Applied Digital (NASDAQ:APLD) Issues Earnings Results

Applied Digital (NASDAQ:APLD - Get Free Report) posted its quarterly earnings data on Wednesday, April 8th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23), RTT News reports. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The company had revenue of $108.55 million for the quarter, compared to analysts' expectations of $78.47 million. During the same period in the previous year, the business earned ($0.08) earnings per share. The business's revenue for the quarter was up 139.3% on a year-over-year basis.

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

• Applied Digital has its first 100 MW direct‑to‑chip liquid‑cooled data center online, says PF1 and PF2 construction are on time and on budget, and the company has roughly ~1 GW of capacity under construction with Delta Forge One (300 MW) broken ground and initial operations expected mid‑2027.
• Quarter results show total revenue of $126.6 million (up 139% QoQ) and adjusted EBITDA of $44.1 million, but GAAP net loss was $100.9 million largely driven by a $59.7 million non‑cash cloud impairment; the company finished the quarter with $2.1 billion cash versus $2.7 billion of debt and no significant maturities in the next two years.
• Management reports significant financing progress — a disclosed $2.15 billion senior secured note offering, most equity/debt for the first two campuses completed, and a CoreWeave lease restructuring (SPV rated A3 with a $50M letter of credit) that management says de‑risks 250 MW and should help lower future borrowing costs.
• The company is separating Applied Digital Cloud via a proposed combination with Exo to form Chronos Scale (Applied to be majority holder) to pursue independent capital and growth; cloud revenues were consolidated this quarter but will be excluded from the company's non‑GAAP metrics going forward.
• The crypto/data‑center hosting segment remains a high‑return business, producing $37.5 million in revenue and $13.9 million in operating profit this quarter, which management highlights as the company's highest return on assets.

Applied Digital Stock Performance

Shares of Applied Digital stock opened at $39.88 on Wednesday. The business's 50 day moving average price is $28.49 and its 200 day moving average price is $30.03. The company has a market cap of $11.40 billion, a price-to-earnings ratio of -53.89 and a beta of 5.69. The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.38 and a current ratio of 2.38. Applied Digital has a one year low of $4.99 and a one year high of $42.27.

Key Applied Digital News

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

• Positive Sentiment: ChronoScale spin‑off completed — Applied Digital contributed its cloud business to the newly named ChronoScale, which will begin trading on Nasdaq under CHRN; the move creates a separately investable public company and may help unlock value. Applied Digital soars on ChronoScale spin-off, $300M funding
• Positive Sentiment: Company confirms spin-off details — further coverage notes Applied Digital spun off its cloud unit into ChronoScale, a step that can create clearer financial separation between cloud and infrastructure businesses. Applied Digital spins off cloud unit into ChronoScale
• Positive Sentiment: Separation closing / ChronoScale listing — Applied Digital announced the closing of the transaction, will retain ~97% ownership and made a $15.75M investment at closing; listing formalizes the separation and provides a market price reference for the cloud unit. Applied Digital Completes Separation of Cloud Business, Establishing ChronoScale as Independent Public Company
• Positive Sentiment: Company press release on separation — GlobeNewswire release reiterating terms of the ChronoScale transaction and the name change to ChronoScale Corporation. Applied Digital Completes Separation of Cloud Business, Establishing ChronoScale as Independent Public Company
• Positive Sentiment: Large multi‑billion AI lease expands contracted revenue — A 15‑year, $7.5B lease at Delta Forge 1 and other deals lift Applied Digital’s contracted revenue above $23B, materially increasing long‑term revenue visibility for its AI campus strategy. Applied Digital’s Multi Billion AI Lease Deepens Revenue Visibility And Risks
• Positive Sentiment: $300M senior secured bridge facility closed — Applied Digital secured $300M led by Goldman Sachs to accelerate construction of its Polari/Delta Forge AI data centers; provides near‑term funding for growth. Applied Digital (APLD) Raises $300M for Expansion, Climbs 6.2%
• Positive Sentiment: Company release on $300M facility — Official GlobeNewswire announcement with facility details (senior secured bridge, intended to fund the third AI data center). Applied Digital Announces $300 Million Senior Secured Bridge Facility
• Neutral Sentiment: IREN earnings preview referenced in feed — article discusses a different cloud/AI operator (IREN) and macro/cloud dynamics; useful context for sector trends but not APLD‑specific. IREN to Report Q3 Earnings: Should You Buy, Sell or Hold the Stock?
• Neutral Sentiment: Head‑to‑head survey piece — a comparative item that mentions Applied Digital among other names; background reading only. Head to Head Survey: Grupo Financiero Banorte and Applied Digital

Insider Buying and Selling at Applied Digital

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the firm's stock in a transaction on Monday, April 27th. The stock was sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director directly owned 184,859 shares of the company's stock, valued at $6,466,367.82. This trade represents a 5.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $34.59, for a total value of $432,375.00. Following the transaction, the director owned 208,378 shares in the company, valued at approximately $7,207,795.02. This represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 35,000 shares of company stock valued at $1,182,175. 9.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently bought and sold shares of the company. McMillan Office Inc. purchased a new stake in shares of Applied Digital in the 4th quarter valued at approximately $25,000. Ameriflex Group Inc. purchased a new stake in shares of Applied Digital during the 4th quarter valued at approximately $25,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Applied Digital during the 4th quarter valued at approximately $27,000. Larson Financial Group LLC lifted its holdings in Applied Digital by 56,450.0% in the third quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock valued at $26,000 after acquiring an additional 1,129 shares during the last quarter. Finally, Strive Financial Group LLC acquired a new position in Applied Digital in the fourth quarter valued at approximately $31,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently weighed in on APLD. Freedom Capital upgraded shares of Applied Digital to a "strong-buy" rating in a research report on Tuesday, January 6th. Roth Mkm reiterated a "buy" rating and issued a $65.00 price objective on shares of Applied Digital in a report on Thursday, April 23rd. Northland Securities set a $56.00 price objective on Applied Digital in a research note on Wednesday, January 28th. Needham & Company LLC raised their target price on Applied Digital to $48.00 and gave the company a "buy" rating in a research report on Friday, April 24th. Finally, Citizens Jmp reaffirmed a "market outperform" rating and issued a $40.00 price target on shares of Applied Digital in a research note on Thursday, April 9th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $44.33.

Applied Digital Company Profile

Applied Digital NASDAQ: APLD is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital's modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.