How Much Of Applied Digital’s Fiscal Q1 Revenue Was Rent?

Shares of Applied Digital (APLD) rose 0.2% on October 8, 2026, the trading session after the company released its fiscal Q1 2027 report. The broader S&P 500 fell 0.5% during that same period. Three peers, MARA, Riot Platforms, and CleanSpark, posted declines of between 4.3% and 9.2% that day. The stock held steady, yet investors still need to examine the underlying components of the reported revenue. Applied Digital builds AI data centers for tenants and holds about $36 billion of revenue under contract. How much of the quarter’s revenue was rent?

How Much Of Applied Digital’s Revenue Was Rent?

The company reported $341.9 million of revenue for the quarter, an increase from $80.9 million a year earlier. Most of that total was not rent. The segment hosting AI computing for tenants generated $262.6 million. Within that segment, base rent accounted for $65.8 million. Tenant fit-out services contributed another $183.5 million to that segment’s revenue.

Management targets take-or-pay contracts lasting at least 15 years. Rent is the number to judge those long-term contracts by.

Applied Digital still recorded a net loss from continuing operations attributable to common stockholders of $221.0 million, or $0.76 per share, for fiscal Q1 2027. That loss included a $67.5 million non-cash charge on an investment alongside $41.3 million of one-time stock compensation.

Is Applied Digital’s Growth Likely To Continue?

Executives say the growth will continue. Revenue has more than doubled from a year earlier in each of the last four quarters. The operating loss has also narrowed, dropping from 52% of revenue three years ago to 29% over the latest twelve months.

The company plans to accelerate construction. Executives noted on the October 7, 2026 call that they expect to place over 600 megawatts into service over the next twelve months. Applied Digital placed 250 megawatts into service over the past twelve months.

Management also anticipates securing about 250 megawatts of expansion leases by the end of calendar 2026 at materially higher prices than earlier agreements. When asked to define those rates on the call, executives stated that lease rates could be more than 15% higher. They declined to name a precise figure.

Applied Digital is borrowing to build. The company ended the quarter with about $6.4 billion of debt and roughly $2.9 billion of cash. More than 80% of that principal does not mature until fiscal 2031 or later.

Applied Digital Is Still Adding Capacity In North Dakota

Applied Digital operates 250 megawatts online at its Polaris Forge 1 campus in North Dakota. Executives anticipate reaching 300 megawatts across the state by the end of calendar 2026.

The actual number of megawatts online in North Dakota, measured against the 300 megawatts management anticipates, remains the key figure to watch in the company’s next quarterly report.

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