From GlobeNewswire: 2025-04-14 16:05:00

Applied Digital Corporation (Nasdaq: APLD) reported financial results for the fiscal third quarter ended February 28, 2025. Revenues were $52.9 million, up 22% from the prior year. Net loss attributable to common stockholders was $36.1 million, up 43%. Adjusted EBITDA was $10.0 million.

The Board approved the sale of the Cloud Services Business. A $375 million financing closed with Sumitomo Mitsui Banking Corporation. Laura Laltrello joined as COO. Applied Digital continues negotiations to lease capacity to US-based hyperscalers for its HPC data centers.

The HPC Data Center Hosting Business is on schedule to open a 100 MW facility in North Dakota. Negotiations are ongoing with hyperscalers to lease up to 400 MW of capacity. The Cloud Services Business generated $17.8 million in revenue, a 220% increase year-over-year.

The Data Center Hosting Business operates facilities in North Dakota at full capacity. Revenue for this segment was $35.2 million, a 7% decrease year-over-year. Total revenues for the fiscal third quarter 2025 were $52.9 million, up 22% from the previous year. Cost of revenues was $49.1 million, up 4% from the prior year. In the fiscal third quarter of 2025, the increase in cost of revenues was driven by business growth and new services, while selling, general and administrative expenses decreased by 24% due to revenue-generating GPU cluster deployments. Interest expense rose by 87%, and losses were recorded due to debt extinguishment and fair value changes in warrants. The net loss for common shareholders was $36.1 million, with adjusted net loss of $17.8 million and Adjusted EBITDA of $10.0 million. Applied Digital had $261.2 million in cash and $689.1 million in debt as of February 28, 2025. A conference call to discuss these results will be held on April 14, 2025, at 5:00 p.m. Eastern Time.

Applied Digital Corporation (Nasdaq: APLD) operates digital infrastructure in North America for High-Performance Computing and Artificial Intelligence industries, offering cloud services and solutions. Forward-looking statements in their press release address future performance, product development, and business strategy. Non-GAAP financial measures are provided to enhance operational comparison by excluding one-time or significant non-cash items. For more information, visit www.applieddigital.com. The company uses non-GAAP financial measures to understand operating performance and evaluate results. These measures, when considered with GAAP results, provide insight into factors affecting the business. However, they are not a substitute for GAAP measures and may not be directly comparable to other companies’ measures.

Adjusted Operating Loss and Adjusted Net Loss Attributable to Common Stockholders are non-GAAP financial measures that exclude certain expenses to show ongoing costs. EBITDA is earnings before interest, taxes, depreciation, and amortization, while Adjusted EBITDA further adjusts for specific expenses. Investors should review non-GAAP reconciliations for a comprehensive understanding. Applied Digital Corporation and Subsidiaries reported a significant increase in total assets, totaling $1.7 billion. Revenue for the nine months ended February 28, 2025, was $175.6 million, up from $111 million in the prior year. The company’s operating loss was $28.1 million, with a net loss of $178.5 million.

The company’s current liabilities as of February 28, 2025, amounted to $393.6 million, with long-term debt totaling $679 million. Stockholders’ equity attributable to Applied Digital Corporation was $454.6 million. Revenue for the three months ended February 28, 2025, was $52.9 million, with a net loss of $35.6 million.

Applied Digital Corporation faced various expenses, including interest expense of $23.7 million and a loss on conversion of debt of $33.6 million. The company recorded a loss on change in fair value of debt amounting to $85.4 million. Basic and diluted net loss per share attributable to common stockholders was $0.16 for the three months ended February 28, 2025. Applied Digital Corporation reported a net loss of $178,528 for the three months ended February 29, 2024. Adjustments included $79,540 for depreciation and amortization, $10,233 for stock-based compensation, and $23,911 for lease expenses. Cash flow from operating activities was a negative $122,257. Cash flow from investing activities was a negative $465,678. Cash flow from financing activities was a positive $817,471. The company ended the period with $261,224 in cash, cash equivalents, and restricted cash.

For the nine months ended February 28, 2025, Applied Digital Corporation reported a net loss attributable to common stockholders of $179,741. Adjusted operating loss was $28,171, and adjusted net loss attributable to common stockholders was $51,976. EBITDA was a negative $76,351, while adjusted EBITDA was $51,369. The company also disclosed interest paid of $54,855 and non-cash activities such as operating right-of-use assets obtained by lease obligation totaling $20,280.

In the same period, the company reported non-GAAP measures for the three and nine months ended February 28, 2025. Adjusted operating loss for the quarter was $8,764, and for the nine months, it was $28,171. Adjusted net loss attributable to common stockholders for the quarter was $17,778, and for the nine months, it was $51,976. Adjusted EBITDA for the quarter was $10,015, and for the nine months, it was $51,369.



Read more at GlobeNewswire:: Applied Digital Reports Fiscal Third Quarter 2025 Results