Applied Digital (NASDAQ:APLD) Announces Quarterly Earnings Results, Beats Estimates By $0.29 EPS

Applied Digital (NASDAQ:APLD) released its quarterly earnings results on Wednesday. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.29, FiscalAI reports. Applied Digital had a negative return on equity of 27.31% and a negative net margin of 51.28%.The business had revenue of $300.39 million during the quarter, compared to analyst estimates of $116.29 million. During the same quarter in the previous year, the company posted ($0.03) earnings per share. Applied Digital’s revenue for the quarter was up 367.8% on a year-over-year basis.

Here are the key takeaways from Applied Digital’s conference call:

• Contracted growth remains substantial: Applied Digital reported approximately $36 billion of contracted revenue across five campuses and expects to place more than 600 megawatts into service over the next 12 months, versus 250 megawatts in the prior 12-month period.
• The company expects roughly 250 megawatts of expansion leases to be executed by year-end at materially higher pricing, potentially including lease rates more than 15% above prior agreements and longer durations.
• Execution is advancing in North Dakota, with 250 megawatts of critical IT capacity fully ready for service at Polaris Forge 1 and total North Dakota capacity expected to reach 300 megawatts by year-end. A 1,200-megawatt power purchase agreement with Base Electron is expected to support future expansion beginning in 2030.
• Financing conditions improved for the company’s projects: Applied Digital issued $1.59 billion of senior secured notes at a 7% coupon, below the 9.25% coupon on its earlier Polaris Forge 1 debt, and said investment-grade tenants could provide access to lower-cost project and bond financing.
• Headline profitability remains weak: the company reported a $221 million GAAP net loss attributable to common stockholders, or $0.76 per share, while ending the quarter with approximately $6.4 billion of debt against $2.9 billion of cash and $0.7 billion of restricted cash.

Applied Digital Stock Up 0.2%

APLD opened at $23.85 on Friday. The company has a market capitalization of $6.95 billion, a PE ratio of -14.54 and a beta of 5.99. The firm has a 50-day simple moving average of $27.07 and a two-hundred day simple moving average of $32.53. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 2.88. Applied Digital has a 52 week low of $19.00 and a 52 week high of $50.72.

Insider Activity

In related news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the sale, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 9.50% of the company’s stock.

Analysts Set New Price Targets

APLD has been the topic of a number of recent analyst reports. Wall Street Zen cut shares of Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Rothschild & Co Redburn set a $22.00 target price on shares of Applied Digital and gave the stock a “neutral” rating in a report on Monday, September 21st. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 26th. UBS Group reaffirmed a “buy” rating on shares of Applied Digital in a research note on Thursday. Finally, Needham & Company LLC decreased their target price on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Applied Digital presently has an average rating of “Moderate Buy” and a consensus price target of $60.27.

Key Stories Impacting Applied Digital

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Fiscal Q1 revenue rose 322% year over year to $341.9 million, substantially exceeding analyst expectations. Adjusted EBITDA reached $64.4 million, while the adjusted loss of $0.01 per share was far better than consensus. APLD Q3 Deep Dive: AI Data Center Growth and Strategic Campus Expansion Highlight Quarter
• Positive Sentiment: Management expects to bring more than 600 megawatts of additional capacity online over the next 12 months. The company now reports approximately 1.41 gigawatts of leased critical IT load and about $36 billion of contracted revenue, supporting the long-term growth thesis. Applied Digital: More Than 600MW Could Drive The Next Leg Of Growth
• Positive Sentiment: Applied Digital secured access to as much as 1 gigawatt of power capacity in Finland for its first international AI Factory campus. The project could expand its addressable market with hyperscale customers and provide a European growth platform, although initial power availability is targeted for 2028. What Is Applied Digital Signaling With Its First Finland AI Factory Move?
• Neutral Sentiment: Wells Fargo reportedly views the roughly 1.4-gigawatt contracted buildout as on schedule and raised its target, but financing and additional leasing remain important catalysts investors will monitor. APLD Stock Gets Target Hike From Wells Fargo Post Earnings
• Negative Sentiment: Despite the revenue beat, Applied Digital’s GAAP net loss widened to $184.1 million, with higher operating costs, interest expense and fair-value losses weighing on profitability. Debt totaled approximately $6.4 billion, intensifying concerns about capital needs and possible dilution. Applied Digital’s Revenue Soars, Loss Widens on Growing AI Investments
• Negative Sentiment: Analysts have trimmed some valuation estimates, and higher Treasury yields have pressured financing-dependent AI data-center stocks. Investors remain focused on whether Applied Digital can fund its aggressive expansion while converting contracted capacity into durable cash flow. Applied Digital Stock Gets Fair Value Trim

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.