Applied Digital (APLD) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for the fiscal third quarter 2025 were $52.9 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, 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 $1.3 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 $40,284,000 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 $70,734,000 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 $62,838,000 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 $33,301,000 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 $84,824,000 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 $5.6 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 $37.8 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 $689.1 million in debt[23]. - Cash and cash equivalents increased to $68,743,000 as of February 28, 2025, from $3,339,000 as of May 31, 2024[36]. - Total liabilities increased to $1,209,480,000 as of February 28, 2025, from $638,037,000 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 $9,121,000 for the same period in 2024[41]. Asset Management - Total assets grew to $1,707,347,000 as of February 28, 2025, up from $762,867,000 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 $47,664,000 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 $9,405,000 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 $104,945,000 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 $19,665,000 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].