Applied Digital Stock Earnings Reports

Key takeaways for investors: Applied Digital reported fiscal Q3 2025 revenue of $52.9M (up 22% YoY) driven by Data Center Hosting ($35.2M) and Cloud Services ($17.8M). Adjusted EBITDA improved materially to $10.0M (up 878%), while GAAP net loss was $36.1M (adj net loss $17.8M). Cash was $261.2M with $689.1M of debt. Data center update: the company operates 286 MW of fully contracted hosting (two North Dakota sites at full capacity) and is progressing on the Ellendale campus — Building 1 (100 MW critical IT load) is on schedule with equipment largely landed and expected to be ready for service and revenue in calendar Q4 2025; Building 2 (150 MW) is expected ready by end of Q2 2026, and Building 3 (150 MW) planned for Q1 2027. Capital / financing: management secured a strategic Macquarie transaction (potential access up to $5B) and a $375M financing arrangement with SMBC, and previously issued a $450M convertible note at 2.75% — all aimed at lowering cost of capital and funding buildout. Business strategy: the Board has initiated a review of strategic options for the Cloud Services business (potential sale or separation) to remove perceived customer friction with hyperscalers and to better position the core data center business (including a possible future REIT-like strategy). Operational: Cloud Services experienced a sequential revenue dip after shifting some capacity to on‑demand and encountering multi‑tenant technical issues, which management says are now resolved; management expects on‑demand to ramp and return Cloud revenue toward prior ~$110–$120M annualized levels. Risks/notes: leasing for Ellendale is taking longer than anticipated (management expects one major customer to take the 400 MW initial campus but discussions remain ongoing), power/power-cost seasonality affected margins this quarter, and tariffs/costs for later buildings remain monitored though current equipment for Bldg 1 landed mitigates tariff risk.