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Applied Digital (APLD) - 2025 Q3 - Quarterly Results
APLDApplied Digital (APLD)2025-04-14 20:11

Financial Performance - Revenues for the fiscal third quarter 2025 were 52.9million,representinga2252.9 million, representing a 22% increase from the prior year comparable period[7]. - Net loss attributable to common stockholders was 36.1 million, up 43% from the prior year comparable period, with a loss per share of 0.16,anincreaseof690.16, an increase of 69%[7][21]. - Adjusted EBITDA for the fiscal third quarter 2025 was 10.0 million, compared to an Adjusted EBITDA loss of 1.3millionforthefiscalthirdquarter2024[22].−TotalrevenueforthethreemonthsendedFebruary28,2025,was1.3 million for the fiscal third quarter 2024[22]. - Total revenue for the three months ended February 28, 2025, was 52,921,000, an increase of 22.5% compared to 40,284,000forthesameperiodin2024[38].−OperatinglossfortheninemonthsendedFebruary28,2025,was40,284,000 for the same period in 2024[38]. - Operating loss for the nine months ended February 28, 2025, was 28,074,000, a significant improvement from a loss of 70,734,000forthesameperiodin2024[38].−NetlossattributabletocommonstockholdersforthethreemonthsendedFebruary28,2025,was70,734,000 for the same period in 2024[38]. - Net loss attributable to common stockholders for the three months ended February 28, 2025, was 36,095,000, compared to a net loss of 62,838,000forthesameperiodin2024,reflectinga42.862,838,000 for the same period in 2024, reflecting a 42.8% reduction in losses[38]. - The adjusted net loss attributable to common stockholders for the nine months ended February 28, 2025, was 51,976,000, compared to 33,301,000forthesameperiodin2024,indicatinga5633,301,000 for the same period in 2024, indicating a 56% increase in losses[43]. - The company reported a net loss attributable to common stockholders of 179,741,000 for the nine months ended February 28, 2025, compared to 84,824,000forthesameperiodin2024,indicatinga11284,824,000 for the same period in 2024, indicating a 112% increase in losses[43]. Revenue Segments - The Company generated 17.8 million in revenues from the Cloud Services Business segment, a 220% increase compared to 5.6millionduringthesameperiodlastyear[13].−TheDataCenterHostingBusinesssegmentgenerated5.6 million during the same period last year[13]. - The Data Center Hosting Business segment generated 35.2 million in revenue, a decrease of 7% compared to 37.8millionduringthesameperiodlastyear[15].CashandDebtManagement−AsofFebruary28,2025,theCompanyhad37.8 million during the same period last year[15]. Cash and Debt Management - As of February 28, 2025, the Company had 261.2 million in cash and 689.1millionindebt[23].−Cashandcashequivalentsincreasedto689.1 million in debt[23]. - Cash and cash equivalents increased to 68,743,000 as of February 28, 2025, from 3,339,000asofMay31,2024[36].−Totalliabilitiesincreasedto3,339,000 as of May 31, 2024[36]. - Total liabilities increased to 1,209,480,000 as of February 28, 2025, from 638,037,000asofMay31,2024,indicatinga89.5638,037,000 as of May 31, 2024, indicating a 89.5% rise[36]. - The company incurred interest paid of 54,855,000 for the nine months ended February 28, 2025, significantly higher than 9,121,000forthesameperiodin2024[41].AssetManagement−Totalassetsgrewto9,121,000 for the same period in 2024[41]. Asset Management - Total assets grew to 1,707,347,000 as of February 28, 2025, up from 762,867,000asofMay31,2024,representinga123.8762,867,000 as of May 31, 2024, representing a 123.8% increase[36]. - The company reported a depreciation and amortization expense of 79,540,000 for the nine months ended February 28, 2025, compared to 47,664,000forthesameperiodin2024[40].OperationalDevelopments−Thefirst100MWHPCfacilityinEllendale,NorthDakotaisonscheduletobereadyforserviceinthesecondhalfofthiscalendaryear[11].−AppliedDigitalisnegotiatingwithmultipleUS−basedhyperscalerstoleaseupto400MWofcapacity,includingtheEllendaleHPCdatacenterunderconstruction[12].−TheCompanyplanstosellitsCloudServicesBusinesstobetterfocusonitsdatacenteroperations[10].StockandEquity−Thecompanyraised47,664,000 for the same period in 2024[40]. Operational Developments - The first 100 MW HPC facility in Ellendale, North Dakota is on schedule to be ready for service in the second half of this calendar year[11]. - Applied Digital is negotiating with multiple US-based hyperscalers to lease up to 400 MW of capacity, including the Ellendale HPC data center under construction[12]. - The Company plans to sell its Cloud Services Business to better focus on its data center operations[10]. Stock and Equity - The company raised 191,590,000 from the issuance of common stock during the nine months ended February 28, 2025[40]. - The company reported stock-based compensation expenses of 9,405,000fortheninemonthsendedFebruary28,2025,downfrom9,405,000 for the nine months ended February 28, 2025, down from 13,511,000 in the same period in 2024, a reduction of 30%[43]. - The company recognized a loss on conversion of debt to common stock amounting to 104,945,000fortheninemonthsendedFebruary28,2025,withnosuchlossreportedinthepreviousyear[41].AdjustedMetrics−AdjustedEBITDAfortheninemonthsendedFebruary28,2025,was104,945,000 for the nine months ended February 28, 2025, with no such loss reported in the previous year[41]. Adjusted Metrics - Adjusted EBITDA for the nine months ended February 28, 2025, was 51,369,000, compared to 19,665,000forthesameperiodin2024,reflectinga16119,665,000 for the same period in 2024, reflecting a 161% increase[45]. - The adjusted operating margin for the nine months ended February 28, 2025, was -16%, an improvement from -20% for the same period in 2024[43]. - The company incurred 12,228,000 in diligence, acquisition, disposition, and integration expenses for the nine months ended February 28, 2025, compared to $3,703,000 for the same period in 2024, a 229% increase[43].