Applied Digital's Q4 Earnings & Revenues Meet Estimates, Stock Up

Applied Digital APLD reported its fourth-quarter fiscal 2025 loss of 12 cents per share, in line with the Zacks Consensus Estimate. The company registered a loss of 52 cents per share in the year-ago quarter. APLD reported an adjusted net loss of 3 cents per share.

APLD reported fiscal fourth-quarter revenues of $38 million, up 41.3% year over year and in line with the consensus mark. The growth was primarily driven by increased capacity online in the company's Data Center Hosting facilities during the quarter.

APLD shares appreciated 23.93% in pre-market trading.

APLD’s Quarterly Operational Details

In the reported quarter, selling, general and administrative expenses jumped 114.8% year over year to $28.1 million.

Adjusted EBITDA was $1 million for the fiscal fourth quarter, a notable improvement from a loss of $0.2 million reported in the year-ago quarter.

Applied Digital Corporation Price, Consensus and EPS Surprise

Applied Digital Corporation price-consensus-eps-surprise-chart | Applied Digital Corporation Quote

Adjusted operating loss was $3.1 million, narrower than the year-ago quarter's loss of $3.7 million.

APLD’s HPC Data Center & Data Center Hosting Update

Applied Digital's High-Performance Computing (HPC) Data Center Hosting business focuses on designing, building and operating advanced data centers for high-performance computing and AI applications. 

In the fourth quarter, APLD secured major 15-year lease agreements with CoreWeave (CRWV) for 250 megawatts of capacity at its Polaris Forge1 campus in Ellendale, North Dakota. These contracts are anticipated to generate around $7 billion in revenues over the lease period. Following the quarter’s end, CoreWeave exercised an option for an additional 150MW, expanding total leased capacity to 400MW with projected revenue reaching approximately $11 billion. The facility rollout timeline includes the first 100 MW building becoming operational in the reported quarter, followed by a 150MW facility in mid-2026 and a third 150MW building in 2027.

As of May 31, 2025, both the 106 MW Jamestown facility and the 180 MW Ellendale facility in North Dakota were operating at full capacity, providing APLD with 286 megawatts of contracted hosting capacity for crypto mining operations.

APLD's Strategic Progress

During the reported quarter, Applied Digital made significant strides in securing project financing for its Polaris Forge1 campus, with management actively working with financing partners to finalize arrangements expected to close soon. Since quarter-end, Applied Digital raised approximately $268.9 million through its at-the-market sales agreement and Series G preferred stock offerings, strengthening its financial position ahead of finalizing the new financing package.

Applied Digital also strengthened its operational capabilities by reducing projected build times from 24 months to 12-14 months through process streamlining and supply chain optimization. APLD completed rigorous technical due diligence processes with multiple investment-grade hyperscalers, positioning itself for additional large-scale lease negotiations across its multi-gigawatt development pipeline.

APLD's Balance Sheet

As of May 31, 2025, Applied Digital had cash, cash equivalents and restricted cash of $120.9 million against a debt of $688.2 million.

APLD’s Zacks Rank & Other Stocks to Consider

Currently, Applied Digital carries a Zacks Rank #2 (Buy).

Ares Commercial Real Estate ACRE, Aflac AFL and American Healthcare REIT AHR are some other stocks that investors can consider in the broader Zacks Financial sector. Ares Commercial Real Estate sports a Zacks Rank #1 (Strong Buy) at present, while Aflac and American Healthcare REIT carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Ares Commercial Real Estate shares have declined 23.8% year to date. Ares Commercial Real Estate is set to report its second-quarter 2025 results on Aug. 5.

Aflac shares are down 4.7% year to date. Aflac is set to report its second-quarter 2025 results on Aug. 5.

American Healthcare REIT shares have appreciated 33.7% year to date. American Healthcare REIT is set to report its second-quarter 2025 results on Aug. 7.

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This article originally published on Zacks Investment Research (zacks.com).

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