Applied Digital Delivers Record Revenue Growth Amid $36B Backlog
Applied Digital's Q4 earnings report exceeded expectations, showcasing a significant revenue surge and strong adjusted earnings. The company reported $258.7 million in Q4 revenue, representing a staggering 407% year-over-year growth, and delivered adjusted earnings of $0.04 per diluted share.
The revenue growth is largely attributed to the HPC and AI data center segment, which has been scaled aggressively to meet institutional demand for compute infrastructure. Applied Digital signed three 15-year take-or-pay lease agreements with a single investment-grade hyperscaler, worth roughly $20 billion covering 810 MW of capacity.
These contracts provide a stable revenue stream, as the tenant commits to paying whether they use the capacity or not. The contracted portfolio now sits at approximately 1.4 GW of capacity, translating to around $36 billion in base-term revenue. Recent financing rounds exceeding $3 billion have supported the build-out, giving Applied Digital the capital runway to deliver on those contracted gigawatts.
The company also reported that its Data Center Hosting segment, which focuses on Bitcoin mining co-location, generated $37.3 million in Q4 revenue while running at full operational capacity of 286 MW.
Applied Digital completed the separation of its cloud services business into a new entity called ChronoScale Holdings, which now trades on Nasdaq under the ticker CHRN. The company retained approximately 96% ownership of ChronoScale following the split.