Companies /Technology

Applied Digital Corporation

NASDAQ: APLD Information Technology Services
$26.27
▲ $0.36 (+1.39%) today
Markets open · 1:11pm ET

Q3 2025 Earnings

Reported Apr 14, 2025, 4:11pm ET · SEC source
$-0.08
Beat +21.95%
EPS · est. $-0.10
$52.9M
Miss −15.88%
Revenue · est. $62.9M
+88.0%
Beating market
APLD vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%0Apr 14Apr 15report 4:11pm ETearnings−0.9%−32.5%
−20%0Apr 14Apr 15earnings−0.9%−32.5%
APLD −32.5%S&P 500 −0.9%
−20%0Apr 14Apr 15report 4:11pm ETearnings−1.0%−32.5%
−20%0Apr 14Apr 15earnings−1.0%−32.5%
APLD −32.5%NASDAQ −1.0%
−20%0+20%Apr 14Apr 22report 4:11pm ETearnings−0.5%−13.8%
−20%0+20%Apr 14Apr 22earnings−0.5%−13.8%
APLD −13.8%S&P 500 −0.5%
−20%0+20%Apr 14Apr 22report 4:11pm ETearnings−0.9%−13.8%
−20%0+20%Apr 14Apr 22earnings−0.9%−13.8%
APLD −13.8%NASDAQ −0.9%
−35.94%
Day of report
+18.60%
Next session
+18.60%
One week
+98.55%
30 days

S&P 500 over the same 30 days: +10.53%.

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 adjusted loss of $0.08 per share, beating the $0.1025 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 <a href="https://247wallst.com/ai-portfolio/2025/10/09/live-earnings-coverage-applied-digital-reports-earnings-after-the-bell/">Applied Digital shifts its focus</a> 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

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

Applied Digital CEO, on the earnings call

Forward Guidance & Outlook

Applied Digital is focused on completing its first 100 MW HPC facility at the Ellendale campus, which is on schedule to be ready for service in the second half of calendar 2025. The company is in active negotiations with multiple U.S.-based hyperscalers to lease up to 400 MW of capacity at the Ellendale campus. The Board has approved a plan to sell the Cloud Services Business to focus on data center operations, with management indicating this could position the company for a potential future transition to a data center REIT structure. Macquarie Asset Management and SMBC are supporting ongoing customer lease discussions for the Ellendale campus.

APLD YoY Financials

Revenue$52.9M
Gross Profit$3.8M
Operating Income$-18,943,000
Net Income$-36,095,000

APLD Revenue by Segment

HPC Hosting
Data Center Hosting$35.2M−7.0%
Data Center Hosting (Bitcoin/Crypto Mining)
Cloud Services$17.8M+220.0%

Figures from SEC filings and company reports. Not investment advice.