Applied Digital posts 407% revenue jump and aims for $1 billion NOI run rate

Applied Digital (NASDAQ: APLD) announced quarterly revenue of $258.7 million, a 407% increase from the prior year, driven largely by its high‑performance computing segment, which generated $203 million. Tenant fit‑out services, primarily for hyperscaler CoreWeave, contributed $152.1 million and are expected to evolve into higher‑margin recurring revenue.

Excluding the recently spun‑off ChronoScale, the company’s total revenue rose from $38 million to $240.4 million. The legacy data‑center hosting business slipped 2% to $37.6 million but still produced $12.5 million of operating income. Cash on hand stands at $1.6 billion against $5 billion of debt, with operating cash flow of $89.7 million. Management projects an annualized net operating income (NOI) run rate of $1 billion within roughly one year and has secured lease commitments worth $36 billion across five campuses. The firm is also evaluating a conversion to a real‑estate investment trust (REIT).