.52) $ (0.93) $ (0.77) Basic and diluted weighted average number of shares outstanding 222,454,578 121,426,622 193,405,721 110,500,556 (1) Includes related party selling, general and administrative expense of $0.1 million and $0.1 million for the three months ended February 28, 2025 and February 29, 2024, respectively, and $0.2 million and $0.5 million for the nine months ended February 28, 2025 and February 29, 2024, respectively. (2) Includes $25 million received in connection with the sale of our Garden City facility once conditional approval requirements were met and escrowed funds were released during the nine months ended February 28, 2025. The three and nine months ended February 29, 2024 includes $21.7 million loss on held for sale classification related to the sale of the Garden City facility. (3) There was no related party debt outstanding during the three and nine months ended February 28, 2025 and as such, no interest expense was incurred related to related party debt. For the three and nine months ended February 29, 2024, amounts include related party interest expense of $0.2 million and $0.8 million, respectively. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Nine Months Ended February 28, 2025 February 29, 2024 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (178,528) $ (85,221) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 79,540 47,664 Stock-based compensation 10,233 13,634 Lease expense 23,911 6,708 Loss on extinguishment of debt 1,177 — Loss on extinguishment of related party debt — 2,353 Loss on legal settlement — 2,380 Amortization of debt issuance costs 11,515 498 Loss/(gain) on classification of held for sale (24,616) 21,723 Loss on change in fair value of related party debt — 2,612 Loss on conversion of debt 33,612 — Loss on change in fair value of debt 85,439 — Loss on abandonment of assets 769 — Loss on change in fair value of warrants issued 6,421 — Changes in operating assets and liabilities: Accounts receivable (10,722) (143) Prepaid expenses and other current assets (4,072) (4,115) Customer deposits 2,306 (150) Related party customer deposits (1,549) — Deferred revenue (32,795) 15,953 Related party deferred revenue (1,692) (237) Accounts payable (88,378) 55,463 Accrued liabilities (12,319) 5,811 Due to customer (8,195) — Lease assets and liabilities (13,557) (35,674) Other assets (757) (3,921) CASH FLOW (USED IN) PROVIDED BY OPERATING ACTIVITIES (122,257) 45,338 CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (483,340) (84,437) Proceeds from satisfaction of contingency on sale of assets 25,000 — Finance lease prepayments (4,840) (35,132) Purchases of investments (2,498) (390) CASH FLOW USED IN INVESTING ACTIVITIES (465,678) (119,959) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (93,992) (27,527) Borrowings of long-term debt 650,000 8,422 Borrowings of related party debt — 23,000 Repayments of long-term debt (290,535) (6,764) Repayment of related party debt — (45,500) Payment of deferred financing costs (42,903) — Tax payments for restricted stock upon vesting (2,970) (606) Proceeds from issuance of common stock 191,590 121,237 Common stock issuance costs (10,253) (235) Proceeds from issuance of preferred stock 100,489 — Preferred stock issuance costs (8,914) — Dividends issued on preferred stock (1,213) — Proceeds from issuance of SAFE agreement included in long-term debt 12,000 — Repurchase of shares (31,342) Proceeds from convertible notes 450,000 — Purchase of capped call options (51,750) — Purchase of prepaid forward contract (52,736) — CASH FLOW PROVIDED BY FINANCING ACTIVITIES 817,471 72,027 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 229,536 (2,594) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 31,688 43,574 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 261,224 $ 40,980 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) continued Nine Months Ended February 28, 2025 February 29, 2024 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 54,855 $ 9,121 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Operating right-of-use assets obtained by lease obligation $ 20,280 $ 95,018 Finance right-of-use assets obtained by lease obligation $ 106,754 $ 219,268 Property and equipment in accounts payable and accrued liabilities $ 142,787 $ 41,100 Conversion of debt to common stock $ 104,945 $ — Extinguishment of non-controlling interest $ — $ 9,765 Loss on legal settlement $ — $ 2,300 Conversion of preferred stock to common stock 53,191 — Cashless exercise of warrants 5 — Issuance of warrants, at fair value $ 50,586 $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended Nine Months Ended $ in thousands February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024 Adjusted operating loss Operating loss (GAAP) $ (18,943) $ (55,456) $ (28,074) $ (70,734) Stock-based compensation 9,170 3,071 9,405 13,511 Non-recurring repair expenses (1) 3 — 173 — Diligence, acquisition, disposition and integration expenses (2) 561 3,168 12,228 3,703 Litigation expenses (3) 174 81 1,341 657 Research and development expenses (4) — (65) 36 119 Loss on abandonment of assets — — 769 — Loss/(gain) on classification of held for sale — 21,723 (24,616) 21,723 Accelerated depreciation and amortization (5) — 4,043 45 4,220 Loss on legal settlement — — — 2,380 Other non-recurring expenses (6) 271 (13) 522 245 Adjusted operating loss (Non-GAAP) $ (8,764) $ (23,448) $ (28,171) $ (24,176) Adjusted operating margin (17) % (54) % (16) % (20) % Adjusted net loss attributable to common stockholders Net loss attributable to common stockholders (GAAP) $ (36,095) $ (62,838) $ (179,741) $ (84,824) Stock-based compensation 9,170 3,071 9,405 13,511 Non-recurring repair expenses (1) 3 — 173 — Diligence, acquisition, disposition and integration expenses (2) 561 3,168 12,228 3,703 Litigation expenses (3) 174 81 1,341 657 Research and development expenses (4) — (65) 36 119 Loss on abandonment of assets — — 769 — Loss/(gain) on classification of held for sale — 21,723 (24,616) 21,723 Accelerated depreciation and amortization (5) — 4,043 45 4,220 Loss on legal settlement — — — 2,380 Loss on change in fair value of warrants 6,421 — 6,421 — Loss on conversion of debt (7) — — 33,612 — Loss on change in fair value of debt (8) — — 85,439 — Loss on change in fair value of related party debt — 2,612 — 2,612 Loss on extinguishment of debt 1,177 — 1,177 — Loss on extinguishment of related party debt — — — 2,353 Preferred dividends 540 — 1,213 — Other non-recurring expenses (6) 271 (13) 522 245 Adjusted net loss attributable to common stockholders (Non-GAAP) $ (17,778) $ (28,218) $ (51,976) $ (33,301) Adjusted net loss attributable to common stockholders per diluted share (Non-GAAP) $ (0.08) $ (0.23) $ (0.27) $ (0.30) APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) continued (In thousands, except percentage data) EBITDA and Adjusted EBITDA Net loss attributable to common stockholders (GAAP) $ (36,095) $ (62,838) $ (179,741) $ (84,824) Interest expense, net 8,897 4,770 23,687 9,522 Income tax expense 117 — 118 — Depreciation and amortization (5) 18,779 26,204 79,585 47,664 EBITDA (Non-GAAP) $ (8,302) $ (31,864) $ (76,351) $ (27,638) Stock-based compensation 9,170 3,071 9,405 13,511 Non-recurring repair expenses (1) 3 — 173 — Diligence, acquisition, disposition and integration expenses (2) 561 3,168 12,228 3,703 Litigation expenses (3) 174 81 1,341 657 Research and development expenses (4) — (65) 36 119 Loss/(gain) on classification of held for sale — 21,723 (24,616) 21,723 Loss on abandonment of assets — — 769 — Loss on conversion of debt (7) — — 33,612 — Loss on change in fair value of debt (8) — — 85,439 — Loss on change in fair value of related party debt — 2,612 — 2,612 Loss on change in fair value of warrants 6,421 — 6,421 — Loss on extinguishment of debt 1,177 — 1,177 — Loss on extinguishment of related party debt — — — 2,353 Loss on legal settlement — — — 2,380 Preferred dividends 540 — 1,213 — Other non-recurring expenses (6) 271 (13) 522 245 Adjusted EBITDA (Non-GAAP) $ 10,015 $ (1,287) $ 51,369 $ 19,665 (1) Represents costs incurred in the repair and replacement of equipment at our Ellendale data center hosting facility as a result of the previously disclosed power outage. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. (4) Represents specific non-recurring research and development activities related to our business expansion that we do not expect to incur on a regular basis. (5) Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. (6) Represents expenses that are not representative of our expected ongoing costs. (7) Represents loss on conversion of debt due to the difference in fair value to the price at which the YA Notes were converted. (8) Represents loss on change in fair value of debt due to the adjustments to the fair value of the 2.75% Senior Unsecured Convertible Notes, as well as adjustments to the fair value of the YA Notes.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq225earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal Second Quarter 2025 Results DALLAS, TX – January 14, 2025 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications, cloud services (“Cloud Services”), and data center hosting (“Data Center Hosting”), reported financial results for the fiscal second quarter ended November 30, 2024. The Company also provided an operational update. Fiscal Second Quarter 2025 Financial Highlights • Revenues: $63.9 million, up 51% from the prior year period • Net loss: $138.7 million, which was negatively impacted by $87.2 million from the loss on change in fair value of debt, $25.4 million from the loss on conversion of debt, $9.5 million from diligence, acquisition, disposition, integration expenses, and litigation expenses and $3.5 million in stock compensation • Net loss per basic and diluted share: $0.66 • Adjusted net loss: $12.6 million • Adjusted EBITDA: $21.4 million up 93% from the prior year period • Adjusted net loss per diluted share: $0.06 Adjusted EBITDA, Adjusted Operating Loss, Adjusted Net Loss, and Adjusted Net Loss per Diluted Share are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Re cent Operational Highlights

paragraph:7: • Applied Digital Corporation entered today into a $5.0 billion perpetual preferred equity financing facility, with investment vehicles of funds managed by Macquarie Asset Management (“MAM”), for its HPC business conducted through APLD HPC Holdings LLC (“APLDH”), a subsidiary of Applied Digital. ◦ Funds managed by MAM to invest up to $900 million in the Company’s Ellendale HPC data center campus (the “Ellendale HPC Campus”). ◦ Agreement to provide MAM a right to invest up to an additional $4.1 billion across Applied Digital’s future HPC data center pipeline. ◦ The MAM investment, in conjunction with future project financing, to be used to repay project-level debt and allow the Company to recover over an estimated $300 million of its equity investment in the Ellendale HPC Campus. ◦ MAM’s investment will take the form of a perpetual preferred and 15% common equity interest of Applied Digital’s HPC business segment, providing Applied Digital an 85% ownership stake in both existing and future HPC assets (minimizing dilution to Applied Digital’s public stockholders). ◦ Transformative agreement positions the Company to firmly establish itself as a top-tier HPC data center designer, builder and operator in the United States with its purpose-built and proprietary design to run advanced AI workloads for both training and inference. • Successfully energized the on-site main substation transformer at the purpose-built HPC data center in Ellendale, ND, marking a significant milestone in its development and advancing support for cutting-edge AI and high-performance computing. • Won the DCD Community Impact Award for their Ellendale Community and Economic Development Initiative. Applied Digital is addressing housing shortages through the R-WISH program and supporting workforce growth in Ellendale, ND. Finalists in this category included Google Data Centers Community Development & Social Impact (CDSI) Initiatives (USA), NTT DATA Maharashtra Water Resilience for Communities and Agriculture (India), and Telehouse Europe South Campus Development and Circular Economy Initiative in collaboration with Black & White Engineering and Skanska (London). • APLD ELN-02 Holdings LLC, a subsidiary of Applied Digital, closed a $150 million senior secured debt financing with Macquarie Equipment Capital, Inc., a division of Macquarie Groups Commodities and Global Markets’ business. APLD ELN-02 Holdings LLC issued a Promissory Note for the full $150 million in gross proceeds on November 27, 2024, and simultaneously repaid APLD Holdings 2 LLC's obligations under the Senior Secured Credit Facility with CIM Group, removing encumbrances on assets outside of APLD ELN-02 Holdings LLC, as well as the parent guarantee. • Completed a $450 million offering of 2.75% Convertible Senior Notes due 2030, including $75 million from an option exercised by initial purchasers. Net proceeds were approximately $435.2 million, with $84 million allocated for share repurchases and the remainder for general corporate purposes. Management Commentary "We remain in late stage negotiations for our Ellendale campus," said Applied Digital Chairman and CEO Wes Cummins. "Over the past year, we've gained valuable insights into the thorough and deliberate approach hyperscalers take. While their timelines may extend longer than initially expected, we remain steadfast in our commitment to delivering our 400 MW data center campus on time and within budget." "The rapid expansion of hyperscale data centers, driven by the growing demand for AI capabilities, is presenting significant challenges to electricity availability in the U.S. According to a recent Morgan Stanley report, there could be a shortfall of approximately 36 GW in power availability for U.S. data centers by 2028. To put this into perspective, that’s equivalent to the output of around 36 nuclear power plants. Addressing this issue is not straightforward, as adding new capacity requires lengthy planning, regulatory approvals, and the development of new generation and transmission infrastructure, processes that can span years or even decades. Based on these dynamics, we believe that much of the U.S.’s currently available excess power could be under contract within the next few years." "Applied Digital was one of the first companies to recognize this growing demand for power and data centers. Anticipating these needs, we began construction of our facilities ahead of many hyperscalers fully grasping the shifting demand landscape. As a result, we believe we are well-positioned to capitalize on these trends. Our strategy has been further validated over the past year by securing strategic investments from CIM Group, NVIDIA, and now Macquarie Asset Management, a division of one of the world’s largest infrastructure investors. We believe these investments not only validate our vision and approach but also lower our cost of capital and accelerate the development of our pipeline, transforming it into highly valuable assets for our shareholders." "Our vision is to establish a platform for building and operating multiple HPC data centers. This journey began with our Ellendale campus and continues with the development of additional campuses. We are proud of the significant progress achieved this quarter and look forward to sharing further updates as the year unfolds." Cloud Services Update Applied Digital’s Cloud Services Business provides high-performance computing power for artificial intelligence and machine learning applications. During the three months ended November 30, 2024, the Company generated $27.7 million in revenues from the Cloud Services Business segment, representing an increase of 523% compared to $4.5 million during the three months ended November 30, 2023. HPC Data Center Hosting Update Applied Digital’s HPC Data Center Hosting Business designs, builds, and operates next-generation data centers designed to provide massive computing power and support high-performance computing applications within a cost-effective model. During the prior fiscal year, the Company broke ground on its first 100 MW HPC facility in Ellendale, North Dakota. The new 369,000+ square-foot building will provide ultra-low-cost and highly efficient liquid-cooled infrastructure for HPC applications. Applied Digital is in late-stage discussions with multiple hyperscalers to finalize a lease agreement for its 100 MW facility, which is currently under construction. Additionally, we plan to bring an extra 300 MW online through two additional buildings currently in the design stage. This will ultimately increase Ellendale's total HPC capacity to 400 MW. Data Center Hosting Update Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of November 30, 2024, the Company’s 106 MW facility in Jamestown, N.D., and 180 MW facility in Ellendale, N.D., are operating at full capacity. During the three months ended November 30, 2024, the Company generated $36.2 million in revenue from the Data Center Hosting Business segment. Financial Results for Fiscal Second Quarter 2025 Operating Results Total revenues in the fiscal second quarter 2025 were $63.9 million, up 51% from the fiscal second quarter 2024. The growth was primarily driven by the continued expansion of the Company’s Cloud Services business during the latter period, fueled by the deployment of additional GPU clusters. Cost of revenues in the fiscal second quarter 2025 was $52.4 million compared to $29.8 million in the fiscal second quarter 2024. The increase in cost of revenues was primarily driven by the growth in the business as more facilities were energized and additional services were provided to customers compared to the same year-ago quarter. Selling, general and administrative expenses in the fiscal second quarter 2025 were $29.8 million compared to $20.3 million in the fiscal second quarter of 2024. Interest expense, net in the fiscal second quarter of 2025 increased $4.9 million, or 186%, from $2.6 million for the three months ended November 30, 2023 to $7.5 million for the three months ended November 30, 2024. The increase in interest expense, net was primarily driven by an increase in finance leases and interest-bearing loans between periods. Loss on conversion of debt was $25.4 million for the three months ended November 30, 2024 due to the difference in fair value to the price at which the Yorkville Promissory Notes (the "YA Notes") were converted. There was no such activity recorded in the prior year comparative period. Loss on change in fair value of debt was $87.2 million for the three months ended November 30, 2024 due to the adjustments to the fair value of the 2.75% Convertible Senior Notes during the 2 week period in which the conversion option was recorded as a derivative, prior to the Company receiving shareholder approval on November 20, 2024 to increase authorized share count. The loss on change in fair value of debt was also driven by adjustments to the fair value of the YA Notes. There was no such activity recorded in the prior year comparative period. Net loss for the fiscal second quarter 2025 was $139.4 million, or $0.66 per basic and diluted share, based on a weighted average share count during the quarter of 209.6 million shares. This compares to a net loss of $10.5 million, or $0.10 per basic and diluted share, based on a weighted average share count of 109.7 million shares for the fiscal second quarter 2024. Adjusted net loss, a non-GAAP measure, for the fiscal second quarter of 2025, was $12.6 million or adjusted net loss per basic and diluted share of $0.06, based on a weighted average share count during the quarter of approximately 209.6 million shares. This compares to an adjusted net loss, a non-GAAP financial measure, of $5.0 million, or $0.05 per basic and diluted share, for the fiscal second quarter of 2024 based on a weighted average share count during the quarter of approximately 109.7 million shares. Adjusted EBITDA, a non-GAAP financial measure, for the fiscal second quarter 2025 was $21.4 million compared to an Adjusted EBITDA of $11.1 million for the fiscal second quarter 2024. Balance Sheet As of November 30, 2024, the Company had $314.6 million in cash, cash equivalents, and restricted cash, along with $479.6 million in debt. Conference Call Applied Digital will host a conference call today, January 14, 2025 , a t 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. U.S. dial-in number: 1-877-407-0792 International number: 1-201-689-8263 Conference ID: 13750721 The conference call will be broadcast live and will be available for replay here. Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860. A replay of the call will be available from 8:00 p.m. Eastern Time through Tuesday, January 28, 2025, at 11:59 p.m. Eastern Time. Replay Dial-In: 1-844-512-2921 or 1-412-317-6671 Access ID: 13750721 About Applied Digital Applied Digital Corporation (Nasdaq: APLD) designs, develops, and operates next-generation digital infrastructure across North America to provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Computing ("HPC") and Artificial Intelligence ("AI"). Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and the closing of the transaction described herein. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (ii) statements of future economic performance, (iii) statements of assumptions underlying other statements and statements about the Company or its business, and (iv) the Company’s ability to effectively apply the net proceeds from the transaction as described above. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include: our ability to complete construction of the Ellendale HPC data center; our ability to complete the negotiation and execution of the definitive transaction documents required to close the MAM facility; our ability to raise additional capital to fund the ongoing data center construction and operations; our dependence on principal customers, including our ability to execute leases with key customers, including leases for our Ellendale HPC campus; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this Quarterly Report on Form 10-Q have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business. Change in Presentation Beginning in the third quarter of 2024, we updated our presentation of non-GAAP measures. As a result of this updated presentation, we no longer exclude start-up costs as an adjustment to Operating loss, Net loss attributable to Applied Digital Corporation, or EBITDA in our calculation of Adjusted operating loss, Adjusted net loss attributable to Applied Digital Corporation, Adjusted net loss attributable to Applied Digital Corporation per diluted share, and Adjusted EBITDA. EBITDA, Adjusted EBITDA, Adjusted operating loss, Adjusted net loss attributable to Applied Digital Corporation, and Adjusted net loss attributable to Applied Digital Corporation per diluted share are non-GAAP measures and are defined below. Adjusted Operating Loss, Adjusted net loss attributable to Applied Digital Corporation, and Adjusted net loss attributable to Applied Digital Corporation per diluted share “Adjusted Operating Loss” and “Adjusted net loss attributable to Applied Digital Corporation” are non-GAAP financial measures that represent operating loss and net loss attributable to Applied Digital Corporation, respectively. Adjusted Operating Loss is Operating loss excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, non-recurring research and development expenses, loss on abandonment of assets, loss/(gain) on classification of held for sale, accelerated depreciation and amortization, loss on legal settlement, as well as other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Adjusted net loss attributable to Applied Digital Corporation is Adjusted Operating Loss further adjusted for the loss on conversion of debt, loss on change in fair value of debt and loss on the extinguishment of debt. We define “Adjusted net loss attributable to Applied Digital Corporation per diluted share” as Adjusted net loss attributable to Applied Digital Corporation divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest, taxes, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, research and development expenses, loss/(gain) on classification of held for sale, loss on abandonment of assets, loss on conversion of debt, loss on change in the fair value of debt, loss on extinguishment of debt, and legal settlement as well as other non-recurring expenses that Management believes are not representative of our expected ongoing costs.

paragraph:8: Investor Relations Contacts

paragraph:9: Matt Glover or Ralf Esper Gateway Group, Inc. (949) 574-3860

paragraph:10: APLD@gateway-grp.com Media Contact

paragraph:11: Buffy Harakidas, EVP JSA (Jaymie Scotto & Associates) (856) 264-7827

paragraph:12: jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) November 30, 2024 May 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 286,237 $ 3,339 Restricted cash 21,342 21,349 Accounts receivable 12,313 3,847 Prepaid expenses and other current assets 8,496 1,343 Current assets held for sale — 384 Total current assets 328,388 30,262 Property and equipment, net 772,664 340,381 Operating lease right of use assets, net 140,583 153,611 Finance lease right of use assets, net 261,452 218,683 Other assets 40,082 19,930 TOTAL ASSETS $ 1,543,169 762,867 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 192,017 $ 116,117 Accrued liabilities 31,625 26,282 Current portion of operating lease liability 23,096 21,705 Current portion of finance lease liability 136,511 107,683 Current portion of debt 6,543 10,082 Current portion of debt, at fair value 4,798 35,836 Customer deposits 16,125 13,819 Related party customer deposits — 1,549 Deferred revenue 6,187 37,674 Related party deferred revenue — 1,692 Due to customer 7,355 13,002 Other current liabilities 96 96 Total current liabilities 424,353 385,537 Long-term portion of operating lease liability 97,821 109,740 Long-term portion of finance lease liability 62,397 63,288 Long-term debt 468,244 79,472 Total liabilities 1,052,815 638,037 Commitments and contingencies (Note 11) Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at November 30, 2024, and no shares authorized, issued or outstanding at May 31, 2024 6,932 — Series F preferred stock, $0.001 par value, 53,191 shares authorized and issued, 43,000 outstanding at November 30, 2024, and no shares authorized, issued or outstanding at May 31, 2024 43,000 — Series E-1 preferred stock, $0.001, 62,500 shares authorized, 6,359 shares issued and outstanding at November 30, 2024, and no shares authorized, issued or outstanding at May 31, 2024 5,850 — Stockholders' equity: Common stock, $0.001 par value, 400,000,000 shares authorized, 225,846,268 shares issued and 215,099,212 shares outstanding at November 30, 2024, and 144,083,944 shares issued and 139,051,142 shares outstanding at May 31, 2024 222 144 Treasury stock, 9,291,199 shares at November 30, 2024 and 5,032,802 shares at May 31, 2024, at cost (31,400) (62) Additional paid in capital 858,713 374,738 Accumulated deficit (392,963) (249,990) Total stockholders’ equity attributable to Applied Digital Corporation 434,572 124,830 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY $ 1,543,169 762,867 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023 Revenue: Revenue $ 63,868 $ 38,569 $ 122,646 $ 70,708 Related party revenue — 3,634 1,926 7,819 Total revenue 63,868 42,203 124,572 78,527 Costs and expenses: Cost of revenues 52,361 29,769 113,421 54,990 Selling, general and administrative (1) 29,789 20,266 44,129 36,437 Loss/(gain) on classification of held for sale (2) 192 — (24,616) — Loss on abandonment of assets 141 — 769 — Loss from legal settlement — 80 — 2,380 Total costs and expenses 82,483 50,115 133,703 93,807 Operating loss (18,615) (7,912) (9,131) (15,280) Interest expense, net (3) 7,482 2,617 14,790 4,750 Loss on conversion of debt 25,410 — 33,612 — Loss on change in fair value of debt 87,218 — 85,439 — Loss on change in fair value of related party debt — — — — Loss on extinguishment of related party debt — — — 2,353 Net loss before income tax expenses (138,725) (10,529) (142,972) (22,383) Income tax expense (benefit) 1 — 1 — Net loss (138,726) (10,529) (142,973) (22,383) Net loss attributable to noncontrolling interest — — — (397) Preferred dividends (629) — (673) — Net loss attributable to Common Stockholders $ (139,355) $ (10,529) $ (143,646) $ (21,986) Basic and diluted net loss per share attributable to common stockholders $ (0.66) $ (0.10) $ (0.80) $ (0.21) Basic and diluted weighted average number of shares outstanding 209,560,339 109,663,030 179,119,398 105,067,375 (1) Includes related party selling, general and administrative expense of $0.1 million and $0.2 million for the three months ended November 30, 2024 and November 30, 2023, respectively, and $0.1 million and $0.2 million for the six months ended November 30, 2024 and November 30, 2023, respectively. (2) Includes $25 million received in connection with the sale of our Garden City facility. (3) Includes related party interest expense of $0.7 million for the three and six months ended November 30, 2023. There was no related party debt outstanding during the three and six months ended November 30, 2024 and as such, no interest expense was incurred related to related party debt. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended November 30, 2024 November 30, 2023 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (142,973) $ (22,383) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 60,761 21,284 Stock-based compensation 542 10,440 Lease expense 15,380 2,294 Loss on extinguishment of debt — 2,353 Loss on legal settlement — 2,380 Amortization of debt issuance costs 2,424 352 Gain on classification of held for sale (24,616) — Loss on conversion of debt 33,612 — Loss on change in fair value of debt 85,439 — Loss on abandonment of assets 769 189 Changes in operating assets and liabilities: Accounts receivable (8,466) (225) Prepaid expenses and other current assets (7,153) 496 Customer deposits 2,306 4,274 Related party customer deposits (1,549) — Deferred revenue (31,487) 2,883 Related party deferred revenue (1,692) 429 Accounts payable (82,849) 6,440 Accrued liabilities (2,515) (1,914) Due to customer (5,647) — Lease assets and liabilities (19,382) (19,198) Other assets (1,058) (1,040) CASH FLOW (USED IN) PROVIDED BY OPERATING ACTIVITIES (128,154) 9,054 CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (225,847) (45,828) Proceeds from satisfaction of contingency on sale of assets 25,000 — Finance lease prepayments (5,270) (19,388) Purchases of investments (1,422) (390) CASH FLOW USED IN INVESTING ACTIVITIES (207,539) (65,606) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (62,170) (13,071) Borrowings of long-term debt 275,000 4,732 Borrowings of related party debt — 8,000 Repayments of long-term debt (133,314) (4,472) Repayment of related party debt — (45,500) Payment of deferred financing costs (28,927) — Proceeds from issuance of common stock 191,590 98,156 Common stock issuance costs (10,233) (234) Proceeds from issuance of preferred stock 67,085 — Preferred stock issuance costs (5,947) — Dividends issued on preferred stock (672) — Proceeds from issuance of SAFE agreement included in long-term debt 12,000 — Repurchase of shares (31,342) Proceeds from convertible notes 450,000 — Purchase of capped call options (51,750) — Purchase of prepaid forward contract (52,736) — CASH FLOW PROVIDED BY FINANCING ACTIVITIES 618,584 47,611 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 282,891 (8,941) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 31,688 43,574 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 314,579 $ 34,633 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) continued Six Months Ended November 30, 2024 November 30, 2023 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 33,144 $ 4,370 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Operating right-of-use assets obtained by lease obligation $ — $ 69,329 Finance right-of-use assets obtained by lease obligation $ 97,489 $ 96,946 Property and equipment in accounts payable and accrued liabilities $ 165,721 $ 23,572 Conversion of debt to common stock $ 104,945 $ — Extinguishment of non-controlling interest $ — $ 9,765 Loss from legal settlement $ — $ 2,300 Conversion of preferred stock to common stock 10,191 — Cashless exercise of warrants 4 — Issuance of warrants, at fair value $ 44,115 $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended Six Months Ended $ in thousands November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023 Adjusted operating loss Operating loss (GAAP) $ (18,615) $ (7,912) $ (9,131) $ (15,280) Stock-based compensation 3,308 4,799 236 10,440 Non-recurring repair expenses (1) 139 — 170 — Diligence, acquisition, disposition and integration expenses (2) 8,780 525 11,667 535 Litigation expenses (3) 759 195 1,167 576 Research and development expenses (4) — — 36 184 Loss/(gain) on classification of held for sale 192 — (24,616) — Loss on abandonment of assets 142 — 769 — Accelerated depreciation and amortization (5) — 24 45 177 Loss on legal settlement — 80 — 2,380 Other non-recurring expenses (6) 213 (49) 251 258 Adjusted operating loss (Non-GAAP) $ (5,082) $ (2,338) $ (19,406) $ (730) Adjusted operating margin (8) % (6) % (16) % (1) % Adjusted net loss attributable to Applied Digital Corporation Net loss attributable to Applied Digital Corporation (GAAP) $ (138,726) $ (10,529) $ (142,973) $ (21,986) Stock-based compensation 3,308 4,799 236 10,440 Non-recurring repair expenses (1) 139 — 170 — Diligence, acquisition, disposition and integration expenses (2) 8,780 525 11,667 535 Litigation expenses (3) 759 195 1,167 576 Research and development expenses (4) — — 36 184 Loss/(gain) on classification of held for sale 192 — (24,616) — Accelerated depreciation and amortization (5) — 24 45 177 Loss on abandonment of assets 142 — 769 — Loss on conversion of debt (7) 25,410 — 33,612 — Loss on change in fair value of debt (8) 87,218 — 85,439 — Loss on extinguishment of debt — — — 2,353 Loss on legal settlement — 80 — 2,380 Other non-recurring expenses (6) 213 (49) 251 258 Adjusted net loss attributable to Applied Digital Corporation (Non-GAAP) $ (12,565) $ (4,955) $ (34,197) $ (5,083) Adjusted net loss attributable to Applied Digital Corporation per diluted share (Non-GAAP) $ (0.06) $ (0.05) $ (0.19) $ (0.05) APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) continued (In thousands, except percentage data) Three Months Ended Six Months Ended $ in thousands November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023 EBITDA and Adjusted EBITDA Net loss attributable to Applied Digital Corporation (GAAP) $ (138,726) $ (10,529) $ (142,973) $ (21,986) Interest expense, net 7,482 2,617 14,790 4,750 Income tax expense (benefit) 1 — 1 — Depreciation and amortization (5) 26,445 13,448 60,806 21,460 EBITDA (Non-GAAP) (104,798) 5,536 (67,376) 4,224 Stock-based compensation 3,308 4,799 236 10,440 Non-recurring repair expenses (1) 139 — 170 — Diligence, acquisition, disposition and integration expenses (2) 8,780 525 11,667 535 Litigation expenses (3) 759 195 1,167 576 Research and development expenses (4) — — 36 184 Loss/(gain) on classification of held for sale 192 — (24,616) — Loss on abandonment of assets 142 — 769 — Loss on conversion of debt (7) 25,410 — 33,612 — Loss on change in fair value of debt (8) 87,218 — 85,439 — Loss on extinguishment of debt — — — 2,353 Loss on legal settlement — 80 — 2,380 Other non-recurring expenses (6) 213 (49) 251 258 Adjusted EBITDA (Non-GAAP) $ 21,363 $ 11,086 $ 41,355 $ 20,950 (1) Represents costs incurred in the repair and replacement of equipment at the Company's Ellendale data center hosting facility as a result of the previously disclosed power outage. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with the Company’s defense of class action lawsuits and legal fees related to matters with certain former employees. The Company does not expect to incur these expenses on a regular basis. (4) Represents specific non-recurring research and development activities related to the Company’s business expansion that the Company does not expect to incur on a regular basis. (5) Represents the acceleration of expense related to assets that were abandoned by the Company due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within the Company’s calculation of EBITDA, and therefore is not added back as a management adjustment in the Company’s calculation of Adjusted EBITDA. (6) Represents expenses that are not representative of the Company’s expected ongoing costs. (7) Represents loss on conversion of debt due to the difference in fair value to the price at which the YA Notes were converted. (8) Represents loss on change in fair value of debt due to the adjustments to the fair value of the 2.75% Convertible Senior Notes, as well as adjustments to the fair value of the YA Notes.

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: apldq125earningsrelease.htm

paragraph:4: EX-99.1

paragraph:5: Document Applied Digital Reports Fiscal First Quarter 2025 Results DALLAS, TX – October 9, 2024 -- Applied Digital Corporation (Nasdaq: APLD)

paragraph:6: ("Applied Digital" or the "Company") , a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications, cloud services (“Cloud Services”), and data center hosting (“Data Center Hosting”), reported financial results for the fiscal first quarter ended August 31, 2024. The Company also provided an operational update. Fiscal First Quarter 2025 Financial Highlights • Revenues of $60.7 million, up 67% from the prior year period • Net loss of $4.2 million • Net loss per basic and diluted share of $0.03 • Adjusted net loss of $21.6 million, which was negatively impacted by $4.4 million of expenses associated with facilities and equipment that were not yet generating revenue • Adjusted EBITDA of $20.0 million • Adjusted net loss per diluted share of $0.15 Adjusted EBITDA, Adjusted Operating Loss, Adjusted Net Loss, and Adjusted Net Loss per Diluted Share are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “ Reconciliation of GAAP to Non-GAAP Measures. ” Recent Operational Highlights

paragraph:7: 1. The Company announced on September 5, 2024 that it has entered into definitive agreements for a $160 million private placement financing priced at market, from a group of institutional and accredited investors, NVIDIA and Related Companies, the most prominent privately-owned real estate company and leader in complex infrastructure and data center development. This strategic financing underscores Applied Digital's position as a trusted pioneer in the accelerated compute space. The transaction closed on September 9, 2024. 2. The Company added two additional clusters to our Cloud Services Business, increasing the total to six clusters, each containing 1,024 GPUs. Management Commentary Wes Cummins, Chairman and CEO of Applied Digital commented: “After the close of the quarter, our balance sheet significantly improved due to strategic investments from a group of institutional and accredited investors, NVIDIA, and Related Companies. We sincerely appreciate the vote of confidence from our investors and look forward to deploying this capital into high-return projects in the digital infrastructure sector. We have made significant strides in our key growth initiatives. We are finalizing a lease agreement with a U.S.-based hyperscaler for our 100 MW facility currently under construction. This state-of-the-art, 369,000+ square-foot facility is specifically designed for HPC applications, including artificial intelligence. Furthermore, we are in the design phase for two additional buildings at this location, which will increase the total capacity to 400 MW. Our vision is to become a platform capable of building and operating multiple HPC data centers. This starts with our Ellendale campus and continues with three additional campuses we are actively marketing totaling 1.4 GW. To support this vision, we have added several industry veterans to our team and are already working on the design of our next two buildings, which will provide an additional 300 MW of capacity at our Ellendale HPC Campus. We are incredibly proud of the progress made this quarter and look forward to providing further updates as the year progresses. Lastly, we are delighted to announce some executive changes to better position the Company for managing its rapidly expanding growth. David Rench will assume the role of Chief Administrative Officer and Saidal Mohmand will assume the role of Chief Financial Officer, with these changes to be effective Monday, October 14th." Cloud Services Update Applied Digital’s Cloud Services Business provides high-performance computing power for artificial intelligence and machine learning applications. During the three months ended August 31, 2024, we brought two clusters online contributing to the Company recognizing $25.9 million in revenues from the Cloud Services Business segment. HPC Data Center Hosting Update Applied Digital’s HPC Data Center Hosting Business designs, builds, and operates next-generation data centers, which are designed to provide massive computing power and support high-performance computing applications within a cost-effective model. During the prior fiscal year, the Company broke ground on its first 100 MW HPC facility in Ellendale, North Dakota. The new 369,000+ square-foot building will provide ultra-low-cost and highly efficient liquid-cooled infrastructure for HPC applications. We are finalizing a lease agreement with a U.S.-based hyperscaler for our 100 MW facility currently under construction. Beyond this, we plan to bring an additional 300 MW online through two additional buildings, which are in the design stage, ultimately increasing Ellendale's total HPC capacity to 400 MW. We are also in advanced negotiations with traditional financing institutions to secure funding for these projects. Data Center Hosting Update Our Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of August 31, 2024, our 106 MW facility in Jamestown, North Dakota and our 180 MW facility in Ellendale, North Dakota are operating at full capacity. The sale of our Garden City, Texas hosting facility to Marathon was finalized in April 2024. On July 30, 2024 the conditional approval requirements related to the release of the escrowed funds from the sale were met, resulting in the release of the escrow funds to the Company totaling $25 million, which are included in gain on classification of held for sale on our unaudited condensed consolidated statements of operations. Financial Results for Fiscal First Quarter 2025 Operating Results Total revenues in the fiscal first quarter 2025 were $60.7 million, up 67% from the fiscal first quarter 2024. The increase in revenues was primarily driven by the Company recognizing revenue from its Cloud Services business segment due to the launch of the service at the end of the previous fiscal year. Cost of revenues in the fiscal first quarter 2025 was $61.1 million compared to $25.2 million in the fiscal first quarter 2024. The increase was primarily driven by increases in depreciation and amortization expense and lease and related expenses, primarily driven by the growth in the business, as more facilities were energized compared to the fiscal first quarter of 2024. The increase in the cost of revenues was also attributable to higher personnel costs. Selling, general and administrative expenses in the fiscal first quarter 2025 were $14.3 million compared to $16.2 million in the fiscal first quarter of 2024. Net loss for the fiscal first quarter 2025 was $4.3 million, or $0.03 per basic and diluted share, based on a weighted average share count during the quarter of 149.0 million shares. This compares to a net loss of $11.5 million, or $0.11 per basic and diluted share, based on a weighted average share count of 100.5 million shares for the fiscal first quarter 2024. Adjusted net loss, a non-GAAP measure, for the fiscal first quarter of 2025, was $21.6 million or adjusted net loss per basic and diluted share of $0.15, based on a weighted average share count during the quarter of approximately 149.0 million shares. This compares to an adjusted net loss, a non-GAAP financial measure, of $0.1 million, or $0.00 per basic and diluted share, for the fiscal first quarter of 2024 based on a weighted average share count during the quarter of approximately 100.5 million shares. Adjusted net loss was negatively impacted by $4.4 million of expenses associated with facilities and equipment that were not yet generating revenue. Adjusted EBITDA, a non-GAAP financial measure, for the fiscal first quarter 2025 was $20.0 million compared to an Adjusted EBITDA of $9.9 million for the fiscal first quarter 2024. Despite the overall growth in this measure, Adjusted EBITDA was negatively impacted by $4.1 million of expenses associated with facilities that were not yet generating revenue. Balance Sheet We ended the fiscal first quarter 2025 with $86.6 million in cash, cash equivalents, and restricted cash, compared to $31.7 million as of the end of fiscal 2024, along with $143.6 million in debt, compared to $125.4 million as of the end of fiscal 2024. Conference Call Applied Digital will host a conference call today, October 9, 2024 , at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation. U.S. dial-in number: 1-877-407-0792 International number: 1-201-689-8263 Conference ID: 13749090 The conference call will be broadcast live and will be available for replay here. Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please contact Applied Digital’s investor relations team at 1-949-574-3860. A replay of the call will be available after 8:00 p.m. Eastern Time on October 9, 2024 through October 23, 2024. Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Conference ID: 13749090 Applied Digital Corporation (Nasdaq: APLD) designs, develops, and operates next-generation digital infrastructure across North America to provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Computing ("HPC") and Artificial Intelligence ("AI"). Find more information at www.applieddigital.com . Follow us on X (formerly Twitter) at @APLDdigital. Forward-Looking Statements This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as "continue," "build," "future," "increase," "drive," "believe," "look," "ahead," "confident," "deliver," "outlook," "expect," and "predict." Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (ii) statements of future economic performance, and (iii) statements of assumptions underlying other statements and statements about the Company or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. These risks, uncertainties, and other factors include: decline in demand for our products and services; the volatility of the crypto asset industry; the inability to comply with developments and changes in regulation; cash flow and access to capital; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law. Use and Reconciliation of Non-GAAP Financial Measures To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations . These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this Quarterly Report on Form 10-Q have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business. Change in Presentation Beginning in the third quarter of 2024, the Company updated its presentation of non-GAAP measures. As a result of this updated presentation, the Company no longer excludes start-up costs as an adjustment to Operating loss, Net loss, or EBITDA in our calculation of Adjusted operating loss, Adjusted net loss attributable to Applied Digital Corporation, Adjusted net loss attributable to Applied Digital Corporation per diluted share, and Adjusted EBITDA. EBITDA, Adjusted EBITDA, Adjusted net loss attributable to Applied Digital Corporation, and Adjusted net loss attributable to Applied Digital Corporation per diluted share are non-GAAP measures and are defined below. Adjusted Operating Loss, Adjusted Net Loss, and Adjusted Net Loss per Diluted Share “Adjusted Operating Loss” and “Adjusted Net Loss” are non-GAAP financial measures that represent operating loss and net loss, respectively, excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, non-recurring research and development expenses, gain on classification of held for sale, accelerated depreciation and amortization, loss on legal settlement, as well as other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Adjusted Net Loss is Adjusted Operating Loss further adjusted for the losses associated with the abandonment of assets, changes in fair value of debt and loss on extinguishment of debt. We define “Adjusted Net Loss per Diluted Share” as Adjusted Net Loss divided by weighted average diluted share count. EBITDA and Adjusted EBITDA “EBITDA” is defined as earnings before interest, taxes, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, non-recurring research and development expenses, (gain)/loss on classification of held for sale, the losses associated with the abandonment of assets, changes in fair value of debt, debt extinguishment, as well as the loss on legal settlement and other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Investor Relations Contacts

paragraph:8: Matt Glover or Ralf Esper Gateway Group, Inc. (949) 574-3860

paragraph:9: APLD@gateway-grp.com Media Contact

paragraph:10: Buffy Harakidas, EVP JSA (Jaymie Scotto & Associates) (856) 264-7827

paragraph:11: jsa_applied@jsa.net APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) August 31, 2024 May 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 58,215 $ 3,339 Restricted cash 21,342 21,349 Accounts receivable 2,298 3,847 Prepaid expenses and other current assets 2,063 1,343 Current assets held for sale 192 384 Total current assets 84,110 30,262 Property and equipment, net 478,249 340,381 Operating lease right of use assets, net 147,148 153,611 Finance lease right of use assets, net 200,649 218,683 Other assets 27,576 19,930 TOTAL ASSETS $ 937,732 762,867 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 140,264 $ 116,117 Accrued liabilities 26,723 26,282 Current portion of operating lease liability 22,393 21,705 Current portion of finance lease liability 112,079 107,683 Current portion of debt 6,892 10,082 Current portion of debt, at fair value 30,464 35,836 Customer deposits 13,676 13,819 Related party customer deposits — 1,549 Deferred revenue 16,867 37,674 Related party deferred revenue — 1,692 Due to customer 17,211 13,002 Other current liabilities 96 96 Total current liabilities 386,665 385,537 Long-term portion of operating lease liability 103,871 109,740 Long-term portion of finance lease liability 43,841 63,288 Long-term debt 106,227 79,472 Total liabilities 640,604 638,037 Commitments and contingencies (Note 11) Temporary equity Series E preferred stock, $0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at August 31, 2024, and no shares authorized, issued or outstanding at May 31, 2024 6,932 — Series F preferred stock, 0.001 par value, 53,191 shares authorized, issued and outstanding at August 31, 2024, and no shares authorized, issued or outstanding at May 31, 2024 48,350 — Stockholders' equity: Common stock, $0.001 par value, 300,000,000 shares authorized, 162,471,048 shares issued and 157,438,246 shares outstanding at August 31, 2024, and 144,083,944 shares issued and 139,051,142 shares outstanding at May 31, 2024 162 144 Treasury stock, 5,032,802 shares at August 31, 2024 and 5,032,802 shares at May 31, 2024, at cost (62) (62) Additional paid in capital 496,027 374,738 Accumulated deficit (254,281) (249,990) Total stockholders’ equity attributable to Applied Digital Corporation 241,846 124,830 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY $ 937,732 762,867 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended August 31, 2024 August 31, 2023 Revenue: Revenue $ 58,778 $ 32,139 Related party revenue 1,926 4,184 Total revenue 60,704 36,323 Costs and expenses: Cost of revenues 61,060 25,221 Selling, general and administrative (1) 14,341 16,170 Gain on classification of held for sale (2) (24,808) — Loss on abandonment of assets 628 — Loss from legal settlement — 2,300 Total costs and expenses 51,221 43,691 Operating income (loss) 9,483 (7,368) Interest expense, net (3) 7,308 2,133 Loss on change in fair value of debt 6,422 — Loss on extinguishment of related party debt — 2,353 Net loss before income tax expenses (4,247) (11,854) Income tax expense (benefit) — — Net loss (4,247) (11,854) Net loss attributable to noncontrolling interest — (397) Preferred dividends (44) — Net loss attributable to Common Stockholders $ (4,291) $ (11,457) Basic and diluted net loss per share attributable to Applied Digital Corporation $ (0.03) $ (0.11) Basic and diluted weighted average number of shares outstanding 149,009,336 100,521,673 (1) Includes related party selling, general and administrative expense of $0.2 million and $0.3 million for the three months ended August 31, 2024 and August 31, 2023, respectively. (2) Includes $25 million received in connection with the sale of our Garden City facility. (3) Includes related party interest expense of $0.7 million for the three months ended August 31, 2023. There was no related party debt outstanding during the three months ended August 31, 2024 and as such, no interest expense was incurred related to related party debt. APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended August 31, 2024 August 31, 2023 CASH FLOW FROM OPERATING ACTIVITIES Net loss $ (4,247) $ (11,854) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 34,316 7,860 Stock-based compensation (2,919) 5,641 Lease expense 7,659 — Loss on extinguishment of debt — 2,353 Loss on legal settlement — 2,300 Amortization of debt issuance costs 2,769 235 Gain on classification of held for sale (24,808) — Loss on change in fair value of debt 6,422 — Loss on abandonment of assets 628 173 Changes in operating assets and liabilities: Accounts receivable 1,549 55 Prepaid expenses and other current assets (721) (205) Customer deposits (143) — Related party customer deposits (1,549) — Deferred revenue (20,807) 3,695 Related party deferred revenue (1,692) (553) Accounts payable (77,537) 205 Accrued liabilities 9,738 2,113 Due to customer 4,209 — Lease assets and liabilities (8,757) 39 Sales and use tax payable — (1,568) Other assets — (5,972) CASH FLOW (USED IN) PROVIDED BY OPERATING ACTIVITIES (75,890) 4,517 CASH FLOW FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (54,798) (32,591) Proceeds from sale of assets 25,000 — Finance lease prepayments (2,808) (7,560) Purchases of investments — (390) CASH FLOW USED IN INVESTING ACTIVITIES (32,606) (40,541) CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance leases (26,049) (4,849) Borrowings of long-term debt 105,000 3,750 Borrowings of related party debt — 3,000 Repayment of long-term debt (5,886) (3,463) Repayment of related party debt — (39,257) Payment of deferred financing costs (8,484) — Proceeds from issuance of common stock, net of costs 31,590 64,482 Common stock issuance costs (44) — Proceeds from issuance of preferred stock 60,726 — Preferred stock issuance costs (5,444) — Dividends issued on preferred stock (44) — Proceeds from issuance of SAFE agreement included in long-term debt 12,000 — CASH FLOW PROVIDED BY FINANCING ACTIVITIES 163,365 23,663 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 54,869 (12,361) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 31,688 43,574 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 86,557 $ 31,213 APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) continued Three Months Ended August 31, 2024 August 31, 2023 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid $ 5,511 $ 1,839 SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Operating right-of-use assets obtained by lease obligation $ — $ 10,272 Finance right-of-use assets obtained by lease obligation $ 13,305 $ 46,952 Property and equipment in accounts payable and accrued liabilities $ 116,440 $ 6,729 Conversion of debt to common stock $ 56,201 $ — Extinguishment of non-controlling interest $ — $ 9,765 Loss from legal settlement $ — $ 2,300 Issuance of warrants, at fair value $ 36,479 $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) Three Months Ended $ in thousands August 31, 2024 August 31, 2023 Adjusted operating (loss) income Operating income (loss) (GAAP) $ 9,483 $ (7,368) Stock-based compensation (3,072) 5,641 Non-recurring repair expenses (1) 32 — Diligence, acquisition, disposition and integration expenses (2) 2,888 10 Litigation expenses (3) 407 381 Research and development expenses (4) 36 184 Gain on classification of held for sale (24,808) — Loss on abandonment of assets 628 — Accelerated depreciation and amortization (5) 45 152 Loss on legal settlement — 2,300 Other non-recurring expenses (6) 38 307 Adjusted operating (loss) income (Non-GAAP) $ (14,323) $ 1,607 Adjusted operating margin (24) % 4 % Adjusted net loss attributable to Applied Digital Corporation Net loss attributable to Applied Digital Corporation (GAAP) $ (4,247) $ (11,457) Stock-based compensation (3,072) 5,641 Non-recurring repair expenses (1) 32 — Diligence, acquisition, disposition and integration expenses (2) 2,888 10 Litigation expenses (3) 407 381 Research and development expenses (4) 36 184 Gain on classification of held for sale (24,808) — Accelerated depreciation and amortization (5) 45 152 Loss on abandonment of assets 628 — Loss on change in fair value of debt 6,422 — Loss on extinguishment of debt — 2,353 Loss on legal settlement — 2,300 Other non-recurring expenses (6) 38 307 Adjusted net loss attributable to Applied Digital Corporation (Non-GAAP) $ (21,631) $ (129) Adjusted net loss attributable to Applied Digital Corporation per diluted share (Non-GAAP) $ (0.15) $ — APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) continued (In thousands, except percentage data) Three Months Ended $ in thousands August 31, 2024 August 31, 2023 EBITDA and Adjusted EBITDA Net loss attributable to Applied Digital Corporation (GAAP) $ (4,247) $ (11,457) Interest expense, net 7,308 2,133 Income tax expense (benefit) — — Depreciation and amortization (5) 34,361 8,012 EBITDA (Non-GAAP) 37,422 (1,312) Stock-based compensation (3,072) 5,641 Non-recurring repair expenses (1) 32 — Diligence, acquisition, disposition and integration expenses (2) 2,888 10 Litigation expenses (3) 407 381 Research and development expenses (4) 36 184 Gain on classification of held for sale (24,808) — Loss on abandonment of assets 628 — Loss on change in fair value of debt 6,422 — Loss on extinguishment of debt — 2,353 Loss on legal settlement — 2,300 Other non-recurring expenses (6) 38 307 Adjusted EBITDA (Non-GAAP) $ 19,993 $ 9,864 (1) Represents costs incurred in the repair and replacement of equipment at the Company's Ellendale data center hosting facility as a result of the previously disclosed power outage. (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. (3) Represents non-recurring litigation expense associated with the Company’s defense of class action lawsuits and legal fees related to matters with certain former employees. The Company does not expect to incur these expenses on a regular basis. (4) Represents specific non-recurring research and development activities related to the Company’s business expansion that the Company does not expect to incur on a regular basis. (5) Represents the acceleration of expense related to assets that were abandoned by the Company due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within the Company’s calculation of EBITDA, and therefore is not added back as a management adjustment in the Company’s calculation of Adjusted EBITDA. (6) Represents expenses that are not representative of the Company’s expected ongoing costs.