Applied Digital Reports Fiscal Second Quarter 2025 Results

Core Insights - Applied Digital Corporation reported a fiscal second quarter revenue of $63.9 million, representing a 51% increase year-over-year, driven primarily by the growth in its Cloud Services business [4][13] - The company experienced a net loss of $138.7 million, significantly impacted by various financial adjustments, including a loss of $87.2 million from changes in the fair value of debt [4][18] - Applied Digital secured a $5.0 billion perpetual preferred equity financing facility with Macquarie Asset Management to support its high-performance computing (HPC) business [3][5] Financial Performance - Total revenues for the fiscal second quarter 2025 were $63.9 million, up 51% from the prior year [4][13] - Adjusted EBITDA was $21.4 million, reflecting a 93% increase from the previous year [4][20] - The adjusted net loss for the quarter was $12.6 million, with an adjusted net loss per diluted share of $0.06 [4][19] Operational Highlights - The company entered into a financing agreement with Macquarie Asset Management, allowing for up to $900 million investment in the Ellendale HPC data center campus [5] - The Ellendale HPC Campus is designed to support advanced AI workloads and aims to establish the company as a leading HPC data center operator in the U.S. [5][7] - The Cloud Services segment generated $27.7 million in revenue, a 523% increase compared to the same period last year [8] Debt and Financing - Applied Digital completed a $150 million senior secured debt financing with Macquarie Equipment Capital, which will help repay project-level debt [5] - The company also issued $450 million in 2.75% Convertible Senior Notes due 2030, with net proceeds of approximately $435.2 million [6] Future Outlook - The company is in late-stage negotiations with multiple hyperscalers for leasing agreements for its 100 MW facility currently under construction [10] - Plans are in place to expand the Ellendale campus to a total capacity of 400 MW through additional buildings [10]