Applied Digital Corporation (APLD)
NASDAQ:APLD
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Applied Digital Corporation
(NASDAQ:APLD)
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Rating:58Neutral
Price Target:
$37.00
▲(17.35% Upside)
Action:ReiteratedDate:05/06/26
The score is held back primarily by weak financial performance—persistent losses, higher leverage, and deeply negative free cash flow—despite strong revenue growth. Offsetting this, technicals indicate a clear uptrend and the latest earnings call and events support an expanding contracted runway and execution progress, though financing and profitability headwinds remain material.
Positive Factors
Strong revenue ramp from HPC hosting
Sustained, rapid top-line growth driven by high-performance compute hosting reflects structural demand for AI/HPC capacity. Recurring hosting, fit-out and power revenue tied to multi-year leases creates a durable revenue base as additional buildings energize and utilization scales.
Negative Factors
Negative free cash flow
Sustained negative free cash flow reflects heavy ongoing capex to build AI campuses and limits the firm's ability to self-fund expansion. Until NOI climbs meaningfully and FCF turns positive, the business will remain dependent on external capital and refinancing cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue ramp from HPC hosting
Sustained, rapid top-line growth driven by high-performance compute hosting reflects structural demand for AI/HPC capacity. Recurring hosting, fit-out and power revenue tied to multi-year leases creates a durable revenue base as additional buildings energize and utilization scales.
Read all positive factors
Applied Digital Corporation (APLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.18B
Dividend YieldN/A
Average Volume (3M)19.42M
Price to Earnings (P/E)―
Beta (1Y)2.96
Revenue Growth60.70%
EPS Growth46.26%
CountryUS
Employees150
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.75
Shares Outstanding285,769,530
10 Day Avg. Volume23,706,324
30 Day Avg. Volume19,420,820
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)2.17
Price to Sales (P/S)6.38
P/FCF Ratio-1.72
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue35.15
Enterprise Value/Gross Profit129.85
Enterprise Value/Ebitda-316.82
Forecast
1Y Price Target
$50.00Price Target Upside58.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.56
Revenue Forecast (FY)$408.44M
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 Cent...
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 infrastruct...
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 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 | -39.43M | -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
Positive
31.53
Price Trends
28.66
Positive
29.61
Positive
25.11
Positive
Market Momentum
0.65
Negative
60.11
Neutral
86.21
Negative
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 31.53 is above the 20-day moving average (MA) of 26.63, above the 50-day MA of 28.66, and above the 200-day MA of 25.11, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 86.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $106.83B | 58.10 | 10.03% | 2.47% | 6.67% | 50.09% | |
73 Outperform | $11.14B | 42.89 | -214.15% | ― | 15.48% | 208.22% | |
70 Outperform | $6.50B | 13.17 | 8.61% | 1.39% | 10.87% | 27.94% | |
68 Neutral | $69.76B | 86.70 | 5.81% | 3.17% | 13.97% | 234.59% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $10.18B | -18.65 | -15.82% | ― | 60.70% | 46.26% | |
57 Neutral | $68.94B | -17.24 | -33.10% | ― | 167.88% | -22.60% |
* Technology Sector Average
APLD
Applied Digital Corporation
35.63
30.42
583.88%
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INGM
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CRWV
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125.43
71.13
130.99%
Applied Digital Corporation Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Completes $2.15 Billion Senior Notes Offering
Positive
Mar 11, 2026
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. Th...
Business Operations and StrategyRegulatory Filings and Compliance
Applied Digital Guarantees Major Power Project for AI Growth
Neutral
Mar 4, 2026
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 p...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Raises $2.15B to Expand AI Campus
Positive
Mar 4, 2026
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...
Business Operations and StrategyPrivate Placements and Financing
Applied Digital Plans $2.15 Billion Notes for AI Expansion
Positive
Mar 2, 2026
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. inv...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Applied Digital Subsidiaries Enter Transformative Ekso Combination Agreement
Positive
Feb 17, 2026
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 w...
Business Operations and StrategyExecutive/Board Changes
Applied Digital Grants Long-Term Performance-Based Equity Awards
Positive
Feb 9, 2026
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 performan...
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.