One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Applied Digital Corporation
APLD · NMS · Technology · Information Technology Services
Current price
$16.32
52-week range
$13.12 - $50.73
Market cap
$4.94B
Balance sheet
Distressed
-5.91x Concerning
Net debt $3.53B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 84.1% last year.
- Risk Net debt grew 5484.9% over 3 years.
- Risk Return on equity was -13.6% last year — the company lost money on shareholders' equity.
What this company does
Applied Digital Corporation
Applied Digital Corporation builds and runs specialized computer centers (think super-powerful computers) for companies that need a lot of processing power, like those working on artificial intelligence (AI). The money they make primarily comes from renting out space and power in these centers to businesses that need this high-performance computing, which is important because it allows them to support the growing demand for AI technology.
How the company got here
Applied Digital Corporation, formerly known as Applied Blockchain, Inc., has evolved significantly since its inception. The company initially focused on blockchain technology but strategically pivoted to capitalize on the growing demand for high-performance computing (HPC) and artificial intelligence (AI) infrastructure. This name change in November 2022 reflected its broader focus on providing the digital backbone for these advanced technologies. Based in Dallas, Texas, the company has positioned itself to serve industries requiring massive computational power.
What it actually does
At its core, Applied Digital provides the essential infrastructure that powers demanding digital applications. Think of it like building and managing the super-powered computer rooms that companies need for complex tasks like training AI models or running advanced scientific simulations. They design, build, and operate these specialized facilities, ensuring they have the reliable power and cooling necessary for continuous, high-intensity computing.
Data Center Hosting
This segment focuses on providing the physical space, power, and cooling for digital infrastructure. Applied Digital builds and manages data centers that house computing equipment for various clients. These clients, such as cryptocurrency miners and AI developers, pay Applied Digital for the reliable and robust environment needed to run their intensive operations without interruption. This is a foundational part of the company's business, offering the essential 'real estate' for digital computation.
HPC Hosting Business
This business line is specifically tailored to the needs of high-performance computing (HPC) and artificial intelligence (AI) workloads. Applied Digital provides specialized infrastructure designed to support the massive processing power required for tasks like training complex AI models, running sophisticated simulations, or conducting advanced research. Customers in this segment are typically companies and developers pushing the boundaries of what's computationally possible, and they rely on Applied Digital for the dedicated, high-capacity computing resources.
What management is betting on now
Management is strategically focusing on expanding its capacity and capabilities in the HPC and AI sectors. They are investing in building out more advanced data center facilities designed to meet the escalating demand for computing power. The goal is to become a leading provider of the critical digital infrastructure that underpins the growth of artificial intelligence and other computationally intensive industries. This focus aims to capture a significant share of a rapidly expanding market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$-223.31M
FY2025 Q3
$-251.60M
FY2025 Q4
$-191.41M
FY2026 Q1
$-331.44M
FY2026 Q2
$-567.91M
FY2026 Q3
$-720.20M
FY2026 Q4
$-1.16B
FY2027 Q1
$-2.01B
Revenue
$341.88M
Net income
$-184.06M
Diluted EPS
-0.82
Operating cash flow
$63.92M
Free cash flow
$-2.01B
Fetching…
Sources
Revenue
$530.38M
Net income
—
Diluted EPS
-0.41
Operating cash flow
$132.54M
Free cash flow
$-1.16B
Fetching…
Sources
Revenue
$126.64M
Net income
—
Diluted EPS
-0.36
Operating cash flow
$55.01M
Free cash flow
$-720.20M
Fetching…
Sources
Revenue
$126.59M
Net income
$-14.45M
Diluted EPS
-0.07
Operating cash flow
$-15.85M
Free cash flow
$-567.91M
Fetching…
Sources
Revenue
$64.22M
Net income
$-16.93M
Diluted EPS
-0.07
Operating cash flow
$-82.02M
Free cash flow
$-331.44M
Fetching…
Sources
Revenue
$-33.30M
Net income
—
Diluted EPS
-0.31
Operating cash flow
$6.86M
Free cash flow
$-191.41M
Fetching…
Sources
Revenue
$52.92M
Net income
—
Diluted EPS
-0.16
Operating cash flow
$5.90M
Free cash flow
$-251.60M
Fetching…
Sources
Revenue
$63.87M
Net income
$-138.73M
Diluted EPS
-0.66
Operating cash flow
$-52.26M
Free cash flow
$-223.31M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $16.32
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $3.5B. Interest coverage -5.9x.
Net debt
$3.53B
Interest coverage
-5.91x
Applied Digital Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
APLD
BASELINE
Applied Digital Corporation
Total debt $6.48B Interest coverage -5.91x This is the baseline the peer rows are being compared against.
Total debt $10.22B Interest coverage -6.39x Neither company has much profit cushion over interest right now.
Total debt $7.66B Interest coverage -3.24x Neither company has much profit cushion over interest right now.
Total debt $4.41B Interest coverage -6.06x Neither company has much profit cushion over interest right now.
Total debt $5.62B Interest coverage -9.23x Neither company has much profit cushion over interest right now.
Total debt $1.95B Interest coverage -1.86x Neither company has much profit cushion over interest right now.
What you should know
The case for and against APLD
1 Reward
2 Risks
Rewards
-
Revenue grew 84.1% last year.
Risks
-
Net debt grew 5484.9% over 3 years.
-
Return on equity was -13.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-20.81x
P/B
3.03x
P/S
5.66x
EV/EBITDA
-84.06x
PEG ratio
1.83x
Profitability
How much profit each dollar creates
Gross margin
21.6%
Operating margin
-18.2%
Net margin
-53.0%
ROE
-13.6%
ROA
-2.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.71x
Current ratio
2.56x
Quick ratio
1.93x
Total debt
$6.48B
Total cash
$2.95B
Growth
How the business has been compounding
Revenue TTM
$1.13B
Revenue 5Y CAGR
190.8%
EPS TTM
-1.62
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$235.63M
Free CF TTM
$-2.78B
FCF margin
-246.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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