Sign in

APLD on Nasdaq

Applied Digital Corp.

Applied Digital Corp. is an American computer processing and data preparation services company.2 It is headquartered in Dallas, United States.2 Its shares trade on Nasdaq under the symbol APLD.2

Price unavailable

Last updated Oct 21, 2026.

Overview

$611.3MRevenue, fiscal 20263
-$184.3MNet income, fiscal 20263

Compare with Hinge Health, Inc., Sohu or IBEX 35, or pick any stock.

  • TickerAPLD on Nasdaq2
  • IndustryServices-Computer Processing & Data Preparation2
  • HeadquartersDallas, United States2
  • Incorporated inNV4
  • Business address3811 Turtle Creek Blvd., Suite 2100, Dallas, Tx 752194
  • Filer categoryLarge accelerated filer4
  • Legal formCorporation2
  • LEI2549004NE2B6RYXINZ022
  • StatusActive2
  • LEI statusIssued and current2
  • Registered addressC/O FILEJET INC., 89052 Henderson, United States2
  • Registered withBusiness Center (Secretary of State), NV200113094052

See how the biggest companies compare on our leaderboards

We are 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. We design, build, and operate high-performance, sustainably engineered data centers—which we refer to as AI factories—and deliver that capacity to investment-grade hyperscalers and other leading compute customers under long-term lease and hosting arrangements. Our standardized, repeatable design model spans site selection, design, construction, and operations, and has been qualified by major hyperscalers, enabling rapid, flexible deployment in both air-cooled and liquid-cooled configurations.5 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2026

-38.7%Operating margin3
-30.2%Net margin3
324.0%Revenue growth, 20263
-10.7%Return on equity3

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Business segments

HPC Hosting Business brought in 64% of the revenue Applied Digital Corp. broke down this way in fiscal 2026.

  1. HPC Hosting Business$270.6M364%
  2. Data Center Hosting Business$154.4M336%up 7% from 2025
Business segments by year
Business segments202420252026
HPC Hosting Business$0$0$270.6M
Data Center Hosting Business$136.6M$144.2M$154.4M

Where the money goes

Where each dollar of revenue went, fiscal 2026

  • Cost of revenue54¢$396.9M
  • Selling, general and admin45¢$332.1M
  • Income tax0¢$1.8M

Out of $611.3M in revenue.3 The company lost money this year.

Where each dollar of operating cash went, fiscal 2026

  • Kept or used elsewhere100¢$89.7M

Out of $89.7M of cash from operations.3

Financial statements

Revenue6783$611.3M in 2026
0$200.0M$400.0M$600.0M$800.0M2021: $0$020212022: $8.5M$8.5M20222023: $55.4M$55.4M2023+548%2024: $136.6M$136.6M2024+147%2025: $144.2M$144.2M2025+6%2026: $611.3M$611.3M2026+324%
Gross profit67$11.0M in 2023
-$5.0M0$5.0M$10.0M$15.0M2021: $0$020212022: -$957.0K-$957.0K20222023: $11.0M$11.0M2023
Operating income6783-$236.5M in 2026+71123% since 2021
-$300.0M-$200.0M-$100.0M02021: -$332.0K-$332.0K20212022: -$20.9M-$20.9M2022+6195%2023: -$42.9M-$42.9M2023+105%2024: -$98.3M-$98.3M2024+129%2025: -$72.2M-$72.2M2025−27%2026: -$236.5M-$236.5M2026+228%
Net income6793-$184.3M in 2026+32354% since 2021
-$300.0M-$200.0M-$100.0M02021: -$568.0K-$568.0K20212022: -$23.5M-$23.5M2022+4041%2023: -$44.6M-$44.6M2023+90%2024: -$149.3M-$149.3M2024+234%2025: -$231.1M-$231.1M2025+55%2026: -$184.3M-$184.3M2026−20%

Every line of the income statement as filed: the last 3 fiscal years, latest first.3

Period ending2026-05-312025-05-312024-05-31
Data center rental and other revenue$114.7M$0$0
Total revenue$611.3M$228.6M$165.6M
Services cost of revenue$396.9M$216.8M$148.3M
Data center rental and other cost of revenue$56.8M$0$0
Loss on abandonment of assets$2.4M$724.0K$0
Loss from legal settlement$0$0$2.4M
Total costs and expenses$847.8M$300.7M$263.9M
Segment profit-$236.5M-$72.2M-$98.3M
Interest expense, net$29.5M$32.1M$27.5M
Gain on change in fair value of derivatives-$75.8M$0$0
Gain on change in fair value of investments-$10.8M$0$0
Loss on conversion of debt$0$33.6M$0
Loss on change in fair value of debt$0$85.4M$7.4M
Loss on change in fair value of related party debt$0$0$8.1M
Loss on change in fair value of warrants$2.2M$6.4M$0
Net loss from continuing operations before income tax expenses-$181.5M-$231.0M-$149.6M
Income tax expense-$1.8M-$102.0K-$96.0K
Net loss from continuing operations-$183.3M-$231.1M-$149.7M
Net loss from discontinued operations-$1.0M$0$0
Net loss-$184.3M-$231.1M-$149.7M
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest-$59.7M$0-$397.0K
Preferred dividends-$6.3M-$2.6M$0
Net loss attributable to common stockholders-$250.3M-$233.7M-$149.3M
Continuing operations-$249.2M-$233.7M-$149.3M
Discontinued operations-$1.0M$0$0
Continuing operations, basic (in dollars per share)-$1-$1-$1
Continuing operations, diluted (in dollars per share)-$1-$1-$1
Discontinued operations, basic (in dollars per share)$0$0$0
Discontinued operations, diluted (in dollars per share)$0$0$0
Basic net loss per share attributable to common stockholders (in dollars per share)-$0.91-$1.16-$1.31
Diluted net loss per share attributable to common stockholders (in dollars per share)-$0.91-$1.16-$1.31
Basic weighted average number of shares outstanding (in shares)275.2M shares201.2M shares114.1M shares
Diluted weighted average number of shares outstanding (in shares)275.2M shares201.2M shares114.1M shares
Selling, general and administrative$332.1M$107.9M$97.8M
Loss on classification of held for sale$59.6M-$24.6M$15.4M

Compare Applied Digital Corp. with another company

Corporate structure

Applied Digital Corp. sits at the top of its group. 5 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Applied Digital Corp.

  • VANGUARD PORTFOLIO MANAGEMENT LLC Filed SCHEDULE 13G/A on Applied Digital Corp., latest Jul 31, 2026 (2 filings since Apr 28, 2026)
  • BlackRock Filed SCHEDULE 13G/A on Applied Digital Corp., latest Jul 27, 2026 (4 filings since Feb 2, 2024)
  • Wes Cummins Filed SCHEDULE 13D/A on Applied Digital Corp., latest Jul 8, 2026 (7 filings since Apr 21, 2022)
  • JANE STREET GROUP, LLC Filed SCHEDULE 13G/A on Applied Digital Corp., latest May 12, 2026 (5 filings since Jun 17, 2025)
  • VANGUARD GROUP INC Filed SCHEDULE 13G/A on Applied Digital Corp., latest Mar 26, 2026 (3 filings since Jan 30, 2025)
  • Hood River Capital Management LLC Filed SCHEDULE 13G/A on Applied Digital Corp., latest Feb 17, 2026 (3 filings since Feb 14, 2024)
  • CoreWeave, Inc. Filed SCHEDULE 13G/A on Applied Digital Corp., latest Jun 12, 2025 (2 filings since Jun 4, 2025)
  • CLEARFIELD CAPITAL MANAGEMENT LP Filed SCHEDULE 13G/A on Applied Digital Corp., latest Feb 14, 2025 (2 filings since Nov 7, 2024)
  • Capital Research Global Investors Filed SC 13G/A on Applied Digital Corp., latest Nov 12, 2024 (2 filings since Feb 9, 2024)
  • CIM Infrastructure Fund III, L.P. Filed SC 13G/A on Applied Digital Corp., latest Nov 8, 2024 (2 filings since Jun 17, 2024)
  • Jason Gechen Zhang Filed SC 13D/A on Applied Digital Corp., latest Oct 11, 2024 (2 filings since Nov 17, 2023)
  • GMR Ltd Filed SC 13G/A on Applied Digital Corp., latest Jul 25, 2024 (3 filings since Jun 30, 2023)
  • Applied Digital Corp. Dallas, Texas, United States
    • ChronoScale Holdings Corp Stake · Dallas, Texas
    • APLD ELN-02 LLC Subsidiary · Dallas, Texas, United States
    • APLD ELN-03 LLC Subsidiary · Dallas, Texas, United States
    • APLD INTERMEDIATE HOLDCO LLC Subsidiary · Dallas, Texas, United States

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G; stakes of 5% or more it reported on Schedules 13D and 13G (1 companies). Each entity in the chart links to its source.

What it owns

What Applied Digital Corp. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$4.3B3 May 31, 2026$1.3B3 May 31, 2025+237.3%
Accumulated depreciation$77.6M3 May 31, 2026$26.6M3 May 31, 2025+192.1%
Property and equipment, net$4.2B3 May 31, 2026$1.3B3 May 31, 2025+238.3%
Finance-lease assets$122.5M3 May 31, 2026$213.3M3 May 31, 2025−42.6%
Operating-lease assets (leased space)$76.9M3 May 31, 2026$92.3M3 May 31, 2025−16.7%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$1.6B3 May 31, 2026$44.0M3 May 31, 2025+3522.3%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$54.5M3 May 31, 2026$03 May 31, 2025

Properties, in its own words

We lease office space located in Dallas, Texas for our principal offices. In addition, we lease office and warehouse space in Irving, Texas to support our operations.

We own our Polaris Forge and Delta Forge data centers, including the land on which such data centers are located in North Dakota and Louisiana. See Item 1. Business for further descriptions of our facilities and sites.

The rest of Item 2

ChronoScale leases office space in Menlo Park, California for its principal offices. ChronoScale also leases data center colocation space in Colorado, Utah, and Minnesota to support its operations.

We believe that our leased and owned facilities are adequate to support our near-term business needs and that should it be needed, suitable additional or alternative space will be available to support our operations.

Item 2 of the 10-K filed Jul 29, 2026.5

Leadership

Who has led Applied Digital Corp., and when. Pick a name to see everywhere that person has worked.

Chief executive

  1. Wes Cummins2022–now

Chair

  1. Wes Cummins2022–now

Chief financial officer

  1. Richard S. Rosenfeld2009
  2. David Rench2022–2024
  3. Mohammad Saidal Lavanway Mohmand2024–now

Chief operating officer

  1. Laura Laltrello2025–now
2010201520202025
Board members and other officers (14)

Named in SEC Form D filings

People the company listed in its private-offering notices.

  • DirectorElla Benson named Sep 20, 202432

Former names

  • Applied Blockchain, Inc.Apr 26, 2021 to Feb 8, 20234
  • Applied Science Products, Inc.Sep 15, 2011 to Dec 22, 20204
  • FLIGHT SAFETY TECHNOLOGIES INCSep 10, 2002 to Jan 18, 20114
  • REEL STAFF INCOct 16, 2001 to Sep 13, 20024

Timeline

  1. Oct 7, 20268-K Results of operations33
  2. Jul 27, 20268-K Results of operations34
  3. Jun 26, 20268-K Entered a material agreement; New debt or obligation; Unregistered sale of shares35
  4. Jun 17, 20268-K Entered a material agreement36
  5. Jun 16, 20268-K Entered a material agreement; New debt or obligation37
  6. Jun 9, 20268-K Regulation FD disclosure; Other events38
  7. Jun 9, 20268-K Other events39
  8. Jun 9, 20268-K Regulation FD disclosure40
  9. May 5, 20268-K Entered a material agreement; Completed an acquisition or sale; Regulation FD disclosure41
  10. Apr 23, 20268-K Regulation FD disclosure42
  11. Apr 16, 20268-K Executive or director change43
  12. Apr 8, 20268-K Results of operations44
  13. Apr 12, 2022New chief executive Wes Cummins becomes CEO13
  14. May 21, 2001Founded Applied Digital Corp. is founded2

Calendar

Coming up

  1. Around Dec 18, 2026Next results, estimated About a quarter after its last report. The company hasn't announced the date.

When it reported results

  1. Oct 7, 2026Reported quarterly or annual results33
  2. Jul 27, 2026Reported quarterly or annual results34
  3. Apr 8, 2026Reported quarterly or annual results44
  4. Jan 7, 2026Reported quarterly or annual results45
  5. Oct 9, 2025Reported quarterly or annual results46
  6. Jul 30, 2025Reported quarterly or annual results47
  7. Apr 14, 2025Reported quarterly or annual results48
  8. Jan 14, 2025Reported quarterly or annual results49

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

615 filings to the SEC since October 2021: 7 annual reports, 14 quarterly reports, 149 major events, 203 insider forms, 43 large holders, 1 private raises, 198 other. The latest 20:

  1. Oct 15, 20264 EDGAR
  2. Oct 13, 2026144 EDGAR
  3. Oct 13, 20264 EDGAR
  4. Oct 7, 202610-Q EDGAR
  5. Oct 7, 20268-K EDGAR
  6. Oct 5, 20264 EDGAR
  7. Sep 25, 2026ARS EDGAR
  8. Sep 25, 2026DEFA14A EDGAR
  9. Sep 25, 2026DEF 14A EDGAR
  10. Sep 25, 2026POSASR EDGAR
  11. Sep 14, 20264 EDGAR
  12. Aug 6, 20264 EDGAR
  13. Aug 4, 20264 EDGAR
  14. Aug 4, 2026144 EDGAR
  15. Aug 4, 20264 EDGAR
  16. Aug 4, 20264 EDGAR
  17. Aug 4, 20264 EDGAR
  18. Jul 31, 2026SCHEDULE 13G/A EDGAR
  19. Jul 29, 202610-K EDGAR
  20. Jul 27, 2026SCHEDULE 13G/A EDGAR

The 615 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

111 open-market trades by officers, directors and large owners since October 2021: 54 buys and 57 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Aug 4, 2026Nottenburg Richard NDirectorSale75,000$31.15$2.3MForm 4
Apr 30, 2026Nottenburg Richard NDirectorSale12,500$34.59$432.4KForm 4
Apr 28, 2026Nottenburg Richard NDirectorSale12,500$32.00$400.0KForm 4
Apr 27, 2026MILLER DOUGLAS SDirectorSale10,000$34.98$349.8KForm 4
Jan 29, 2026HASTINGS CHUCKDirectorSale45,987$38.57$1.8MForm 4
Jan 16, 2026Cummins WesCEO; ChairmanSale165,000$36.42$6.0MForm 4
Jan 15, 2026Nottenburg Richard NDirectorSale12,000$35.45$425.4KForm 4
Jan 14, 2026Nottenburg Richard NDirectorSale11,606$35.28$409.5KForm 4
Jan 12, 2026MILLER DOUGLAS SDirectorSale10,000$38.54$385.4KForm 4
Nov 28, 2025MILLER DOUGLAS SDirectorSale8,000$26.98$215.8KForm 4
Nov 24, 2025Benson Ella G.DirectorSale8,581$23.22$199.3KForm 4
Oct 31, 2025HASTINGS CHUCKDirectorSale25,000$34.27$856.8KForm 4
Oct 31, 2025Nottenburg Richard NDirectorSale9,375$35.91$336.7KForm 4
Oct 30, 2025Nottenburg Richard NDirectorSale5,000$34.80$174.0KForm 4
Oct 29, 2025HASTINGS CHUCKDirectorSale50,000$35.69$1.8MForm 4
Oct 29, 2025Benson Ella G.DirectorSale42,569$35.30$1.5MForm 4
Oct 28, 2025Mohmand Mohammad Saidal LaVanwayChief Financial OfficerSale37,503$36.47$1.4MForm 4
Oct 24, 2025Mohmand Mohammad Saidal LaVanwayChief Financial OfficerSale100,000$34.08$3.4MForm 4
Oct 24, 2025Nottenburg Richard NDirectorSale34,375$33.23$1.1MForm 4
Oct 24, 2025Lee Rachel H.DirectorSale24,213$33.20$803.9KForm 4

All 111 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Stakes it holds

Applied Digital Corp. has told the SEC it owns more than 5% of 1 company, latest first (Schedules 13D and 13G).

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2026Wes Cummins49$875.0K$189.2M66
2026Jason Zhang34$688.3K$100.0M66
2026Saidal Mohmand36$525.0K$40.5M66
2026Laura Laltrello53$527.1K$2.6M66
2025Chief Executive Officer and Chairman$706.3K$27.7M66
2025Chief Operating Officer$222.9K$9.9M66
2025Chief Financial Officer$369.8K$9.8M66
2024Chief Executive Officer and Chairman$600.0K$1.2M66

Money raised

Private offerings the company reported to the SEC on Form D.

  1. Sep 5, 2024Raised $160 million in a private offering of equity Form D: 13 investors so far Form D

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
Hood River Capital Management LLC22,518,887$840.0M6.1%−556,725
Vanguard Portfolio Management LLC13,728,812$512.1M0.0%−1,078,983
BlackRock, Inc.13,375,070$498.9M0.0%−7,521,031
Situational Awareness LP15,384,616$469.0M2.3%+1,906,178
Vanguard Capital Management LLC11,555,819$431.0M0.0%+780,138
Two Sigma Investments, LP10,299,117$384.2M0.3%+8,706,515
Equitec Proprietary Markets, LLC8,373,964$312.3M77.2%New
Goldman Sachs Group Inc6,980,959$260.4M0.0%−1,023,407
Geode Capital Management, LLC4,877,618$221.7M0.0%−1,533,841
Value Aligned Research Advisors, LLC5,546,030$206.9M1.2%−1,122,281
Oasis Management Co Ltd.5,007,317$186.8M21.7%+3,974,500
State Street Corp4,482,378$167.2M0.0%−1,086,150
Dba Trading, LLC5,576,235$132.4M66.5%No change
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.3,516,146$131.2M0.2%+517,162
Bnp Paribas Financial Markets3,278,874$122.3M0.1%−155,182
Norges Bank3,088,677$115.2M0.0%New
D. E. Shaw & Co., Inc.3,033,821$113.2M0.1%−365,120
Voloridge Investment Management, LLC3,033,280$113.1M0.5%+2,949,313
Morgan Stanley2,947,256$109.9M0.0%+44,117
UBS Group AG2,884,430$107.6M0.0%−1,616,457
Bank Of America Corp /de/2,615,865$97.6M0.0%−646,647
Ameriprise Financial Inc2,058,415$76.8M0.0%+1,443,364
Barclays PLC1,842,002$68.7M0.0%−286,751
Squarepoint Ops LLC1,795,876$67.0M0.1%+1,592,197
Charles Schwab Investment Management Inc1,683,299$62.8M0.0%−478,979

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Applied Digital Corp. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARApplied Digital Corp.1
  • CIK0001144879
  • Employer ID (EIN)95-48636905
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company5
  • Incorporated inNevada5
  • Fiscal year endsMay 311
  • Industry code (SIC)7374 Services-Computer Processing & Data Preparation1
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance1
  • Business address3811 Turtle Creek Blvd., Suite 2100, Dallas, TX 752191
  • Phone214-556-24651
  • Shares outstanding302,387,140 as of Oct 6, 202612
  • Public float$6.9B as of Nov 30, 20255
  • AuditorCBIZ CPAs P.C., New York, NY PCAOB ID 199; it also attests to the company’s internal control over financial reporting5
  • On EDGAR sinceAug 9, 20011
  • Filings823 in all: 4 (209), 8-K (203), 144 (35), 3 (26), 10QSB (20), EFFECT (20), 424B3 (19), CORRESP (19)1
    All 61 form types

    UPLOAD (19), 10-Q (17), 8-K/A (17), S-1/A (17), SC 13G (12), DEF 14A (11), SC 13G/A (11), SCHEDULE 13G/A (11), POS AM (10), S-1 (10), 10KSB (7), 4/A (7), D (7), SB-2/A (7), 424B5 (6), DEFA14A (6), S-8 (6), SCHEDULE 13D/A (6), SCHEDULE 13G (6), 10-K (5), RW (5), S-3 (5), S-3ASR (5), SC 13D (5), NT 10-Q (4), POSASR (4), PRE 14A (4), SC 13D/A (4), ARS (3), NT 10-K (3), SB-2 (3), 10-K/A (2), 3/A (2), 5 (2), 8-A12B (2), 8-A12G (2), DEF 14C (2), SEC STAFF LETTER (2), 10-Q/A (1), 10QSB/A (1), 15-12G (1), 25-NSE (1), 424B1 (1), 424B4 (1), 424B8 (1), CERT (1), CERTAMX (1), CT ORDER (1), DEFR14A (1), PRE 14C (1), PREC14C (1), REGDEX (1), SCHEDULE 13D (1)

  • Latest filingsAnnual report (10-K) Jul 29, 2026
    Quarterly report (10-Q) Oct 7, 2026
    Proxy statement (DEF 14A) Sep 25, 2026
    Latest 8-K (8-K) Oct 7, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, par value $0.001 per shareAPLDNasdaq Global Select Market

From the cover page of the 10-K filed Jul 29, 2026 (Section 12(b) of the Exchange Act).5

Risk factors and legal proceedings

The risks Applied Digital Corp. names in Item 1A of its 10-K filed Jul 29, 2026: 62 risks under these headings, as written.5

  • Risks Related to Our Business and Operations
  • Risks Related to Our Industry
  • Risks Related to Our Securities
  • We may be unable to access sufficient additional capital needed to grow our business.
  • Our level of debt may negatively impact our liquidity, restrict our operations and ability to respond to business opportunities, and increase our vulnerability to adverse economic and industry conditions.
  • Our existing indebtedness arrangements contain several restrictive covenants and events of default that limit our corporate activities.
  • We may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness.
  • In the past we have identified material weaknesses in our internal control over financial reporting and, though remediated, may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, any of which may result in material misstatements of our financial statements or cause us to fail to meet our periodic reporting obligations.
  • We may be unable to complete our data center campuses in a timely manner or within anticipated cost estimates.
  • Delays in lease commencement could adversely affect our financial condition and results of operations.
  • Our business has and is expected to continue to have significant customer concentration.
  • Our consolidated financial statements include the financial results of ChronoScale.
The other 53 risks
  • Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business, operating results, and financial condition.
  • We are subject to a highly evolving regulatory landscape and any adverse changes to certain laws or regulations could adversely affect our customers and our business, prospects or operations.
  • We could incur significant costs related to environmental matters, including from government regulation, private litigation, and existing conditions at some of our properties.
  • Our business depends upon the demand for data centers.
  • Any delays or unexpected costs developing our existing space, developable land and newly acquired properties may delay and harm our growth prospects, future operating results and financial condition.
  • We have substantially concentrated our operations in the state of North Dakota and, thus, are particularly exposed to the regulatory framework and changes in the regulatory environment, market conditions and natural disasters in that state.
  • We may be unable to lease vacant or development space, renew leases, or re-lease space as leases expire.
  • Failure to attract, grow and retain a diverse and balanced customer base could harm our business and operating results.
  • We are continuing to invest in our expansion efforts but may not have sufficient customer demand in the future to realize expected returns on these investments.
  • Our new services and changes to existing services could fail to attract or retain users or generate revenue and profits, or otherwise adversely affect our business.
  • We are subject to risks associated with our need for significant electrical power.
  • Even if we have additional space available for lease at any one of our data centers, our ability to lease this space to existing or new customers could be constrained by our ability to provide sufficient electrical power.
  • We depend upon third-party suppliers for power, and we are vulnerable to service failures and price increases by such suppliers and to volatility in the supply and price of power in the open market.
  • Any failure of our physical or information technology or operational technology infrastructure or services could lead to significant costs and disruptions.
  • Any disruption of service experienced by certain of our third-party service providers, or our ineffective management of relationships with third-party service providers could harm our business, financial condition, operating results, cash flows, and prospects.
  • If we incorrectly estimate our hosting capacity requirements and related capital expenditures, our results of operations could be adversely affected.
  • We depend on third parties to provide network connectivity to the customers in our data centers and any delays or disruptions in connectivity may materially adversely affect our operating results and cash flow.
  • Certain natural disasters or other external events, including climate change or mechanical failures, could harm our business, financial condition, results of operations, cash flows, and prospects.
  • Joint ventures, joint ownership arrangements and other projects pose unique challenges and we may not be able to fully implement or realize synergies, expected returns or other anticipated benefits associated with such projects.
  • If we fail to effectively manage our growth, our business, financial condition and results of operations could be harmed.
  • Various actual and potential conflicts of interest may be detrimental to our stockholders.
  • We may become subject to regulatory inquiry relating to trading activity and/or short selling strategies in our common stock.
  • We and our third-party providers may be vulnerable to cyberattacks and security breaches that could materially disrupt or compromise our operations, data and results.
  • The loss of any of our management team, our inability to execute an effective succession plan, or our inability to attract and retain qualified personnel, could adversely affect our business.
  • We may become involved in litigation arising in the ordinary course of our business that may materially adversely affect us.
  • Employee disputes or litigation and related unfavorable publicity may negatively affect our future business, financial condition, and operating results.
  • Scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance (“ESG”) practices and the impacts of climate change may result in additional costs or risks.
  • We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions, including bank failures, could adversely affect our liquidity and financial performance.
  • Our customers frequently make advance deposits based on anticipated future usage.
  • We may not be able to compete with other companies, some of which have greater resources and experience.
  • If we cannot adapt to evolving technology or customer demands in a timely and cost-effective manner, our ability to sustain and grow our business may be adversely affected.
  • If one of our customers were to obtain exclusive rights to the technologies we employ across our businesses, our ability to realize significant operating efficiencies could be jeopardized.
  • The nature of our business requires the application of complex financial accounting rules, and there is limited guidance from accounting standard setting bodies. If financial accounting standards undergo significant changes, our operating results could be adversely affected.
  • Our customers may not adequately respond to rapidly changing technology or methods of, rules of, or access to, platforms which may negatively affect our business. Rapidly changing technology or platform methods, rules and access may render our data center and crypto mining and related equipment and facilities obsolete, unprofitable or unusable.
  • We may be exposed to liabilities under the Foreign Corrupt Practices Act (“FCPA”), and any determination that we violated the Foreign Corrupt Practices Act could have a material adverse effect on our business.
  • We are establishing data centers in remote areas, which may adversely affect our ability to recruit and retain staff and could increase our compensation costs.
  • Uncertainty in the global economy and instability within international relations, including changes in governmental policies relating to technology, and any potential downturn in the semiconductor and electronics industries, may negatively impact our business.
  • Inflation in the global economy, increased interest rates, political dissension and adverse global economic conditions, like the ones we are currently experiencing, could negatively affect our business and financial condition.
  • We depend on significant customers for our data centers.
  • The use and continued pace of developments in AI are inherently uncertain. Failure by us to keep up with evolving data center requirements and regulatory frameworks for AI, could have a material adverse effect on our business and financial condition.
  • The development and advancement in the efficiency of AI models presents risks and challenges that may adversely impact our business and operating results.
  • There are risks related to technological obsolescence, the vulnerability of the global supply chain to AI and cryptoasset hardware disruption, and our customers’ difficulty in obtaining new hardware which may have a negative effect on our business.
  • Our stock price has been volatile and may continue to be volatile in the future; this volatility may affect your ability to, and the price at which you could, sell our common stock.
  • We have issued, and may in the future issue, new shares of our common stock, which has a dilutive effect on our stockholders.
  • If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our common stock, its trading price and volume could decline.
  • We do not expect to declare or pay dividends in the foreseeable future, which may limit the return our shareholders realize on their investment.
  • Provisions in our Articles (as defined below), our Bylaws (as defined below), and Nevada law may discourage a takeover attempt even if a takeover might be beneficial to our stockholders.
  • The rights of holders of our Series E and E-1 Preferred Stock rank senior to the rights of the holders of our common stock.
  • In the event the holders exercise their option to redeem Series E and E-1 Preferred Stock, our ability to redeem such shares of Series E and E-1 Preferred Stock may be subject to certain restrictions and limits.
  • The Convertible Notes may adversely affect the market price of our common stock.
  • Conversion of the Convertible Notes will dilute the ownership interest of existing stockholders or may otherwise depress the price of our common stock.
  • The prepaid forward transaction may affect the value of our common stock and may result in unexpected market activity in our common stock.
  • The capped call transactions may affect the value of the Convertible Notes and our common stock.

Legal proceedings

From time to time, we may become involved in legal proceedings.

The Company, Wes Cummins, the Company's Chief Executive Officer, and David Rench, the Company's then Chief Financial Officer, have been named as defendants in a putative securities class action lawsuit in the matter styled, McConnell v. Applied Digital Corporation, et al., Case No. 3:23-cv-1805, filed in August 2023 in the U.S. District Court for the Northern District of Texas (the “Securities Lawsuit”). Specifically, the complaint asserts claims pursuant to Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, based on allegedly false or misleading statements regarding the company’s business, operations, and compliance policies, including claims that the Company overstated the profitability of its Data Center Hosting Business and its ability to successfully transition into a low-cost cloud services provider and that the Company’s board of directors was not “independent” within the meaning of NASDAQ listing rules. On May 22, 2024, the court appointed Lead plaintiff and approved lead counsel, and on July 22, 2024, Lead Plaintiff filed an amended complaint which asserts the same claims based on similar allegations in the original complaint. On September 20, 2024, the defendants filed a motion to dismiss the amended complaint. On November 20, 2024, Lead Plaintiff filed his opposition to the Motion to Dismiss. On January 3, 2025, the defendants filed their reply in further support of the Motion to Dismiss. On September 8, 2025, the court issued an order staying the Securities Lawsuit and administratively closing it pending resolution of the Motion to Dismiss. See further discussion in "Note 18 - Commitments and Contingencies".

On November 15, 2023, a derivative action was filed in the matter styled, Weich v. Cummins, et al., Case No. A-23-881629-C in the District Court of Clark County, Nevada (the “Derivative Lawsuit”). The Weich complaint named as

The opening of Item 3, Legal Proceedings.5

Sources

The numbers on this page point here. Each one links to the record it came from.

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23
  24. 24
  25. 25
  26. 26
  27. 27
  28. 28
  29. 29
  30. 30
  31. 31
  32. 32
  33. 33
  34. 34
  35. 35
  36. 36
  37. 37
  38. 38
  39. 39
    SEC EDGAROther events
  40. 40
  41. 41
  42. 42
  43. 43
  44. 44
  45. 45
  46. 46
  47. 47
  48. 48
  49. 49
  50. 50
  51. 51
  52. 52
  53. 53
  54. 54
  55. 55
  56. 56
  57. 57
  58. 58
  59. 59
  60. 60
  61. 61
  62. 62
  63. 63
  64. 64
  65. 65
  66. 66