Applied Digital Corporation

Good afternoon and welcome to Applied Digital's fiscal fourth quarter 2026 conference call. My name is Pascale Behrman and I will be your operator today. Before this call, Applied Digital issued its financial results for the fiscal fourth quarter ended May 31st, 2026 in a press release, a copy of which has been furnished in a report on Form 8K filed with the Securities and Exchange Commission, or SEC, and will be available in the Investor Relations section of the company's website. Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins, and CFO, Saidal Mohmand. Following their remarks, we will open the call for questions. Before we begin, Matt Glover from Gateway Group will make a brief introductory statement. Mr. Glover, you may begin.

Thank you, operator. Hello, everyone, and welcome to Applied Digital's fiscal fourth quarter 2026 conference call. Before management begins formal remarks, we'd like to remind everyone that some statements we are making today may be considered poor looking statements under the securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the poor looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC. We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to the applicable GAAP measures in our earnings release carefully as you consider these metrics. We refer you to our filings of the SEC for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified, captioned risk factors in our annual report on Form 10-K and our quarterly reports on Form 10-Q. You may access Applied Digital's SEC filings for free by visiting the SEC website at www.sec.gov. I'd like to also remind everyone that this call is being recorded. and made available for replay via link in the IR section of Applied Digital's website. Now I'd like to turn the call to Applied Digital's Chairman and CEO, Wes Cummins. Wes.

Thanks, Matt, and good afternoon, everyone. Thank you for joining our fiscal fourth quarter 2026 earnings conference call. This was a defining quarter for Applied Digital, happening a transformational year for the company. We signed leases for five campuses, including three in just the past four months. We created $36 billion of total contracted long-term lease value and approximately $20 billion of that in the last quarter. This represents a 125% increase in contracted lease value underpinned by 1.41 gigawatts of contracted critical IT load for all campuses. As previously mentioned, we recently signed three new campuses, Delta Forge 1, Polaris Forge 3, and Delta Forge 2 with the same high investment grade hyperscaler. These campuses span three states across two distinct regions of the country. Delta Forge 1 and Polaris Forge 3 are each approximately $7.5 billion in base term contracted lease revenue. And Delta Forge 2 adds approximately $5.2 billion, together representing approximately $20 billion in long term contracted revenue from a single world class customer. Over the course of the year, we delivered 100 megawatts of Polaris Forge 1 on time and on budget. We also achieved strong financial results, which you will hear about in a few moments. Just as importantly, we deepened our partnerships with local communities, building trust, making lasting investments, and helping improve residents' quality of life. We are currently constructing five multi-billion dollar AI factory campuses for three separate hyperscalers at a scale we believe speaks full to the quality of our platform and to the trust these customers place in our ability to execute. We achieved this kind of scale by leveraging our proprietary data center design and world-class supply chain to efficiently replicate our builds across a diverse set of geographies and climate conditions. At the center of our approach is what we call our franchise model. When we begin development at a new campus, we establish the same core group of approximately 15 to 20 leadership positions. each reporting directly to headquarters. This repeatable operating structure combined with the strength of our supply chain and our status as an approved supplier with every major hyperscaler positions us to deliver a platform that is both differentiated and scalable. We believe this model is one of the key reasons we have emerged as a clear leader in the industry. Together, we believe these capabilities provide a strong foundation for creating significant long-term value to our customers, shareholders, and communities we serve. I'm even more excited about our pipeline beyond the 1.41 gigawatts currently under construction, particularly as rental rates have moved higher over the past six months. We are actively marketing an additional 1.7 gigawatts across multiple states and expect this new capacity to command higher pricing. We're seeing demand not only for entirely new campuses, but also for additional capacity at our existing locations. We are currently in advanced negotiations with two existing investment grade customers to finalize leases associated with their respective expansion options for approximately 100 megawatts and 150 megawatts at these locations. We expect these expansion leases to be executed on substantially the same terms as the customer's current lease agreements, but at materially higher lease rates than existing leases and possibly longer duration. If executed, decreases would bring our total capacity to 1.66 gigawatts and over $6 billion of additional contracted revenue based on existing rates and duration. We expect the ultimate amount to be even greater, reflecting the anticipated higher rates and potentially longer duration. Importantly, we believe the opportunity extends beyond simply adding contracted megawatts. As we continue to expand our platform, we see an opportunity to increase operating leverage through premium pricing as well as further diversifying our customer base across both our existing and future campuses. As it relates to our power pipeline, I'm especially excited about our strategy and our work with Base Electron, an independent power producer collaborating with Babcock and Wilcox, the regional utilities and regional utilities to develop roughly 1.2 gigawatts of front of the meter natural gas power generation in the Dakotas. We're seeking to position our shareholders to benefit from Base Electron's success as we currently own approximately 10% of the company. However, we believe that even more compelling opportunity is the power itself. which is the single most valuable and constrained resource in our industry. This generation is expected to unlock expansion at existing campuses, enable the development of new ones and deepen our access to one of the country's most advantage energy regions. North Dakota's Bakken Shale is among the most abundant low cost energy sources in the United States. Combined with the region's naturally cool climate and business friendly environment, we believe the region is exceptionally well suited for data center development. Our core belief This combination creates a significant competitive advantage and a barrier to entry that is very difficult to replicate. We believe that if we continue to build the power that hyperscalers will continue to come to our regions. Turning to execution. Last fall we delivered our first 100 megawatts at Polaris Forge One on time and just recently we delivered 75 additional megawatts at the same campus again on schedule. On-time delivery is a meaningful differentiator in the industry and we strongly believe our track record sets us apart from our competitors. Industry data shows roughly 90% of industry-wide projects costing more than $1 billion are delivered late or over budget. We are proud to be among the remaining 10% category and are committed to maintaining that performance. Today, all of our construction projects are on time and on budget. According to our data center hosting business, this segment provides energized space for Bitcoin mining across our two sites in North Dakota. It continues to perform well and remains the highest return on asset business in our portfolio. Importantly, we are paid based on the data center capacity provided to our customers, so as long as they are mining, we are paid regardless of where the price of Bitcoin trades, which makes this a steady high margin source of cash flow. Turning to ChronoScale. During the quarter, we completed the separation of our cloud business, which began trading on NASDAQ under the ticker CHRN in early May. Applied Digital currently holds 96% ownership, so our shareholders continue to participate in the upside of that business as it seeks to scale independently as a dedicated accelerated compute platform. ChronoScale has already made meaningful progress building out its leadership team, most notably the point of Raj as Chief Technology Officer. Raj joins. after more than 13 years at Tesla where he served as vice president reporting directly to Elon Musk and led a broad portfolio spanning AI infrastructure and one of the largest GPU clusters in the world. Chronoscale also named Lawrence Lam who brings more than 20 years of scaling global cloud and AI platforms at companies including Supermicro as chief product officer. We believe attracting talent of this caliber underscores the scale of the opportunity in front of Chronoscale as an independent company. During the quarter, ChronoScale extended the customer contract at higher pricing for its deployed fleet of GPUs. The company also began demonstrating its secure enterprise environment to select partners. The company's platform allows enterprises to deploy AI in a secure, controlled environment regardless of whether the data resides on-premise or at one of several large cloud providers. The platform supports a multitude of AI models allowing partners to choose which is best for their enterprise. In addition to the enterprise cloud, Kronoscale is also pursuing multiple large reserve contract opportunities that, if secured on favorable terms, will allow the company to deploy hundreds of megawatts of compute on a tapered paid long-term contract. With that, I'll turn the call over to our CFO, Saidal Mohmand, for a detailed review of the financials.