Current report

Leases (Tables)

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 %