Applied Digital’s second quarter results were met with a positive market response, as management highlighted new long-term lease agreements and a refined operational focus. CEO Wes Cummins pointed to the transformative 15-year leases with CoreWeave for the Polaris Forge 1 campus as a pivotal driver, positioning the company as a leader in AI and high-performance computing infrastructure. The company also emphasized progress in optimizing data center build processes, reducing build times, and consolidating suppliers to streamline delivery. These strategic developments, rather than headline financial metrics, shaped investor sentiment this quarter.

Is now the time to buy APLD? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Applied Digital’s Q2 Earnings Call

• Nicholas Giles (B. Riley Securities) asked about the development cadence for new campuses in 2026. CEO Wes Cummins said ground will be broken on one, possibly two, additional campuses before year-end, with work already underway.
• Nicholas Giles (B. Riley Securities) inquired about the timing for finalizing project financing. Cummins and CFO Saidal Mohmand cited seasonal industry slowdowns and reliance on third-party consultants as the main variables affecting a 4–10 week window.
• Robert Duncan Brown (Lake Street Capital Markets) pressed for details on advanced negotiations with a new hyperscaler. Cummins confirmed the customer is an investment-grade North American hyperscaler, with several others in ongoing discussions, but withheld specific details.
• Michael John Grondahl (Northland Securities) sought clarity on project financing terms for CoreWeave-related buildings. Mohmand explained terms are in line with industry standards for investment-grade tenants, including loan-to-cost ratios around 70% and interest rates in the high 2% to low 4% range.
• Darren Paul Aftahi (ROTH) questioned the aggressiveness of the 12-month build timeline and potential penalties for delays. Cummins detailed process improvements and confirmed standard late delivery penalties exist in lease contracts.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be monitoring (1) the pace and timing of project financing and campus buildouts, particularly at Polaris Forge 1; (2) the progress of negotiations and onboarding with additional hyperscale tenants across North Dakota and other regions; and (3) any strategic decisions regarding the Cloud Services business. Execution on these fronts will be critical for Applied Digital’s ability to scale revenue and margin expansion.

Applied Digital currently trades at $14.85, up from $10.02 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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