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Applied Digital (APLD) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Jan 8, 2026
Applied Digital (APLD) reported revenue of $127M for the second quarter fiscal 2026 (Q2 FY26), +250% from a year earlier and +56% from the quarter before. Operating margin was -24.5%, net loss $14.4M (11.4% of revenue).
Applied Digital, Q2 FY26: revenue $127M (+250% year over year), operating margin -24.5%, net loss $14.4M, operating cash flow −$16.3M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $127M | +56% | +250% |
| Operating profit | −$31.0M | — | — |
| Net earnings | −$14.4M | — | — |
| Operating cash flow | −$16.3M | — | — |
What changed
Revenue was $126.6M in Q2 FY26, up 250% year over year and up 56% from the previous quarter. HPC Hosting Business was the largest line at 67% of revenue. Data Center Hosting Business added $5.4M year over year (up 15%), 6% of the total change.
Operating costs exceeded revenue by $31.0M, an operating margin of -24.5%. Total costs grew 222% against revenue growth of 250%. The fastest-growing cost line was Cost of revenue (+344%). The quarter ended with a net loss of $14.4M, narrower than the previous quarter's $16.9M loss. Non-operating items added $16.5M, -114% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$16.3M. Non-cash charges added back $8.6M of depreciation and amortization and $29.1M of share-based compensation. Working capital and other items used $39.6M. Capital expenditures of $551.6M exceeded it, leaving free cash flow of −$567.9M.
Questions
What was Applied Digital's revenue in the second quarter fiscal 2026?
Applied Digital (APLD) reported revenue of $127M for the second quarter fiscal 2026 (Q2 FY26), +250% from a year earlier and +56% from the quarter before.
Was Applied Digital profitable in the second quarter fiscal 2026?
Operating loss was $31.0M (-24.5% of revenue) and net loss $14.4M.
Source: Applied Digital 10-Q on SEC EDGAR.