Applied Digital 2025 Q4 Earnings Misses Targets as Net Income Declines 25%

Applied Digital Corporation reported fiscal Q4 and full year 2025 results, highlighting significant growth in its data center operations. Despite revenue growth, APLD reported a Q4 net loss of $26.6 million ($0.12 per share) and a full-year net loss of $161.0 million ($0.80 per share). The company raised $268.9 million post-fiscal year end through stock sales and is advancing construction of its first 100MW HPC facility, scheduled for completion in H2 2025.

Applied Digital's fiscal Q4 2025 revenue amounted to $38.0 million, marking a 41% increase from the previous year. The full-year revenue reached $144.2 million, reflecting a 6% increase.

Applied Digital narrowed its Q4 losses to $0.24 per share from a loss of $0.46 per share in 2024 Q4, a 48.3% improvement. The net loss was reduced by 18.5% to $-52.54 million compared to the previous year. Despite improved EPS, the company's performance remains challenging.

The strategy of purchasing Applied Digital shares following a quarterly revenue drop and holding them for 30 days has led to poor results over the last three years. This approach returned -37.37%, underperforming the benchmark return of 41.07%. The strategy also indicated high risk with a Sharpe ratio of -0.10 and significant volatility at 136.01%. These factors highlight the challenging nature of investing in Applied Digital post-revenue drop, emphasizing the need for cautious investment strategies.

CEO Commentary
Wes Cummins, Chairman and CEO of Applied Digital, expressed gratitude towards employees for their contributions to the company's mission in the high-performance compute industry. He highlighted a transformative 15-year lease with CoreWeave, generating approximately $7 billion in contracted revenue. Cummins emphasized the strategic advantages of their North Dakota campus, Polaris Forge 1, designed for scalability and efficiency, with a projected PUE of 1.18. He noted the company's progress in onboarding hyperscalers, which will support future growth. Overall, he conveyed an optimistic tone, stating that they are "roughly halfway toward our internal goal of generating $1 billion in annual net operating income" over the next 3 to 5 years.

Guidance
Applied Digital provided directional guidance for the upcoming quarter, anticipating significant sequential revenue growth driven by the fit-out of the first Polaris Forge 1 building. The company expects revenue recognition from the fit-out to occur in both the current fiscal quarter and the quarter ending November 30, 2025. While specific quantitative targets were not detailed, the commentary indicates a positive outlook for revenue generation as the leased facilities become operational.

Additional News
Applied Digital Corporation recently announced two transformative 15-year lease agreements with CoreWeave, an AI hyperscaler, to deliver 250 megawatts of critical IT load at their Ellendale, North Dakota data center campus. These agreements are expected to generate approximately $7 billion in contracted revenue over the 15-year term. CoreWeave exercised an option for an additional 150 MW, potentially increasing total contracted revenue to $11 billion. Additionally, Applied Digital welcomed Laura Laltrello as the new Chief Operating Officer to strengthen leadership. Amidst ongoing strategic shifts, the company is reviewing options for its Cloud Services Business to better align its focus on data center operations.

Applied Digital Reports Fiscal Fourth Quarter and Full Year 2025 Results
Applied Digital (Nasdaq: APLD) reported its fiscal Q4 earnings on July 30, 2025. The total revenue of Applied Digital decreased by 325.9% to $-33.30 million in 2025 Q4, down from $14.74 million in 2024 Q4. Applied Digital narrowed losses to $0.24 per share in 2025 Q4 from a loss of $0.46 per share in 2024 Q4 (48.3% improvement). Meanwhile, the company successfully narrowed its net loss to $-52.54 million in 2025 Q4, reducing losses by 18.5% compared to the $-64.45 million net loss reported in 2024 Q4. The Company has sustained losses for 4 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The stock price of Applied Digital has edged down 0.20% during the latest trading day, has tumbled 8.23% during the most recent full trading week, and has dropped 3.37% month-to-date.