Applied Digital Reports Fiscal Third Quarter 2025 Results

Core Insights - Applied Digital Corporation reported financial results for the fiscal third quarter ended February 28, 2025, highlighting significant operational updates and financial metrics [1][2][4]. Financial Highlights - Total revenues reached $52.9 million, representing a 22% increase from the prior year [9][17]. - Net loss attributable to common stockholders was$ 36.1 million, up 43% from the previous year [9][21]. - Adjusted net loss attributable to common stockholders was $17.8 million, with an adjusted net loss per diluted share of$ 0.08 [9][22]. - Adjusted EBITDA for the quarter was $10.0 million, compared to an adjusted EBITDA loss of$ 1.3 million in the same quarter last year [9][22]. Operational Updates - The company achieved key milestones, including a $5 billion investment agreement with Macquarie Asset Management to support the development of next-generation data centers [5]. - A financing arrangement of$ 375 million was closed with Sumitomo Mitsui Banking Corporation, emphasizing the trust in the company's data center value [6]. - The Ellendale campus is viewed as a strategic asset, with ongoing discussions to lease capacity to multiple US-based hyperscalers [7][13]. Business Segments - The Cloud Services Business generated $17.8 million in revenue, a 220% increase year-over-year, although it saw a sequential decline of$ 9.9 million due to a shift in service model [14]. - The Data Center Hosting Business reported $35.2 million in revenue, a 7% decrease compared to the previous year [16]. Cost and Expenses - Cost of revenues increased to$ 49.1 million, up 4% from the prior year, driven by business growth [18]. - Selling, general, and administrative expenses decreased by 24% to $22.7 million, attributed to revenue-generating GPU cluster deployments [19]. Balance Sheet - As of February 28, 2025, the company had$ 261.2 million in cash and equivalents, with total debt amounting to $689.1 million [23].