Applied Digital Corporation (APLD) AI Stock Analysis

• Market Cap: $10.56B
• Dividend Yield: N/A
• Average Volume (3M): 32.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.55
• Revenue Growth: 15.30%
• EPS Growth: 1.87%
• Country: US
• Employees: 150
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.03
• Shares Outstanding: 279,685,880
• 10 Day Avg. Volume: 42,265,187
• 30 Day Avg. Volume: 32,606,663
• PEG Ratio: 0.52
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 6.38
• P/FCF Ratio: -11.91
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 21.64
• Enterprise Value/Gross Profit: 149.67
• Enterprise Value/Ebitda: -31.28
• 1Y Price Target: $41.67
• Price Target Upside: 13.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 53 Neutral
• Price Target: $34.00 ▼(-7.21% Downside)

The overall stock score of 53 reflects a company with strong technical momentum but significant financial challenges. The most impactful factor is the poor financial performance, with ongoing losses and cash flow inefficiencies. While technical indicators are positive, the valuation is unattractive due to negative earnings. The company's strategic positioning in AI infrastructure offers long-term potential, but short-term financial and operational hurdles weigh heavily on the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Applied Digital's services, suggesting a robust market position and potential for continued expansion.

Long-term Contracts

Long-term contracts provide stable revenue streams and enhance financial predictability, supporting sustainable business growth over time.

Industry Demand

The rising demand for AI infrastructure presents significant growth opportunities for Applied Digital, aligning with industry trends and strategic positioning.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth and manage economic downturns.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and strategic initiatives without additional financing.

Net Loss

Ongoing net losses highlight operational inefficiencies and profitability challenges, which may affect long-term financial health and investor confidence.

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 significant financial challenges, including negative profitability, high leverage, and cash flow constraints. Despite improvements in gross margin and equity, the company needs to address operational inefficiencies and manage debt levels to stabilize its financial position.

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	219.02M	215.51M	136.62M	55.39M	8.55M	0.00
Gross Profit	31.66M	22.70M	29.96M	11.00M	-13.34M	-1.00K
EBITDA	-151.49M	-91.82M	-34.16M	-36.88M	-20.71M	-331.00K
Net Income	-253.06M	-231.06M	-149.27M	-44.65M	-23.52M	-568.00K
Balance Sheet
Total Assets	2.40B	1.87B	762.87M	263.96M	119.98M	15.05M
Cash, Cash Equivalents and Short-Term Investments	73.91M	113.92M	3.34M	43.57M	38.80M	11.75M
Total Debt	700.21M	702.88M	427.81M	91.81M	13.54M	2.13M
Total Liabilities	1.29B	1.24B	638.04M	194.28M	40.74M	17.64M
Stockholders Equity	1.04B	633.73M	124.83M	59.52M	72.26M	-2.58M
Cash Flow
Free Cash Flow	-771.91M	-115.40M	-128.01M	-72.54M	-59.12M	-3.38M
Operating Cash Flow	-121.53M	-115.40M	13.79M	58.73M	-872.00K	-83.00K
Investing Cash Flow	-884.47M	-667.65M	-172.44M	-132.09M	-45.87M	-3.30M
Financing Cash Flow	1.03B	874.69M	146.76M	70.63M	81.29M	15.13M

Applied Digital Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 36.64 is above the 20-day moving average (MA) of 27.52, above the 50-day MA of 20.61, and above the 200-day MA of 11.30, indicating a bullish trend. The MACD of 4.60 indicates Negative momentum. The RSI at 83.05 is Negative, neither overbought nor oversold. The STOCH value of 76.07 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	69 Neutral	$3.63B	66.41	11.59%	―	49.35%	72.05%
CNXC	67 Neutral	$2.76B	9.38	7.08%	2.97%	3.40%	53.13%
INGM	63 Neutral	$5.15B	19.28	7.11%	1.05%	4.94%	-18.43%
VRRM	62 Neutral	$3.88B	102.53	9.86%	―	6.24%	-57.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAIC	60 Neutral	$4.50B	11.83	25.40%	1.53%	2.23%	48.38%
APLD	53 Neutral	$10.56B	―	-32.13%	―	15.30%	1.87%

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.