Applied Digital Corporation (APLD) AI Stock Analysis

• Market Cap: $7.69B
• Dividend Yield: N/A
• Average Volume (3M): 20.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.11
• Revenue Growth: 15.30%
• EPS Growth: 1.87%
• Country: US
• Employees: 150
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.07
• Shares Outstanding: 279,585,820
• 10 Day Avg. Volume: 16,674,674
• 30 Day Avg. Volume: 20,865,072
• PEG Ratio: 0.52
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 6.38
• P/FCF Ratio: -1.72
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 29.77
• Enterprise Value/Gross Profit: 181.56
• Enterprise Value/Ebitda: -171.08
• 1Y Price Target: $52.22
• Price Target Upside: 89.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $340.26M

• Rating: 48 Neutral
• Price Target: $27.00 ▼(-1.85% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held down primarily by weak financial performance—large losses, negative operating cash flow, very large negative free cash flow, and high leverage—despite strong top-line growth. The latest earnings call improves the outlook via sizable hyperscaler lease wins and near-term revenue ramp expectations, but execution and capital-cost risks remain. Technicals are currently weak (below key short/mid-term averages with negative MACD), and valuation support is limited due to negative earnings and no dividend.

Positive Factors

Large hyperscaler contracts & backlog

Signed 600 MW of long‑term hyperscaler leases that map to roughly $16B of prospective 15‑year revenue. These multi‑year, capacity‑based contracts provide durable revenue visibility and de‑risked cashflow as new buildings commission and utilization ramps over 18–24 months.

Strong near‑term liquidity & financing framework

Large cash balance and staged financing sources materially extend the company’s runway to complete construction and leaseup. Access to development loans, preferred equity and secured notes supports project delivery and reduces immediate refinancing urgency while assets are brought online.

Scalable campus model & operational milestones

A demonstrated ready‑for‑service milestone and modular construction approach underpin repeatable campus rollouts. Scalability to multi‑GW campuses enables material economies of scale and positions the company to capture constrained AI/HPC capacity demand as it executes additional campus builds.

Negative Factors

High leverage and negative cash flow

Substantial negative operating and free cash flow combined with elevated debt levels mean the business depends on capital markets to fund growth. This reduces financial flexibility, raises dilution and refinancing risk, and makes execution setbacks more damaging until projects generate steady operating cash.

Ongoing GAAP losses and weak margins

Despite rapid revenue growth, persistent GAAP losses and modest gross margins reflect heavy upfront tenant fit‑out and development costs. Until utilization and operating leverage sustainably improve, profitability targets and NOI goals remain uncertain, limiting free cash generation.

Execution risk, guarantees & rising interest burden

Providing guarantees on a $2.4B power build and carrying elevated interest costs increases contingent liabilities and fixed cash outflows. Execution delays or third‑party failures could prompt material cash obligations and worsen leverage before leased capacity produces offsetting cashflows.

Applied Digital Corporation Business Overview & Revenue Model

Company Description

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing (HPC) and artificial intelligence industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

How the Company Makes Money

Applied Digital Corporation primarily makes money by providing digital infrastructure capacity and related services through its owned and/or operated data center facilities. Key revenue streams have included: (1) Data center/hosting or infrastructure services revenue, earned under customer agreements where APLD supplies powered space, cooling, and operational support for customer-owned or customer-deployed compute equipment; pricing is typically structured around contracted capacity/term arrangements rather than one-off sales. (2) Compute or infrastructure capacity contracted under longer-term arrangements, where earnings are driven by utilization/committed load and the contract duration/price per unit of capacity (e.g., per megawatt or similar capacity-based constructs). (3) Potential development-related economics from building and expanding facilities intended for AI/HPC demand (e.g., incremental revenue from newly commissioned capacity once contracted and brought online). Significant partnerships, customer concentration, and the precise split of revenue by segment or named counterparties: null

Applied Digital Corporation Financial Statement Overview

Summary

Strong TTM revenue growth (+28.6%) is outweighed by weak fundamentals: deep net losses (TTM net margin ~-43.5%), negative operating cash flow (~-$85M), sharply negative free cash flow (~-$1.34B), and high leverage (debt-to-equity ~1.68). Positive equity provides some support, but the company is still in a high-risk buildout phase reliant on external financing.

Income Statement

Revenue growth is strong in TTM (Trailing-Twelve-Months) (+28.6%), showing improving scale versus prior years. However, profitability remains weak: gross margin is modest (about 16.4%) and the company is still deeply unprofitable with large operating losses and a net loss (net margin roughly -43.5% in TTM). While losses improved versus the prior annual period (net loss narrowed from 2025 annual to TTM), the business has not yet demonstrated a clear path to consistent operating profitability.

Balance Sheet

The company has built a much larger asset base (TTM total assets ~$5.23B) and equity is positive (~$1.55B), which provides some balance-sheet support. The key risk is leverage: total debt is high (~$2.61B) and debt is elevated relative to equity (debt-to-equity ~1.68 in TTM). Returns to shareholders are negative (return on equity is negative in TTM), reflecting that the capital base is not currently generating profits.

Cash Flow

Cash generation is a major weakness. In TTM (Trailing-Twelve-Months), operating cash flow is negative (~-$85M), indicating the core business is not self-funding. Free cash flow is sharply negative (~-$1.34B), suggesting heavy cash burn (likely from investment/capex) and meaningful reliance on external capital. While free cash flow growth is shown as positive in TTM, the absolute level of cash outflow remains very large and increases financing risk given the company’s leverage.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	281.74M	215.51M	136.62M	55.39M	8.55M	0.00
Gross Profit	46.19M	22.70M	29.96M	11.00M	-13.34M	-1.00K
EBITDA	-49.02M	-91.82M	-34.16M	-36.88M	-20.71M	-331.00K
Net Income	-122.53M	-231.06M	-149.27M	-44.65M	-23.52M	-568.00K
Balance Sheet
Total Assets	5.23B	1.87B	762.87M	263.96M	119.98M	15.05M
Cash, Cash Equivalents and Short-Term Investments	1.91B	113.92M	3.34M	29.00M	38.80M	11.75M
Total Debt	2.61B	702.88M	135.73M	91.81M	13.54M	2.13M
Total Liabilities	3.26B	1.24B	638.04M	194.28M	40.74M	17.64M
Stockholders Equity	1.45B	633.73M	124.83M	59.52M	72.26M	-2.58M
Cash Flow
Free Cash Flow	-1.34B	-797.00M	-128.01M	-72.54M	-55.85M	-3.38M
Operating Cash Flow	-85.12M	-115.40M	13.79M	58.73M	-872.00K	-83.00K
Investing Cash Flow	-777.92M	-667.65M	-172.44M	-132.09M	-45.87M	-3.30M
Financing Cash Flow	2.84B	874.69M	146.76M	70.63M	81.29M	15.13M

Applied Digital Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLD, the sentiment is Negative. The current price of 27.51 is below the 20-day moving average (MA) of 28.34, below the 50-day MA of 32.52, and above the 200-day MA of 23.39, indicating a neutral trend. The MACD of -1.44 indicates Negative momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 60.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLD.

Applied Digital Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	74 Outperform	$95.98B	55.55	9.59%	2.47%	5.36%	-1.68%
DLR	69 Neutral	$61.98B	40.61	5.81%	3.17%	7.75%	216.77%
DOCN	68 Neutral	$7.14B	42.89	-214.15%	―	14.20%	204.86%
INGM	67 Neutral	$5.26B	15.81	8.07%	1.39%	7.06%	-8.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRWV	49 Neutral	$43.17B	-26.69	-33.10%	―	235.40%	19.90%
APLD	48 Neutral	$7.69B	-107.37	-13.52%	―	15.30%	1.87%

Applied Digital Corporation Corporate Events

Applied Digital Completes $2.15 Billion Senior Notes Offering

On March 10, 2026, APLD ComputeCo 2 LLC, a subsidiary of Applied Digital Corporation, completed a $2.15 billion private offering of 6.750% senior secured notes due 2031, issued at 98% of par and sold primarily to qualified institutional buyers. The proceeds are intended to fund development and construction of 200 megawatts of critical IT load at the Polaris Forge 2 AI Factory campus in Harwood, N.D., as well as project-related reserve accounts and transaction expenses.

The notes, governed by an indenture entered into on March 10, 2026, bear semi-annual interest, amortize semi-annually after key datacenter lease commencement dates, and are subject to optional redemptions starting in 2028 and earlier make-whole redemptions. The financing introduces extensive covenants limiting additional debt, restricted payments, asset sales, and certain transactions, while cash proceeds are held in escrow until specified conditions are met and Applied Digital provides a completion guarantee to ensure construction of the facilities if project funds fall short.

The most recent analyst rating on (APLD) stock is a Sell with a $24.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Guarantees Major Power Project for AI Growth

On February 26, 2026, Applied Digital Corporation entered into a guarantee in favor of The Babcock & Wilcox Company, unconditionally backing Base Electron, Inc.’s obligations under a design-build agreement for a roughly $2.4 billion, 1.2 GW power generation facility. The plant is intended to support power needs for data center operations, potentially including Applied Digital’s own campuses, positioning the project as a key enabler of the company’s AI infrastructure growth while exposing it to significant off-balance sheet risk.

If Base Electron fails to perform, Applied Digital must step in to satisfy contractual obligations, although it can terminate the guarantee upon certain financing milestones at Base Electron or by paying a $50 million or $100 million fee, depending on timing and conditions. As partial consideration, Base Electron will issue 10% of its outstanding equity to Applied Digital, and because Base Electron was formed by certain Applied Digital insiders to develop stabilized power infrastructure, the board’s audit committee and disinterested directors reviewed and approved the related-party arrangement and its strategic rationale.

The most recent analyst rating on (APLD) stock is a Sell with a $24.50 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Raises $2.15B to Expand AI Campus

On March 4, 2026, Applied Digital announced that subsidiary APLD ComputeCo 2 priced a $2.15 billion private offering of 6.750% senior secured notes due 2031 at 98% of face value, targeting qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S. The deal, expected to close around March 10 subject to conditions, will be guaranteed by key subsidiaries and secured by first‑priority liens on substantially all of APLD Compute 2’s and guarantors’ assets, as well as its equity held by APLD FAR Holdings.

Net proceeds are earmarked to fund development and construction of 200 megawatts of critical IT load at the Polaris Forge 2 AI Factory campus in Harwood, North Dakota, along with required project reserve accounts and transaction costs. By backing the notes with strong collateral and providing completion guarantees for Polaris Forge 2, Applied Digital is using large-scale debt financing to accelerate expansion of its AI-focused data center footprint, while concentrating risk and future obligations around the timely delivery of this flagship campus.

The most recent analyst rating on (APLD) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Plans $2.15 Billion Notes for AI Expansion

On March 2, 2026, Applied Digital announced that its subsidiary APLD ComputeCo 2 LLC plans to offer $2.15 billion in senior secured notes due 2031 in a private placement to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S. The company has also released selected investor presentation slides in connection with this proposed debt offering, which is subject to market conditions and other factors.

Net proceeds from the planned notes issuance are earmarked to fund the development and construction of 200 megawatts of critical IT load at Polaris Forge 2, Applied Digital’s AI Factory campus in Harwood, North Dakota that is currently leased to Oracle. The transaction is expected to significantly expand the company’s AI-focused infrastructure capacity and deepen its relationship with a key hyperscale customer, with implications for its growth trajectory and positioning in the competitive AI data center market.

The most recent analyst rating on (APLD) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Subsidiaries Enter Transformative Ekso Combination Agreement

On February 15, 2026, Applied Digital’s subsidiaries and Ekso Bionics Holdings entered into a Contribution and Exchange Agreement to combine Applied Digital Cloud Corporation with Ekso in a business combination that will see Cloud become a wholly owned subsidiary of Ekso, which will be renamed ChronoScale Corporation. In exchange for contributing all of Cloud’s equity, Applied Digital’s Contributor entity will receive about 138.2 million Ekso shares and is expected to own roughly 97% of the combined company before additional financing transactions, cementing Applied Digital’s control over the new platform.

Closing of the deal, targeted for the second quarter of 2026, is contingent on customary conditions including Ekso stockholder approval, SEC clearance of an information or proxy statement, a minimum $15 million cash balance at Ekso, Nasdaq listing approval and consummation of a PIPE financing that will dilute both legacy Ekso and Cloud holders. An associated Investor Rights Agreement will give Applied Digital investors significant governance and board-designation rights, ensuring long-term influence over ChronoScale’s strategy and capital decisions, while termination rights and outside dates provide downside protections if regulatory, shareholder or market hurdles prevent completion.

The most recent analyst rating on (APLD) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Grants Long-Term Performance-Based Equity Awards

On February 6, 2026, Applied Digital’s board approved substantial long-term equity awards for Jason Zhang, newly transitioned to President and Co-Founder, and Chief Financial Officer Saidal Mohmand, granting a combined 2.25 million performance stock units and 750,000 restricted stock units under the 2024 Omnibus Equity Incentive Plan. The board characterized these grants as replacing future equity awards for the next five years, designed to tie the executives’ compensation to ambitious growth and profitability milestones while limiting shareholder dilution to less than 2% of outstanding shares.

Zhang’s 1.5 million performance stock units vest in four tranches tied to signing and bringing online 600MW and then 1.6GW of capacity under long-term contracts with investment-grade hyperscalers, while Mohmand’s 750,000 performance units vest upon achieving trailing twelve-month net operating income targets of $1 billion and $2 billion in the HPC hosting segment by 2031. Both sets of PSUs and RSUs feature multi-year vesting, change-in-control and termination protections, transfer restrictions, and clawback and covenant-compliance conditions, reflecting the board’s view that retaining these leaders is critical to capitalizing on the company’s recent revenue surge and rapid expansion of its high-performance computing data center portfolio.

The most recent analyst rating on (APLD) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Elevates Co-Founder Jason Zhang to President

On January 14, 2026, Applied Digital’s board approved the transition of co-founder and Chief Strategy Officer Jason Zhang to President and Co-Founder, formalizing his long-standing role in steering the company’s strategy and growth. Zhang, a former investor at Sequoia Capital and MSD Capital who has led key initiatives such as negotiating leases for the company’s Polaris Forge 1 and Polaris Forge 2 data center campuses in North Dakota, will continue to work closely with co-founder Wes Cummins, who remains chairman and CEO, as the company scales its AI infrastructure platform. In connection with the move, Applied Digital amended Zhang’s employment agreement to reflect his new title and set his annual base salary at $700,000, underscoring the board’s commitment to continuity in leadership as the business advances its next phase of AI infrastructure expansion.

The most recent analyst rating on (APLD) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital grants CEO long-term performance-based equity

On January 6, 2026, Applied Digital’s board granted Chairman and CEO Wes Cummins 4.5 million performance stock units and 1.5 million restricted stock units under its 2024 Omnibus Equity Incentive Plan, structured as his primary equity compensation for the next five years. The package is heavily performance- and retention-based, with PSUs vesting only if the company’s average share price sustains ambitious thresholds of $50, $75 and $100 within five years—representing roughly 1.6% potential dilution—and RSUs, representing less than 0.6% of shares outstanding, vesting over five years contingent on continued service and subject to accelerated vesting in specified termination or change-in-control scenarios. The board, advised by an independent compensation consultant, framed the awards as a way to align Cummins’ incentives with long-term shareholder value creation while keeping dilution at what it considers a reasonable level, underscoring his central role in executing the company’s growth strategy as it scales its high-performance computing data center portfolio and expects materially higher revenues from 2026 onward.

The most recent analyst rating on (APLD) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital to Spin Out Cloud Business with Ekso

On December 29, 2025, Applied Digital announced it has signed a non-binding term sheet to spin out its Applied Digital Cloud business and combine it with Ekso Bionics Holdings in a proposed transaction that would create ChronoScale Corporation, an accelerated GPU compute platform purpose-built for next-generation AI workloads. The deal, expected to close in the first half of 2026 subject to due diligence and regulatory and shareholder approvals, would separate Applied Digital’s cloud-based accelerated compute platform from its data center ownership and development operations, allowing each business to scale independently while giving ChronoScale a focused mandate to deliver high-performance GPU infrastructure in a capacity-constrained AI market. Applied Digital would own about 97% of the combined company, which plans to leverage Applied Digital Cloud’s early deployment of NVIDIA H100 GPUs and its roughly $75.2 million in trailing 12-month revenue as of August 31, 2025; EKSO, which will continue operating its exoskeleton business while exploring strategic alternatives, framed the transaction as a move to maximize shareholder value, while ChronoScale is expected to benefit from preferred access to Applied Digital’s expanding AI factory campuses, potentially strengthening both firms’ positioning in the rapidly growing high-performance AI compute sector.

The most recent analyst rating on (APLD) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.

Applied Digital Secures Financing for New AI Data Centers

On December 18, 2025, Applied Digital Corporation announced that its subsidiary APLD DevCo LLC had entered into a development loan facility with Macquarie Group’s Commodities and Global Markets business to fund pre-lease development costs for new data center projects, including early-stage sourcing, planning, development and construction of new AI-focused data center campuses. The facility, from which an initial $100 million of draws is earmarked to support multiple campuses under advanced negotiations with an investment-grade hyperscaler, is intended to bolster Applied Digital’s ability to move quickly on high-quality sites while preserving capital flexibility, reinforcing its strategy of building purpose-built “AI Factory” campuses for hyperscale customers and expanding its position in the accelerating market for AI-optimized data center infrastructure; Northland Securities acted as sole placement agent, with Lowenstein Sandler advising the company and Latham & Watkins advising the lender.

The most recent analyst rating on (APLD) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.