How Much Of Applied Digital’s Fiscal Q1 Revenue Was Rent?
Applied Digital (APLD) reported fiscal Q1 2027 revenue of $341.9M, up from $80.9M a year earlier, with $65.8M from base rent. The company recorded a net loss of $221.0M, or $0.76 per share, including non-cash charges. Management expects continued growth, with plans to add 600 megawatts in the next year and secure higher-priced leases. The company has $6.4B in debt and $2.9B in cash, with most debt maturing after 2031.
How this was made
The 30-second read
Why it matters
By quantifying base rent ($65.8M) versus tenant hosting revenue ($262.6M) and fit-out services ($183.5M), the article informs underwriting of contract durability and the quality of growth, while also reiterating the company’s continued losses and capital intensity.
Market read
Traders can update models for APLD’s contracted revenue quality and expansion lease economics using the disclosed rent and segment breakdown, even though the stock reaction described is small.
What to watch
Lease-rate upside is described as potentially more than 15% higher but without a precise figure, and the fit-out revenue may not translate into recurring cash flows at the same rate as base rent.
Background
The piece dissects Applied Digital’s fiscal Q1 2027 revenue composition, focusing on how much of reported revenue is base rent under long-term take-or-pay contracts.
Ticker impact
Applied Digital’s fiscal Q1 2027 report breaks out revenue components, including $65.8M base rent within a $262.6M tenant hosting segment.
Likely modest upside bias if the rent share and long-duration contract framing supports cash-flow durability, but tempered by the large net loss and non-cash charges.
The article provides specific rent and segment figures plus debt/cash and expansion lease pricing expectations, which can shift underwriting of long-term contract value even without a new guidance number beyond the quarter’s disclosures.
Market effects
Highlights how AI data-center RE-like economics (rent versus services) may become a key diligence lens for the AI infrastructure buildout theme.
Reinforces North Dakota capacity expansion expectations, which can influence local power and infrastructure supply narratives for AI campuses.
Supports broader investor focus on long-duration contracted revenue quality in AI data-center operators amid rising power and capex scrutiny.
Counterpoint
The rent component is only part of the story; the large net loss and reliance on non-cash charges suggest investors may discount the rent mix until cash generation improves.
Key entities
- companyApplied Digital
AI data-center operator whose fiscal Q1 2027 revenue is analyzed for the rent versus services mix and long-term contract economics.
- facilityPolaris Forge 1
North Dakota campus referenced for current online megawatts and expected capacity ramp.
