Applied Blockchain, Inc. (APLD) on Q4 2025 Results - Earnings Call Transcript

Operator: Good afternoon, and welcome to the Applied Digital's Fiscal Fourth Quarter 2025 Conference Call. My name is John, and I will be your operator today. Before this call, Applied Digital issued its financial results for the fiscal fourth quarter ended May 31, 2025. In a press release, a copy of which has been furnished in a report on -- in a Form 8-K filed with the SEC and will be available in the Investor Relations Section of the company's website. Joining us on today's call are Applied digital's Chairman and CEO, Wes Cummins; and CFO, Saidal Mohmand. Following their remarks we will open the call for questions. Before we begin, Matt Glover from Gateway Group will make a brief introductory statement. Mr. Glover, you may begin. Matt Glover: Thank you, operator. Hello, everyone, and welcome to Applied Digital's Fiscal Fourth Quarter 2025 Conference Call. Before management begins formal remarks, we'd like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control that could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties and assumptions related to our forward-looking statements, please see the disclosures and earnings release and public filings made with the Securities and Exchange Commission or SEC. We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We also discuss non-GAAP financial measures and encourage you to read our disclosures and the reconciliation tables to the applicable GAAP measures and earnings release carefully as you consider these metrics. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified in the Risk Factors Section of our annual report on Form 10-K and our quarterly reports on Form 10-Q. You may access Applied Digital's SEC filings for free by visiting the SEC website at www.sec.gov. I'd like to remind everyone that this call is being recorded and will be available for replay via link available in the Investor Relations Section of Applied Digital's website. Now I'd like to turn the call over to Applied Digital's Chairman and CEO of Wes Cummins. Wes? Wesley Cummins: Thanks, Matt, and good afternoon, everyone. Thank you for joining our fourth quarter 2025 conference call. I want to start by expressing gratitude to our employees for their continued hard work and service in supporting our mission of providing purpose-built infrastructure to the rapidly growing high-performance compute industry. Before turning the call over to our CFO, Saidal Mohmand, for a detailed review of our financial results, I'd like to share some recent developments across our business. Let me start with an update on our HPC data center hosting segment. During the quarter, we signed a transformative 15-year lease agreements with CoreWeave, the AI hyperscaler to deliver 250 megawatts of critical IT load at our Ellendale, North Dakota campus now named Polaris Forge 1. These agreements are expected to generate approximately $7 billion in contracted revenue over the lease terms and to position Applied Digital as a leader in AI and HPC infrastructure. Last week, CoreWeave exercised their option for an additional 150 megawatts in a third building at Polaris Forge 1, underscoring the campus' potential as a scalable hub for next-generation AI workloads. These long-term leases mark a defining moment for Polaris Forge 1, one of North America's most ambitious data center projects. Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt. With the first 100-megawatt facility scheduled to be operational in Q4 of 2025, the second 150-megawatt facility coming online in mid-2026, and the third 150-megawatt facility planned for 2027. Polaris Forge 1 serves as a launch pad for the future of AI infrastructure, and we believe validates our vision to deliver reliable, power dense solutions and become a category leader in designing and building AI factories. Building on the momentum from these leases and the surging demand for AI infrastructure, we're actively marketing our multi- gigawatt pipeline to a diverse group of customers. We believe 1 of our key strengths over the past 2 years has been refining our process by reducing the number of SKUs by approximately 50% and consolidating our suppliers. We believe our proprietary building design offers greater flexibility, and we've developed a repeatable process with minimal customization supported by a strong supply chain. As a result, we believe we've reduced our projected build times from 24 months to 12 to 14 months, allowing us to deliver on large-scale commitments faster and more efficiently than before. At the same time, we're highlighting the many advantages of building in the Dakotas, along with our unique design that features an innovative closed-loop direct-to-chip liquid cooling system. This design seeks to achieve a projected PUE of 1.18 and near 0 water consumption intended to ensure exceptional efficiency and sustainability. We like this location for its abundant low-cost synergy, some of which is generated from stranded power with over 200 days of free natural cooling. We have calculated that 100-megawatt data center customer could save up to $2.7 billion over a 30-year period as compared to the current industry data centers in other regions. Our strategic decisions in location and design are intended to position us to grow dramatically within the Dakotas and across other regions within our pipeline. Besides CoreWeave, we have completed the diligence and onboarding process with 2 other investment- grade North American hyperscalers. This is an accomplishment that cannot be overstated. We have learned over the past 2 years that the onboarding internal approval and contracting process with hyperscalers is longer and more complex than originally anticipated. We believe that the market leading experience game from this process and signing our first leases will benefit us as we continue to engage potential tenants and execute on our pipeline. We also expect to benefit from this competitive advantage as new entrants to the market confront time, money and effort it takes to overcome these industry syncretic barriers to entry for other players. We also, for us, we feel we are now in a position to do business with these companies in the future with a much shorter negotiating and contracting completion process. In fact, we are currently in various stages of negotiation with several investment-grade hyperscalers for large capacity campuses other than our Polaris Forge 1 campus with 1 of those negotiations being in an advanced stage. Given our past experience, we know these large and complex lease agreements require multiple levels of approval making it difficult to determine when and if any of them will be finalized. Now turning to our Data Center Hosting business. We currently operate 286 megawatts of fully contracted data center hosting capacity for our cryptocurrency customers across 2 locations in North Dakota. Bitcoin prices remain strong, which is positive for our customers, and we remain optimistic about the business and its future prospects. Next, let's discuss our Cloud Services business, which provides high-performance computing infrastructure for AI applications. As announced on our prior quarterly call, our Board of Directors determined that we would be reviewing strategic alternatives for this business. This process is ongoing, and we will provide an update as soon as we have more details to share with shareholders. With that, I will now turn the call over to our CFO, Saidal Mohmand, to walk through our financials. Saidal? Mohammad Saidal L. Mohmand: Thanks, Wes, and good afternoon, everyone. Now that we've signed leases for Polaris Forge 1, we're actively working with our financing partners to finalize the project financing for these data centers, which we expect to occur over the next 4 to 10 weeks. Since the end of the quarter, we've raised approximately $270 million between our ATM and Series G preferred stock. Combined with the significant equity we already have in the campus, we believe this puts us in a very strong position as we seek to wrap up the new financing package. Now let's turn to the quarter. Please note that unless otherwise specified, the figures we are about to discuss reflect continuing operations only and exclude the Cloud Services business. Revenues for the fiscal fourth quarter of 2025 were $38 million, up 41% year-over-year over the prior comparable period. This increase was driven predominantly by an increase of capacity online in our Data Center Hosting Business. Cost of revenues increased $7.5 million to $30.2 million from the prior comparable period. This increase was also driven by an increase of capacity online in our Data Center Hosting businesses. SG&A expense increased $15 million to $28.1 million. The increase was driven by the company's overall business growth, which included an increase of $9.4 million in stock-based compensation due to an accelerated vesting of certain employee stock awards and expenses related to the PSUs. $3.4 million of personnel expense also increased, largely driven by increases in head count to support the business and $2.3 million of other expenses, mainly software expenses and insurance premiums. This quarter, our depreciation and amortization expense increased to $4.1 million compared to $3.6 million in the same period in 2024. Interest expense decreased $9.3 million to $4.5 million. Net loss attributable to common stockholders was $26.6 million or $0.12 per basic and diluted share. The adjusted net loss attributable to common stockholders was $7.6 million or $0.03 per diluted share. Our adjusted EBITDA was $1 million for the quarter, and we provided a reconciliation for these metrics in the press release released earlier today. Moving to our balance sheet. We ended the fiscal fourth quarter with $120.9 million of cash, cash equivalents and restricted cash, along with $688.2 million in debt. As noted earlier, this does not include the additional $268.9 million in proceeds from our ATM and Series G preferred stock offering that occurred post quarter. Turning to guidance. We historically have not provided specific forward-looking guidance. However, given some of the near-term dynamics related to the core releases, we will provide some directional guidance for the next quarter. We expect revenue to increase significantly sequentially, beginning in the quarter ending for August 2025 due to the technical fit out of our first Polaris Forge 1 building. Note, our customer pays the cost of this fit-out with a small margin to the company. This fit-out revenue will largely be recognized in both the current fiscal quarter and as well as the quarter ending November 30, 2025. Now this is before the actual lease revenue for the facility begins to be recognized. With that, I'll turn over the call to Wes for closing remarks. Wesley Cummins: Over the past 2 years, we've sought to build strong relationships with nearly all major hyperscalers and demonstrated our advanced building capabilities by passing what we believe is some of the most rigorous technical due diligence and processes imposed by them in the industry. As a result, we've established relationships with several hyperscalers, which should position us for future projects. With the CoreWeave lease, we believe we're now roughly halfway toward our internal goal of generating $1 billion in annual net operating income over the next 5 year -- over the next 3 to 5 years. We feel confident this is achievable, thanks to what we believe to be our competitive advantages for our multi-gigawatt pipeline, proven design and construction expertise and strong relationships with hyperscalers who appear to be more active than ever in pursuing land, power and data center capacity. Overall, we see this as just the beginning for Applied Digital as we help drive the future of AI and high-performance computing infrastructure, and we remain very optimistic about the road ahead. We welcome your questions at this time. Operator? Operator: [Operator Instructions] Your first question comes from the line of Nick Giles from B. Riley Securities. Nicholas Giles: My first question was just how we should think about development cadence over the course of 2026. And just wondering if there's a window where you could be breaking ground on a second campus or would this be more of a 2027 groundbreaking on a site other than [ Pigeon Forge ]? Wesley Cummins: Nick. We do expect to break ground and work has already started for that on 1 additional campus and potentially 2 before the end of this year. Nicholas Giles: Got it. Okay. Maybe just my second question would be, I think you provided a range on the financing for 4 to 10 weeks. So I was just curious if you could add any additional color. What would be the largest gating items at this point? Or what could ultimately take you to either end of that range? Wesley Cummins: I'll say something first, Nick, and then turn it to at Saidal. But I think the biggest gating item in my mind right now in the process is just how things generally slow down in the last part of August before they turn back on in September in the industry in general. And then I'll turn it over to Saidal for any comments you would like to make. Mohammad Saidal L. Mohmand: I think that's fair, Wes. I would also add, you also relying on professional service providers think about consultants who will provide construction reports as well as just lawyers can do documents and turning documents. So that can always add some lag, but we have a good team as well as a great identified lead banking partner who's both incentivized to get this done on an expedited time frame given there's a lot to do. People are excited in the space in general. Operator: Your next question comes from the line of Rob Brown from Lake Street Capital Markets. Robert Duncan Brown: Congratulations on all the progress. You talked about 1 customer being in advanced negotiations and part of your large pipeline, but -- could you give us a sense of -- is this the customer that you've gotten through a lot of the onboarding work and it's really down to the contract negotiation at this point? Or just give us a sense of where that's at. Wesley Cummins: Yes. So there's -- we don't want to give a lot of detail on it, Rob, from -- to identify the customer, but it is an investment-grade North American hyperscaler that we're in advanced negotiations with. So that's a pretty small group. And -- but we're having ongoing discussions with 4, 5, 6 of the hyperscalers for the campuses that we're working on both in the Dakotas and outside of the Dakotas. But I would say that things have accelerated from that perspective, just in the market in general in the past month. Robert Duncan Brown: Yes. Okay. Great. And then on the Ellendale facility, I think you're doing fit out sort of starting this coming quarter. just what's left to complete on that building? Or is it really just getting the fit-out and the customer started to load in the facility? Wesley Cummins: Yes. It's mostly fit-out, which is underway. And then the customer will bring gear on-site and cabling and racking and cabling, and that's really what's left and the expectation is in calendar Q4 of this year that, that will start to ramp up in kind of October through November. Operator: Your next question comes from the line of Mike Grondahl from Northland Securities. Michael John Grondahl: Congratulations on the 150-megawatt options signed by CoreWeave. And related to the first $250 million from CoreWeave the 100- megawatt building and the 150-megawatt building. How are terms looking on that project financing? Are those kind of coming in with how you expected? Any color you could give us there? Wesley Cummins: Yes. They're largely coming in as expected. I'll let Saidal give any details that he wants to give on that, but it's largely for me as expected. Mohammad Saidal L. Mohmand: Yes, correct. And I think this is, call it, known within the industry for similar financings for this type of tenant. Think about it's your investment grade, you're somewhere in the high 2s, think about it, low [indiscernible] plus low 4s is generally where the cost is coming for this type of tenant as well as loan-to-cost or LTC's in the 70% range. That is what we're seeing in the market, and it's becoming somewhat universal. Michael John Grondahl: Got it. And then thinking of the 100 megawatts, then the 150 and then the second 150, do you have rough go-live dates for each of those buildings? Wesley Cummins: Yes. The -- so the first 100, as we mentioned, is Q4 of this year and then mid-26 for the second building, the 150 and then first half of '27 for the following 150. And Rob -- sorry, Mike, these are in calendar quarters. Michael John Grondahl: Got it. So that -- but that continues to progress well? Wesley Cummins: Yes. Operator: Your next question comes from the line of Darren Aftahi from ROTH. Darren Paul Aftahi: Congrats as well. A question on Building 2. I know you said you guys have already broken ground, and I know you've invested a lot of money for the campus in general. The time frame looks like it's 12 months from now, plus or minus. I guess, -- is that an aggressive time frame? And if there's any slippage? Are you penalized in terms of a credit against the lease? Or just kind of help me if you're a month or 2 late on that with CoreWeave, how that kind of works out. And then my second question, there's a lot of commentary in the release and your white paper that you wrote about the Dakotas. I'm just kind of curious, beyond South Dakota -- are you more partial to looking at places where PUEs are super attractive, maybe than like Southern part of the United States. Any color on that would be helpful. Wesley Cummins: Sure, Darren. So on Building 2, I -- we got the most recent pictures from the campus today that the building is actually being erected now. So there's been a significant amount of work done already from foundation and dirt work. So the building is actually going up, and it's going up quickly and feel great about that time line, as I mentioned in the script, we've worked really hard, and the team has worked really hard over the past year streamlining what we do. And so we significantly reduced the number of components, the difference suppliers. So that we have a very repeatable streamlined process, it's designed to be deployed in about half of the time that we did Building 1. There's a lot of learning for us in Building 1 and some -- and a design that's much more flexible as well. So a higher liquid air mix. So the different tenants require different liquid air mixes, but -- and then also designed to lower cost as well. So feel good about where that is, especially we're in the middle of the summer there and the building is already going up, so will be enclosed for construction and fit out in the winter. And -- but there are just standard lease, there are late delivery penalties for us. And then to your point on other campuses, it's not exclusively the Dakotas. We feel really good in North Dakota. We have the site in South Dakota we've been working on, but we have multiple campuses, large campuses in North Dakota. We have workforce there. We have a GC there that we worked really well with. And so we're really comfortable with all of the pieces of the puzzle of North Dakota. And then obviously, the fiber with the new line coming through as well, really enhancing the fiber connectivity in the state. But we have other sites mostly in MISO, but that go really all the way to the southern part of the country as well. But we're primarily focused in North Dakota right now. Operator: [Operator Instructions] Your next question comes from the line of George Sutton from Craig Hallum. George Frederick Sutton: Mike, congrats as well. So Wes, you mentioned that the hyperscalers are more active than ever. And I'm curious because some of them are seeming to want to own their own infrastructure. Are we talking about scenarios where you would own the campus like Ellendale? Or are we talking in some cases about powered shells? Wesley Cummins: No. And thanks for the congrats. Right now, we're very focused on full stack. So we want to own the full building we want to do operations, and that's really all of the negotiations and the interest that we're fielding. There is a preference and there always has been with hyperscalers that do self-build or powered shell. And then when conditions are tight, they typically do colo agreements like the ones that we have and the ones that we're seeking to have in the future. But right now, George, we're really sticking with the full stack colo versus powered shell. I don't -- it might be interesting for us if we blended a campus with some full stack and some powered shell. But right now, I don't have a lot of interest in just the powered shell. I don't think it's necessarily a great business model as a public company, maybe more so as a private company on the powered shell side. George Frederick Sutton: Great. And then relative to what you're defining as the Dakota advantage. I'm just curious, have you made any progress in South Dakota relative to the sales stack since that's a very key gating item to deals. Wesley Cummins: Yes. We have not, and that's likely something in the next legislative session next year. So we're -- right now, we're focused on another large campus in North Dakota, that's where we're in the advanced negotiations and then a campus in the southern part of the U.S. and MISO as well. Operator: There are no further questions at this time. I will now turn the call over to Wes Cummins. Please continue. Wesley Cummins: Great. Thanks, everyone, for joining, and I look forward to speaking to you in October. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
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Applied Digital Corp (NASDAQ: APLD) Achieves Key Milestone and CFO Sells Shares

  • Applied Digital Corp (NASDAQ:APLD) has reached the Ready for Service milestone at its Polaris Forge 1 AI Factory Campus, indicating significant progress in AI infrastructure.
  • The CFO of Applied Digital sold 37,503 shares at $36.47 per share, yet the company's stock has nearly quadrupled in value over the year despite a recent decline.
  • Applied Digital's growth is supported by a $5 billion infrastructure lease agreement, enhancing its position in the AI infrastructure market.

Applied Digital Corp (NASDAQ: APLD) is a prominent player in the technology sector, focusing on AI-optimized infrastructure. The company has made significant strides in scaling its operations, as evidenced by the recent achievement of the Ready for Service milestone at its Polaris Forge 1 AI Factory Campus in North Dakota. This development underscores Applied Digital's commitment to meeting the growing demand for AI infrastructure.

On October 28, 2025, Mohmand Mohammad Saidal LaVanway, the CFO of Applied Digital, sold 37,503 shares of the company's common stock at $36.47 per share. This transaction, classified as an S-Sale, leaves LaVanway with 121,409 shares. Despite this sale, the company's stock has shown resilience, nearly quadrupling in value over the year, even though it recently experienced a decline of over 20% in the past week.

The broader stock market has seen a remarkable performance in 2025, with the S&P 500 index rising by nearly 15% and the Nasdaq-100 Technology Sector index gaining 42%. Technology stocks, including Applied Digital, have been pivotal in this rally, driven by advancements in AI. Applied Digital's stock, currently priced at $34.33, has fluctuated between $33.63 and $37.17 today, with a market capitalization of approximately $9.6 billion.

Applied Digital's growth prospects are further bolstered by a significant $5 billion infrastructure lease agreement with a U.S.-based hyperscaler. This 15-year lease will enhance the company's total lease capacity to 600 megawatts across its North Dakota campuses. Despite the recent stock price decline, this development positions Applied Digital for sustained expansion in the AI infrastructure market.

The demand for AI chips is improving, as highlighted by TSMC's recent results, and is expected to continue into 2026. Applied Digital's ability to scale its AI infrastructure and secure major lease agreements highlights its potential for growth. For investors with $1,000 in investible cash, Applied Digital presents an attractive opportunity in the technology sector.

Applied Digital Corp (NASDAQ:APLD) Sees Significant Investor Interest Amidst Revenue Surge

  • Rob Brown from Lake Street set a price target of $37 for NASDAQ:APLD, closely aligning with its current trading value.
  • The stock experienced a 31.9% increase following fiscal first-quarter revenue that exceeded expectations, despite a quarterly loss.
  • APLD's stock reached a yearly high of $39.07, with a notable market capitalization of approximately $9.23 billion and a trading volume of 52.54 million shares.

Applied Digital Corp (NASDAQ:APLD) is a company that has recently caught the attention of investors. On October 10, 2025, Rob Brown from Lake Street set a price target of $37 for APLD. At that time, the stock was trading at $37.31, slightly above the target by 0.83%. This indicates a close alignment between the analyst's expectations and the market's valuation of the stock.

The stock has experienced a notable surge, increasing by 31.9% to reach $38.62. This rise is attributed to the company's fiscal first-quarter revenue exceeding expectations. Despite reporting a quarterly loss of 3 cents per share, it was better than the anticipated loss of 13 cents per share. This narrower loss has contributed to positive sentiment around the stock.

APLD's stock is currently priced at $35.28, marking a significant increase of 20.46% with a change of $5.99. The stock has shown volatility, fluctuating between a low of $34.86 and a high of $39.07 today. The high of $39.07 also represents the stock's peak over the past year, while the lowest price in the same period was $3.31.

The company's market capitalization stands at approximately $9.23 billion, reflecting its substantial size in the market. The trading volume today is 52.54 million shares, indicating strong investor interest. The buzz around APLD's AI data center capabilities has likely contributed to this heightened activity and interest in the stock.

Applied Digital Corp (NASDAQ: APLD) Receives Upgrade from Lake Street

On October 10, 2025, Lake Street upgraded Applied Digital Corp (NASDAQ: APLD) to a "Buy" rating, with the stock priced at $29.29. Lake Street also raised its price target from $18 to $37. Applied Digital is a company that focuses on providing digital infrastructure solutions, particularly in data centers, to support the growing demand for AI and cloud services.

Following the upgrade, Applied Digital experienced a 28% surge in pre-market trading. This was driven by its impressive fiscal first quarter 2026 results and plans to expand data center capacity. The company's revenue for the quarter increased by 84% year over year, reaching $64.2 million, surpassing the analyst consensus estimate of $54.6 million.

Despite reporting a non-GAAP loss of $0.03 per share, Applied Digital exceeded Wall Street expectations. The company announced a new lease agreement with CoreWeave, securing an additional 150-megawatt lease for its Polaris Forge 1 campus. This agreement is expected to generate approximately $11 billion in lease revenue over 15 years.

The stock for APLD is currently priced at $38.77, reflecting a significant increase of 32.37% with a change of $9.48. Today, the stock has fluctuated between a low of $35.18 and a high of $39.07, marking its highest price over the past year. The lowest price for the stock in the past year was $3.31.

APLD has a market capitalization of approximately $10.14 billion, with a trading volume of 34 million shares today. The company is positioning itself to capitalize on the anticipated $350 billion investment by hyperscalers into AI deployment this year, highlighting its readiness to serve this growing market.

Applied Digital Corporation's Financial Performance and Future Prospects

  • APLD's EPS of -$0.03 exceeded expectations, despite revenue falling short of estimates.
  • The company announced a $3 billion AI data campus in North Dakota, potentially boosting future revenue and operations.
  • Financial challenges persist, with a negative P/E ratio and concerns over liquidity and cash flow.

Applied Digital Corporation (NASDAQ:APLD) operates within the digital infrastructure sector, offering data center solutions and competing with other tech entities in the data center and digital infrastructure space. On October 9, 2025, APLD reported an earnings per share (EPS) of -$0.03, surpassing the anticipated EPS of -$0.11. However, the company's revenue of approximately $38 million did not meet the expected $45.5 million.

Despite the better-than-expected EPS, APLD's revenue shortfall, compared to the projected $45.46 million and a significant decrease from the $60.70 million reported in the same quarter the previous year, underscores ongoing challenges in meeting revenue expectations. This could potentially affect investor confidence in the company's financial health.

In a strategic move to bolster its future prospects, Applied Digital announced the construction of a $3 billion AI data campus in Harwood, North Dakota, named Polaris Forge 2. Expected to commence operations in 2026 and reach full capacity by early 2027, this expansion could significantly enhance APLD's revenue streams and operational capabilities.

Following these announcements, APLD shares experienced a 4.5% increase, closing at $27.71 on Monday. Despite this positive market reaction, the company's financial metrics indicate underlying challenges. With a negative price-to-earnings (P/E) ratio of approximately -24.33 and a price-to-sales ratio of about 33.88, investor expectations remain high amidst non-profitability. Furthermore, a negative enterprise value to operating cash flow ratio of -69.00, a debt-to-equity ratio of 1.41, and a current ratio of 0.77 highlight potential liquidity challenges and difficulties in generating cash flow from operations.

Applied Digital Corporation (NASDAQ:APLD) Earnings Preview and Financial Health Analysis

  • Applied Digital Corporation anticipates an earnings per share loss of $0.11 with projected revenue of approximately $45.5 million.
  • The company's financial metrics reveal challenges, including a negative P/E ratio of -23.1 and a high debt-to-equity ratio of 1.41.
  • APLD's valuation ratios such as the price-to-sales ratio of 32.17 and enterprise value to sales ratio of 35.24 reflect high investor expectations despite its current lack of profitability.

Applied Digital Corporation, trading on the NASDAQ:APLD, specializes in high-performance and sustainably engineered data centers and colocation services. As the company prepares to release its quarterly earnings on October 9, 2025, Wall Street anticipates an earnings per share loss of $0.11, with projected revenue of approximately $45.5 million.

The company has scheduled a conference call on the same day at 5:00 p.m. Eastern Time to discuss its financial results for the fiscal first quarter ending August 31, 2025. This call will feature prepared remarks from management and a question-and-answer session, as highlighted by Applied Digital Corporation. A press release detailing the financial results will be issued after the market closes.

APLD's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of -23.1, indicating it is not currently profitable. Its price-to-sales ratio is 32.17, suggesting investors are willing to pay over 32 times the company's sales per share. This reflects high investor expectations despite the lack of profitability.

The enterprise value to sales ratio is 35.24, showing the company's valuation relative to its sales. However, the enterprise value to operating cash flow ratio is significantly negative at -65.81, highlighting difficulties in generating cash flow from operations. The negative earnings yield of -4.33% further underscores the company's profitability challenges.

APLD's debt-to-equity ratio stands at 1.41, indicating a higher level of debt compared to equity. Additionally, the current ratio is 0.77, which may suggest potential liquidity issues, as it is below the standard threshold of 1. These financial metrics provide insight into the company's current financial health and the challenges it faces.

Applied Digital Corporation's Strategic Expansion and Stock Performance

  • Craig-Hallum maintains a "Buy" rating for NASDAQ:APLD, raising its price target from $12 to $23.
  • The Polaris Forge 2 campus, a $3 billion AI Factory project, is set to begin in North Dakota, highlighting Applied Digital's expansion.
  • APLD's stock has seen a significant increase, with a current price of $16.82, marking a 19.38% rise.

Applied Digital Corporation, trading on NASDAQ as APLD, is a company focused on providing digital infrastructure solutions. Recently, Craig-Hallum maintained its "Buy" rating for NASDAQ:APLD, with the stock priced at $14.88 on August 18, 2025. The firm also raised its price target from $12 to $23, as highlighted by TheFly, indicating strong confidence in the company's future performance.

The company's ambitious plans include the construction of the Polaris Forge 2 campus, a $3 billion project set to begin in September 2025. This 280-megawatt AI Factory near Harwood, North Dakota, is designed to scale beyond its initial capacity. Operations are expected to start in 2026, reaching full capacity by early 2027. This project highlights Applied Digital's rapid expansion and strengthens North Dakota's role in AI infrastructure.

The Polaris Forge 2 project addresses the increasing demand for AI computing capacity from hyperscalers, enterprises, and research organizations. It builds on the success of the existing Polaris Forge 1 Ellendale campus, further expanding the company's presence in North Dakota. The state offers abundant energy resources, available land, and a favorable business environment, making it an ideal location for such developments.

Currently, APLD's stock is priced at $16.82, marking a 19.38% increase with a change of $2.73. The stock has fluctuated between $14.66 and $16.845 today, with the latter being its highest price over the past year. The lowest price in the past year was $3.01. APLD has a market capitalization of approximately $4.4 billion, with a trading volume of 36,378,642 shares today.

Applied Digital Corporation's Financial Challenges and Market Position

  • APLD reported an EPS of -$0.07, surpassing estimates but with revenue falling short of expectations.
  • The company's negative P/E ratio and high debt-to-equity ratio highlight significant financial difficulties.
  • Despite challenges, APLD focuses on its core business in the competitive digital infrastructure space.

Applied Digital Corporation (NASDAQ: APLD) specializes in designing and operating digital infrastructure, focusing on high-performance computing and data center hosting. Despite its innovative approach, the company faces financial challenges, as reflected in its recent earnings report. APLD's competitors in the digital infrastructure space include companies like Equinix and Digital Realty Trust.

On April 14, 2025, APLD reported an earnings per share (EPS) of -$0.07, surpassing the estimated -$0.11. However, the company generated $52.9 million in revenue, missing the expected $62.9 million. This shortfall is attributed to clients delaying data center lease renewals, as highlighted by Zacks. Consequently, APLD's shares dropped by 11% in extended trading.

The company's negative price-to-earnings (P/E) ratio of -5.30 indicates ongoing financial difficulties, while a price-to-sales ratio of 5.41 suggests investors are paying $5.41 for every dollar of sales. The enterprise value to sales ratio of 9.59 reflects APLD's valuation relative to its sales, while the enterprise value to operating cash flow ratio of -13.57 highlights challenges in generating positive cash flow. The earnings yield of -18.88% further underscores the company's financial struggles. A debt-to-equity ratio of 2.19 indicates APLD has more than twice as much debt as equity, raising concerns about its financial stability.

Lastly, APLD's current ratio of 0.70 suggests potential liquidity issues, as the company may not have enough current assets to cover its current liabilities. Despite these challenges, APLD continues to focus on its core business of digital infrastructure, aiming to improve its financial performance in the future.