APLD
Applied Digital
Q2 2025 Report
Applied Digital Corporation (APLD) Q2 2025 Results: Navigating Growth Amidst Market Challenges...
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Executive Summary
In Q3 2025, Applied Digital Corporation reported revenues of $52.9 million, representing a 22% increase year-over-year, but a decrease of 17% from the previous quarter, driven mainly by growth in its Cloud Services segment. However, the company faced a net loss of $36.1 million as it navigated high operating expenses and depreciation costs. The earnings call highlighted significant investment partnerships, including a potential $5 billion deal with Macquarie Asset Management and a $375 million financing arrangement with Sumitomo Mitsui Bank, strengthening its strategic position in the high-performance computing (HPC) landscape. Despite certain operational hurdles, management remains optimistic about scaling capacity and future revenue generation while actively exploring divestiture options for its Cloud Services Business.
Key Performance Indicators
Revenue
52.92M
QoQ: -17.14% | YoY:22.08%
Gross Profit
3.78M
7.14% margin
QoQ: -67.15% | YoY:201.80%
Operating Income
-18.94M
QoQ: -1.76% | YoY:44.45%
Net Income
-35.56M
QoQ: 74.37% | YoY:43.42%
EPS
-0.16
QoQ: 75.76% | YoY:69.23%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $52.9 million (YoY: +22%, QoQ: -17%) **Net Loss:** $36.1 million (Net Income Ratio: -67.2%) **Adjusted Net Loss:** $17.8 million **Adjusted EBITDA:** $10 million (Increase of 878%), signaling operational improvements after technical issues from shifting to multi-tenant configurations. **Cash Position:** $261.2 million at quarter-end with total debt of $689.1 million. **Gross Profit Margin:** 7.14% (YoY: +201.8%, QoQ: -67.2%) **Operating Income:** -$18.9 million **EPS:*...