v3.26.1
Leases (Tables) - Applied Digital Cloud Corporation [Member]
 9 Months Ended 12 Months Ended
Feb. 28, 2026
May 31, 2025
Restructuring Cost and Reserve [Line Items]    
Schedule of Components of Lease Expense

Components of lease expense were as follows (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 
Operating lease cost:                    
Operating lease expense  $6,078   $9,715   $18,234   $27,250 
Short-term lease expense   —    10,129    183    10,129 
Total operating lease cost   6,078    19,844    18,417    37,379 
Finance lease expense:                    
Amortization of right-of-use assets(1)   13,548    13,909    41,945    64,991 
Interest on lease liabilities   2,049    4,514    7,889    12,959 
Total finance lease cost   15,597    18,423    49,834    77,950 
Variable lease cost   520    731    1,953    1,647 
Total net lease cost  $22,195   $38,998   $70,204   $116,976 

 

(1)Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the unaudited condensed combined statements of operations.

Components of lease expense were as follows (in thousands):

 

   May 31, 2025   May 31, 2024 
Operating lease cost:          
Operating lease expense  $36,068   $16,132 
Short-term lease expense   122    — 
Total operating lease cost   36,190    16,132 
Finance lease expense:          
Amortization of right-of-use assets(1)   78,724    57,230 
Interest on lease liabilities   16,826    9,457 
Total finance lease cost   95,550    66,687 
Total net lease cost  $131,740   $82,819 

 

(1)Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the combined statements of operations.
Schedule of Future Minimum Lease Payments

The following table represents the Company’s future minimum lease payments as of February 28, 2026:

 

   Operating Leases   Finance Leases   Total 
   Operating Leases   Finance Leases   Total 
FY26  $5,293   $14,583   $19,876 
FY27   21,798    51,055    72,853 
FY28   22,623    10,967    33,590 
FY29   17,152    —    17,152 
FY30   3,536    —    3,536 
Thereafter   —    —    — 
Total lease payments   70,402    76,605    147,007 
Less: imputed interest   (7,811)   (5,330)   (13,141)
Total lease liabilities   62,591    71,275    133,866 
Less: Current portion of lease liability   (17,606)   (50,777)   (68,383)
Long-term portion of lease liability  $44,985   $20,498   $65,483 

The following table represents the Company’s future minimum lease payments as of May 31, 2025 (in thousands):

 

   Operating Leases   Finance Leases   Total 
   Operating Leases   Finance Leases   Total 
FY26  $21,033   $140,296   $161,329 
FY27   21,798    —    21,798 
FY28   22,623    —    22,623 
FY29   17,152    —    17,152 
FY30   3,536    —    3,536 
Thereafter   —    —    — 
Total lease payments   86,142    140,296    226,438 
Less: imputed interest   (11,629)   (6,889)   (18,518)
Total lease liabilities   74,513    133,407    207,920 
Less: Current portion of lease liability   (16,093)   (133,407)   (149,500)
Long-term portion of lease liability  $58,420   $—   $58,420 
Schedule of Supplemental Cash Flow and Other Information Related to Leases

Supplemental cash flow and other information related to leases is as follows:

 

   Nine Months Ended 
   February 28, 2026   February 28, 2025 
Weighted-average years remaining (in years):          
Operating leases   2.6 years    3.2 years 
Finance leases   2.3 years    3.0 years 
           
Weighted-average discount rate:          
Operating leases   7.6%   7.6%
Finance leases   9.8%   10.0%

Supplemental cash flow and other information related to leases is as follows:

 

   Fiscal Year Ended 
   May 31, 2025   May 31, 2024 
Weighted-average years remaining (in years):          
Finance leases   3.0 years    3.9 years 
Operating leases   3.3 years    3.3 years 
           
Weighted-average discount rate:          
Finance leases   10.2%   10.4%
Operating leases   7.6%   8.1%