Applied Digital: Contracted Revenue

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