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Leases | 12 Months Ended
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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 |
FY27 |  | 326,340 |
FY28 |  | 372,130 |
FY29 |  | 383,294 |
FY30 |  | 394,793 |
Thereafter |  | 5,206,486 |
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, 2025 |  | May 31, 2024 |  | May 31, 2023
Operating lease cost: |  |  |  |  |
Operating lease expense | $ | 696 |  | $ | 568 |  | $ | 347
Short-term lease expense | 599 |  | 57 |  | 187
Total operating lease cost | 1,295 |  | 625 |  | 534
Finance lease expense: |  |  |  |  |
Amortization of right-of-use assets(1) | 6,929 |  | 5,259 |  | 3,309
Interest on lease liabilities | 1,758 |  | 1,140 |  | 784
Total finance lease cost | 8,687 |  | 6,399 |  | 4,093
Variable lease cost | 232 |  | 169 |  | 3
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 Leases |  | Finance Leases |  | Total
FY26 | $ | 761 |  |  | $ | 13,925 |  | $ | 14,686 |
FY27 | 365 |  |  | 14 |  | 379 |
FY28 | 27 |  |  | 1 |  | 28 |
FY29 | — |  |  | — |  | — |
FY30 | — |  |  | — |  | — |
Thereafter | — |  |  | — |  | — |
Total lease payments | 1,153 |  |  | 13,940 |  | 15,093 |
Less: imputed interest | (80) |  |  | (292) |  | (372) |
Total lease liabilities | 1,073 |  | 13,648 |  | 14,721 |
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, 2025 |  | May 31, 2024
Weighted-average years remaining (in years): |  |  |
Finance leases | 1.1 years |  | 1.7 years
Operating leases | 0.4 years |  | 1.1 years
Weighted-average discount rate: |  |  |
Finance leases | 9.4 | % |  | 8.8 | %
Operating leases | 9.7 | % |  | 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 |
FY27 |  | 326,340 |
FY28 |  | 372,130 |
FY29 |  | 383,294 |
FY30 |  | 394,793 |
Thereafter |  | 5,206,486 |
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, 2025 |  | May 31, 2024 |  | May 31, 2023
Operating lease cost: |  |  |  |  |
Operating lease expense | $ | 696 |  | $ | 568 |  | $ | 347
Short-term lease expense | 599 |  | 57 |  | 187
Total operating lease cost | 1,295 |  | 625 |  | 534
Finance lease expense: |  |  |  |  |
Amortization of right-of-use assets(1) | 6,929 |  | 5,259 |  | 3,309
Interest on lease liabilities | 1,758 |  | 1,140 |  | 784
Total finance lease cost | 8,687 |  | 6,399 |  | 4,093
Variable lease cost | 232 |  | 169 |  | 3
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 Leases |  | Finance Leases |  | Total
FY26 | $ | 761 |  |  | $ | 13,925 |  | $ | 14,686 |
FY27 | 365 |  |  | 14 |  | 379 |
FY28 | 27 |  |  | 1 |  | 28 |
FY29 | — |  |  | — |  | — |
FY30 | — |  |  | — |  | — |
Thereafter | — |  |  | — |  | — |
Total lease payments | 1,153 |  |  | 13,940 |  | 15,093 |
Less: imputed interest | (80) |  |  | (292) |  | (372) |
Total lease liabilities | 1,073 |  | 13,648 |  | 14,721 |
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, 2025 |  | May 31, 2024
Weighted-average years remaining (in years): |  |  |
Finance leases | 1.1 years |  | 1.7 years
Operating leases | 0.4 years |  | 1.1 years
Weighted-average discount rate: |  |  |
Finance leases | 9.4 | % |  | 8.8 | %
Operating leases | 9.7 | % |  | 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.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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