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]

Applied Digital (APLD) Q4 2025 Earnings Call July 30, 2025 05:00 PM ET Company ParticipantsMatt Glover - Senior MDWes Cummins - Chairman and CEOSaidal Mohmand - CFOMike Grondahl - Head - Equities & Director - ResearchConference Call ParticipantsNick Giles - Senior Research AnalystRob Brown - Senior Research Analyst, Founding Partner & Chief Strategy OfficerDarren Aftahi - MD & Senior Research AnalystGeorge Sutton - Senior Research AnalystOperatorGood afternoon, and welcome to the Applied Digital's Fiscal Fo ...

Core Insights - Applied Digital (APLD) achieved a 22% year-over-year revenue growth in Q3 of fiscal 2025, totaling $52.9 million, despite challenges in its Cloud Services segment [2][10] - The company is transitioning its business model, focusing on high-performance computing (HPC) hosting, particularly for AI infrastructure, while facing a decline in Cloud Services revenue [3][6] Financial Performance - Cloud Services segment revenues fell to $17.8 million due to a shift to on-demand capacity and technical issues, which have since been resolved [2][10] - Data Center Hosting segment revenues increased to $35.2 million, driven by full utilization of North Dakota facilities and favorable Bitcoin pricing [3][10] - APLD's aggressive capital expenditures range from $30 million to $50 million per month, with a total debt of $689 million [5][10] Strategic Developments - The construction of the Ellendale campus, a 400MW data center, is on schedule, with the first 100MW facility expected to launch in Q4 2025 [4] - APLD has secured significant funding, including $5 billion from Macquarie and $375 million from SMBC, to support its strategic pivot [4] - The company is experiencing strong leasing interest, with potential for a single anchor customer to occupy the entire initial build [4] Competitive Landscape - Digital Realty (DLR) is expanding its AI infrastructure with a $10 billion U.S. Hyperscale Data Center Fund, focusing on major metropolitan areas [7] - Equinix (EQIX) is also capitalizing on AI demand, with numerous projects underway and a strategy emphasizing high-density builds [8] Valuation and Estimates - APLD's shares have increased by 24.6% year-to-date, outperforming the industry growth of 4.5% [9] - The company trades at a forward price-to-sales ratio of 7.97X, significantly above the industry average and its five-year median of 1.47 [12] - The Zacks Consensus Estimate for APLD's fiscal 2026 earnings suggests a 67.7% year-over-year increase [14]

Core Insights - Applied Digital Corporation (APLD) shares have increased by 52% in June, outperforming the Financial - Miscellaneous Services industry's 9.3% rise, driven by growing demand for AI services and infrastructure progress [1][8] - APLD has entered into two 15-year lease agreements with CoreWeave, expected to generate $7 billion in total revenues, enhancing its AI and HPC infrastructure presence [7][8] Industry Trends - Major tech companies like Microsoft and Meta are signaling increased demand for hyperscale, colocation, and AI workloads, with Meta planning to invest $62.5 billion and Microsoft projecting $80 billion in capital expenditures by 2025 [2] - Other tech giants, including Amazon, Alphabet, and Oracle, are also expanding their AI data center capacities to support cloud services [2] Financial Performance - APLD reported a loss of $0.16 per share for Q3 FY2025, compared to earnings of $0.52 per share a year ago, despite robust sales growth [3] - The company is expected to see a small sales uptick in Q4, with earnings projected to improve by nearly 81% year over year [3] Growth Drivers - APLD has deployed nearly $1 billion in assets over the past year for data center construction, currently operating 286 megawatts of contracted hosting capacity, primarily for Bitcoin miners [9] - The company is building three new facilities expected to add 700 megawatts of capacity by 2027, significantly scaling its footprint for HPC and AI workloads [9] Capital and Funding - APLD secured a $150 million equity facility to raise capital for HPC infrastructure expansion, addressing significant cash burn from elevated capital expenditures [10] - The company ended Q3 with $100 million in cash, down from $308 million in the previous quarter, but the new facility is expected to provide necessary liquidity for growth [10] Sales and Earnings Estimates - Zacks Consensus Estimates project sales of $44.78 million for the current quarter and $46.83 million for the next quarter, with year-over-year growth estimates of 34.25% for the current year [11] - EPS estimates show a year-over-year growth of 80.77% for the current quarter, with expectations of improved profitability in the coming periods [12] Challenges - APLD faces rising costs due to increased depreciation of newly built facilities, which may pressure near-term profitability [13] - Seasonal fluctuations in power costs have impacted margins, and a significant drop in Cloud Services revenues was noted during the transition to a multi-tenant model [13][14] Valuation - APLD stock is currently trading at a premium, with a forward price-to-sales ratio of 9.24X compared to the industry average of 3.86X, indicating a lofty valuation [16] Conclusion - Despite near-term challenges, APLD is strategically positioned for long-term growth in the AI and HPC infrastructure market, with strong partnerships and expansion plans [19] - The outlook remains promising for APLD as it aims to convert investments into sustainable revenue streams [19]

Applied Digital Corporation’s (APLD) shares have surged 69.4% over the past month after declining till mid-April. The decline in its share price was not due to micro-factors but industry-specific headwinds, as certain hyperscalers were cancelling their leases during the first quarter of 2025. However, calendar-year first-quarter earnings commentary by industry leaders, including Microsoft (MSFT) and Meta Platforms (META) , signaled accelerating demand across hyperscale, colocation and AI workloads despite m ...

Core Viewpoint - Cipher Mining Inc. intends to offer $150 million in convertible senior notes due 2030, with an option for underwriters to purchase an additional $22.5 million to cover over-allotments [1][2]. Group 1: Offering Details - The notes will be senior, unsecured obligations, accruing interest payable semiannually and maturing on May 15, 2030 [2]. - Noteholders can convert their notes under certain conditions, with settlement options including cash, common stock, or a combination of both [2][5]. - The notes are redeemable at Cipher's option starting May 22, 2028, if the stock price exceeds 130% of the conversion price for a specified period [3]. Group 2: Repurchase Rights - In the event of a "fundamental change," noteholders may require Cipher to repurchase their notes for cash at the principal amount plus accrued interest [4]. - Noteholders can also require repurchase on May 15, 2028, under similar terms [4]. Group 3: Use of Proceeds - The net proceeds from the offering will be used to complete Phase 1 of the Black Pearl data center project, including purchasing mining rigs, paying tariffs, and other capital expenditures [6]. - An amendment to the Future Sales and Purchase Agreement with Bitmain Technologies allows for an updated delivery schedule and a 10% cost reduction for early payment [6]. Group 4: Concurrent Offering - Morgan Stanley will conduct a concurrent delta offering of Cipher's common stock to facilitate hedging transactions for purchasers of the notes [7]. - The completion of both the notes offering and the concurrent delta offering is interdependent [7]. Group 5: Regulatory Compliance - The offerings are made under an effective shelf registration statement with the SEC, and detailed information will be provided in prospectus supplements [8]. Group 6: Company Overview - Cipher focuses on developing and operating industrial-scale data centers for bitcoin mining and high-performance computing (HPC) hosting, aiming to be a market leader in innovation [10].

Core Viewpoint - Applied Digital Corporation (APLD) has experienced a significant decline in its stock price following disappointing third-quarter fiscal 2025 results, raising concerns about its near-term performance while maintaining a long-term growth potential in high-performance computing [1][2][17]. Financial Performance - APLD reported a loss of 16 cents per share, which was worse than the Zacks Consensus Estimate of a loss of 11 cents, and a revenue of $52.9 million, missing the estimate by 16.75% [1][2]. - The company had earnings of 52 cents per share in the same quarter last year, indicating a substantial year-over-year decline [2]. Revenue and Business Segments - The revenue miss was primarily due to a 35.7% sequential decline in the Cloud Services business, attributed to technical challenges in transitioning to a multi-tenant on-demand model [6]. - APLD has invested nearly $1 billion in assets over the past year, focusing on building infrastructure for its High-Performance Computing (HPC) Data Center Hosting business [7]. Future Growth Potential - APLD is constructing three new buildings expected to increase its data center hosting capacity by 700 megawatts by 2027, with the first building, a 400 megawatt campus, anticipated to be operational by 2025 [8]. - The global high-performance computing market is projected to grow from $48.51 billion in 2022 to $87.31 billion by 2030, with a CAGR of 7.5%, indicating a favorable environment for APLD's growth [13]. Strategic Moves - The company is planning to sell its Cloud Service business to focus on its HPC segment, which is expected to generate significant funds for further investment in data centers [14]. - APLD's partnerships with major companies like NVIDIA, which holds a significant stake in APLD, could provide additional support for its growth strategy [16]. Investment Outlook - Despite the current stock price decline, APLD is viewed as a speculative investment with potential for significant rewards in the HPC hosting sector, appealing to investors with a high risk tolerance [15]. - The recommendation is to hold APLD stock for now, as the company may recover from its current challenges, particularly in the Cloud Service business [17].

Core Insights - Applied Digital Inc. has shifted its focus from cryptocurrency mining hosting to artificial intelligence (AI) and high-performance computing (HPC) workloads, reflecting a strategic pivot in its business model [1][11] - The company is currently constructing its first AI data center in Ellendale, North Dakota, with plans for additional facilities, aiming to meet the growing demand for AI data center capacity [7][8] - Applied Digital's stock has experienced volatility, with a significant drop in value despite the hype surrounding AI data centers, raising questions about the company's execution and ability to secure major clients [2][11] Company Performance - For fiscal Q3 2025, Applied Digital reported an earnings per share (EPS) loss of $0.08, which was better than consensus estimates by $0.02, while revenues grew 22.1% year-over-year to $52.92 million, falling short of the expected $64.82 million [9][10] - The Data Center Hosting business generated $35.2 million, down 7% year-over-year, while the Cloud Services business saw a significant increase of 220% year-over-year to $17.8 million, although this segment is planned for sale [10] Industry Context - The demand for AI data centers is being driven by major hyperscalers like Meta, Microsoft, Amazon, Alphabet, and Oracle, all of which are investing heavily in expanding their AI data center capabilities [6][5] - AI data centers require specialized infrastructure to handle higher electrical capacities and advanced cooling solutions, differentiating them from traditional data centers [4][3] Future Outlook - Macquarie Asset Management plans to invest $5 billion to support Applied Digital's AI data center initiatives, which will help build up to 2 GW of capacity [4] - Analysts have set a 12-month stock price forecast for Applied Digital at $10.67, indicating a potential upside of 170.73% from the current price of $3.94 [9]

Financial Performance - Applied Digital (APLD) reported a third-quarter fiscal 2025 loss of 16 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 11 cents, compared to earnings of 52 cents per share in the same quarter last year [1] - The company generated revenues of $52.9 million for the third quarter, reflecting a 22.1% year-over-year increase, although it missed the Zacks Consensus Estimate by 16.75% [2] - The Cloud Services business revenues increased by 220% year over year to $17.8 million, but saw a sequential decline of 35.7% due to a shift in contract models [3] Business Segments - The Data Center Hosting segment generated $35.2 million in revenues, representing a 7% year-over-year decline [3] - The High-Performance Computing (HPC) Data Center Hosting business is negotiating with multiple U.S.-based hyperscalers to lease up to 400 MW of capacity, including ongoing construction at the Ellendale HPC data center [4] Cost Management - Selling, general and administrative expenses decreased by 24.3% year over year to $22.7 million [6] - Adjusted EBITDA for the quarter was $10 million, a significant improvement from a loss of $1.3 million year over year [6] - Adjusted operating loss narrowed to $8.8 million from a loss of $23.4 million in the previous year [6] Strategic Initiatives - The board of directors approved a plan to divest the Cloud Services Business to focus on core data center operations [7] - APLD secured a $375 million financing arrangement with Sumitomo Mitsui Banking Corporation to repay outstanding debts and fund the development of new data center buildings [8] - The company maintains a strategic partnership with Macquarie Asset Management, which has the right to invest up to $5 billion for the expansion of next-generation data centers [9] Balance Sheet - As of February 28, 2025, APLD had cash, cash equivalents, and restricted cash totaling $261.2 million against a debt of $689.1 million [10]

Applied Digital Corporation (APLD) Q3 2025 Earnings Conference Call April 14, 2025 05:00 PM ET Company Participants Operator - Conference Call OperatorMatt Glover - Representative, Gateway GroupWes Cummings - Chairman and CEO, Applied DigitalSaidal Mohamed - CFO, Applied Digital Conference Call Participants Nick Giles - Analyst, B. Riley SecuritiesThomas Shunsky - Analyst (on behalf of Brett Knobloch, Cantor Fitzgerald)Rob Brown - Analyst, Lake Street Capital MarketsDarren Astahi - Analyst, Broad Capital Pa ...