Applied Digital Soars on Strong Q4 Results and Expanded AI Infrastructure Deal with CoreWeave

Applied Digital tops quarterly revenue estimates on demand for cloud services

July 30 (Reuters) - Applied Digital (APLD.O), opens new tab topped Wall Street estimates for quarterly revenue on Wednesday, buoyed by artificial intelligence-driven demand for its cloud infrastructure. Shares of the Dallas, Texas-based data center operator jumped 7% in extended trading. Surging demand for AI, machine learning, blockchain and cloud services has driven increased interest in Applied Digital's offerings. The company delivers managed cloud infrastructure solutions to a broad range of clients -- including AI and machine learning developers, as well as cryptocurrency miners -- enabling them to build, scale and operate advanced products and services. Applied Digital has secured two 15-year lease agreements with CoreWeave (CRWV.O), opens new tab, projected to deliver around $7 billion in revenue over the lease term. By leasing infrastructure from providers like Applied Digital, companies can efficiently scale its AI-focused cloud services while alleviating substantial upfront capital and operational costs. The company reported fourth-quarter revenue of $38 million, up 41% from a year ago, compared with estimates of $37.1 million, according to data compiled by LSEG. For the quarter ended May 31, Applied Digital reported an adjusted loss per share of 3 cents, smaller than the 15 cent loss expected by analysts. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab

Applied Digital Stock Soars After Q4 Results: How CoreWeave, Bitcoin Are Helping - Applied Digital (NASDAQ:APLD)

Applied Digital APLD shares are trading higher after the company reported fourth-quarter financial results Wednesday after market close. APLD stock is on the move, climbing higher. See real-time price here. What Happened: Applied Digital reported fourth-quarter revenue of $38.01 million, up 41% year-over-year. The revenue total missed a Street consensus estimate of $40.84 million according to data from Benzinga Pro. The company's revenue came mainly from its Data Center Hosting Business, which operates data centers to provide space for crypto mining customers. The company's 106 megawatt and 180 megawatt facilities in North Dakota were operating at full capacity in the quarter. Applied Digital said demand for these services "remains robust" with Bitcoin BTC/USD prices hitting all-time highs. The company reported a loss of 3 cents per share, beating a Street consensus estimate of a loss of 15 cents per share. Full fiscal year revenue was $144.2 million for the company, up 6% year-over-year. The company reported and adjusted loss of 6 cents per share for the full fiscal year. What's Next: The company said it signed two 15-year lease agreements with CoreWeave Inc CRWV to deliver 250 megawatts of critical IT load from its North Dakota data center campus. Applied Digital said these lease agreements are expected to generate around $7 billion in contracted revenue over the 15-year lease terms. Since the end of the quarter, CoreWeave exercised its lease option for an additional 150 megawatts. Together, the updated lease terms will bring in around $11 billion over the 15-year lease terms. "These long-term leases mark a defining moment for Polaris Forge 1, one of North America's most ambitious data center projects," Applied Digital CEO Wes Cummins said. The first 100 megawatt facility is scheduled to be operational in the fourth quarter of 2025 with a second 150 megawatt facility up in mid-2026 and a third 150 megawatt facility in 2027. "We believe Polaris Forge 1 will serve as a launchpad for the future of AI infrastructure." Cummins said the company is working on building strong relationships with all the major hyperscalers to position the company well for future projects. "We're confident that our multi-gigawatt pipeline and proven design and construction expertise, combined with hyperscalers that appear to be more active than ever in securing land, power, and data center capacity, should continue to drive our growth." APLD Price Action: Applied Digital stock is up 9.65% to $11 in after-hours trading versus a 52-week trading range of $3.01 to $15.42. Read Next: EXCLUSIVE: June's 20 Most-Searched Tickers On Benzinga Pro -- Where Do CoreWeave, Nvidia, Apple Stock Rank? Photo: KM Stock/Shutterstock APLDApplied Digital Corp$11.008.70%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.50GrowthN/AQualityN/AValue52.36Price TrendShortMediumLongOverview$BTCBitcoin$117030.01-0.77%CRWVCoreWeave Inc$105.70-2.80%Market News and Data brought to you by Benzinga APIs

Applied Digital Stock Is Surging Thursday: What's Going On? - Applied Digital (NASDAQ:APLD)

Applied Digital Corp APLD shares are trading higher Thursday after the company reported financial results for the fourth quarter. What To Know: Applied Digital reported fourth-quarter revenue of $38.01 million, missing analyst estimates of $40.84 million, according to Benzinga Pro. The company reported an adjusted loss of 3 cents per share, beating estimates for a loss of 15 cents per share. Total revenue was up 41% on a year-over-year basis, primarily driven by increased capacity coming online in the company's data center hosting business. Applied Digital signed multiple leases with CoreWeave Inc CRWV during the period that are expected to generate approximately $7 billion in contracted revenue over the term of the leases. The company said CoreWeave also exercised an option subsequent to quarter's end that will add $4 billion in contracted revenue to the agreements. "These long-term leases mark a defining moment for Polaris Forge 1, one of North America's most ambitious data center projects. Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt," said Wes Cummins, chairman and CEO of Applied Digital. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Applied Digital had $120.9 million of cash, cash equivalents and restricted cash as of May 31. Following the company's quarterly results, HC Wainwright & Co. analyst Kevin Dede maintained Applied Digital with a Buy rating and raised the price target from $12 to $15. Needham analyst John Todaro also maintained a Buy on Thursday and raised the price target from $12 to $16. APLD Price Action: Applied Digital shares were up 25.3% at $12.56 at the time of publication Thursday, according to Benzinga Pro. Read Next: Coinbase Q2 Preview: Can White House Momentum, Bitcoin All-Time Highs Help? Photo: Shutterstock. APLDApplied Digital Corp$12.5625.2%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum94.93GrowthN/AQualityN/AValue52.26Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$116.7513.5%Market News and Data brought to you by Benzinga APIs

Why Applied Digital Stock Skyrocketed 31% Today | The Motley Fool

The Bitcoin miner-turned artificial intelligence (AI) cloud computing provider reported its second-quarter earnings. Despite somewhat mixed results, it was revealed that another major cloud provider intends to lease additional compute power. Applied Digital announced that its partner CoreWeave exercised a lease option for an additional 150 MW of computing power, bringing the total contract value to $11 billion. This is the maximum the company can provide from its Ellendale, North Dakota, location. The analyst Greg Miller of Citizens maintained his buy rating on the stock after the news and raised his price target to $16. The news comes as major AI players in big tech like Meta Platforms and Microsoft release their earnings results, showing no signs of reining in their AI capital expenditures (capex). Quite the opposite. Meta nearly doubled its capex year over year while Microsoft grew its capex by 22% to $17.1 billion and plans to increase that to $30 billion this quarter. That figure was 60% more than analysts expected. While I think the company will continue to perform well in the near term, I have significant concerns about the business model long-term. The Metas and Microsofts of the world may be leaning on specialty cloud providers at the moment to keep up with the rapid growth of AI demand, but they are also heavily investing in building their own facilities. I don't see a strong moat for Applied Digital that makes me think this is a long-term hold.

Stock Market Today: Applied Digital Soars 31% on CoreWeave Deal and Earnings Surprise | The Motley Fool

Applied Digital stock surged over 30% Thursday after delivering a better-than-expected Q4 and expanding its AI infrastructure lease with CoreWeave. Applied Digital (APLD 30.51%) stock skyrocketed 31% on Thursday to close at $13.14, making it one of the day's top-performing small-cap tech stocks. The rally was likely related to the company's stronger-than-expected fiscal Q4 earnings report (released Wednesday after market close) and a major expansion of its long-term lease agreement with AI hyperscaler CoreWeave (CRWV 11.10%). The company saw trading volume more than 2.5 times its recent average, indicating heavy institutional interest. While Applied Digital remains about 17% below its 52-week high of $15.42, the stock decisively broke above recent resistance levels and is now up sharply year-to-date. Broader markets traded softly, the S&P 500 declined 0.4%, while the Nasdaq Composite was effectively flat (down 0.03%) after briefly hitting an all-time intraday high. Still, Applied Digital significantly outperformed key peers. DigitalOcean (DOCN 0.22%) was little changed at +0.2%, while Super Micro Computer (SMCI -2.96%) slid 2.9%. In fiscal Q4, Applied reported $38 million in revenue, up 41% year over year, and an adjusted EPS loss of $0.03, easily beating analyst expectations. Most notably, the company announced that CoreWeave exercised a 150-megawatt (MW) lease option, boosting total contracted capacity to 400 MW and unlocking up to $11 billion in potential revenue over the next 15 years. CEO Wes Cummins emphasized acceleration at the company's Polaris Forge 1 campus and reiterated long-term plans to generate $1 billion in annual NOI within 3-5 years, supported by demand from hyperscale cloud customers.

Applied Digital (APLD) Q4 EPS Jumps 67% | The Motley Fool

Applied Digital (APLD 30.51%), a provider of data center and high-performance computing infrastructure, released its fiscal fourth quarter 2025 earnings on July 30, 2025. The results showed a large headline revenue miss, with GAAP revenue of $38.0 million, far short of the $79.4 million expected by analysts. However, it reported a much narrower non-GAAP net loss per share of $(0.03), compared to the anticipated $(0.09). The period was marked by a significant shift in business model and major new lease agreements aimed at long-term growth in the artificial intelligence (AI) data center sector. While management made clear strategic progress with major contract wins, cost increases and reliance on a single major customer remain prominent concerns for the business. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q3 2025 earnings report. Applied Digital operates data centers for two segments: Data Center Hosting, which manages environments for cryptocurrency mining, and high-performance computing (HPC) hosting, which supplies infrastructure for AI workloads. The company's growth centers on purpose-built facilities designed for high power density, essential for AI and advanced computing. In the last year, Applied Digital has pursued long-term hyperscale leases, aiming to anchor its revenues with major clients in the AI sector. It is pivoting away from operating its own Cloud Services Business, a move designed to make the company more attractive to large enterprise customers and to potential real estate investment trust (REIT) investors by focusing solely on leasing its infrastructure. A key factor for its future success is the ability to attract new large customers while keeping operating and capital costs under control. The quarter illustrated positive momentum on long-term deals alongside volatile operational results. The main story was the signing of two major 15-year AI data center leases with CoreWeave, a specialist in AI infrastructure. These agreements at the Ellendale, North Dakota campus cover an initial 250 megawatts (MW) of critical IT load, as disclosed in the quarter. and are projected to generate $7 billion in revenue over their term. After the quarter, CoreWeave expanded its commitment to 400 MW, increasing contracted revenue for Applied Digital to approximately $11 billion over 15 years. The roll-out schedule includes a 100 MW facility slated to be operational in Q4 2025, a 150 MW facility scheduled for mid-2026, and a third phase planned for 2027. However, quarterly GAAP revenue came in well below market forecasts. This was mainly due to moving the Cloud Services Business into "discontinued operations" -- revenue from this segment was excluded from continuing operations in accordance with GAAP, reflecting the company's transition to a focus on AI data center leasing. The year-over-year revenue increase for FY2025 was primarily due to ramping up a single hosting facility to full capacity, offset by a decrease in related party revenue, highlighting dependence on large but narrowly distributed contracts. Operational costs continued to outpace revenue growth. Selling, general, and administrative expenses in the fiscal fourth quarter of 2025 were $28.1 million, compared to $13.1 million in the same period of 2024, a jump attributed to $9.4 million in higher stock-based compensation, increased personnel, and higher insurance and software costs. Although the cost of revenues rose 33% year over year in Q4 FY2025 (GAAP), cost optimizations related to lower energy prices provided some relief. Adjusted EBITDA turned positive at $1.0 million. Substantial non-cash charges, including a $33.6 million loss on debt conversion and an $85.4 million fair value loss on a debt derivative, resulted in heavy GAAP losses for FY2025. Strategically, management continued to press forward with the transition away from in-house cloud computing operations. The Cloud Services Business, now formally "held for sale," is under strategic review after management reported that prospective large-scale tenants saw it as a competitive friction point. This structural decision set the groundwork for possible REIT conversion and aligns the core business with long-term, recurring lease revenue rather than volatile service fees. Applied Digital's business relies on large-scale physical infrastructure for two product classes: hosting for cryptocurrency mining and high-density AI facility leasing. The latter segment uses specialized data centers equipped with advanced cooling and power to support processor-heavy tasks, such as those run by "GPUs" (graphics processing units) in artificial intelligence workflows. The company's new Polaris Forge 1 campus is being developed entirely for high-performance AI and high-density workloads, with a design aimed to scale up to 1 gigawatt over time. The company's immediate challenge is heavy reliance on only one or two customers. Both the Data Center Hosting and AI hosting businesses are anchored by single customers under multi-year contracts. This concentration risk means any loss or non-renewal of a top client could have an outsized impact, especially given the substantial debt -- totaling $688.2 million as of May 31, 2025 -- taken on to fund expansion. While the new AI leases provide visibility into revenue, there is not yet clear evidence of broader customer diversification. Applied Digital operates in a highly competitive market, going up against large and established players with much greater financial resources and more sites, such as Digital Realty, Equinix, and NTT. The company is also exposed to risks from changes in regulations related to energy consumption (especially for crypto mining customers) and potential tightening oversight related to the ethics and operational practices of AI hosting. Execution on supply chain and logistics is similarly critical. Construction of the new facilities in North Dakota remains on track, with most equipment for the first phase already delivered. Management highlighted timelines for commissioning and powering up the new build, with operations expected to begin generating revenue in Q4 CY2025. Securing timely equipment deliveries and managing project capital expenditures -- as outlined by guidance of $30-$50 million per month for major builds -- are key to staying ahead of both competition and market demand, according to management commentary during the Q3 FY2025 earnings call. Management did not provide quantitative financial guidance for the next quarter or the upcoming fiscal year. Instead, executives emphasized the ramp-up schedule for the new facilities, stating that the first 100 MW building in North Dakota is on pace to be operational in Q4 2025, followed by further expansion in 2026 and 2027. Capital resources appear bolstered, with cash and equivalents at $120.9 million as of May 31, 2025, and another $268.9 million raised through equity and preferred share sales after the period closed. Investors should pay close attention to the execution of construction, the ability to deliver contracted AI facility capacity, customer diversification, trends in operating expense growth versus revenue, and further developments on the sale or separation of the Cloud Services Business. Customer concentration and heavy leverage remain central risks. Shares remain sensitive to any changes in customer contracts or timing of facility readiness, as well as to shifts in regulation and the competitive landscape.

Applied Digital targets $7B in contracted revenue with long-term AI data center leases as company accelerates build-out timeline (NASDAQ:APLD)

CEO Wesley Cummins announced the signing of transformative 15-year lease agreements with CoreWeave for 250 megawatts of IT load at the Ellendale, North Dakota campus, now named Polaris Forge 1. Cummins stated Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.