What Applied Digital Corp. told the SEC could break it.

Applied Digital's data-center hosting revenue is extremely concentrated: four customers were 100% of FY2025 revenue, one customer alone was 93%, and as of the filing it has only one customer in that segment.

“During fiscal year 2025, this business segment was comprised of four customers accounting for 100% of our revenue from continuing operations. One of such customers accounted for 93% of our revenue during fiscal year 2025. No other customers accounted for more than 10% of revenue. As of the date of this report, we have only one customer in this business segment.”

Electricity is Applied Digital's primary input cost for its data centers and crypto-hosting (alongside supplies and equipment); power-price volatility directly affects results (partly hedged via fixed-price power contracts).

“The commodities most likely to have an impact on our results of operations in the event of price changes are electricity, supplies and equipment used in our data centers.”

Applied Digital's data centers and operations are concentrated in North Dakota (Jamestown, Ellendale), exposing it to that state's regulatory framework, market conditions and natural disasters.

“We have concentrated our operations in the state of North Dakota and, thus, are particularly exposed to the regulatory framework and changes in the regulatory environment, market conditions and natural disasters in that state.”

Applied Digital's data-center buildout (Polaris Forge 1) needs significant electrical-infrastructure components, specialized electricity-distribution equipment and construction raw materials that may be hit by recently imposed U.S. import tariffs and foreign retaliatory measures.

“Developing Polaris Forge 1 demands significant electrical infrastructure components and construction raw materials, including some that may be impacted by tariffs.”

Applied Digital relies on a limited number of vendors for data-center products and services, with some contracts providing a single source of materials; a key supplier's failure could significantly delay its data-center development and operations.

“we rely on a limited number of vendors for certain products and services for our data center facilities, and some of our contracts provide a single source of materials. If any of our key suppliers cannot perform under their contracts or satisfy our orders, it could significantly delay our data center development and operations.”