Want to see APLD full AI Analyst Report?
Top Page
Applied Digital Corporation
(NASDAQ:APLD)
Select Model
Select Model
Rating:46Neutral
Price Target:
$31.00
▲(14.01% Upside)
Action:Reiterated
Date:07/30/26
The score is held down primarily by financial risk and trend: the company is still posting large GAAP losses and has taken on substantial debt, while the stock is in a clear downtrend below major moving averages and carries high volatility. Offsetting this, the latest earnings call points to strong commercial traction (large contracted lease book), improving adjusted profitability, and significant liquidity/financing progress, but execution and capital-intensity risks remain central.
Positive Factors
Large contracted lease book and backlog
A dramatic expansion of contracted lease value to ~$36B and 1.41 GW under construction provides durable revenue visibility. Long‑term, take‑or‑pay style hyperscaler contracts materially de‑risk demand, support predictable NOI, and help secure project financing and scale economics over multiple years.
Negative Factors
High leverage relative to business maturity
A rapid increase in debt to roughly $5B versus an early‑stage, still loss‑making profile constrains flexibility. High leverage raises interest and covenant risk, limits capacity for opportunistic investment, and increases dependency on continued access to capital markets as projects scale to cash‑generative maturity.
Read all positive and negative factors
Positive Factors
Negative Factors
Large contracted lease book and backlog
A dramatic expansion of contracted lease value to ~$36B and 1.41 GW under construction provides durable revenue visibility. Long‑term, take‑or‑pay style hyperscaler contracts materially de‑risk demand, support predictable NOI, and help secure project financing and scale economics over multiple years.
Read all positive factors
Applied Digital Corporation Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business unit contributes to total sales, indicating areas of strength and potential growth or risk depending on market trends and competition.
Shows how much each business unit contributes to total sales, indicating areas of strength and potential growth or risk depending on market trends and competition.
Data provided by:
The Fly
The FlyApplied Digital Corporation (APLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.98B
Dividend YieldN/A
Average Volume (3M)18.71M
Price to Earnings (P/E)―
Beta (1Y)2.95
Revenue Growth167.37%
EPS Growth18.89%
CountryUS
Employees205
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.91
Shares Outstanding291,469,120
10 Day Avg. Volume18,992,438
30 Day Avg. Volume18,709,299
Financial Highlights & Ratios
PEG Ratio2.44
Price to Book (P/B)7.41
Price to Sales (P/S)21.58
P/FCF Ratio-4.75
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$72.79Price Target Upside167.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.72
Revenue Forecast (FY)$822.20M
Applied Digital Corporation Business Overview & Revenue Model
Company Description
Applied Digital Corporation designs, develops, and operates digital infrastructure solutions to high-performance computing (HPC) and artificial intelligence industries in North America. It operates through: Data Center Hosting Business, and HPC Ho...
How the Company Makes Money
APLD makes money primarily by providing digital infrastructure capacity and services to customers that need large amounts of power and cooling for compute equipment. Where customer contracts are in place, revenue is generally generated through rec...
Applied Digital Corporation Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 14, 2026
Earnings Call Sentiment Positive
The call emphasized substantial commercial progress (expanding from $7B to $36B contracted revenue, 1.41 GW contracted, multiple large campus leases), on-time/on-budget delivery, strong quarter-over-quarter revenue growth (+407%) and improved adjusted profitability (Adjusted EBITDA $42.4M; adjusted net income $12.9M). Management also highlighted successful financing transactions that materially lowered the company’s cost of capital and a strong cash position. Key risks noted include a GAAP net loss ($111.6M), significant one-time stock-based compensation and elevated upfront tenant fit-out costs, as well as growth governors such as power availability and supply-chain capacity that will determine the pace of future realization of contracted revenues.Positive Updates
Large Contracted Lease Book and Recent Growth
Total contracted long-term lease value grew from $7 billion to $36 billion over the past year (≈+414%), including approximately $20 billion signed in the most recent quarter; management stated a 125% increase in contracted lease value and 1.41 GW of contracted critical IT load currently under construction.
Negative Updates
GAAP Net Loss
Net loss attributable to common shareholders was $111.6 million (−$0.39 per share) for the quarter despite adjusted profitability metrics.
Read all updates
Q4-2026 Updates
Positive
Negative
Large Contracted Lease Book and Recent Growth
Total contracted long-term lease value grew from $7 billion to $36 billion over the past year (≈+414%), including approximately $20 billion signed in the most recent quarter; management stated a 125% increase in contracted lease value and 1.41 GW of contracted critical IT load currently under construction.
Read all positive updates
Company Guidance
The company guided to a sharp near‑term ramp: building toward 1.5 GW of HPC/AI infrastructure (1.41 GW currently contracted and under construction) with an additional 1.7 GW being marketed, potential expansion leases of ~100 MW and ~150 MW that could lift capacity to ~1.66 GW and add >$6 billion of contracted revenue at existing rates, and visibility to expand to over 5 GW of critical IT load through 2032; management now expects to hit a $1.0 billion NOI run‑rate in about one year (three years ahead of the prior five‑year target). Quarterly financials and financing point to the cadence: Q4 revenues $258.7M (services $208.2M; rental/other $50.6M), adjusted EBITDA $42.4M, NOI $39.9M (91% margin), adjusted net income $12.9M, and the balance sheet ended the quarter with $4.2B cash, $5.0B debt and ~$1.7B equity; CapEx is expected to be roughly $600M next quarter. Execution and cost metrics were reiterated—delivered 100 MW and an additional 75 MW on time and on budget, typical build costs of $11M–$13M per MW—and financings closed include $2.15B 6.75% notes, $1.59B 7% notes, a $300M bridge and a $550M revolver (SOFR+225), while Applied owns ~10% of Base Electron (expecting ~1.2 GW of generation online in 2029–2030) that should unlock further campus expansion.Applied Digital Corporation Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
24
Negative
Cash Flow
46
Neutral
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 611.31M | 215.51M | 136.62M | 55.39M | 8.55M |
| Gross Profit | 157.68M | 22.70M | 29.96M | 11.00M | -13.34M |
| EBITDA | -84.63M | -91.82M | -34.16M | -36.88M | -20.71M |
| Net Income | -244.00M | -231.06M | -149.27M | -44.65M | -23.52M |
Balance Sheet | |||||
| Total Assets | 9.93B | 1.87B | 762.87M | 263.96M | 119.98M |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 113.92M | 3.34M | 29.00M | 38.80M |
| Total Debt | 5.10B | 702.88M | 135.73M | 91.81M | 13.54M |
| Total Liabilities | 6.19B | 1.24B | 638.04M | 194.28M | 40.74M |
| Stockholders Equity | 1.78B | 633.73M | 124.83M | 59.52M | 72.26M |
Cash Flow | |||||
| Free Cash Flow | -2.78B | -797.00M | -128.01M | -72.54M | -55.85M |
| Operating Cash Flow | 89.69M | -115.40M | 13.79M | 58.73M | -872.00K |
| Investing Cash Flow | -1.17B | -667.65M | -172.44M | -132.09M | -45.87M |
| Financing Cash Flow | 5.11B | 874.69M | 146.76M | 70.63M | 81.29M |
Applied Digital Corporation Technical Analysis
Neutral
27.19
Price Trends
36.87
Negative
34.62
Negative
32.59
Negative
Market Momentum
-2.14
Negative
50.86
Neutral
74.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLD, the sentiment is Neutral. The current price of 27.19 is below the 20-day moving average (MA) of 28.54, below the 50-day MA of 36.87, and below the 200-day MA of 32.59, indicating a neutral trend. The MACD of -2.14 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 74.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APLD.
Applied Digital Corporation Risk Analysis
Applied Digital Corporation disclosed 80 risk factors in its most recent earnings report. Applied Digital Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Applied Digital Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $69.75B | 86.88 | 3.30% | 2.45% | 18.74% | -45.63% | |
69 Neutral | $100.57B | 65.34 | 10.03% | 1.82% | 9.64% | 52.13% | |
69 Neutral | $13.74B | 45.37 | 154.32% | ― | 17.61% | 119.62% | |
65 Neutral | $6.51B | 15.33 | 10.23% | 1.10% | 11.54% | 61.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | $7.98B | -30.02 | -16.85% | ― | 167.37% | 18.89% | |
42 Neutral | $39.16B | -23.08 | -40.33% | ― | 129.93% | -21.73% |
* Technology Sector Average
APLD
Applied Digital Corporation
31.27
16.38
110.01%
DLR
Digital Realty
193.89
26.55
15.87%
EQIX
Equinix
1,051.53
289.91
38.07%
DOCN
DigitalOcean Holdings
128.89
94.08
270.27%
INGM
Ingram Micro Holding Corporation
29.23
10.28
54.22%
CRWV
CoreWeave
91.90
-19.94
-17.83%
Applied Digital Corporation Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Expands Credit Facility and Preferred Equity Capacity
Positive
Jun 26, 2026
On June 26, 2026, Applied Digital’s subsidiary APLD Intermediate HoldCo LLC amended its existing credit agreement to increase the aggregate principal amount of its secured revolving credit facility to $430 million, with maturity on May 28, 2...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Completes $1.59 Billion Senior Notes Offering
Positive
Jun 16, 2026
On June 16, 2026, Applied Digital subsidiary APLD ComputeCo 3 LLC completed a $1.59 billion private offering of 7.000% senior secured notes due 2031, issued at par to qualified institutional buyers and certain non-U.S. investors. The proceeds are ...
Business Operations and StrategyFinancial Disclosures
Applied Digital Secures Major Long-Term AI Campus Lease
Positive
Jun 9, 2026
On June 8, 2026, Applied Digital announced a long-term lease agreement for 210 MW of critical IT load at its Delta Forge 2 AI Factory campus in a new southern state with a U.S.‑based high investment‑grade hyperscaler, marking its fifth...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Announces $1.59 Billion Secured Notes Offering
Positive
Jun 9, 2026
On June 9, 2026, Applied Digital announced that its subsidiary APLD ComputeCo 3 LLC priced a $1.59 billion offering of 7.000% senior secured notes due 2031, to be sold at par in a private placement to qualified institutional buyers and certain non...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Plans $1.59 Billion Senior Notes Offering
Positive
Jun 9, 2026
Applied Digital said it closed a revolving credit facility on May 29, 2026, arranged by Goldman Sachs, providing $350 million in committed capacity with an additional $200 million accordion, secured by certain non-data center assets and maturing i...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Applied Digital Finalizes ChronoScale Spin-Off and Retains Control
Positive
May 5, 2026
On May 5, 2026, Applied Digital completed the separation of its cloud business by contributing it to EKSO Bionics Holdings, which simultaneously rebranded as ChronoScale Corporation and began trading on the Nasdaq Capital Market under the ticker C...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.