v3.26.1
Business Segments
 9 Months Ended 12 Months Ended
Feb. 28, 2026
May 31, 2025
Applied Digital Cloud Corporation [Member]    
Restructuring Cost and Reserve [Line Items]    
Business Segments

 

8.Business Segments

 

The Company is currently organized and operates as one operating and reportable segment on a consolidated basis. The Company’s chief executive officer, who is its chief operating decision maker (“CODM”), evaluates the performance of the Company’s operating segment based on revenue and profit (loss) and is not provided with information regarding total assets by segment.

 

The following tables presents reco nciliation to net loss before income tax expense (in thousands):

 

   February 28, 2026   February 28, 2025   February 28, 2026   February 28, 2025 
   Three Months Ended   Nine Months Ended 
   February 28, 2026   February 28, 2025   February 28, 2026   February 28, 2025 
Revenue  $18,087   $17,754   $53,207   $71,313 
Less:                    
Depreciation and amortization costs   15,191    14,404    44,641    66,355 
Lease and related costs   6,598    20,574    20,370    39,025 
Adjusted cost of revenues (1)   2,920    2,810    7,989    8,856 
Adjusted selling, general and administrative (1)   3,860    281    4,529    (988)
Loss on abandonment of assets   107    —    598    — 
Total operating expenses   28,676    38,069    78,127    113,248 
Operating loss   (10,589)   (20,315)   (24,920)   (41,935)
Interest expense, net   2,058    4,541    7,897    13,444 
Net loss before income tax expense  $(12,647)  $(24,856)  $(32,817)  $(55,379)

 

(1)Excludes depreciation and amortization costs and lease and related costs.

 

9.Business Segments

 

The Company is currently organized and operates as one operating and reportable segment on a consolidated basis. The Company’s chief executive officer, who is its chief operating decision maker (“CODM”), evaluates the performance of the Company’s operating segment based on revenue and profit (loss), and is not provided with information regarding total assets by segment.

 

The following table presents a reconciliation to net loss before income tax expense (in thousands):

 

   May 31, 2025   May 31, 2024 
   Fiscal Year Ended 
   May 31, 2025   May 31, 2024 
Revenue  $84,376   $28,957 
Less:          
Depreciation and amortization costs   80,656    57,884 
Lease and related costs   38,567    18,727 
Adjusted cost of revenues (1)   11,901    5,021 
Adjusted selling, general and administrative (1)   8,997    12,811 
Gain on abandonment of assets   (414)   — 
Total operating expenses   139,707    94,443 
Operating loss   (55,331)   (65,486)
Interest expense, net   17,399    9,809 
Net loss before income tax expense  $(72,730)  $(75,295)

 

(1)Excludes depreciation and amortization costs and lease and related costs.