Current report

Revenue from Contracts with Customers

v3.26.1
Revenue from Contracts with Customers
9 Months Ended 12 Months Ended
Feb. 28, 2026
May 31, 2025
Applied Digital Cloud Corporation [Member]    
Restructuring Cost and Reserve [Line Items]    
Revenue from Contracts with Customers

 

4. Revenue from Contracts with Customers

 

Below is a summary of the Company’s revenue concentration by major customer for the three and nine months ended February 28, 2026 and February 28, 2025, respectively.

 

    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  
Customer A     100 %     100 %     100 %     73 %
Customer B     %     %     %     27 %

 

Deferred Revenue

 

Changes in the Company’s deferred revenue balances for the nine months ended February 28, 2026 and February 28, 2025, respectively, are shown in the following table (in thousands):

 

    February 28, 2026     February 28, 2025  
    Nine Months Ended  
    February 28, 2026     February 28, 2025  
Balance, beginning of period   $ 3,594     $ 31,178  
Advance billings     49,765       54,030  
Revenue recognized     (53,207 )     (71,313 )
Other adjustments           (9,643 )
Balance, end of period   $ 152     $ 4,252  

 

4. Revenue from Contracts with Customers

 

Below is a summary of the Company’s revenue concentration by major customer for the fiscal years ended May 31, 2025 and May 31, 2024:

 

    May 31, 2025     May 31, 2024  
Customer A     77 %     29 %
Customer B     23 %     71 %

 

Deferred Revenue

 

Changes in the Company’s deferred revenue balances for the fiscal years ended May 31, 2025 and May 31, 2024, respectively, are shown in the following table (in thousands):

 

    May 31, 2025     May 31, 2024  
Balance, beginning of period   $ 31,178     $  
Advance billings     66,435       60,135  
Revenue recognized     (84,376 )     (28,957 )
Other adjustments(1)     (9,643 )      
Balance, end of period   $ 3,594     $ 31,178  

 

(1) This adjustment represents deferred revenue associated with a contract that was cancelled during the 2024 fiscal year and repaid during the 2025 fiscal year.