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Applied Digital Corporation
(NASDAQ:APLD)
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Rating:49Neutral
Price Target:
$23.50
▼(-18.54% Downside)
Action:Reiterated
Date:10/08/26
The score is held back primarily by weak financial quality (large losses, very negative free cash flow, and high leverage) and a bearish technical setup. These are partially offset by a constructive earnings call featuring strong demand/capacity growth plans, improved financing, and notable liquidity, but valuation support is limited given negative earnings and no dividend data.
Positive Factors
Revenue Growth and Improving Unit Economics
TTM revenue grew 48.2% and gross margin improved to about 25%, showing that expanding demand is accompanied by better unit economics. If sustained, this combination can strengthen the economics of a capital-intensive infrastructure platform and support reinvestment.
Negative Factors
Persistent Operating and Net Losses
Despite strong revenue growth, Applied Digital remains deeply unprofitable, with a negative EBIT margin and net margin in the TTM period. Persistent losses weaken retained capital, limit internally funded expansion, and increase the execution burden on future capacity investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Improving Unit Economics
TTM revenue grew 48.2% and gross margin improved to about 25%, showing that expanding demand is accompanied by better unit economics. If sustained, this combination can strengthen the economics of a capital-intensive infrastructure platform and support reinvestment.
Read all positive factors
Applied Digital Corporation Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business units, highlighting which segments drive earnings and where the company might need to improve efficiency or adjust strategy.
Reveals profitability across different business units, highlighting which segments drive earnings and where the company might need to improve efficiency or adjust strategy.
Data provided by:
The Fly
The FlyApplied Digital Corporation (APLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.58B
Dividend YieldN/A
Average Volume (3M)15.70M
Price to Earnings (P/E)―
Beta (1Y)3.17
Revenue Growth167.37%
EPS Growth18.89%
CountryUS
Employees256
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-1.64
Shares Outstanding299,094,360
10 Day Avg. Volume16,780,135
30 Day Avg. Volume15,701,576
Financial Highlights & Ratios
PEG Ratio2.44
Price to Book (P/B)7.41
Price to Sales (P/S)21.58
P/FCF Ratio-4.75
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue15.02
Enterprise Value/Gross Profit74.29
Enterprise Value/Ebitda-90.57
Forecast
1Y Price Target
$58.21Price Target Upside101.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.98
Revenue Forecast (FY)$758.09M
Applied Digital Corporation Business Overview & Revenue Model
Company Description
Applied Digital Corporation designs, develops, and operates digital infrastructure solutions to high-performance computing (HPC) and artificial intelligence industries in North America. It operates through: Data Center Hosting Business, and HPC Ho...
How the Company Makes Money
Applied Digital primarily makes money by providing data center infrastructure and related services to customers that need large amounts of power and compute-capable facility capacity. Key revenue streams include: (1) Data center/hosting or colocat...
Applied Digital Corporation Earnings Call Summary
Earnings Call Date:Oct 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 12, 2027
Earnings Call Sentiment Positive
The call was strongly constructive, with management highlighting rapid revenue and capacity growth, robust customer demand, successful project execution, improved financing terms, substantial liquidity and multiple expansion opportunities. The company also reported a large GAAP net loss, significant noncash valuation losses, elevated stock-based compensation, a sizable debt balance and industry-wide permitting and supply-chain constraints. Overall, the positive operating and commercial developments significantly outweighed the stated challenges.Positive Updates
Contracted Revenue Portfolio
Applied Digital has approximately $36 billion in contracted revenue across 5 campuses, 3 states and 2 geographic regions.
Negative Updates
GAAP Net Loss
Net loss from continuing operations attributable to common stockholders was $221 million, or $0.76 per share.
Read all updates
Q1-2027 Updates
Positive
Negative
Contracted Revenue Portfolio
Applied Digital has approximately $36 billion in contracted revenue across 5 campuses, 3 states and 2 geographic regions.
Read all positive updates
Company Guidance
Management expects to place over 600 megawatts into service over the next 12 months versus the 250 megawatts over the past 12 months, execute approximately 250 megawatts of expansion leases by calendar year-end at materially higher pricing compared to prior leases, and begin revenue contribution from Louisiana and Alabama in the first half of calendar year 2027. ChronoScale is on track to reach $1 billion of ARR in 2027, with multiple hundreds of megawatts in capacity online outside of the core Applied Digital data center builds over '27 and '28. Applied Digital believes it can grow its operating portfolio to 3.5 to 4 gigawatts by the end of calendar year 2030, including around 2 gigawatts by the end of calendar year '28 and about 1 gigawatt per year in '29 and '30; expansion leases may include definitely north of 15% plus increases on the lease rate and longer duration. In Finland, the first 100 megawatts is available in 2028, with power ramping up through 2031 to the full gigawatt.Applied Digital Corporation Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
24
Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 853.85M | 611.31M | 215.51M | 136.62M | 55.39M | 8.55M |
| Gross Profit | 172.66M | 157.68M | 22.70M | 29.96M | 11.00M | -13.34M |
| EBITDA | -141.61M | -84.63M | -77.48M | 23.72M | -36.88M | -20.71M |
| Net Income | -462.38M | -244.00M | -231.06M | -149.27M | -44.65M | -23.52M |
Balance Sheet | ||||||
| Total Assets | 11.71B | 9.93B | 1.87B | 762.87M | 263.96M | 119.98M |
| Cash, Cash Equivalents and Short-Term Investments | 2.95B | 1.59B | 113.92M | 3.34M | 29.00M | 38.80M |
| Total Debt | 6.48B | 5.10B | 702.88M | 135.73M | 91.81M | 13.54M |
| Total Liabilities | 7.91B | 6.19B | 1.24B | 638.04M | 194.28M | 40.74M |
| Stockholders Equity | 1.78B | 1.78B | 633.73M | 124.83M | 59.52M | 72.26M |
Cash Flow | ||||||
| Free Cash Flow | -2.38B | -2.78B | -797.00M | -128.01M | -72.54M | -55.85M |
| Operating Cash Flow | 235.63M | 89.69M | -115.40M | 13.79M | 58.73M | -872.00K |
| Investing Cash Flow | -3.01B | -1.17B | -667.65M | -172.44M | -132.09M | -45.87M |
| Financing Cash Flow | 6.34B | 5.11B | 874.69M | 146.76M | 70.63M | 81.29M |
Applied Digital Corporation Technical Analysis
Negative
28.85
Price Trends
27.09
Negative
32.64
Negative
32.13
Negative
Market Momentum
-0.75
Positive
41.56
Neutral
22.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLD, the sentiment is Negative. The current price of 28.85 is above the 20-day moving average (MA) of 25.70, above the 50-day MA of 27.09, and below the 200-day MA of 32.13, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 22.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLD.
Applied Digital Corporation Risk Analysis
Applied Digital Corporation disclosed 62 risk factors in its most recent earnings report. Applied Digital Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Applied Digital Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $6.19B | 10.79 | 12.75% | ― | 12.29% | 2348.25% | |
56 Neutral | $16.25B | -21.26 | -22.97% | ― | 42.04% | -367.00% | |
52 Neutral | $1.54B | -4.17 | -47.06% | ― | 22.57% | -3928.75% | |
52 Neutral | $6.43B | -5.08 | -156.28% | ― | 20.30% | -525.74% | |
52 Neutral | $673.24M | -340.69 | -9.03% | ― | -93.81% | 14.04% | |
49 Neutral | $7.58B | -14.52 | -28.93% | ― | 167.37% | 18.89% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.