"We believe this investment underscores Macquarie's strong confidence in the scalability and value of our platform." - Wes Cummins
— Wes Cummins
03Detailed Report
APLD
Applied Digital Corporation
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 18, 2026
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Executive Summary
In Q3 2025, Applied Digital Corporation reported revenues of $52.9 million, representing a 22% increase year-over-year, but a decrease of 17% from the previous quarter, driven mainly by growth in its Cloud Services segment. However, the company faced a net loss of $36.1 million as it navigated high operating expenses and depreciation costs. The earnings call highlighted significant investment partnerships, including a potential $5 billion deal with Macquarie Asset Management and a $375 million financing arrangement with Sumitomo Mitsui Bank, strengthening its strategic position in the high-performance computing (HPC) landscape. Despite certain operational hurdles, management remains optimistic about scaling capacity and future revenue generation while actively exploring divestiture options for its Cloud Services Business.
Key Performance Indicators
Revenue
Increasing
52.92M
QoQ: -17.14% | YoY: 22.08%
Gross Profit
Increasing
3.78M
7.14% margin
QoQ: -67.15% | YoY: 201.80%
Operating Income
Increasing
-18.94M
QoQ: -1.76% | YoY: 44.45%
Net Income
Increasing
-35.56M
QoQ: 74.37% | YoY: 43.42%
EPS
Increasing
-0.16
QoQ: 75.76% | YoY: 69.23%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $52.9 million (YoY: +22%, QoQ: -17%) Net Loss: $36.1 million (Net Income Ratio: -67.2%) Adjusted Net Loss: $17.8 million Adjusted EBITDA: $10 million (Increase of 878%), signaling operational improvements after technical issues from shifting to multi-tenant configurations. Cash Position: $261.2 million at quarter-end with total debt of $689.1 million. Gross Profit Margin: 7.14% (YoY: +201.8%, QoQ: -67.2%) Operating Income: -$18.9 million EPS: -$0.16, diluted.
These metrics indicate operational challenges amidst long-term growth potential as APLD focuses on optimizing its cash flow and revenue generation strategies.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
52.92M
22.08%
-17.14%
Gross Profit
3.78M
201.80%
-67.15%
Operating Income
-18.94M
44.45%
-1.76%
Net Income
-35.56M
43.42%
74.37%
EPS
-0.16
69.23%
75.76%
Key Financial Ratios
Gross Profit Margin
Weak
7.14%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.36%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.67%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.70
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.00
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-12.51x
Negative earnings make P/E ratio not meaningful
Price to Book
Premium
3.57x
Trading at premium to book value, reflects strong intangibles or growth
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