Applied Digital Corporation (APLD) AI Stock Analysis

• Market Cap: $8.57B
• Dividend Yield: N/A
• Average Volume (3M): 28.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.04
• 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: 18,799,347
• 30 Day Avg. Volume: 28,301,485
• 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: 1.03
• Enterprise Value/Revenue: 31.33
• Enterprise Value/Gross Profit: 191.06
• Enterprise Value/Ebitda: -180.03
• 1Y Price Target: $51.00
• Price Target Upside: 75.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $340.26M

• Rating: 56 Neutral
• Price Target: $36.00 ▲(23.80% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak financial quality (large losses, negative operating/free cash flow, and high leverage). It is supported by constructive technicals and a strong earnings-call outlook tied to large signed hyperscaler leases and near-term capacity ramp, with valuation constrained by lack of profitability and no dividend support.

Positive Factors

Large hyperscaler lease backlog

Signed hyperscaler leases (600 MW, ~$16B prospective revenue over 15 years) provide durable, multi-year contracted revenue visibility and de-risk the capacity ramp. This backlog underpins predictable cash flows as buildings come online, supporting long-term growth and utilization of new campuses.

Robust liquidity & financing framework

Having $2.3B in liquidity plus layered facilities (Macquarie development loan, $900M preferred draw, $2.35B senior notes) supplies runway to fund construction and tenant fit-outs. Strong financing relationships reduce immediate refinancing risk and enable the near-term capacity build required for revenue ramps.

Operational scale and modular build progress

Achieving ready-for-service for Polaris Forge 1 and using modular/prefabricated builds demonstrates execution capability to scale campuses faster and with lower incremental cost. Early operational milestones validate the development model and improve prospects for consistent gross margins as scale and utilization increase.

Negative Factors

Negative operating and free cash flow

Sustained negative operating cash flow (~-$85M TTM) and very large negative free cash flow (~-$1.34B) reflect heavy capital deployment and that core operations are not yet self-funding. Persistent cash burn raises reliance on external capital and increases refinancing and dilution risk during the multi-year buildout.

Elevated leverage and interest burden

High total debt (~$2.6B) and leverage (debt-to-equity ~1.68), plus a large 9.25% notes issuance, materially increase interest expense and reduce financial flexibility. Elevated financing costs pressure margins and free cash flow until assets are stabilized and any refinancing at lower rates is achieved, raising execution risk.

Execution & transaction conversion risk (ChronoScale/spinout)

Key growth elements rely on converting advanced discussions/LOIs into signed contracts and completing the ChronoScale/Ekso combination, both contingent on approvals, financing and shareholder votes. These conditional steps create execution, governance and timing risks that could delay monetization and distract management during critical scale-up.

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 generates revenue through several key streams. Primarily, the company earns income from its data center operations, which provide clients with managed hosting and cloud services. Additionally, APLD generates revenue from cryptocurrency mining activities, wherein it utilizes its data centers' computational power to mine digital currencies. The company may also have partnerships with blockchain firms and tech companies, enhancing its service offerings and driving additional revenue through collaborative projects and joint ventures. Factors such as demand for cloud services, the volatility of cryptocurrency markets, and operational efficiency significantly impact its earnings.

Applied Digital Corporation Financial Statement Overview

Summary

Strong TTM revenue growth (+28.6%) is outweighed by weak fundamentals: deep net losses (net margin ~-43.5%), negative operating cash flow (~-$85M), very large negative free cash flow (~-$1.34B), and elevated leverage (debt-to-equity ~1.68). Positive equity provides some support, but financing/execution risk remains high until cash generation improves.

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: 29.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 29.08 is below the 20-day moving average (MA) of 33.88, below the 50-day MA of 31.91, and above the 200-day MA of 21.92, indicating a neutral trend. The MACD of -0.94 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 is Positive, 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	71 Outperform	$93.53B	69.19	9.75%	2.47%	5.36%	-1.68%
INGM	70 Outperform	$4.76B	16.43	7.51%	1.39%	7.06%	-8.83%
DLR	69 Neutral	$61.25B	49.78	5.91%	3.17%	7.75%	216.77%
DOCN	68 Neutral	$5.74B	23.59	―	―	14.20%	204.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APLD	56 Neutral	$8.57B	-53.48	-11.40%	―	15.30%	1.87%
CRWV	54 Neutral	$51.76B	-53.92	-29.17%	―	235.40%	19.90%

Applied Digital Corporation Corporate Events

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.

Applied Digital Awards Stock Units to Co-Founder

On November 25, 2025, Applied Digital Corporation‘s Compensation Committee awarded 170,000 restricted stock units to Jason Zhang, the Co-Founder and Chief Strategy Officer, under the company’s 2024 Omnibus Equity Incentive Plan. These units were fully vested on the grant date, potentially impacting the company’s strategic direction and stakeholder interests by aligning executive incentives with shareholder value.

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 Completes $2.35B Senior Notes Offering

On November 20, 2025, Applied Digital Corporation‘s subsidiary, APLD ComputeCo LLC, completed a private offering of $2.35 billion in 9.250% Senior Secured Notes due 2030. The proceeds are intended to fund the construction of new data centers, repay existing debt, and cover transaction expenses, potentially strengthening the company’s infrastructure and financial position.

The most recent analyst rating on (APLD) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Applied Digital Corporation stock, see the APLD Stock Forecast page.