Applied Digital Reports Q1 Earnings and Revenue Beat, Shares Decline

DALLAS – Applied Digital Corporation (NASDAQ: APLD) has announced its fiscal first-quarter revenue, which exceeds analyst expectations. Despite this positive news, shares experienced a slight decline of 1.2%.

For the quarter ending August 31, the digital infrastructure firm reported revenue of $60.7 million, marking a 67% increase compared to the previous year and surpassing the consensus estimate of $54.85 million.

The company reported an adjusted net loss of $21.6 million or $0.15 per share, which is better than the analysts’ forecast of a $0.27 loss per share. This adjusted net loss includes $4.4 million in costs associated with facilities and equipment that have yet to generate revenue.

Adjusted EBITDA rose to $20.0 million, up from $9.9 million in the same quarter last year. However, this figure was adversely affected by $4.1 million in expenses for facilities that are not currently producing revenue.

CEO Wes Cummins noted, "After the close of the quarter, our balance sheet significantly improved due to strategic investments from a group of institutional and accredited investors, NVIDIA, and Related Companies."

The company is currently in the process of finalizing a lease agreement with a U.S.-based hyperscaler for its 100 MW facility that is under construction. Plans are also in motion to bring an additional 300 MW online through two more buildings at the same site.

At the close of the quarter, Applied Digital reported $86.6 million in cash and cash equivalents, a substantial increase from $31.7 million at the end of fiscal 2024.