v3.25.2
Leases
 12 Months Ended
May 31, 2025
Leases [Abstract]  
Leases Leases
Lessor Accounting
On May 28, 2025, APLD ELN-02 LLC and APLD ELN-03 LLC, the Company's subsidiaries, each entered into a data center lease with CoreWeave, Inc. (together, the "CoreWeave Leases") to deliver up to an aggregate of 250 MW of infrastructure to host CoreWeave’s HPC operations at Polaris Forge 1. The first lease is for the full capacity of Building 2, our 100 MW data center that is currently under construction and expected to become operational during the calendar year 2025. The second lease is for the full capacity of Building 3, a 150 MW data center that is also under construction and is expected to become operational during the calendar year 2026.
A summary of minimum lease payments due from these leases is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless the Company is reasonably certain it will exercise the
option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below (in thousands):
Minimum Contracted Payments
FY26$81,156 
FY27326,340 
FY28372,130 
FY29383,294 
FY30394,793 
Thereafter5,206,486 
Total$6,764,199 
Lessee Accounting
The Company enters into leases for equipment and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions, with the liabilities split between current and long-term, respectively.
Components of lease expense were as follows (in thousands):
May 31, 2025May 31, 2024May 31, 2023
Operating lease cost:
Operating lease expense$696$568$347
Short-term lease expense59957187
Total operating lease cost1,295625534
Finance lease expense:
Amortization of right-of-use assets(1)
6,9295,2593,309
Interest on lease liabilities1,7581,140784
Total finance lease cost8,6876,3994,093
Variable lease cost2321693
Sublease Income—(70)(103)
Total net lease cost$10,214$7,123$4,527
(1)    Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the consolidated statements of operations.
The following table represents the Company’s future minimum lease payments as of May 31, 2025 (in thousands):
Operating LeasesFinance LeasesTotal
FY26$761 $13,925$14,686 
FY27365 14379 
FY2827 128 
FY29— —— 
FY30— —— 
Thereafter— —— 
Total lease payments1,153 13,94015,093 
Less: imputed interest(80)(292)(372)
Total lease liabilities1,07313,64814,721 
Less: Current portion of lease liability(692)(13,633)(14,325)
Long-term portion of lease liability$381 $15$396 
Supplemental cash flow and other information related to leases is as follows:
Fiscal Year Ended
May 31, 2025May 31, 2024
Weighted-average years remaining (in years):
Finance leases1.1 years1.7 years
Operating leases0.4 years1.1 years
Weighted-average discount rate:
Finance leases9.4 %8.8 %
Operating leases9.7 %10.0 %
The Company has entered into leases which are executed but not yet commenced with total minimum payments of approximately $16.6 million. The payments are for various leases with terms of 2 years.
Leases Leases
Lessor Accounting
On May 28, 2025, APLD ELN-02 LLC and APLD ELN-03 LLC, the Company's subsidiaries, each entered into a data center lease with CoreWeave, Inc. (together, the "CoreWeave Leases") to deliver up to an aggregate of 250 MW of infrastructure to host CoreWeave’s HPC operations at Polaris Forge 1. The first lease is for the full capacity of Building 2, our 100 MW data center that is currently under construction and expected to become operational during the calendar year 2025. The second lease is for the full capacity of Building 3, a 150 MW data center that is also under construction and is expected to become operational during the calendar year 2026.
A summary of minimum lease payments due from these leases is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless the Company is reasonably certain it will exercise the
option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below (in thousands):
Minimum Contracted Payments
FY26$81,156 
FY27326,340 
FY28372,130 
FY29383,294 
FY30394,793 
Thereafter5,206,486 
Total$6,764,199 
Lessee Accounting
The Company enters into leases for equipment and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions, with the liabilities split between current and long-term, respectively.
Components of lease expense were as follows (in thousands):
May 31, 2025May 31, 2024May 31, 2023
Operating lease cost:
Operating lease expense$696$568$347
Short-term lease expense59957187
Total operating lease cost1,295625534
Finance lease expense:
Amortization of right-of-use assets(1)
6,9295,2593,309
Interest on lease liabilities1,7581,140784
Total finance lease cost8,6876,3994,093
Variable lease cost2321693
Sublease Income—(70)(103)
Total net lease cost$10,214$7,123$4,527
(1)    Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the consolidated statements of operations.
The following table represents the Company’s future minimum lease payments as of May 31, 2025 (in thousands):
Operating LeasesFinance LeasesTotal
FY26$761 $13,925$14,686 
FY27365 14379 
FY2827 128 
FY29— —— 
FY30— —— 
Thereafter— —— 
Total lease payments1,153 13,94015,093 
Less: imputed interest(80)(292)(372)
Total lease liabilities1,07313,64814,721 
Less: Current portion of lease liability(692)(13,633)(14,325)
Long-term portion of lease liability$381 $15$396 
Supplemental cash flow and other information related to leases is as follows:
Fiscal Year Ended
May 31, 2025May 31, 2024
Weighted-average years remaining (in years):
Finance leases1.1 years1.7 years
Operating leases0.4 years1.1 years
Weighted-average discount rate:
Finance leases9.4 %8.8 %
Operating leases9.7 %10.0 %
The Company has entered into leases which are executed but not yet commenced with total minimum payments of approximately $16.6 million. The payments are for various leases with terms of 2 years.