Our plan is to utilize these data centers in the future which will help offset these costs.
— David Rench
03Detailed Report
APLD
Applied Digital Corporation
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 18, 2026
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Executive Summary
For the fiscal first quarter 2025, Applied Digital Corporation (APLD) reported revenue of $60.7 million, reflecting a robust year-over-year growth of 67%, propelled primarily by the cloud services segment. Despite this revenue increase, the company continues to grapple with substantial costs, resulting in a net loss of $4.2 million. Management emphasized the strategic importance of their ongoing investments, particularly in their North Dakota HPC campus, which is expected to drive future earnings growth. With plans for operational expansions and advancements in their technology offerings, APLD appears well-positioned to capitalize on the growing demand for high-performance computing solutions in the market.
Key Performance Indicators
Revenue
Increasing
60.70M
QoQ: 38.91% | YoY: 67.12%
Gross Profit
Decreasing
-356.00K
-0.59% margin
QoQ: 86.25% | YoY: -102.99%
Operating Income
Increasing
9.48M
QoQ: 127.97% | YoY: 284.96%
Net Income
Increasing
-4.25M
QoQ: 93.44% | YoY: 62.93%
EPS
Increasing
-0.03
QoQ: 94.46% | YoY: 73.82%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue: $60.7 million, up 67.12% YoY; 2. Gross Profit: -$356,000; 3. Operating Income: $9.48 million, up 284.96% YoY; 4. Net Income: -$4.2 million; 5. EBITDA: $37.4 million, yielding a ratio of 61.57%; 6. Shareholder Equity: $241.8 million, driven by recent investment inflows. Cost increases are largely attributed to higher depreciation and facility leasing expenses, with total debt standing at $143.6 million. Cash and cash equivalents at quarter-end totaled $86.6 million, signaling healthy liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
60.70M
67.12%
38.91%
Gross Profit
-356.00K
-102.99%
86.25%
Operating Income
9.48M
284.96%
127.97%
Net Income
-4.25M
62.93%
93.44%
EPS
-0.03
73.82%
94.46%
Key Financial Ratios
Gross Profit Margin
Weak
-0.01%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Good
15.60%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Weak
-0.07%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.22
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.76
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-32.02x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
2.25x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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