Applied Digital Reports Fiscal Second Quarter 2025 Results
Applied Digital (APLD) reported fiscal Q2 2025 results with revenues of $63.9 million, up 51% year-over-year. The company posted a net loss of $138.7 million, impacted by $87.2 million loss on debt fair value changes and $25.4 million loss on debt conversion.
Key developments include a $5.0 billion perpetual preferred equity financing facility with Macquarie Asset Management for its HPC business, with an initial $900 million investment in the Ellendale HPC campus. The company also completed a $450 million offering of 2.75% Convertible Senior Notes.
The Cloud Services segment generated $27.7 million in revenues, up 523% YoY, while Data Center Hosting brought in $36.2 million. The company's Ellendale facility achieved significant milestones, including energizing the main substation transformer.
Applied Digital (APLD) ha riferito i risultati fiscali del Q2 2025 con ricavi di 63,9 milioni di dollari, in aumento del 51% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 138,7 milioni di dollari, influenzata da una perdita di 87,2 milioni di dollari dovuta a cambiamenti nel valore equo del debito e una perdita di 25,4 milioni di dollari per la conversione del debito.
Sviluppi chiave includono una struttura di finanziamento di equity preferenziale perpetua da 5,0 miliardi di dollari con Macquarie Asset Management per il suo business HPC, con un investimento iniziale di 900 milioni di dollari nel campus HPC di Ellendale. L'azienda ha anche completato un offerta da 450 milioni di dollari di Senior Notes Convertibili al 2,75%.
Il segmento Servizi Cloud ha generato 27,7 milioni di dollari in ricavi, con un incremento del 523% su base annua, mentre l'Hosting del Data Center ha portato a 36,2 milioni di dollari. La struttura di Ellendale dell'azienda ha raggiunto traguardi significativi, tra cui l'energizzazione del trasformatore della sottostazione principale.
Applied Digital (APLD) informó los resultados fiscales del Q2 2025 con ingresos de 63.9 millones de dólares, un aumento del 51% en comparación con el año anterior. La empresa reportó una pérdida neta de 138.7 millones de dólares, afectada por una pérdida de 87.2 millones de dólares en cambios de valor justo de la deuda y una pérdida de 25.4 millones de dólares por conversión de deuda.
Los desarrollos clave incluyen una facilidad de financiamiento de acciones preferentes perpetuas de 5.0 mil millones de dólares con Macquarie Asset Management para su negocio HPC, con una inversión inicial de 900 millones de dólares en el campus HPC de Ellendale. La empresa también completó una oferta de 450 millones de dólares de Notas Senior Convertibles al 2.75%.
El segmento de Servicios en la Nube generó 27.7 millones de dólares en ingresos, un aumento del 523% interanual, mientras que el Alojamiento en el Centro de Datos generó 36.2 millones de dólares. La instalación de Ellendale de la empresa logró hitos significativos, incluyendo la energización del transformador de la subestación principal.
Applied Digital (APLD)는 2025 회계 연도 2분기 실적을 보고하며, 수익이 6390만 달러에 달해 전년 대비 51% 증가했다고 발표했습니다. 회사는 1억 3870만 달러의 순손실을 기록했으며, 이는 부채 공정 가치 변동에 따른 8720만 달러 손실과 부채 전환에 따른 2540만 달러 손실의 영향을 받았습니다.
주요 개발 사항으로는 Macquarie Asset Management와 함께하는 50억 달러 규모의 영구 우선주 자금 조달 시설이 HPC 사업을 위해 마련되었으며, Ellendale HPC 캠퍼스에 대한 초기 투자로 9억 달러가 포함됩니다. 회사는 또한 4억 5000만 달러 규모의 2.75% 전환 우선주 발행을 완료했습니다.
클라우드 서비스 부문은 2770만 달러의 수익을 올리며, 전년 대비 523% 증가하였고, 데이터 센터 호스팅은 3620만 달러를 기록했습니다. 회사의 Ellendale 시설은 주요 변전소 변압기의 전력을 공급하는 등 중요한 이정표를 달성했습니다.
Applied Digital (APLD) a rapporté les résultats fiscaux du T2 2025 avec des revenus de 63,9 millions de dollars, en hausse de 51 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette de 138,7 millions de dollars, impactée par une perte de 87,2 millions de dollars sur les variations de la juste valeur de la dette et une perte de 25,4 millions de dollars sur la conversion de la dette.
Parmi les développements clés, on note une facilité de financement en actions préférentielles perpétuelles de 5,0 milliards de dollars avec Macquarie Asset Management pour son activité HPC, avec un investissement initial de 900 millions de dollars dans le campus HPC d'Ellendale. L'entreprise a également finalisé une offre de 450 millions de dollars de Notes Senior Convertibles à 2,75 %.
Le segment des Services Cloud a généré 27,7 millions de dollars de revenus, en hausse de 523 % en glissement annuel, tandis que l'Hébergement de Centres de Données a rapporté 36,2 millions de dollars. L'installation d'Ellendale de l'entreprise a franchi des étapes significatives, y compris l'alimentation du transformateur de la sous-station principale.
Applied Digital (APLD) hat die Finanzzahlen für das 2. Quartal 2025 veröffentlicht, mit Einnahmen von 63,9 Millionen Dollar, was einem Anstieg von 51% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 138,7 Millionen Dollar, beeinflusst durch einen Verlust von 87,2 Millionen Dollar aufgrund von Änderungen des beizulegenden Zeitwerts der Schulden und einen Verlust von 25,4 Millionen Dollar aufgrund von Schuldenkonvertierungen.
Wichtige Entwicklungen umfassen eine 5,0 Milliarden Dollar dauerhafte Vorzugskapitalfinanzierungsfazilität mit Macquarie Asset Management für sein HPC-Geschäft, mit einer anfänglichen Investition von 900 Millionen Dollar in den Ellendale HPC-Campus. Das Unternehmen hat auch ein 450 Millionen Dollar-Angebot von 2,75% wandelbaren Senior-Notes abgeschlossen.
Das Segment Cloud Services erzielte Einnahmen von 27,7 Millionen Dollar, was einer Steigerung von 523% im Jahresvergleich entspricht, während das Data Center Hosting 36,2 Millionen Dollar einbrachte. Die Ellendale-Anlage des Unternehmens erreichte bedeutende Meilensteine, darunter die Inbetriebnahme des Haupttransformator der Umspannstation.
- Revenues increased 51% YoY to $63.9 million
- Secured $5.0 billion financing facility with Macquarie Asset Management
- Cloud Services revenue grew 523% YoY to $27.7 million
- Adjusted EBITDA increased 93% YoY to $21.4 million
- Successfully raised $450 million through convertible notes offering
- Net loss of $138.7 million, significantly higher than previous year
- $87.2 million loss on change in fair value of debt
- $25.4 million loss on conversion of debt
- Interest expense increased 186% YoY to $7.5 million
- Operating expenses increased with SG&A rising to $29.8 million
Insights
The Q2 FY25 results present a mixed financial picture. Revenue grew 51% year-over-year to
The transformative
Key metrics like Adjusted EBITDA showed strong improvement, up
The strategic positioning in the HPC/AI infrastructure space shows remarkable foresight. With Morgan Stanley projecting a 36 GW power shortfall for U.S. data centers by 2028, APLD's early moves to secure power capacity and build infrastructure put them ahead of the curve. The Ellendale facility's energization milestone and planned 400 MW total capacity represent significant competitive advantages in a market where power access is becoming a critical bottleneck.
The validation from industry giants like NVIDIA and Macquarie underscores the technical merit of APLD's liquid-cooled infrastructure design. The company's three-pronged approach across HPC, Cloud Services and Data Center Hosting provides diversified exposure to the explosive growth in AI computing demand, while the purpose-built facilities for AI workloads demonstrate technical leadership in a rapidly evolving market.
The market positioning and timing of APLD's expansion couldn't be more strategic given the accelerating AI infrastructure demands. The company's ability to secure major institutional backing from Macquarie, CIM Group and NVIDIA validates their business model and provides a significant competitive moat through guaranteed capital access. While the company is still in late-stage negotiations for the Ellendale campus tenancy, the severe industry-wide power constraints suggest strong bargaining power with potential hyperscale customers.
The
DALLAS, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications, cloud services (“Cloud Services”), and data center hosting (“Data Center Hosting”), reported financial results for the fiscal second quarter ended November 30, 2024. The Company also provided an operational update.
Fiscal Second Quarter 2025 Financial Highlights
- Revenues:
$63.9 million , up51% from the prior year period - Net loss:
$138.7 million , which was negatively impacted by$87.2 million from the loss on change in fair value of debt,$25.4 million from the loss on conversion of debt,$9.5 million from diligence, acquisition, disposition, integration expenses, and litigation expenses and$3.5 million in stock compensation - Net loss per basic and diluted share:
$0.66 - Adjusted net loss:
$12.6 million - Adjusted EBITDA:
$21.4 million up93% from the prior year period - Adjusted net loss per diluted share:
$0.06
Adjusted EBITDA, Adjusted Operating Loss, Adjusted Net Loss, and Adjusted Net Loss per Diluted Share are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “Reconciliation of GAAP to Non-GAAP Measures.”
Recent Operational Highlights
- Applied Digital Corporation entered today into a
$5.0 billion perpetual preferred equity financing facility, with investment vehicles of funds managed by Macquarie Asset Management (“MAM”), for its HPC business conducted through APLD HPC Holdings LLC (“APLDH”), a subsidiary of Applied Digital.- Funds managed by MAM to invest up to
$900 million in the Company’s Ellendale HPC data center campus (the “Ellendale HPC Campus”). - Agreement to provide MAM a right to invest up to an additional
$4.1 billion across Applied Digital’s future HPC data center pipeline. - The MAM investment, in conjunction with future project financing, to be used to repay project-level debt and allow the Company to recover over an estimated
$300 million of its equity investment in the Ellendale HPC Campus. - MAM’s investment will take the form of a perpetual preferred and
15% common equity interest of Applied Digital’s HPC business segment, providing Applied Digital an85% ownership stake in both existing and future HPC assets (minimizing dilution to Applied Digital’s public stockholders). - Transformative agreement positions the Company to firmly establish itself as a top-tier HPC data center designer, builder and operator in the United States with its purpose-built and proprietary design to run advanced AI workloads for both training and inference.
- Funds managed by MAM to invest up to
- Successfully energized the on-site main substation transformer at the purpose-built HPC data center in Ellendale, ND, marking a significant milestone in its development and advancing support for cutting-edge AI and high-performance computing.
- Won the DCD Community Impact Award for their Ellendale Community and Economic Development Initiative. Applied Digital is addressing housing shortages through the R-WISH program and supporting workforce growth in Ellendale, ND. Finalists in this category included Google Data Centers Community Development & Social Impact (CDSI) Initiatives (USA), NTT DATA Maharashtra Water Resilience for Communities and Agriculture (India), and Telehouse Europe South Campus Development and Circular Economy Initiative in collaboration with Black & White Engineering and Skanska (London).
- APLD ELN-02 Holdings LLC, a subsidiary of Applied Digital, closed a
$150 million senior secured debt financing with Macquarie Equipment Capital, Inc., a division of Macquarie Groups Commodities and Global Markets’ business. APLD ELN-02 Holdings LLC issued a Promissory Note for the full$150 million in gross proceeds on November 27, 2024, and simultaneously repaid APLD Holdings 2 LLC's obligations under the Senior Secured Credit Facility with CIM Group, removing encumbrances on assets outside of APLD ELN-02 Holdings LLC, as well as the parent guarantee. - Completed a
$450 million offering of2.75% Convertible Senior Notes due 2030, including$75 million from an option exercised by initial purchasers. Net proceeds were approximately$435.2 million , with$84 million allocated for share repurchases and the remainder for general corporate purposes.
Management Commentary
"We remain in late stage negotiations for our Ellendale campus," said Applied Digital Chairman and CEO Wes Cummins. "Over the past year, we've gained valuable insights into the thorough and deliberate approach hyperscalers take. While their timelines may extend longer than initially expected, we remain steadfast in our commitment to delivering our 400 MW data center campus on time and within budget."
"The rapid expansion of hyperscale data centers, driven by the growing demand for AI capabilities, is presenting significant challenges to electricity availability in the U.S. According to a recent Morgan Stanley report, there could be a shortfall of approximately 36 GW in power availability for U.S. data centers by 2028. To put this into perspective, that’s equivalent to the output of around 36 nuclear power plants. Addressing this issue is not straightforward, as adding new capacity requires lengthy planning, regulatory approvals, and the development of new generation and transmission infrastructure, processes that can span years or even decades. Based on these dynamics, we believe that much of the U.S.’s currently available excess power could be under contract within the next few years."
"Applied Digital was one of the first companies to recognize this growing demand for power and data centers. Anticipating these needs, we began construction of our facilities ahead of many hyperscalers fully grasping the shifting demand landscape. As a result, we believe we are well-positioned to capitalize on these trends. Our strategy has been further validated over the past year by securing strategic investments from CIM Group, NVIDIA, and now Macquarie Asset Management, a division of one of the world’s largest infrastructure investors. We believe these investments not only validate our vision and approach but also lower our cost of capital and accelerate the development of our pipeline, transforming it into highly valuable assets for our shareholders."
"Our vision is to establish a platform for building and operating multiple HPC data centers. This journey began with our Ellendale campus and continues with the development of additional campuses. We are proud of the significant progress achieved this quarter and look forward to sharing further updates as the year unfolds."
Cloud Services Update
Applied Digital’s Cloud Services Business provides high-performance computing power for artificial intelligence and machine learning applications. During the three months ended November 30, 2024, the Company generated
HPC Data Center Hosting Update
Applied Digital’s HPC Data Center Hosting Business designs, builds, and operates next-generation data centers designed to provide massive computing power and support high-performance computing applications within a cost-effective model. During the prior fiscal year, the Company broke ground on its first 100 MW HPC facility in Ellendale, North Dakota. The new 369,000+ square-foot building will provide ultra-low-cost and highly efficient liquid-cooled infrastructure for HPC applications.
Applied Digital is in late-stage discussions with multiple hyperscalers to finalize a lease agreement for its 100 MW facility, which is currently under construction. Additionally, we plan to bring an extra 300 MW online through two additional buildings currently in the design stage. This will ultimately increase Ellendale's total HPC capacity to 400 MW.
Data Center Hosting Update
Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of November 30, 2024, the Company’s 106 MW facility in Jamestown, N.D., and 180 MW facility in Ellendale, N.D., are operating at full capacity.
During the three months ended November 30, 2024, the Company generated
Financial Results for Fiscal Second Quarter 2025
Operating Results
Total revenues in the fiscal second quarter 2025 were
Cost of revenues in the fiscal second quarter 2025 was
Selling, general and administrative expenses in the fiscal second quarter 2025 were
Interest expense, net in the fiscal second quarter of 2025 increased
Loss on conversion of debt was
Loss on change in fair value of debt was
Net loss for the fiscal second quarter 2025 was
Adjusted net loss, a non-GAAP measure, for the fiscal second quarter of 2025, was
Adjusted EBITDA, a non-GAAP financial measure, for the fiscal second quarter 2025 was
Balance Sheet
As of November 30, 2024, the Company had
Conference Call
Applied Digital will host a conference call today, January 14, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation.
U.S. dial-in number: 1-877-407-0792
International number: 1-201-689-8263
Conference ID: 13750721
The conference call will be broadcast live and will be available for replay here.
Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860.
A replay of the call will be available from 8:00 p.m. Eastern Time through Tuesday, January 28, 2025, at 11:59 p.m. Eastern Time.
Replay Dial-In: 1-844-512-2921 or 1-412-317-6671
Access ID: 13750721
About Applied Digital
Applied Digital Corporation (Nasdaq: APLD) designs, develops, and operates next-generation digital infrastructure across North America to provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Computing ("HPC") and Artificial Intelligence ("AI"). Find more information at www.applieddigital.com. Follow us on X (formerly Twitter) at @APLDdigital.
Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and the closing of the transaction described herein. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (ii) statements of future economic performance, (iii) statements of assumptions underlying other statements and statements about the Company or its business, and (iv) the Company’s ability to effectively apply the net proceeds from the transaction as described above. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include: our ability to complete construction of the Ellendale HPC data center; our ability to complete the negotiation and execution of the definitive transaction documents required to close the MAM facility; our ability to raise additional capital to fund the ongoing data center construction and operations; our dependence on principal customers, including our ability to execute leases with key customers, including leases for our Ellendale HPC campus; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law.
Use and Reconciliation of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations.
These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this Quarterly Report on Form 10-Q have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business.
Change in Presentation
Beginning in the third quarter of 2024, we updated our presentation of non-GAAP measures. As a result of this updated presentation, we no longer exclude start-up costs as an adjustment to Operating loss, Net loss attributable to Applied Digital Corporation, or EBITDA in our calculation of Adjusted operating loss, Adjusted net loss attributable to Applied Digital Corporation, Adjusted net loss attributable to Applied Digital Corporation per diluted share, and Adjusted EBITDA. EBITDA, Adjusted EBITDA, Adjusted operating loss, Adjusted net loss attributable to Applied Digital Corporation, and Adjusted net loss attributable to Applied Digital Corporation per diluted share are non-GAAP measures and are defined below.
Adjusted Operating Loss, Adjusted net loss attributable to Applied Digital Corporation, and Adjusted net loss attributable to Applied Digital Corporation per diluted share
“Adjusted Operating Loss” and “Adjusted net loss attributable to Applied Digital Corporation” are non-GAAP financial measures that represent operating loss and net loss attributable to Applied Digital Corporation, respectively. Adjusted Operating Loss is Operating loss excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, non-recurring research and development expenses, loss on abandonment of assets, loss/(gain) on classification of held for sale, accelerated depreciation and amortization, loss on legal settlement, as well as other non-recurring expenses that Management believes are not representative of the Company’s expected ongoing costs. Adjusted net loss attributable to Applied Digital Corporation is Adjusted Operating Loss further adjusted for the loss on conversion of debt, loss on change in fair value of debt and loss on the extinguishment of debt. We define “Adjusted net loss attributable to Applied Digital Corporation per diluted share” as Adjusted net loss attributable to Applied Digital Corporation divided by weighted average diluted share count.
EBITDA and Adjusted EBITDA
“EBITDA” is defined as earnings before interest, taxes, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, research and development expenses, loss/(gain) on classification of held for sale, loss on abandonment of assets, loss on conversion of debt, loss on change in the fair value of debt, loss on extinguishment of debt, and legal settlement as well as other non-recurring expenses that Management believes are not representative of our expected ongoing costs.
Investor Relations Contacts
Matt Glover or Ralf Esper
Gateway Group, Inc.
(949) 574-3860
APLD@gateway-grp.com
Media Contact
Buffy Harakidas, EVP
JSA (Jaymie Scotto & Associates)
(856) 264-7827
jsa_applied@jsa.net
| APPLIED DIGITAL CORPORATION AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| (In thousands, except share and par value data) | ||||||||
| November 30, 2024 | May 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 286,237 | $ | 3,339 | ||||
| Restricted cash | 21,342 | 21,349 | ||||||
| Accounts receivable | 12,313 | 3,847 | ||||||
| Prepaid expenses and other current assets | 8,496 | 1,343 | ||||||
| Current assets held for sale | — | 384 | ||||||
| Total current assets | 328,388 | 30,262 | ||||||
| Property and equipment, net | 772,664 | 340,381 | ||||||
| Operating lease right of use assets, net | 140,583 | 153,611 | ||||||
| Finance lease right of use assets, net | 261,452 | 218,683 | ||||||
| Other assets | 40,082 | 19,930 | ||||||
| TOTAL ASSETS | $ | 1,543,169 | 762,867 | |||||
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 192,017 | $ | 116,117 | ||||
| Accrued liabilities | 31,625 | 26,282 | ||||||
| Current portion of operating lease liability | 23,096 | 21,705 | ||||||
| Current portion of finance lease liability | 136,511 | 107,683 | ||||||
| Current portion of debt | 6,543 | 10,082 | ||||||
| Current portion of debt, at fair value | 4,798 | 35,836 | ||||||
| Customer deposits | 16,125 | 13,819 | ||||||
| Related party customer deposits | — | 1,549 | ||||||
| Deferred revenue | 6,187 | 37,674 | ||||||
| Related party deferred revenue | — | 1,692 | ||||||
| Due to customer | 7,355 | 13,002 | ||||||
| Other current liabilities | 96 | 96 | ||||||
| Total current liabilities | 424,353 | 385,537 | ||||||
| Long-term portion of operating lease liability | 97,821 | 109,740 | ||||||
| Long-term portion of finance lease liability | 62,397 | 63,288 | ||||||
| Long-term debt | 468,244 | 79,472 | ||||||
| Total liabilities | 1,052,815 | 638,037 | ||||||
| Commitments and contingencies (Note 11) | ||||||||
| Temporary equity | ||||||||
| Series E preferred stock, | 6,932 | — | ||||||
| Series F preferred stock, | 43,000 | — | ||||||
| Series E-1 preferred stock, | 5,850 | — | ||||||
| Stockholders' equity: | ||||||||
| Common stock, | 222 | 144 | ||||||
| Treasury stock, 9,291,199 shares at November 30, 2024 and 5,032,802 shares at May 31, 2024, at cost | (31,400 | ) | (62 | ) | ||||
| Additional paid in capital | 858,713 | 374,738 | ||||||
| Accumulated deficit | (392,963 | ) | (249,990 | ) | ||||
| Total stockholders’ equity attributable to Applied Digital Corporation | 434,572 | 124,830 | ||||||
| TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | $ | 1,543,169 | 762,867 | |||||
| APPLIED DIGITAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | ||||||||||||||
| Revenue: | |||||||||||||||||
| Revenue | $ | 63,868 | $ | 38,569 | $ | 122,646 | $ | 70,708 | |||||||||
| Related party revenue | — | 3,634 | 1,926 | 7,819 | |||||||||||||
| Total revenue | 63,868 | 42,203 | 124,572 | 78,527 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of revenues | 52,361 | 29,769 | 113,421 | 54,990 | |||||||||||||
| Selling, general and administrative (1) | 29,789 | 20,266 | 44,129 | 36,437 | |||||||||||||
| Loss/(gain) on classification of held for sale (2) | 192 | — | (24,616 | ) | — | ||||||||||||
| Loss on abandonment of assets | 141 | — | 769 | — | |||||||||||||
| Loss from legal settlement | — | 80 | — | 2,380 | |||||||||||||
| Total costs and expenses | 82,483 | 50,115 | 133,703 | 93,807 | |||||||||||||
| Operating loss | (18,615 | ) | (7,912 | ) | (9,131 | ) | (15,280 | ) | |||||||||
| Interest expense, net (3) | 7,482 | 2,617 | 14,790 | 4,750 | |||||||||||||
| Loss on conversion of debt | 25,410 | — | 33,612 | — | |||||||||||||
| Loss on change in fair value of debt | 87,218 | — | 85,439 | — | |||||||||||||
| Loss on change in fair value of related party debt | — | — | — | — | |||||||||||||
| Loss on extinguishment of related party debt | — | — | — | 2,353 | |||||||||||||
| Net loss before income tax expenses | (138,725 | ) | (10,529 | ) | (142,972 | ) | (22,383 | ) | |||||||||
| Income tax expense (benefit) | 1 | — | 1 | — | |||||||||||||
| Net loss | (138,726 | ) | (10,529 | ) | (142,973 | ) | (22,383 | ) | |||||||||
| Net loss attributable to noncontrolling interest | — | — | — | (397 | ) | ||||||||||||
| Preferred dividends | (629 | ) | — | (673 | ) | — | |||||||||||
| Net loss attributable to Common Stockholders | $ | (139,355 | ) | $ | (10,529 | ) | $ | (143,646 | ) | $ | (21,986 | ) | |||||
| Basic and diluted net loss per share attributable to common stockholders | $ | (0.66 | ) | $ | (0.10 | ) | $ | (0.80 | ) | $ | (0.21 | ) | |||||
| Basic and diluted weighted average number of shares outstanding | 209,560,339 | 109,663,030 | 179,119,398 | 105,067,375 | |||||||||||||
| (1) Includes related party selling, general and administrative expense of | |||||||||||||||||
| (2) Includes | |||||||||||||||||
| (3) Includes related party interest expense of | |||||||||||||||||
| APPLIED DIGITAL CORPORATION AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| November 30, 2024 | November 30, 2023 | |||||||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (142,973 | ) | $ | (22,383 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 60,761 | 21,284 | ||||||
| Stock-based compensation | 542 | 10,440 | ||||||
| Lease expense | 15,380 | 2,294 | ||||||
| Loss on extinguishment of debt | — | 2,353 | ||||||
| Loss on legal settlement | — | 2,380 | ||||||
| Amortization of debt issuance costs | 2,424 | 352 | ||||||
| Gain on classification of held for sale | (24,616 | ) | — | |||||
| Loss on conversion of debt | 33,612 | — | ||||||
| Loss on change in fair value of debt | 85,439 | — | ||||||
| Loss on abandonment of assets | 769 | 189 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (8,466 | ) | (225 | ) | ||||
| Prepaid expenses and other current assets | (7,153 | ) | 496 | |||||
| Customer deposits | 2,306 | 4,274 | ||||||
| Related party customer deposits | (1,549 | ) | — | |||||
| Deferred revenue | (31,487 | ) | 2,883 | |||||
| Related party deferred revenue | (1,692 | ) | 429 | |||||
| Accounts payable | (82,849 | ) | 6,440 | |||||
| Accrued liabilities | (2,515 | ) | (1,914 | ) | ||||
| Due to customer | (5,647 | ) | — | |||||
| Lease assets and liabilities | (19,382 | ) | (19,198 | ) | ||||
| Other assets | (1,058 | ) | (1,040 | ) | ||||
| CASH FLOW (USED IN) PROVIDED BY OPERATING ACTIVITIES | (128,154 | ) | 9,054 | |||||
| CASH FLOW FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment and other assets | (225,847 | ) | (45,828 | ) | ||||
| Proceeds from satisfaction of contingency on sale of assets | 25,000 | — | ||||||
| Finance lease prepayments | (5,270 | ) | (19,388 | ) | ||||
| Purchases of investments | (1,422 | ) | (390 | ) | ||||
| CASH FLOW USED IN INVESTING ACTIVITIES | (207,539 | ) | (65,606 | ) | ||||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||||
| Repayment of finance leases | (62,170 | ) | (13,071 | ) | ||||
| Borrowings of long-term debt | 275,000 | 4,732 | ||||||
| Borrowings of related party debt | — | 8,000 | ||||||
| Repayments of long-term debt | (133,314 | ) | (4,472 | ) | ||||
| Repayment of related party debt | — | (45,500 | ) | |||||
| Payment of deferred financing costs | (28,927 | ) | — | |||||
| Proceeds from issuance of common stock | 191,590 | 98,156 | ||||||
| Common stock issuance costs | (10,233 | ) | (234 | ) | ||||
| Proceeds from issuance of preferred stock | 67,085 | — | ||||||
| Preferred stock issuance costs | (5,947 | ) | — | |||||
| Dividends issued on preferred stock | (672 | ) | — | |||||
| Proceeds from issuance of SAFE agreement included in long-term debt | 12,000 | — | ||||||
| Repurchase of shares | (31,342 | ) | ||||||
| Proceeds from convertible notes | 450,000 | — | ||||||
| Purchase of capped call options | (51,750 | ) | — | |||||
| Purchase of prepaid forward contract | (52,736 | ) | — | |||||
| CASH FLOW PROVIDED BY FINANCING ACTIVITIES | 618,584 | 47,611 | ||||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 282,891 | (8,941 | ) | |||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | 31,688 | 43,574 | ||||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ | 314,579 | $ | 34,633 | ||||
| APPLIED DIGITAL CORPORATION AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)continued | ||||||||
| Six Months Ended | ||||||||
| November 30, 2024 | November 30, 2023 | |||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Interest paid | $ | 33,144 | $ | 4,370 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES | ||||||||
| Operating right-of-use assets obtained by lease obligation | $ | — | $ | 69,329 | ||||
| Finance right-of-use assets obtained by lease obligation | $ | 97,489 | $ | 96,946 | ||||
| Property and equipment in accounts payable and accrued liabilities | $ | 165,721 | $ | 23,572 | ||||
| Conversion of debt to common stock | $ | 104,945 | $ | — | ||||
| Extinguishment of non-controlling interest | $ | — | $ | 9,765 | ||||
| Loss from legal settlement | $ | — | $ | 2,300 | ||||
| Conversion of preferred stock to common stock | 10,191 | — | ||||||
| Cashless exercise of warrants | 4 | — | ||||||
| Issuance of warrants, at fair value | $ | 44,115 | $ | — | ||||
| APPLIED DIGITAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | |||||||||||||||||
| (In thousands, except percentage data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| $ in thousands | November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | |||||||||||||
| Adjusted operating loss | |||||||||||||||||
| Operating loss (GAAP) | $ | (18,615 | ) | $ | (7,912 | ) | $ | (9,131 | ) | $ | (15,280 | ) | |||||
| Stock-based compensation | 3,308 | 4,799 | 236 | 10,440 | |||||||||||||
| Non-recurring repair expenses (1) | 139 | — | 170 | — | |||||||||||||
| Diligence, acquisition, disposition and integration expenses (2) | 8,780 | 525 | 11,667 | 535 | |||||||||||||
| Litigation expenses (3) | 759 | 195 | 1,167 | 576 | |||||||||||||
| Research and development expenses (4) | — | — | 36 | 184 | |||||||||||||
| Loss/(gain) on classification of held for sale | 192 | — | (24,616 | ) | — | ||||||||||||
| Loss on abandonment of assets | 142 | — | 769 | — | |||||||||||||
| Accelerated depreciation and amortization (5) | — | 24 | 45 | 177 | |||||||||||||
| Loss on legal settlement | — | 80 | — | 2,380 | |||||||||||||
| Other non-recurring expenses (6) | 213 | (49 | ) | 251 | 258 | ||||||||||||
| Adjusted operating loss (Non-GAAP) | $ | (5,082 | ) | $ | (2,338 | ) | $ | (19,406 | ) | $ | (730 | ) | |||||
| Adjusted operating margin | (8 | )% | (6 | )% | (16 | )% | (1 | )% | |||||||||
| Adjusted net loss attributable to Applied Digital Corporation | |||||||||||||||||
| Net loss attributable to Applied Digital Corporation (GAAP) | $ | (138,726 | ) | $ | (10,529 | ) | $ | (142,973 | ) | $ | (21,986 | ) | |||||
| Stock-based compensation | 3,308 | 4,799 | 236 | 10,440 | |||||||||||||
| Non-recurring repair expenses (1) | 139 | — | 170 | — | |||||||||||||
| Diligence, acquisition, disposition and integration expenses (2) | 8,780 | 525 | 11,667 | 535 | |||||||||||||
| Litigation expenses (3) | 759 | 195 | 1,167 | 576 | |||||||||||||
| Research and development expenses (4) | — | — | 36 | 184 | |||||||||||||
| Loss/(gain) on classification of held for sale | 192 | — | (24,616 | ) | — | ||||||||||||
| Accelerated depreciation and amortization (5) | — | 24 | 45 | 177 | |||||||||||||
| Loss on abandonment of assets | 142 | — | 769 | — | |||||||||||||
| Loss on conversion of debt (7) | 25,410 | — | 33,612 | — | |||||||||||||
| Loss on change in fair value of debt (8) | 87,218 | — | 85,439 | — | |||||||||||||
| Loss on extinguishment of debt | — | — | — | 2,353 | |||||||||||||
| Loss on legal settlement | — | 80 | — | 2,380 | |||||||||||||
| Other non-recurring expenses (6) | 213 | (49 | ) | 251 | 258 | ||||||||||||
| Adjusted net loss attributable to Applied Digital Corporation (Non-GAAP) | $ | (12,565 | ) | $ | (4,955 | ) | $ | (34,197 | ) | $ | (5,083 | ) | |||||
| Adjusted net loss attributable to Applied Digital Corporation per diluted share (Non-GAAP) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.19 | ) | $ | (0.05 | ) | |||||
| APPLIED DIGITAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures (Unaudited) continued | |||||||||||||||||
| (In thousands, except percentage data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| $ in thousands | November 30, 2024 | November 30, 2023 | November 30, 2024 | November 30, 2023 | |||||||||||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||
| Net loss attributable to Applied Digital Corporation (GAAP) | $ | (138,726 | ) | $ | (10,529 | ) | $ | (142,973 | ) | $ | (21,986 | ) | |||||
| Interest expense, net | 7,482 | 2,617 | 14,790 | 4,750 | |||||||||||||
| Income tax expense (benefit) | 1 | — | 1 | — | |||||||||||||
| Depreciation and amortization (5) | 26,445 | 13,448 | 60,806 | 21,460 | |||||||||||||
| EBITDA (Non-GAAP) | (104,798 | ) | 5,536 | (67,376 | ) | 4,224 | |||||||||||
| Stock-based compensation | 3,308 | 4,799 | 236 | 10,440 | |||||||||||||
| Non-recurring repair expenses (1) | 139 | — | 170 | — | |||||||||||||
| Diligence, acquisition, disposition and integration expenses (2) | 8,780 | 525 | 11,667 | 535 | |||||||||||||
| Litigation expenses (3) | 759 | 195 | 1,167 | 576 | |||||||||||||
| Research and development expenses (4) | — | — | 36 | 184 | |||||||||||||
| Loss/(gain) on classification of held for sale | 192 | — | (24,616 | ) | — | ||||||||||||
| Loss on abandonment of assets | 142 | — | 769 | — | |||||||||||||
| Loss on conversion of debt (7) | 25,410 | — | 33,612 | — | |||||||||||||
| Loss on change in fair value of debt (8) | 87,218 | — | 85,439 | — | |||||||||||||
| Loss on extinguishment of debt | — | — | — | 2,353 | |||||||||||||
| Loss on legal settlement | — | 80 | — | 2,380 | |||||||||||||
| Other non-recurring expenses (6) | 213 | (49 | ) | 251 | 258 | ||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 21,363 | $ | 11,086 | $ | 41,355 | $ | 20,950 | |||||||||
| (1) Represents costs incurred in the repair and replacement of equipment at the Company's Ellendale data center hosting facility as a result of the previously disclosed power outage. | |||||||||||||||||
| (2) Represents legal, accounting and consulting costs incurred in association with certain discrete transactions and projects. | |||||||||||||||||
| (3) Represents non-recurring litigation expense associated with the Company’s defense of class action lawsuits and legal fees related to matters with certain former employees. The Company does not expect to incur these expenses on a regular basis. | |||||||||||||||||
| (4) Represents specific non-recurring research and development activities related to the Company’s business expansion that the Company does not expect to incur on a regular basis. | |||||||||||||||||
| (5) Represents the acceleration of expense related to assets that were abandoned by the Company due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within the Company’s calculation of EBITDA, and therefore is not added back as a management adjustment in the Company’s calculation of Adjusted EBITDA. | |||||||||||||||||
| (6) Represents expenses that are not representative of the Company’s expected ongoing costs. | |||||||||||||||||
| (7) Represents loss on conversion of debt due to the difference in fair value to the price at which the YA Notes were converted. | |||||||||||||||||
| (8) Represents loss on change in fair value of debt due to the adjustments to the fair value of the | |||||||||||||||||
FAQ
What were Applied Digital's (APLD) revenue and earnings for Q2 2025?
How much did APLD's Cloud Services revenue grow in Q2 2025?
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