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Applied Digital Corporation
(NASDAQ:APLD)
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Rating:54Neutral
Price Target:
$34.00
▲(7.83% Upside)
Action:Reiterated
Date:06/27/26
APLD’s score is held back primarily by weak financial quality (ongoing losses, elevated leverage, and materially negative free cash flow). Offsetting this, the earnings call and recent corporate updates support a credible growth and contracting narrative with improving underlying operating metrics (adjusted EBITDA) and expanded financing access. Technical signals are mixed/neutral and valuation is constrained by negative earnings and no dividend yield.
Positive Factors
Long-term contracted hyperscaler leases
Large, long-dated take-or-pay hyperscaler contracts materially lengthen revenue visibility and de-risk future cash flows. A growing share of investment-grade hyperscaler counterparties supports stable, predictable demand for high-density AI capacity and underpins repeatable campus-level economics over years.
Negative Factors
High leverage and negative free cash flow
Elevated leverage and materially negative free cash flow constrain financial flexibility and increase refinancing dependency. Until operating cash generation sustainably covers capex and interest, the company remains exposed to higher funding costs and potential dilution or covenant stress during market dislocations.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term contracted hyperscaler leases
Large, long-dated take-or-pay hyperscaler contracts materially lengthen revenue visibility and de-risk future cash flows. A growing share of investment-grade hyperscaler counterparties supports stable, predictable demand for high-density AI capacity and underpins repeatable campus-level economics over 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
$8.98B
Dividend YieldN/A
Average Volume (3M)20.23M
Price to Earnings (P/E)―
Beta (1Y)2.99
Revenue Growth60.70%
EPS Growth46.26%
CountryUS
Employees205
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.75
Shares Outstanding285,769,530
10 Day Avg. Volume18,885,272
30 Day Avg. Volume20,228,162
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)2.17
Price to Sales (P/S)6.38
P/FCF Ratio-1.72
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue39.72
Enterprise Value/Gross Profit146.75
Enterprise Value/Ebitda-151.19
Forecast
1Y Price Target
$72.00Price Target Upside128.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.73
Revenue Forecast (FY)$819.01M
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:Apr 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presents a constructive operational and growth narrative: very strong sequential revenue growth (139%), positive adjusted EBITDA ($44.1M), significant construction progress on multiple large campuses, improved lease credit support (CoreWeave A3 upgrade), and meaningful liquidity and funding access. Offsetting these positives are a large GAAP net loss ($100.9M), a sizable cloud segment noncash write-down ($59.7M) and elevated SG&A driven by stock-based compensation and one-time professional costs. Management highlights achievable financing paths and solid execution but acknowledges remaining debt placement and regulatory/site timing risks. On balance the call emphasizes strong execution and a clear growth runway, while also disclosing near-term profitability headwinds and financing/approval uncertainties.Positive Updates
Strong Revenue Growth
Total revenues of $126.6 million for the quarter, a 139% increase versus the comparative prior quarter, driven by ramping HPC hosting leases and fit-out services.
Negative Updates
Large GAAP Net Loss
Net loss attributable to common stockholders of $100.9 million (loss per share $0.36) for the quarter despite positive adjusted results.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenues of $126.6 million for the quarter, a 139% increase versus the comparative prior quarter, driven by ramping HPC hosting leases and fit-out services.
Read all positive updates
Company Guidance
Management guided that revenues should "ramp significantly" over the next 12 months as PF1’s two 150‑MW buildings come online (PF1 RFS ~July 1 with staggered energizations July–Sept), PF2’s 200‑MW campus advances and Delta Forge 1 (300‑MW, >600 acres) targets initial operations mid‑2027; the company has ~900 MW (nearly 1 GW) under construction and ~$16 billion of contracted lease revenue (≈$11B CoreWeave / $5B investment‑grade) with a goal to reach 70% investment‑grade contracts. Q3 FY2026 metrics cited: $126.6M revenue (+139% YoY), $44.1M adjusted EBITDA, $33.2M adjusted net income ($0.09/sh), GAAP net loss $100.9M ($0.36/sh), depreciation ≈$18.5M, cash $2.1B, debt $2.7B and ~ $1.6B equity. Financing guidance/highlights included a $2.15B private offering of 6.75% senior secured notes due 2031 for PF2, one remaining debt tranche for the final 150‑MW PF1 building, $4.1B in preferred equity capacity from Macquarie, CoreWeave SPV’s A3 upgrade and $50M LOC, a plan to lower cost of capital via refinancings, retain >85% common equity in future sites, and internal targets to exceed $1B (and later $2B) of NOI within five years with a contemplated 5–6x NOI leverage range.Applied Digital Corporation Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 355.45M | 215.51M | 136.62M | 55.39M | 8.55M | 0.00 |
| Gross Profit | 96.22M | 22.70M | 29.96M | 11.00M | -13.34M | -1.00K |
| EBITDA | -93.39M | -91.82M | -34.16M | -36.88M | -20.71M | -331.00K |
| Net Income | -186.28M | -231.06M | -149.27M | -44.65M | -23.52M | -568.00K |
Balance Sheet | ||||||
| Total Assets | 6.25B | 1.87B | 762.87M | 263.96M | 119.98M | 15.05M |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 113.92M | 3.34M | 29.00M | 38.80M | 11.75M |
| Total Debt | 2.83B | 702.88M | 135.73M | 91.81M | 13.54M | 2.13M |
| Total Liabilities | 3.68B | 1.24B | 638.04M | 194.28M | 40.74M | 17.64M |
| Stockholders Equity | 1.58B | 633.73M | 124.83M | 59.52M | 72.26M | -2.58M |
Cash Flow | ||||||
| Free Cash Flow | -1.81B | -797.00M | -128.01M | -72.54M | -55.85M | -3.38M |
| Operating Cash Flow | -36.01M | -115.40M | 13.79M | 58.73M | -872.00K | -83.00K |
| Investing Cash Flow | -957.69M | -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
Negative
31.53
Price Trends
41.26
Negative
34.90
Negative
32.40
Negative
Market Momentum
-2.39
Positive
29.93
Positive
7.73
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 31.53 is below the 20-day moving average (MA) of 40.56, below the 50-day MA of 41.26, and below the 200-day MA of 32.40, indicating a bearish trend. The MACD of -2.39 indicates Positive momentum. The RSI at 29.93 is Positive, neither overbought nor oversold. The STOCH value of 7.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.66B | 54.20 | 154.32% | ― | 17.61% | 119.62% | |
70 Outperform | $100.20B | 70.07 | 10.03% | 2.47% | 6.67% | 50.09% | |
68 Neutral | $63.06B | 44.63 | 5.98% | 3.17% | 13.97% | 234.59% | |
66 Neutral | $6.38B | 18.12 | 8.61% | 1.39% | 10.87% | 27.94% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $8.98B | -41.79 | -15.82% | ― | 60.70% | 46.26% | |
42 Neutral | $49.10B | -28.94 | -40.33% | ― | 129.93% | -21.73% |
* Technology Sector Average
APLD
Applied Digital Corporation
31.44
21.93
230.60%
DLR
Digital Realty
176.30
9.92
5.96%
EQIX
Equinix
1,015.97
268.27
35.88%
DOCN
DigitalOcean Holdings
140.47
110.64
370.90%
INGM
Ingram Micro Holding Corporation
27.54
6.98
33.96%
CRWV
CoreWeave
90.00
-63.05
-41.20%
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...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Secures $7.5 Billion AI Campus Lease
Positive
Apr 23, 2026
On April 23, 2026, Applied Digital announced a 15-year lease agreement with a new U.S.-based, high investment-grade hyperscaler at its 430 MW Delta Forge 1 AI Factory campus, currently under construction. The lease covers 300 MW of critical IT loa...
Business Operations and StrategyExecutive/Board Changes
Applied Digital Grants New Executive Management Incentive Units
Positive
Apr 16, 2026
On April 9, 2026, Applied Digital Corporation, through its subsidiary APLD ChronoScale Management LLC, granted fully vested profits interest awards in the form of Management Incentive Plan Units to four executive officers under a newly adopted equ...
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.