Applied Digital Corporation

Applied Digital Corporation (NASDAQ: APLD) is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services for high-performance computing (HPC) and artificial intelligence (AI). Its segments include Blockchain data center hosting (the Datacenter Hosting Business), cloud services, through a wholly owned subsidiary (the Cloud Services Business) and HPC data center hosting (the HPC Hosting Business).

Recent Business and Financial Updates

• Fiscal Fourth Quarter Financial Performance: Applied Digital Corporation (APLD) reported a 41% increase in fiscal fourth quarter 2025 revenues to USD 38.0 million from USD 26.9 million in the prior year, primarily driven by expanded capacity in its Data Center Hosting Business. Net loss attributable to common stockholders decreased 25% to USD 26.6 million (USD 0.12 per share) from USD 35.3 million (USD 0.28 per share), while adjusted net loss improved to USD 7.6 million (USD 0.03 per share) from USD 17.6 million (USD 0.14 per share). Adjusted EBITDA reached USD 1.0 million, compared to a USD 0.2 million loss in the prior year, reflecting operational improvements despite a 115% rise in selling, general, and administrative expenses to USD 28.1 million due to stock-based compensation and headcount growth.
• Full-Year Financial Overview: For the fiscal year ended May 31, 2025, APLD’s revenues grew 6% to USD 144.2 million from USD 136.6 million, driven by full capacity utilization at its 180 MW Ellendale, North Dakota facility, though offset by a USD 12.8 million decline in related-party revenue due to contract terminations. Net loss attributable to common stockholders increased 118% to USD 161.0 million (USD 0.80 per share) from USD 74.0 million (USD 0.65 per share), largely due to a USD 78.0 million loss on debt fair value changes and a USD 33.6 million loss on debt conversion. Adjusted net loss remained stable at USD 12.5 million (USD 0.06 per share), and adjusted EBITDA improved to USD 19.6 million, supported by a 5% reduction in cost of revenues to USD 101.5 million due to favorable energy pricing.
• Strategic Leasing Achievements: APLD secured transformative 15-year lease agreements with CoreWeave for 250 MW of critical IT load at its Polaris Forge 1 campus in Ellendale, North Dakota, expected to generate approximately USD 7 billion in contracted revenue. Post-quarter, CoreWeave exercised an option for an additional 150 MW, potentially adding USD 4 billion, bringing total contracted revenue to USD 11 billion. These leases position Polaris Forge 1, designed for AI and high-performance computing (HPC), as a cornerstone of APLD’s growth strategy, with the first 100 MW facility on track for Q4 2025 and additional facilities planned for 2026 and 2027, enhancing long-term revenue visibility.
• Operational and Infrastructure Advancements: APLD’s HPC Data Center Hosting Business is advancing with its 369,000+ square-foot Polaris Forge 1 facility, featuring an innovative closed-loop, direct-chip cooling system achieving a PUE of 1.18 and near-zero water consumption. The company’s strategic site selection in Dakotas, leveraging low-cost energy and over 200 days of free cooling annually, could save customers up to USD 2.7 billion over 30 years compared to industry standards. Additionally, APLD streamlined its build process, reducing projected construction times from 24 to 12-14 months, enhancing its ability to meet surging AI infrastructure demand and market its multi-gigawatt pipeline to hyperscalers.
• Financial Position and Strategic Financing: APLD has maintained USD 120.9 million in cash, cash equivalents, and restricted cash, alongside USD 688.2 million in debt. Post-fiscal year, the company raised USD 268.9 million through common stock sales under the June 2025 At-the-Market Sales Agreement and Series G Preferred Stock sales, strengthening its balance sheet to support ongoing expansion. Despite challenges from a USD 38.0 million increase in selling, general, and administrative expenses and significant debt-related losses, APLD’s focus on securing project financing and relationships with major hyperscalers positions for sustained growth in the AI and HPC infrastructure market.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 67.83, currently upward trending, with expectations of a consolidation or an upward momentum if the important resistance of USD 15.50-USD 16.00 is broken on the upside. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.

Applied Digital Corporation (APLD) reported a 41% revenue increase to USD 38.0 million in fiscal Q4 2025 and a 6% full-year revenue growth to USD 144.2 million, driven by expanded Data Center Hosting capacity, though net loss attributable to common stockholders rose to USD 161.0 million due to debt-related losses. The company secured USD 11 billion in contracted revenue through 15-year lease agreements with CoreWeave for 400 MW at its Polaris Forge 1 campus, optimized for AI and HPC with a PUE of 1.18 and reduced build times. Despite a 115% rise in Q4 selling, general, and administrative expenses and USD 688.2 million in debt, APLD raised USD 268.9 million post-fiscal year, supporting its multi-gigawatt pipeline and strategic positioning in the AI infrastructure market. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to Applied Digital Corporation (NASDAQ: APLD) at the closing market price of USD 13.95, as of August 04, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is August 04, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.