Applied Digital: Contracted Revenue

Metric

Lease backlog · Whole company

Contracted balance

$36B

Denominator

Fiscal 2026 revenue of $611,311k for the year ended May 31, 2026 (10-K), plus revenue of $341,875k for the three months ended August 31, 2026, less $80,934k for the three months ended August 31, 2025 (both from the fiscal Q1 2027 10-Q). The 10-K recast prior periods to include the ChronoScale cloud business, and the 10-Q comparative is on the same basis: $80.9m is the recast figure, against $64.2m of adjusted revenue that excludes ChronoScale.

Coverage

41.3x (scopes match)

Duration

The release gives about $36bn of contracted revenue over the leases' initial base terms, or about $86bn if every renewal option is exercised; the row carries the base-term figure. The hyperscaler leases run 15 years. Applied Digital still publishes no weighted average term across the portfolio and no split of the backlog by year, so 15 years is the term of the largest tranche, not a portfolio duration.

Concentration · largest customer Undisclosed investment-grade hyperscaler

Three of the five campuses (Delta Forge 1, Polaris Forge 3 and Delta Forge 2) are leased to one unnamed tier-one investment-grade hyperscaler, about $20.2bn of the backlog. Polaris Forge 1 is leased to CoreWeave and Polaris Forge 2 to a second unnamed investment-grade hyperscaler. On revenue rather than backlog, the 10-Q shows one customer at 56% of the quarter's revenue and two more at 21% and 11%, without naming them.

Notes

The backlog did not move: about $36bn and 1.41 GW across five campuses, the same as the fiscal Q4 row. The Delta Forge 2 lease (210 MW, about $5.2bn) was signed after May 31 but was already announced in the July release and counted in that $36bn, so the October release repeats it rather than adding to it. The coverage multiple fell from 59x to about 41x only because trailing revenue grew 43%, from $611m to $872m, as buildings went live. Quarterly revenue was $341.9m, up 322% from $80.9m. The company puts most of the services increase down to about $157.2m more tenant fit-out work plus $23.0m of ChronoScale GPU hardware sales, which is build-out and equipment revenue rather than rent, so the trailing base overstates the recurring lease income behind the ratio. This is contracted lease revenue under ASC 842, not an ASC 606 remaining performance obligation; compare it with the software rows only with that in mind.

Sources: company filing or release · company filing or release · company filing or release · company filing or release

Metric

Lease backlog · Whole company

Contracted balance

$36B

Denominator

Fiscal 2026 revenue of $611.3m for the twelve months ended May 31, 2026, up 167% year over year. The period end is a fiscal year end, so the reported annual figure is the trailing twelve months with no arithmetic applied.

Coverage

58.9x (scopes match)

Duration

The leases signed in the quarter run 15 years on a take-or-pay basis. Applied Digital does not publish a weighted average across the whole portfolio, so 15 years is the term of the largest tranche rather than a portfolio duration. Read the coverage multiple against that term: 59x trailing revenue over 15-year leases is a company whose revenue has not started yet, not a company with 59 years of visibility.

Concentration · largest customer Undisclosed investment-grade hyperscaler

About $20.2bn of the backlog, more than half, comes from three leases signed in the quarter with a single unnamed investment-grade hyperscaler. Counterparty credit is the whole risk here, and the counterparty is not named.

Notes

The extreme of the table, and a category difference rather than a degree difference. This is contracted lease revenue under ASC 842 across 1.41 GW of committed IT load, not an ASC 606 remaining performance obligation, and it is the reason a coverage ratio must never be compared across metrics without checking which one is being quoted. Applied Digital has signed 59 years of its current revenue because its current revenue is tiny and the buildings are not built. The offsetting fact is on the other side of the balance sheet: about $5bn of debt against a quarterly GAAP loss.

Sources: company filing or release · company filing or release