Applied Digital

Applied Digital (APLD) Q3 2025 Earnings

Reported Apr 14, 2025 at 4:11 PM ET · SEC Source

Q3 25 EPS

$-0.08

BEAT +21.95%

Est. $-0.10

Q3 25 Revenue

$52.9M

MISS 15.88%

Est. $62.9M

vs S&P Since Q3 25

+641.9%

BEATING MARKET

APLD +680.7% vs S&P +38.7%

Market Reaction

Did APLD Beat Earnings? Q3 2025 Results

Applied Digital delivered a mixed fiscal third quarter, posting a narrower-than-expected loss while falling well short on revenue as a pair of strategic pivots reshaped the company's near-term story. The data center infrastructure firm reported an ad… Read more Applied Digital delivered a mixed fiscal third quarter, posting a narrower-than-expected loss while falling well short on revenue as a pair of strategic pivots reshaped the company's near-term story. The data center infrastructure firm reported an adjusted loss of $0.08 per share, beating the $0.10 consensus estimate by 21.95%, but revenue of $52.92 million trailed the $62.91 million consensus by 15.88%, a gap driven largely by a sharp sequential drop in the Cloud Services segment, where technical hiccups during a transition from single-tenant to multi-tenant GPU contracts trimmed quarterly contribution to $17.80 million from $27.70 million the prior quarter. That cloud business is now slated for sale as Applied Digital shifts its focus toward pure-play data center operations and a potential REIT structure, a move management believes will lower its cost of capital. Looking ahead, the company's first 100 MW HPC facility at Ellendale remains on track for the second half of 2025, with active lease negotiations underway with multiple U.S.-based hyperscalers for up to 400 MW of capacity.

Key Takeaways

  • 220% year-over-year growth in Cloud Services revenue driven by deployment of additional GPU clusters
  • Sequential decline in Cloud Services revenue due to transition from single-tenant reserve contracts to multi-tenant on-demand model and related technical issues
  • Data Center Hosting facilities operating at full capacity (106 MW Jamestown and 180 MW Ellendale)
  • Adjusted EBITDA turned positive at $10.0 million vs. loss of $1.3 million in prior year quarter
  • SG&A expenses decreased 24% as GPU depreciation shifted to cost of revenues
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APLD YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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APLD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“We are confident in the progress we are making and remain committed to delivering sustainable, long-term value for our investors.”

— Wes Cummins, Q3 2025 Earnings Press Release