Applied Digital Corporation (APLD) AI Stock Analysis

• Market Cap: $5.68B
• Dividend Yield: N/A
• Average Volume (3M): 28.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.68
• Revenue Growth: 30.16%
• EPS Growth: 12.06%
• Country: US
• Employees: 150
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.03
• Shares Outstanding: 261,519,800
• 10 Day Avg. Volume: 30,621,138
• 30 Day Avg. Volume: 28,647,967
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 10.47
• Enterprise Value/Gross Profit: 99.44
• Enterprise Value/Ebitda: -24.58
• 1Y Price Target: $19.79
• Price Target Upside: -8.84% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $17.50 ▼(-19.39% Downside)

The overall stock score reflects a mix of financial challenges and strong growth potential. While financial performance is a concern, positive technical indicators, strategic corporate events, and promising earnings call developments contribute to a balanced outlook.

Positive Factors

Strategic Lease Agreements

The long-term lease agreements with CoreWeave provide a stable revenue stream and enhance the company's position in AI infrastructure, supporting sustained growth.

Revenue Growth

Strong revenue growth indicates increasing demand for the company's data center hosting services, highlighting its competitive edge in the digital infrastructure sector.

AI Infrastructure Expansion

The expansion into AI infrastructure with Polaris Forge 2 positions the company as a leader in high-performance computing, meeting growing market demand.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Negative Cash Flow

Negative cash flows indicate liquidity challenges, which could hinder the company's ability to sustain operations and invest in future projects.

Operational Inefficiencies

Persistent operational inefficiencies and negative EBIT suggest challenges in cost management and profitability, affecting long-term financial health.

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 channels. Primarily, the company earns income from its data center operations, where it provides hosting services for cryptocurrency miners and other clients requiring substantial computational resources. This includes leasing space and power to customers who need to run their mining rigs. Additionally, APLD offers GPU cloud services that allow clients to access high-performance computing power on-demand, creating a recurring revenue model. The company may also engage in strategic partnerships with blockchain firms and technology providers, enhancing its service offerings and expanding its market reach. These collaborations can lead to shared projects, revenue-sharing agreements, and increased customer acquisition, all contributing to APLD's overall earnings.

Applied Digital Corporation Financial Statement Overview

Summary

Applied Digital Corporation faces financial challenges, including negative profitability, high leverage, and cash flow constraints. Despite improvements in gross margin and equity, operational inefficiencies and high debt levels remain concerns.

Income Statement

The income statement reflects significant challenges, with negative net income and declining revenue. The company has consistently reported negative EBIT, indicating operational inefficiencies. Notably, gross profit margin has improved in the TTM period to 29.6% from previous years, suggesting some improvement in cost management. However, the company has struggled with profitability, evidenced by persistent negative net profit margins.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.41 in the TTM period, reflecting potential financial risk due to high leverage. The company has significantly increased its assets, which could indicate growth potential. Stockholders' equity has improved, and the equity ratio stands at 26.6%, indicating moderate financial stability. However, the increasing liabilities and debt levels could pose challenges if not managed carefully.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, signaling liquidity concerns. The operating cash flow to net income ratio is negative, indicating that cash flows are not sufficient to cover net losses. Free cash flow has deteriorated significantly in the TTM period, highlighting increased capital expenditures without corresponding cash inflows. The company needs to improve cash generation to sustain operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	215.51M	215.51M	136.62M	55.39M	8.55M	0.00
Gross Profit	22.70M	22.70M	29.96M	11.00M	-13.34M	-1.00K
EBITDA	-91.82M	-91.82M	-34.16M	-36.88M	-20.71M	-331.00K
Net Income	-231.06M	-231.06M	-149.27M	-44.65M	-23.52M	-568.00K
Balance Sheet
Total Assets	1.87B	1.87B	762.87M	263.96M	119.98M	15.05M
Cash, Cash Equivalents and Short-Term Investments	41.55M	113.92M	3.34M	43.57M	38.80M	11.75M
Total Debt	702.88M	702.88M	427.81M	91.81M	13.54M	2.13M
Total Liabilities	1.24B	1.24B	638.04M	194.28M	40.74M	17.64M
Stockholders Equity	497.69M	633.73M	124.83M	59.52M	72.26M	-2.58M
Cash Flow
Free Cash Flow	-372.89M	-115.40M	-128.01M	-72.54M	-59.12M	-3.38M
Operating Cash Flow	-115.40M	-115.40M	13.79M	58.73M	-872.00K	-83.00K
Investing Cash Flow	-667.65M	-667.65M	-172.44M	-132.09M	-45.87M	-3.30M
Financing Cash Flow	0.00	0.00	146.76M	70.63M	81.29M	15.13M

Applied Digital Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.71
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 21.71 is above the 20-day moving average (MA) of 18.58, above the 50-day MA of 15.69, and above the 200-day MA of 9.85, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APLD.

Applied Digital Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	73 Outperform	3.91B	71.59	10.86%	―	49.35%	72.05%
CNXC	69 Neutral	3.00B	11.62	5.72%	2.79%	3.40%	53.14%
APLD	64 Neutral	$5.68B	―	-53.71%	―	30.16%	12.06%
INGM	63 Neutral	4.89B	18.04	6.60%	1.10%	4.94%	-18.43%
VRRM	61 Neutral	3.91B	103.12	11.07%	―	6.24%	-57.35%
SAIC	60 Neutral	4.49B	11.75	26.30%	1.52%	2.23%	48.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Applied Digital Corporation Corporate Events

Applied Digital Expands AI Infrastructure with New Lease

On August 28, 2025, Applied Digital announced a new lease agreement with CoreWeave for an additional 150MW at its Polaris Forge 1 Campus in North Dakota, increasing the total critical IT capacity to 400MW. This expansion is part of Applied Digital’s strategy to enhance its AI infrastructure capabilities, with the new data center expected to be operational by mid-2027. The company anticipates approximately $11 billion in contracted lease revenue, reinforcing North Dakota’s role in the digital economy and supporting Applied Digital’s mission to transform regional resources into economic opportunities.

Applied Digital Expands Capital for Data Center Project

On August 14, 2025, Applied Digital Corporation amended its preferred equity purchase agreement to increase its capital access for the development of its Polaris Forge I data center in North Dakota. The amendment raises the commitment for Series G Convertible Preferred Stock from $150 million to $300 million and removes previous capital limitations, enhancing the company’s financial flexibility for its ongoing projects.