Group 1 - The Pragmatic Investor focuses on global macro, international equities, commodities, tech, and cryptocurrencies, aiming to guide investors of all levels [1] - The platform offers features such as a portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for investor engagement [1] - James Foord, an economist with a decade of experience in global market analysis, leads The Pragmatic Investor, emphasizing the creation of diversified portfolios to preserve and increase wealth [1]

Core Insights - Applied Digital reported a significant revenue miss in fiscal Q4 2025, with GAAP revenue of $38.0 million compared to the expected $79.4 million, but a narrower non-GAAP net loss per share of $(0.03) versus the anticipated $(0.09) [1][2] - The company is undergoing a strategic shift towards long-term AI data center leasing, moving away from its Cloud Services Business to attract large enterprise customers and potential REIT investors [4][9] Financial Performance - Non-GAAP EPS improved by 78.6% year-over-year, from $(0.14) in Q4 FY2024 to $(0.03) in Q4 FY2025 [2] - GAAP revenue increased by 41.3% year-over-year, from $26.9 million in Q4 FY2024 to $38.0 million in Q4 FY2025, despite missing market expectations [2][6] - Net loss attributable to common stockholders decreased by 24.7% year-over-year, from $(35.3) million in FY2024 to $(26.6) million in FY2025 [2] Business Model and Strategy - Applied Digital operates data centers for cryptocurrency mining and high-performance computing, focusing on AI workloads with purpose-built facilities [3][10] - The company signed two major 15-year leases with CoreWeave, projected to generate $11 billion in revenue over their term, indicating a strong commitment to the AI sector [5][6] - The transition to leasing infrastructure rather than providing cloud services is aimed at stabilizing revenue streams and reducing operational friction [4][9] Operational Developments - Selling, general, and administrative expenses rose significantly to $28.1 million in Q4 FY2025, up from $13.1 million in the same period of FY2024, primarily due to increased stock-based compensation and personnel costs [7] - Adjusted EBITDA turned positive at $1.0 million, reflecting some operational improvements despite substantial non-cash charges impacting GAAP losses [8] Market Position and Risks - The company faces competitive pressures from larger players like Digital Realty and Equinix, and is exposed to regulatory risks related to energy consumption and AI hosting practices [12] - Heavy reliance on a few major customers poses a concentration risk, with total debt at $688.2 million as of May 31, 2025, raising concerns about financial stability [11] Future Outlook - Management highlighted a ramp-up schedule for new facilities, with the first 100 MW building expected to be operational in Q4 2025, followed by further expansions in 2026 and 2027 [14] - Cash and equivalents stood at $120.9 million as of May 31, 2025, with additional capital raised through equity and preferred share sales, providing some financial flexibility for future growth [14]

Core Insights - Applied Digital's stock surged 31% to close at $13.14, driven by a strong fiscal Q4 earnings report and an expansion of its lease with CoreWeave [2][4] - The company reported $38 million in revenue for fiscal Q4, a 41% increase year over year, and an adjusted EPS loss of $0.03, surpassing analyst expectations [4] - CoreWeave exercised a 150-megawatt lease option, increasing total contracted capacity to 400 MW, potentially unlocking up to $11 billion in revenue over the next 15 years [4][5] Market Performance - Applied Digital significantly outperformed broader market indices, with the S&P 500 declining 0.4% and the Nasdaq Composite effectively flat [3] - The trading volume for Applied Digital was more than 2.5 times its recent average, indicating strong institutional interest [2] Future Outlook - CEO Wes Cummins highlighted plans to generate $1 billion in annual NOI within 3–5 years, driven by demand from hyperscale cloud customers [5]

Core Insights - Applied Digital (APLD) reported a fiscal fourth-quarter loss of 12 cents per share, consistent with expectations, compared to a loss of 52 cents per share in the same quarter last year [1][9] - The company achieved revenues of $38 million, reflecting a year-over-year increase of 41.3%, driven by enhanced capacity in its Data Center Hosting facilities [2][9] - APLD shares rose by 23.93% in pre-market trading following the earnings announcement [2][9] Financial Performance - Selling, general and administrative expenses surged by 114.8% year over year to $28.1 million [3] - Adjusted EBITDA for the quarter was $1 million, a significant improvement from a loss of $0.2 million in the previous year [3] - The adjusted operating loss narrowed to $3.1 million from $3.7 million year over year [3] Operational Developments - APLD's High-Performance Computing (HPC) Data Center Hosting business focuses on advanced data centers for high-performance computing and AI applications [4] - The company secured 15-year lease agreements with CoreWeave for 250 megawatts of capacity, projected to generate around $7 billion in revenue over the lease term [5] - Following the quarter's end, CoreWeave expanded its lease to 400 megawatts, with anticipated revenue reaching approximately $11 billion [5] Capacity and Infrastructure - As of May 31, 2025, APLD's Jamestown and Ellendale facilities were operating at full capacity, providing a total of 286 megawatts for crypto mining operations [6][9] - APLD has made progress in securing project financing for its Polaris Forge1 campus, raising approximately $268.9 million through various offerings [7] - The company has reduced projected build times for new facilities from 24 months to 12-14 months through process improvements [8] Financial Position - As of May 31, 2025, APLD had cash and cash equivalents totaling $120.9 million against a debt of $688.2 million [10]

Group 1 - Nvidia-related stocks showed strong performance, with Applied Digital (APLD.US) soaring nearly 38%, CoreWeave (CRWV.US) rising nearly 15%, NEBIUS (NBIS.US) increasing over 8%, and WeRide (WRD.US) up over 5% [1] - Major tech companies like Google, Meta Platforms, and Microsoft reported better-than-expected earnings, revitalizing confidence in AI investments [1] - Google raised its full-year capital expenditure forecast by 13% to $85 billion, up from an earlier prediction of $75 billion [1] Group 2 - Meta Platforms increased its lower limit for capital expenditure in 2025, now expecting total spending to be between $66 billion and $72 billion, up from a previous lower limit of $64 billion [1] - Microsoft reported a record total capital expenditure of $24.2 billion for Q4 of fiscal year 2025, a nearly 13.1% quarter-over-quarter increase, with expectations for the next quarter's capital expenditure to exceed $30 billion [1] - The market sentiment towards the future of AI is currently very optimistic based on these developments [1]

谷歌表示，全年资本支出将提高13%，达到850亿美元，而不是今年早些时候预测的750亿美元。Meta上 调了2025年资本支出的下限，公司目前预计2025年全年支出将在660亿美元至720亿美元之间，此前预计 下限为640亿美元。微软2025财年四季度242亿美元的总资本支出创单季最高纪录，环比增近13.1%，预 计下一季的资本支出将超过300亿美元。基于此，市场当前对AI后续走势的情绪十分乐观。 智通财经APP获悉，周四，英伟达概念股多数强势，Applied Digital(APLD.US)飙升近38%， CoreWeave(CRWV.US)涨近15%，NEBIUS(NBIS.US)涨超8%，文远知行(WRD.US)涨超5%。消息面上， 本周，科技巨头的业绩连环炸场。谷歌、Meta Platforms、微软陆续披露超预期的业绩正在重振AI信 仰。从这3家公司的资本开支可以窥探出，科技巨头们将持续在AI方面进行大量的投资。 ...

Financial Data and Key Metrics Changes - Revenues for fiscal year 2025 were $38 million, up 41% year over year, driven by increased capacity in the data center hosting business [14] - Cost of revenues increased by $7.5 million to $30.2 million, also due to increased capacity [14] - SG&A expenses rose by $15 million to $28.1 million, influenced by business growth and increased stock-based compensation [15] - Net loss attributable to common stockholders was $26.6 million, or $0.12 per share, while adjusted net loss was $7.6 million, or $0.03 per diluted share [15] - Adjusted EBITDA for the quarter was $1 million [16] - The company ended the quarter with $120.9 million in cash and $688.2 million in debt [16] Business Line Data and Key Metrics Changes - The data center hosting segment operates 286 megawatts of fully contracted capacity for cryptocurrency customers [11] - The cloud services business is under review for strategic alternatives, with no updates provided [11] Market Data and Key Metrics Changes - The company signed a transformative 15-year lease with CoreWeave for 250 megawatts at the Polaris Forge One campus, expected to generate approximately $7 billion in contracted revenue [6] - The first 100-megawatt facility is scheduled to be operational in Q4 2025, with additional facilities planned for mid-2026 and 2027 [7][39] Company Strategy and Development Direction - The company aims to position itself as a leader in AI and HPC infrastructure, focusing on scalable solutions and efficient designs [6][9] - Strategic decisions include reducing the number of SKUs by approximately 50% and consolidating suppliers to enhance efficiency [7] - The company is actively marketing its multi-gigawatt pipeline to a diverse group of customers [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong relationships with hyperscalers and a robust pipeline of projects [19] - The company anticipates significant revenue increases in the upcoming quarters due to the technical fit-out of the Polaris Forge One building [17] Other Important Information - The company has raised approximately $270 million post-quarter through ATM and Series G preferred stock offerings [13] - Management highlighted the advantages of building in the Dakotas, including low-cost energy and efficient cooling systems [8] Q&A Session Summary Question: Development cadence for 2026 and potential groundbreaking for a second campus - Management expects to break ground on one additional campus and potentially two before the end of the year [22] Question: Additional color on financing timeline and gating items - The biggest gating item is the general slowdown in August, with reliance on professional service providers for construction reports and documentation [23][24] Question: Status of advanced negotiations with a customer - Management confirmed advanced negotiations with an investment-grade North American hyperscaler, with ongoing discussions with several others [30] Question: Fit-out status for the Ellendale facility - The fit-out is underway, with expectations for customer gear to be brought on-site in Q4 of this year [31] Question: Terms of project financing for CoreWeave - Financing terms are largely as expected, with costs in the high twos to low fours for investment-grade tenants [37] Question: Timeline for Building 2 and penalties for delays - Building 2 is progressing well, with a timeline of approximately twelve months, and standard lease penalties apply for late delivery [44][48] Question: Focus on owning infrastructure versus powered shells - The company is focused on full-stack ownership of buildings rather than powered shells, which are less appealing as a public company model [52] Question: Progress on sales tax in South Dakota - No progress has been made on sales tax, with focus currently on a large campus in North Dakota [54]

Financial Data and Key Metrics Changes - Revenues for fiscal year 2025 were $38 million, up 41% year over year, driven by increased capacity in the data center hosting business [14] - Cost of revenues increased by $7.5 million to $30.2 million, also due to increased capacity [14] - SG&A expenses rose by $15 million to $28.1 million, influenced by business growth and stock-based compensation [15] - Net loss attributable to common stockholders was $26.6 million, or $0.12 per share, while adjusted net loss was $7.6 million, or $0.03 per diluted share [15] - Adjusted EBITDA for the quarter was $1 million [16] - Cash, cash equivalents, and restricted cash at the end of the quarter totaled $120.9 million, with total debt at $688.2 million [16] Business Line Data and Key Metrics Changes - The data center hosting segment operates 286 megawatts of fully contracted capacity for cryptocurrency customers [12] - The cloud services business is under review for strategic alternatives, with no updates provided [12] Market Data and Key Metrics Changes - The company signed a transformative 15-year lease with CoreWeave for 250 megawatts at the Polaris Forge One campus, expected to generate approximately $7 billion in contracted revenue [6] - CoreWeave has also exercised an option for an additional 150 megawatts, indicating strong demand for AI infrastructure [6] Company Strategy and Development Direction - The company aims to position itself as a leader in AI and HPC infrastructure, with a focus on scalable data center solutions [6][10] - Strategic decisions include reducing the number of SKUs by 50% and consolidating suppliers to enhance efficiency [8] - The company is actively marketing its multi-gigawatt pipeline to a diverse customer base, leveraging its competitive advantages [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong relationships with hyperscalers and a robust pipeline of projects [19] - The company anticipates significant revenue growth in the upcoming quarters due to the technical fit-out of the Polaris Forge One building [17] Other Important Information - The company has raised approximately $270 million through its ATM and Series G preferred stock since the end of the quarter [13] - The first 100-megawatt facility is expected to be operational in Q4 2025, with subsequent facilities planned for 2026 and 2027 [7][39] Q&A Session Summary Question: Development cadence for 2026 and potential groundbreaking for a second campus - Management expects to break ground on one additional campus and potentially two before the end of the year [22] Question: Gating items for financing - The biggest gating item is the general slowdown in August, with reliance on professional service providers for construction reports and documentation [23][24] Question: Status of advanced negotiations with a customer - Management confirmed advanced negotiations with an investment-grade North American hyperscaler, with ongoing discussions with several others [30][31] Question: Fit-out status for the Ellendale facility - The fit-out is underway, with expectations for customer gear to be on-site by Q4 of the calendar year [32] Question: Terms for project financing related to CoreWeave - Financing terms are largely as expected, with costs in the high twos to low fours for investment-grade tenants [38] Question: Timeline for Building 2 and penalties for delays - Building 2 is progressing well, with a timeline of approximately twelve months, and standard lease penalties apply for late delivery [45][49] Question: Hyperscalers' interest in owning infrastructure - The company is focused on full-stack ownership of campuses rather than powered shell agreements, which are less favorable as a public company [55] Question: Progress on sales tax in South Dakota - No progress has been made on sales tax issues, with focus currently on a large campus in North Dakota [56]

Financial Performance - Total revenue for the fiscal year ended May 31, 2025, was $144.2 million, a 5% increase from $136.6 million in the previous year [332]. - Revenue from continuing operations increased by $20.4 million, or 17%, from $121.9 million for the fiscal year ended May 31, 2024, primarily due to the full capacity operation of the 180 MW Data Center Hosting Facility in Ellendale, ND [334]. - Related party revenue decreased by $12.8 million, or 87%, from $14.8 million for the fiscal year ended May 31, 2024, to $1.9 million for the fiscal year ended May 31, 2025 [336]. - Total costs and expenses for the fiscal year ended May 31, 2025, were $161.0 million, a decrease from $169.5 million in the previous year [332]. - Operating loss for the fiscal year ended May 31, 2025, was $16.8 million, an improvement from a loss of $32.9 million in the prior year [332]. - Net loss attributable to common stockholders for the fiscal year ended May 31, 2025, was $233.7 million, compared to a loss of $149.3 million in the previous year [332]. - Basic and diluted net loss per share attributable to common stockholders for continuing operations was $(0.80) for the fiscal year ended May 31, 2025, compared to $(0.65) in the previous year [333]. - Adjusted EBITDA for the fiscal year ended May 31, 2025, was $19.6 million, representing 14% of revenues [333]. - Adjusted operating income for the fiscal year ended May 31, 2025, was $2.4 million, compared to $4.8 million for the fiscal year ended May 31, 2024 [367]. - Adjusted net loss from continuing operations attributable to common stockholders for the fiscal year ended May 31, 2025, was $160.9 million, compared to $74.0 million for the fiscal year ended May 31, 2024 [367]. Cash Flow and Liquidity - As of May 31, 2025, the company had unrestricted cash and cash equivalents of $41.6 million and restricted funds for construction expenditures of $41.0 million [372]. - Net cash used in operating activities decreased by $129.2 million, or 937%, from $13.8 million in FY 2024 to $(115.4) million in FY 2025 [395]. - Net cash used in investing activities increased by $495.2 million, from $172.4 million in FY 2024 to $667.7 million in FY 2025, primarily due to a $539.8 million increase in investments in property and equipment [398]. - Net cash provided by financing activities increased by $727.9 million, or 496%, from $146.8 million in FY 2024 to $874.7 million in FY 2025, driven by $450.0 million from Convertible Notes and $235.1 million from stock offerings [399]. - Cash, cash equivalents, and restricted cash at the end of FY 2025 totaled $123.3 million, up from $31.7 million at the end of FY 2024 [394]. - The company anticipates sufficient liquidity to meet its working capital needs for at least the next 12 months [370]. Debt and Financing - The company sold approximately 3.1 million shares under the May 2024 Sales Agreement for net proceeds of approximately $14.6 million during the fiscal year ended May 31, 2025 [282]. - Under the July 2024 Sales Agreement, the company issued approximately 3.0 million shares for proceeds of $16.4 million net of issuance costs [287]. - The Series F Convertible Preferred Stock offering raised total proceeds of $50.0 million, with all shares converted into approximately 7.6 million shares of common stock by May 31, 2025 [291][297]. - The company entered into a Private Placement agreement for 49,382,720 shares at a price of $3.24 per share, resulting in gross proceeds of approximately $160 million [298]. - APLD completed a private offering of 2.75% Convertible Senior Notes due 2030, raising $450 million, with net proceeds of approximately $435.2 million after expenses [317]. - APLD entered into a credit agreement with SMBC for $375 million of term loans, maturing 18 months after the closing date [322]. - Proceeds from the SMBC Loans were allocated to prepay the Macquarie Promissory Note and fund data center project development costs at Polaris Forge 1 [323]. - APLD ELN-02 Holdings LLC entered into a Macquarie Promissory Note for a loan of $150 million, issuing warrants to purchase up to 1,035,197 shares of common stock at an exercise price of $9.66 per share [300]. - The company repaid the Macquarie Promissory Note in full on February 11, 2025, with the Macquarie Warrants remaining outstanding [301]. - APLDH entered into a Unit Purchase Agreement with MAM for up to $900 million to fund the construction costs for Polaris Forge 1, with an initial investment of $225 million [303]. Operational Developments - The Data Center Hosting Business operates two facilities in North Dakota with a total capacity of 286 MW, which accounted for all revenue from continuing operations for the fiscal year 2025 [270]. - The company is constructing two HPC-focused data centers in Ellendale, ND, with capacities of 100 MW and 150 MW, expected to begin generating meaningful revenues in calendar year 2025 [272][276]. - The company is undergoing an internal restructuring to segregate the HPC Hosting Business' assets and liabilities prior to closing a Unit Purchase Agreement with MIP VI HPC Holdings, LLC [273][274]. - CoreWeave exercised its option for an additional 150MW in the third building at Polaris Forge 1, with an anticipated ready for service date in 2027 [330]. - The company received $131.5 million in payments for future data center hosting services during the fiscal year ended May 31, 2025 [391]. - The company expects general and administrative expenses and operating expenditures to continue increasing as operations expand [371]. - The company has experienced net losses and its transition to profitability is dependent on successful business operations [369]. Management and Governance - Management changes include the appointment of Saidal Mohmand as CFO and Laura Laltrello as COO, with Michael Maniscalco resigning as CTO [279][280][281]. - The company has increased the number of authorized shares of common stock to 400 million as of November 20, 2024 [286]. Losses and Adjustments - Loss on conversion of debt was $33.6 million for the fiscal year ended May 31, 2025, with no such activity recorded in the prior year [345]. - Loss on change in fair value of debt increased by $78.0 million, or 1,054%, from $7.4 million for the fiscal year ended May 31, 2024, to $85.4 million for the fiscal year ended May 31, 2025 [346]. - HPC Hosting Business operating loss increased by $7.3 million, or 151%, from a loss of $4.8 million for the fiscal year ended May 31, 2024, to a loss of $12.1 million for the fiscal year ended May 31, 2025 [357]. - Net loss from discontinued operations decreased by $2.6 million, or 4%, from $75.3 million for the fiscal year ended May 31, 2024, to $72.7 million for the fiscal year ended May 31, 2025 [353]. - Income tax expense increased by $6.0 thousand, or 6%, from $96.0 thousand for the fiscal year ended May 31, 2024, to $102.0 thousand for the fiscal year ended May 31, 2025 [352]. - Loss on extinguishment of debt was $1.2 million for the fiscal year ended May 31, 2025, with no such losses recorded in the prior year [348]. - Loss on change in fair value of warrants was $6.4 million for the fiscal year ended May 31, 2025, with no such losses recorded in the prior year [350]. - Total segment profit for the fiscal year ended May 31, 2025, was $51.8 million, compared to a loss of $18.4 million for the fiscal year ended May 31, 2024 [355]. - Adjusted net loss from continuing operations attributable to common stockholders was $12.458 million, compared to $12.655 million in the previous period, and $7.421 million in the same period last year [368]. - Adjusted EBITDA for the period was $19.627 million, a decrease from $22.319 million in the previous period, and an increase from $1.175 million in the same period last year [368]. Other Financial Information - The company generated approximately $193.9 million from the sale of common stock under the June 2025 Sales Agreement and $75.0 million from the issuance of Series G Preferred Stock [373]. - Total debt obligations due by FY 2026 are projected to be $869.486 million, with interest obligations estimated at $102.692 million [392]. - The company made $42.4 million in debt financing costs and $104.5 million in cash used for capped call and prepaid forward related to the Convertible Notes offering in FY 2025 [399]. - The increase in lease prepayments for hosting equipment decreased by $43.9 million in FY 2025 compared to the previous year [398]. - The company does not currently employ forward contracts or other financial instruments to address commodity price risk, relying instead on fixed-price power contracts [412].

Core Insights - Applied Digital Corporation reported financial results for the fiscal fourth quarter and fiscal year ended May 31, 2025, highlighting significant developments in its operations and financial performance [1][2]. Financial Performance - Fiscal Fourth Quarter 2025: - Revenues reached $38.0 million, a 41% increase from the prior year [6]. - Net loss attributable to common stockholders was $26.6 million, down 25% from the previous year [6]. - Adjusted EBITDA was $1.0 million, compared to a loss of $0.2 million in the same quarter last year [22]. - Fiscal Year 2025: - Total revenues increased by 6% to $144.2 million, driven by the full capacity operation of the 180 MW Data Center Hosting Facility [23]. - Net loss attributable to common stockholders was $161.0 million, an increase of 118% from the previous year [30]. - Adjusted net loss attributable to common stockholders was $12.5 million, slightly down from $12.7 million in the prior year [31]. Operational Updates - The Company has signed two 15-year lease agreements with CoreWeave for 250 MW of critical IT load, expected to generate approximately $7 billion in contracted revenue [7][8]. - An additional 150 MW lease option has been exercised by CoreWeave, potentially increasing total contracted revenue to approximately $11 billion [7][8]. - The first 100 MW facility at the Polaris Forge 1 campus is scheduled to be operational in Q4 2025, with plans for further expansions [9][10]. Strategic Initiatives - The Company is focusing on enhancing its data center design and operational efficiency, reducing projected build times from 24 months to 12-14 months [9]. - The innovative design features a closed-loop, direct-to-chip cooling system, aiming for a Power Usage Effectiveness (PUE) of 1.18 and near-zero water consumption [9]. - The strategic location in the Dakotas is expected to provide significant cost savings for customers, estimated at $2.7 billion over 30 years compared to other regions [9]. Market Position - The Company is actively marketing its multi-gigawatt pipeline to a diverse group of customers, leveraging strong relationships with major hyperscalers [11]. - The HPC Data Center Hosting business is positioned to deliver massive computing power for AI applications, with facilities designed for ultra-low-cost and high efficiency [10][12].