Applied Digital Reports Fiscal Fourth Quarter and Full Year 2025 Results
Applied Digital (Nasdaq: APLD) reported fiscal Q4 and full year 2025 results, highlighting significant growth in its data center operations. Q4 revenues reached $38.0 million, up 41% year-over-year, while full-year revenues were $144.2 million, a 6% increase.
The company announced transformative 250MW AI data center leases with CoreWeave in North Dakota, expected to generate approximately $7 billion in contracted revenue over 15 years. CoreWeave subsequently exercised an option for an additional 150MW, potentially bringing total contracted revenue to $11 billion.
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 (Nasdaq: APLD) ha comunicato i risultati del quarto trimestre fiscale e dell'intero anno 2025, evidenziando una crescita significativa nelle sue operazioni di data center. I ricavi del quarto trimestre hanno raggiunto 38,0 milioni di dollari, con un aumento del 41% rispetto all'anno precedente, mentre i ricavi annuali sono stati di 144,2 milioni di dollari, con un incremento del 6%.
L'azienda ha annunciato contratti trasformativi per l'affitto di 250MW di data center AI con CoreWeave in North Dakota, con un fatturato contrattuale previsto di circa 7 miliardi di dollari in 15 anni. Successivamente, CoreWeave ha esercitato un'opzione per ulteriori 150MW, portando potenzialmente il fatturato totale contrattuale a 11 miliardi di dollari.
Nonostante la crescita dei ricavi, APLD ha riportato una perdita netta nel quarto trimestre di 26,6 milioni di dollari (0,12 dollari per azione) e una perdita netta annuale di 161,0 milioni di dollari (0,80 dollari per azione). L'azienda ha raccolto 268,9 milioni di dollari dopo la chiusura dell'anno fiscale tramite la vendita di azioni e sta portando avanti la costruzione del suo primo impianto HPC da 100MW, previsto per il completamento nella seconda metà del 2025.
Applied Digital (Nasdaq: APLD) informó sus resultados del cuarto trimestre fiscal y del año completo 2025, destacando un crecimiento significativo en sus operaciones de centros de datos. Los ingresos del cuarto trimestre alcanzaron los 38.0 millones de dólares, un aumento del 41% interanual, mientras que los ingresos anuales fueron de 144.2 millones de dólares, un incremento del 6%.
La compañía anunció contratos transformadores para el arrendamiento de 250MW de centros de datos de IA con CoreWeave en Dakota del Norte, que se espera generen aproximadamente 7 mil millones de dólares en ingresos contratados durante 15 años. Posteriormente, CoreWeave ejerció una opción para 150MW adicionales, lo que podría elevar los ingresos contratados totales a 11 mil millones de dólares.
A pesar del crecimiento en ingresos, APLD reportó una pérdida neta en el cuarto trimestre de 26.6 millones de dólares (0.12 dólares por acción) y una pérdida neta anual de 161.0 millones de dólares (0.80 dólares por acción). La compañía recaudó 268.9 millones de dólares después del cierre fiscal mediante ventas de acciones y está avanzando en la construcción de su primera instalación HPC de 100MW, programada para completarse en la segunda mitad de 2025.
Applied Digital (나스�: APLD)� 2025 회계연도 4분기 � 연간 실적� 발표하며 데이� 센터 사업� 눈에 띄는 성장� 강조했습니다. 4분기 매출은 3,800� 달러� 전년 대� 41% 증가했으�, 연간 매출은 1� 4,420� 달러� 6% 상승했습니다.
회사� 노스다코타에서 CoreWeave와 250MW AI 데이� 센터 임대 계약� 체결했으�, 이는 15� 동안 � 70� 달러� 계약 매출� 창출� 것으� 예상됩니�. 이후 CoreWeave� 추가 150MW 옵션� 행사하여 � 계약 매출� 110� 달러� 이를 가능성� 있습니다.
매출 증가에도 불구하고 APLD� 4분기� 2,660� 달러 (주당 0.12달러)� 순손실을 기록했고, 연간 순손실은 1� 6,100� 달러 (주당 0.80달러)였습니�. 회사� 회계연도 종료 � 주식 매각� 통해 2� 6,890� 달러� 조달했으�, 2025� 하반� 완공 예정� � 100MW HPC 시설 건설� 진행 중입니다.
Applied Digital (Nasdaq : APLD) a publié ses résultats du quatrième trimestre fiscal et de l'année complète 2025, mettant en avant une croissance significative de ses opérations de centres de données. Les revenus du quatrième trimestre ont atteint 38,0 millions de dollars, en hausse de 41 % par rapport à l'année précédente, tandis que les revenus annuels se sont élevés à 144,2 millions de dollars, soit une augmentation de 6 %.
L'entreprise a annoncé des baux transformateurs pour 250MW de centres de données IA avec CoreWeave dans le Dakota du Nord, qui devraient générer environ 7 milliards de dollars de revenus contractuels sur 15 ans. CoreWeave a ensuite exercé une option pour 150MW supplémentaires, portant potentiellement les revenus contractuels totaux à 11 milliards de dollars.
Malgré la croissance des revenus, APLD a enregistré une perte nette au quatrième trimestre de 26,6 millions de dollars (0,12 dollar par action) et une perte nette annuelle de 161,0 millions de dollars (0,80 dollar par action). L'entreprise a levé 268,9 millions de dollars après la clôture de l'exercice fiscal grâce à des ventes d'actions et fait avancer la construction de sa première installation HPC de 100MW, dont l'achèvement est prévu pour le second semestre 2025.
Applied Digital (Nasdaq: APLD) veröffentlichte die Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2025 und hob dabei ein signifikantes Wachstum im Bereich der Rechenzentrumsbetrieb hervor. Die Umsätze im vierten Quartal erreichten 38,0 Millionen US-Dollar, ein Anstieg von 41 % im Jahresvergleich, während die Umsätze für das Gesamtjahr 144,2 Millionen US-Dollar betrugen, was einer Steigerung von 6 % entspricht.
Das Unternehmen kündigte transformative 250MW AI-Rechenzentrums-Leasingverträge mit CoreWeave in North Dakota an, die voraussichtlich rund 7 Milliarden US-Dollar an vertraglichen Einnahmen über 15 Jahre generieren werden. CoreWeave übte anschließend eine Option für weitere 150MW aus, was die gesamten vertraglichen Einnahmen potenziell auf 11 Milliarden US-Dollar erhöhen könnte.
Trotz des Umsatzwachstums meldete APLD im vierten Quartal einen Nettoverlust von 26,6 Millionen US-Dollar (0,12 US-Dollar pro Aktie) und für das Gesamtjahr einen Nettoverlust von 161,0 Millionen US-Dollar (0,80 US-Dollar pro Aktie). Das Unternehmen erzielte nach Ende des Geschäftsjahres durch Aktienverkäufe 268,9 Millionen US-Dollar und treibt den Bau seiner ersten 100MW HPC-Anlage voran, die für das zweite Halbjahr 2025 geplant ist.
- Secured transformative 250MW AI data center leases worth $7 billion in contracted revenue
- Additional 150MW option exercised by CoreWeave, potentially adding $4 billion in revenue
- Q4 revenue increased 41% year-over-year to $38.0 million
- Raised $268.9 million through stock sales post-fiscal year end
- Reduced projected build times from 24 months to 12-14 months
- Operating at full capacity in existing 106MW and 180MW facilities
- Full-year net loss increased 118% to $161.0 million
- Q4 selling, general and administrative expenses up 115% to $28.1 million
- Loss on change in fair value of debt increased significantly to $85.4 million
- Recorded $33.6 million loss on conversion of debt in FY2025
- Cloud Services Business under strategic review with uncertain outcome
Insights
Applied Digital reports 41% Q4 revenue growth with transformative $11B in contracted AI data center leases despite ongoing losses.
Applied Digital's Q4 fiscal 2025 results show a company at an inflection point. Revenue increased
The company secured two 15-year lease agreements totaling 250MW with CoreWeave, expected to generate approximately
Despite the promising contracts, current financial performance remains challenging. The company reported a Q4 net loss of
The company has strengthened its balance sheet, raising
What's particularly notable is Applied Digital's strategic focus on the Dakotas for its data centers. The company claims its location and innovative cooling design could save customers up to
With its Data Center Hosting business operating at full capacity (106MW in Jamestown and 180MW in Ellendale), Applied Digital appears to be successfully transitioning from cryptocurrency hosting to higher-value AI infrastructure services, though execution on construction timelines and project financing will be critical for investors to monitor.
DALLAS, July 30, 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 and data center hosting (“Data Center Hosting�), reported financial results for the fiscal fourth quarter and fiscal year ended May31, 2025. The Company also provided an operational update.
During fiscal year 2025, the Company determined its Cloud Services Business met the criteria for held for sale and discontinued operations. As a result, the operations of the Cloud Services Business have been classified as discontinued operations in our consolidated financial statements. Prior period amounts have been retrospectively adjusted to conform to the current period presentation. Unless otherwise specified, disclosures in this earnings release, including the below, reflect continuing operations only and exclude the Cloud Services Business.
Fiscal Fourth Quarter 2025 Financial Highlights
- Revenues:
$38.0 million , up41% from the prior year comparable period - Net loss attributable to common stockholders:
$26.6 million , down25% from the prior year comparable period - Net loss attributable to common stockholders per basic and diluted share:
$0.12 , down57% from the prior year comparable period - Adjusted net loss attributable to common stockholders:
$7.6 million - Adjusted net loss attributable to common stockholders per diluted share:
$0.03 - Adjusted EBITDA:
$1.0 million
Fiscal Year 2025 Financial Highlights
- Revenues:
$144.2 million , up6% from the prior year comparable period - Net loss attributable to common stockholders:
$161.0 million , up118% from the prior year comparable period - Net loss attributable to common stockholders per basic and diluted share:
$0.80 , up23% from the prior year comparable period - Adjusted net loss attributable to common stockholders:
$12.5 million - Adjusted net loss attributable to common stockholders per diluted share:
$0.06 - Adjusted EBITDA:
$19.6 million
Adjusted Net Loss Attributable to Common Stockholders, Adjusted Net Loss Attributable to Common Stockholders per Diluted Share, and Adjusted EBITDA 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 Highlights
- Announced 250MW AI Data Center Leases With CoreWeave in North Dakota - Over the approximately 15-year lease terms, Applied Digital anticipates generating approximately
$7 billion in contracted revenue from the leases. - Since the end of the fourth quarter 2025, CoreWeave exercised its option for an additional 150MW, which would bring the total capacity leased by CoreWeave to 400MW and would add approximately
$4 billion in contracted revenue, which would bring total contracted revenue to approximately$11 billion for the approximately 15-year lease terms. - Released white paper, , which explains how site selection in regions like the Dakotas and data center design choices can significantly reduce the long-term costs of generative AI infrastructure.
- Subsequent to fiscal year end, the Company has raised
$268.9 million , from sales of shares of the Company's common stock pursuant to the June 2025 At-the-Market Sales Agreement and sale of shares of its Series G Preferred Stock.
Management Commentary
During the quarter ended May 31, 2025, we signed two transformative 15-year lease agreements with CoreWeave, an AI hyperscaler, to deliver 250 megawatts of critical IT load at our Ellendale, North Dakota data center campus ("Polaris Forge�1"). These signed lease agreements are expected to generate approximately
“These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects,� said Wes Cummins, Chairman and CEO of Applied Digital. “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. With the first 100 MW facility scheduled to be operational in Q4 2025, a second 150 MW facility scheduled to come online in mid-2026, and a third 150 MW facility planned for 2027, we believe Polaris Forge�1 will serve as a launchpad for the future of AI infrastructure.�
“Building on the momentum from these leases and the surging demand for AI infrastructure, we’re actively marketing our multi-gigawatt pipeline to a diverse group of customers,� said Wes Cummins, Chairman and CEO of Applied Digital. “Over the past two years, we’ve streamlined our processes, enhanced our building design for greater flexibility, and established a repeatable approach supported by a strong supply chain. As a result, we’ve reduced projected build times from 24 months to 12 to 14 months, which we believe will enable us to deliver large-scale projects faster and more efficiently.�
“At the same time, we’re highlighting the many advantages of building in the Dakotas, along with our unique design that features an innovative closed-loop, direct-to-chip cooling system. This design is expected to achieve a PUE of 1.18 and a near-zero water consumption, intended to ensure exceptional efficiency and sustainability,� Cummins added. “Combined with abundant, low-cost energy and over 200 days of naturally occurring free cooling annually, management believes a 100 MW data center customer could save up to approximately
HPC Data Center Hosting Update
Applied Digital’s HPC Data Center Hosting business designs, builds, and operates next-generation data centers engineered to deliver massive computing power for high-performance compute (HPC) and AI applications. The Company’s first 100 MW HPC facility at the Polaris Forge�1 campus in Ellendale, North Dakota—a 369,000+ square-foot building—is expected to offer ultra-low-cost, highly efficient liquid-cooled infrastructure and remains on track to be ready for service in the second half of 2025. In addition, construction is already underway on a second 150 MW data center at the campus. With the transformative two 15-year lease agreements now in place, we believe we are advancing toward finalizing project financing to ensure long-term financial stability and support the campus� continued growth and scalability.
“We believe the future is very bright for Applied Digital,� said Wes Cummins, Chairman and CEO. “We’ve sought to build strong relationships with nearly all major hyperscalers and demonstrate our advanced building capabilities by passing what we believe to be some of the most rigorous technical due diligence and processes imposed by them in the industry. As a result, we have established relationships with several hyperscalers, which should position us 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.�
Data Center Hosting Update
Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of May31, 2025, 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 May31, 2025, the Company generated
We are very pleased with our hosting business as it continues to operate more efficiently, and with Bitcoin prices hitting all-time highs, we believe demand for these services remains robust.
Cloud Services Business Update
As we announced last quarter, our Board of Directors has determined that we will be reviewing strategic options for this business. That process remains ongoing, and we will provide an update once we have more information to share with shareholders.
Financial Results for Fiscal Fourth Quarter 2025
Operating Results
Total revenues in the fiscal fourth quarter 2025 were
Cost of revenues in the fiscal fourth quarter 2025 were
Selling, general and administrative expenses in the fiscal fourth quarter 2025 were
Interest expense, net in the fiscal fourth quarter 2025 was
Net loss attributable to common stockholders for the fiscal fourth quarter 2025 was
Adjusted net loss attributable to common stockholders, a non-GAAP financial measure, for the fiscal fourth quarter 2025, was
Adjusted EBITDA, a non-GAAP financial measure, for the fiscal fourth quarter 2025 was
Financial Results for Fiscal Year Ended May31, 2025
Operating Results
Total revenues increased
Cost of revenues decreased
Selling, general and administrative expenses increased
Gain on classification as held for sale was
Interest expense, net decreased
Loss on conversion of debt was
Loss on change in fair value of debt increased
Net loss attributable to common stockholders was
Adjusted net loss attributable to common stockholders was
Balance Sheet
As of May31, 2025, the Company had
Conference Call
As previously announced, Applied Digital will host a conference call today, July30, 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.
Participant Dial-In: 1-800-549-8228
Conference ID: 67205
The conference call will be broadcast live and available for replay for one year .
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 phone replay of the call will also be available from 8:00 p.m. Eastern Time on July 30, 2025, through August 7, 2025, at 11:59 p.m. Eastern Time.
Replay Dial-In: 1-888-660-6264
Playback Passcode: 67205#
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 Compute ("HPC") and Artificial Intelligence ("AI"). Find more information at . 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 that reflect perspectives and expectations regarding the datacenter leases and the Polaris Forge 1 campus development, including statements regarding expected timeline of operating readiness and construction completion with respect to various Polaris Forge 1 facilities, (ii) statements about the high performance compute industry, (iii) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (iv) statements of future economic performance, (v) statements of assumptions underlying other statements and statements about the Company or its business and (vi) the Company’s plans to obtain future financing. 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 Polaris Forge 1 HPC data centers; our ability to finalize and execute the new, third lease with CoreWeave pursuant to its option exercise; 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 Polaris Forge 1 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 Annual Report on Form 10-K 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 other 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.
Adjusted Operating (Loss) Income, Adjusted Net Loss From Continuing Operations Attributable to Common Stockholders, and Adjusted Net Loss From Continuing Operations Attributable to Common Stockholders per Diluted Share
“Adjusted Operating (Loss) Income� and “Adjusted net loss from continuing operations attributable to common stockholders� are non-GAAP financial measures that represent operating loss and net loss from continuing operations attributable to common stockholders, respectively. Adjusted Operating (Loss) Income is Operating loss excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, (gain) loss on classification as held for sale, accelerated depreciation and amortization, loss on legal settlement, restructuring expenses and other non-recurring expenses that Management believes are not representative of the Company's expected ongoing costs. Adjusted net loss from continuing operations attributable to common stockholders is Adjusted Operating (Loss) Income further adjusted for the loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on fair value of warrants and warrants issued to related parties, respectively, loss on extinguishment of debt and related party debt, respectively, and preferred dividends. We define “Adjusted net loss from continuing operations attributable to common stockholders per diluted share� as Adjusted net loss from continuing operations attributable to common stockholders divided by weighted average diluted share count.
EBITDA and Adjusted EBITDA
“EBITDA� is defined as earnings before interest expense, net, income tax expense, 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, (gain) loss on classification as held for sale, loss on abandonment of assets, loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on change in fair value of warrants and warrants issued to related parties, respectively, loss on extinguishment of debt and related party debt, respectively, loss on legal settlement, preferred dividends, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs.
Investor Relations Contacts | Media Contact | |
Matt Glover or Ralf Esper | Buffy Harakidas, EVP | |
Gateway Group, Inc. | JSA (Jaymie Scotto & Associates) | |
(949) 574-3860 | (856) 264-7827 | |
[email protected] | [email protected] | |
APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and par value data) | |||||||
May 31, 2025 | May 31, 2024 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 41,552 | $ | 3,339 | |||
Restricted cash | |||||||
Funds for construction | 41,026 | � | |||||
Letters of credit | 31,342 | 21,349 | |||||
Accounts receivable | 3,043 | 3,847 | |||||
Prepaid expenses and other current assets | 9,430 | 1,010 | |||||
Current assets held for sale | 304,200 | 374,599 | |||||
Total current assets | 430,593 | 404,144 | |||||
Property and equipment, net | 1,275,841 | 329,103 | |||||
Operating lease right of use assets, net | 960 | 1,521 | |||||
Finance lease right of use assets, net | 17,820 | 8,750 | |||||
Other assets | 144,876 | 19,349 | |||||
TOTAL ASSETS | $ | 1,870,090 | $ | 762,867 | |||
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 247,528 | $ | 104,528 | |||
Accrued liabilities | 29,549 | 24,702 | |||||
Current portion of operating lease liability | 692 | 604 | |||||
Current portion of finance lease liability | 13,633 | 5,283 | |||||
Current portion of debt | 10,331 | 10,082 | |||||
Current portion of debt, at fair value | � | 35,836 | |||||
Customer deposits | 16,125 | 13,819 | |||||
Related party customer deposits | � | 1,549 | |||||
Deferred revenue | � | 6,496 | |||||
Related party deferred revenue | � | 1,692 | |||||
Due to customer | 4,807 | 13,002 | |||||
Other current liabilities | 19,432 | 96 | |||||
Total current liabilities | 558,144 | 554,112 | |||||
Long-term portion of operating lease liability | 381 | 1,072 | |||||
Long-term portion of finance lease liability | 15 | 3,381 | |||||
Long-term debt | 677,825 | 79,472 | |||||
Total liabilities | 1,236,365 | 638,037 | |||||
Commitments and contingencies | |||||||
Temporary equity | |||||||
Series E preferred stock, 0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at May31, 2025, and no shares authorized, issued or outstanding at May31, 2024 | 6,932 | � | |||||
Series E-1 preferred stock, | 57,011 | � | |||||
Series G preferred stock, 0.001 par value, 156,000 shares authorized, 78,000 shares issued and outstanding at May31, 2025, and 0 shares authorized, issued or outstanding at May 31, 2024 | 72,094 | � | |||||
Stockholders' equity: | |||||||
Common stock, | 230 | 144 | |||||
Treasury stock, 9,291,199 shares at May31, 2025 and 5,032,802 shares at May31, 2024, at cost | (31,400 | ) | (62 | ) | |||
Additional paid in capital | 1,009,913 | 374,738 | |||||
Accumulated deficit | (481,055 | ) | (249,990 | ) | |||
Total stockholders� equity attributable to Applied Digital Corporation | 497,688 | 124,830 | |||||
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | $ | 1,870,090 | 762,867 | ||||
APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share data) | ||||||||||||||||
Three Months Ended | Fiscal Year Ended | |||||||||||||||
May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | |||||||||||||
Revenue: | ||||||||||||||||
Revenue | $ | 38,013 | $ | 23,020 | $ | 142,267 | $ | 121,857 | ||||||||
Related party revenue | � | 3,878 | 1,926 | 14,761 | ||||||||||||
Total revenue | 38,013 | 26,898 | 144,193 | 136,618 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenues | 30,247 | 22,776 | 101,451 | 106,653 | ||||||||||||
Selling, general and administrative (1) | 28,096 | 13,079 | 83,065 | 45,020 | ||||||||||||
(Gain) loss on classification as held for sale (2) | � | (6,306 | ) | (24,616 | ) | 15,417 | ||||||||||
Loss on abandonment of assets | 369 | � | 1,138 | � | ||||||||||||
Loss from legal settlement | � | � | � | 2,380 | ||||||||||||
Total costs and expenses | 58,712 | 29,549 | 161,038 | 169,470 | ||||||||||||
Operating loss | (20,699 | ) | (2,651 | ) | (16,845 | ) | (32,852 | ) | ||||||||
Interest expense, net (3) | 4,497 | 13,814 | 14,739 | 17,708 | ||||||||||||
Loss on conversion of debt | � | � | 33,612 | � | ||||||||||||
Loss on change in fair value of debt | � | 4,789 | 85,439 | 7,401 | ||||||||||||
Loss on change in fair value of related party debt | � | 8,116 | � | 8,116 | ||||||||||||
Loss on extinguishment of debt | � | � | 1,177 | � | ||||||||||||
Loss on extinguishment of related party debt | � | 154 | � | 2,507 | ||||||||||||
Loss on change in fair value of warrants | � | � | 6,421 | � | ||||||||||||
Loss on change in fair value of related party warrants | � | 5,696 | � | 5,696 | ||||||||||||
Net loss before income tax expenses | (25,196 | ) | (35,220 | ) | (158,233 | ) | (74,280 | ) | ||||||||
Income tax expense (benefit) | (16 | ) | 96 | 102 | 96 | |||||||||||
Net loss from continuing operations | (25,180 | ) | (35,316 | ) | (158,335 | ) | (74,376 | ) | ||||||||
Net loss from discontinued operations | (27,357 | ) | (29,441 | ) | (72,730 | ) | (75,295 | ) | ||||||||
Net loss | (52,537 | ) | (64,757 | ) | (231,065 | ) | (149,671 | ) | ||||||||
Net loss attributable to noncontrolling interest | � | � | � | (397 | ) | |||||||||||
Preferred dividends | (1,402 | ) | � | (2,615 | ) | � | ||||||||||
Net loss attributable to common stockholders | $ | (53,939 | ) | $ | (64,757 | ) | $ | (233,680 | ) | $ | (149,274 | ) | ||||
Net loss attributable to common stockholders | ||||||||||||||||
Continuing operations | $ | (26,582 | ) | $ | (35,316 | ) | $ | (160,950 | ) | $ | (73,979 | ) | ||||
Discontinued operations | (27,357 | ) | (29,441 | ) | (72,730 | ) | (75,295 | ) | ||||||||
Net loss | $ | (53,939 | ) | $ | (64,757 | ) | $ | (233,680 | ) | $ | (149,274 | ) | ||||
Basic and diluted net loss per share attributable to common stockholders | ||||||||||||||||
Continuing operations | $ | (0.12 | ) | $ | (0.28 | ) | $ | (0.80 | ) | $ | (0.65 | ) | ||||
Discontinued operations | (0.12 | ) | (0.24 | ) | (0.36 | ) | (0.66 | ) | ||||||||
Basic and diluted net loss per share | $ | (0.24 | ) | $ | (0.52 | ) | $ | (1.16 | ) | $ | (1.31 | ) | ||||
Basic and diluted weighted average number of shares outstanding | 224,306,661 | 124,666,579 | 201,194,451 | 114,061,414 | ||||||||||||
(1) | Includes related party selling, general and administrative expense of |
(2) | Includes |
(3) | For the three months ended and fiscal year ended May31, 2024, amounts include related party interest expense of |
APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) | |||||||
Fiscal Year Ended | |||||||
May 31, 2025 | May 31, 2024 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (231,065 | ) | $ | (149,671 | ) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 97,945 | 79,360 | |||||
Stock-based compensation | 22,704 | 17,362 | |||||
Lease expense | 31,661 | 13,944 | |||||
Loss on extinguishment of debt | 1,177 | � | |||||
Loss on extinguishment of related party debt | � | 2,507 | |||||
Loss on legal settlement | � | 2,380 | |||||
Amortization of debt issuance costs | 9,563 | 5,214 | |||||
(Gain) loss on classification of held for sale | (24,616 | ) | 15,417 | ||||
Loss on conversion of debt | 33,612 | � | |||||
Loss on change in fair value of debt | 85,439 | 7,401 | |||||
Loss on change in fair value of related party debt | � | 13,812 | |||||
Loss on change in fair value of warrants issued | 6,421 | � | |||||
Loss on abandonment of assets | 1,138 | � | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (2,934 | ) | (3,765 | ) | |||
Prepaid expenses and other current assets | (8,309 | ) | 899 | ||||
Other assets | 2,979 | 327 | |||||
Customer deposits | 2,306 | (8,770 | ) | ||||
Related party customer deposits | (1,549 | ) | (2,261 | ) | |||
Deferred revenue | (34,080 | ) | (9,494 | ) | |||
Related party deferred revenue | (1,692 | ) | 168 | ||||
Accounts payable | (78,256 | ) | 41,840 | ||||
Accrued liabilities | (12,127 | ) | 21,601 | ||||
Due to customer | (8,195 | ) | 13,002 | ||||
Lease assets and liabilities | (7,524 | ) | (47,479 | ) | |||
CASH FLOW (USED IN) PROVIDED BY OPERATING ACTIVITIES | (115,402 | ) | 13,794 | ||||
CASH FLOW FROM INVESTING ACTIVITIES | |||||||
Purchases of property and equipment and other assets | (681,603 | ) | (141,809 | ) | |||
Proceeds from sale of assets | 25,000 | 19,852 | |||||
Finance lease prepayments | (6,178 | ) | (50,089 | ) | |||
Purchases of investments | (4,873 | ) | (391 | ) | |||
CASH FLOW USED IN INVESTING ACTIVITIES | (667,654 | ) | (172,437 | ) | |||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||
Repayment of finance leases | (125,073 | ) | (59,967 | ) | |||
Borrowings of long-term debt | 650,083 | 116,554 | |||||
Borrowings of related party debt | � | 28,000 | |||||
Repayment of long-term debt | (293,045 | ) | (21,714 | ) | |||
Repayment of related party debt | � | (45,500 | ) | ||||
Payment of deferred financing costs | (42,398 | ) | (320 | ) | |||
Tax payments for restricted stock upon vesting | (4,116 | ) | (861 | ) | |||
Proceeds from issuance of common stock | 191,590 | 130,849 | |||||
Common stock issuance costs | (10,305 | ) | (284 | ) | |||
Proceeds from issuance of preferred stock | 198,205 | � | |||||
Preferred stock issuance costs | (13,812 | ) | � | ||||
Dividends issued on preferred stock | (2,615 | ) | � | ||||
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 | 874,686 | 146,757 | |||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 91,630 | (11,886 | ) | ||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS | 31,688 | 43,574 | |||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD, INCLUDING CASH FROM DISCONTINUED OPERATIONS | 123,318 | 31,688 | |||||
Less: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS | 2,398 | � | |||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH FROM CONTINUING OPERATIONS | $ | 120,920 | $ | 31,688 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Interest paid | $ | 62,712 | $ | 17,782 | |||
Income taxes paid | $ | 105 | $ | 5 | |||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES | |||||||
Operating right-of-use assets obtained by lease obligation | $ | 20,280 | $ | 159,153 | |||
Finance right-of-use assets obtained by lease obligation | $ | 113,674 | $ | 227,047 | |||
Property and equipment in accounts payable and accrued liabilities | $ | 246,472 | $ | 85,019 | |||
Extinguishment of non-controlling interest | $ | � | $ | 9,765 | |||
Conversion of debt to common stock | $ | 104,945 | $ | 52,060 | |||
Conversion of preferred stock to common stock | $ | 48,350 | $ | � | |||
Loss on legal settlement | $ | � | $ | 2,380 | |||
Issuance of warrants, at fair value | $ | 136,292 | $ | 5,696 | |||
Conversion of warrants | $ | 5 | $ | � | |||
APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands, except percentage data) | ||||||||||||||||
Three Months Ended | Fiscal Year Ended | |||||||||||||||
May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | |||||||||||||
Adjusted operating income (loss) | ||||||||||||||||
Operating loss (GAAP) | $ | (20,699 | ) | $ | (2,651 | ) | $ | (16,845 | ) | $ | (32,852 | ) | ||||
Stock-based compensation | 11,558 | 1,803 | 22,492 | 6,973 | ||||||||||||
Non-recurring repair expenses (1) | � | 645 | 173 | 1,224 | ||||||||||||
Diligence, acquisition, disposition and integration expenses (2) | 4,908 | 1,726 | 17,269 | 5,545 | ||||||||||||
Litigation expenses (3) | 48 | 929 | 1,389 | 1,589 | ||||||||||||
Loss on abandonment of assets | 369 | � | 1,138 | � | ||||||||||||
(Gain) loss on classification as held for sale | � | (6,306 | ) | (24,616 | ) | 15,417 | ||||||||||
Accelerated depreciation and amortization (4) | � | 88 | 45 | 4,307 | ||||||||||||
Loss on legal settlement | � | � | � | 2,380 | ||||||||||||
Restructuring expenses (5) | 668 | � | 711 | � | ||||||||||||
Other non-recurring expenses (6) | 69 | 45 | 627 | 169 | ||||||||||||
Adjusted operating (loss) income (Non-GAAP) | $ | (3,079 | ) | $ | (3,721 | ) | $ | 2,383 | $ | 4,752 | ||||||
Adjusted operating margin | (8 | )% | (14 | )% | 2 | % | 3 | % | ||||||||
Adjusted net loss from continuing operations attributable to common stockholders | ||||||||||||||||
Net loss from continuing operations attributable to common stockholders (GAAP) | $ | (26,582 | ) | $ | (35,316 | ) | $ | (160,950 | ) | $ | (73,979 | ) | ||||
Stock-based compensation | 11,558 | 1,803 | 22,492 | 6,973 | ||||||||||||
Non-recurring repair expenses (1) | � | 645 | 173 | 1,224 | ||||||||||||
Diligence, acquisition, disposition and integration expenses (2) | 4,908 | 1,726 | 17,269 | 5,545 | ||||||||||||
Litigation expenses (3) | 48 | 929 | 1,389 | 1,589 | ||||||||||||
Loss on abandonment of assets | 369 | � | 1,138 | � | ||||||||||||
(Gain) loss on classification as held for sale | � | (6,306 | ) | (24,616 | ) | 15,417 | ||||||||||
Accelerated depreciation and amortization (4) | � | 88 | 45 | 4,307 | ||||||||||||
Loss on conversion of debt | � | � | 33,612 | � | ||||||||||||
Loss on change in fair value of debt | � | 4,789 | 85,439 | 7,401 | ||||||||||||
Loss on change in fair value of related party debt | � | 8,116 | � | 8,116 | ||||||||||||
Loss on change in fair value of warrants | � | � | 6,421 | � | ||||||||||||
Loss on change in fair value of warrants issued to related parties | � | 5,696 | � | 5,696 | ||||||||||||
Loss on extinguishment of debt | � | � | 1,177 | � | ||||||||||||
Loss on extinguishment of related party debt | � | 154 | � | 2,507 | ||||||||||||
Loss on legal settlement | � | � | � | 2,380 | ||||||||||||
Preferred dividends | 1,402 | � | 2,615 | � | ||||||||||||
Restructuring expenses (5) | 668 | � | 711 | � | ||||||||||||
Other non-recurring expenses (6) | 69 | 45 | 627 | 169 | ||||||||||||
Adjusted net loss from continuing operations attributable to common stockholders (Non-GAAP) | $ | (7,560 | ) | $ | (17,631 | ) | $ | (12,458 | ) | $ | (12,655 | ) | ||||
Adjusted net loss from continuing operations attributable to common stockholders per diluted share (Non-GAAP) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.06 | ) | $ | (0.11 | ) | ||||
EBITDA and Adjusted EBITDA | ||||||||||||||||
Net loss from continuing operations attributable to common stockholders (GAAP) | $ | (26,582 | ) | $ | (35,316 | ) | $ | (160,950 | ) | $ | (73,979 | ) | ||||
Interest expense, net | 4,497 | 13,814 | 14,739 | 17,708 | ||||||||||||
Income tax expense (benefit) | (16 | ) | 96 | 102 | 96 | |||||||||||
Depreciation and amortization (4) | 4,059 | 3,636 | 17,289 | 21,477 | ||||||||||||
EBITDA (Non-GAAP) | $ | (18,042 | ) | $ | (17,770 | ) | $ | (128,820 | ) | $ | (34,698 | ) | ||||
Stock-based compensation | 11,558 | 1,803 | 22,492 | 6,973 | ||||||||||||
Non-recurring repair expenses (1) | � | 645 | 173 | 1,224 | ||||||||||||
Diligence, acquisition, disposition and integration expenses (2) | 4,908 | 1,726 | 17,269 | 5,545 | ||||||||||||
Litigation expenses (3) | 48 | 929 | 1,389 | 1,589 | ||||||||||||
(Gain) loss on classification as held for sale | � | (6,306 | ) | (24,616 | ) | 15,417 | ||||||||||
Loss on abandonment of assets | 369 | � | 1,138 | � | ||||||||||||
Loss on conversion of debt | � | � | 33,612 | � | ||||||||||||
Loss on change in fair value of debt | � | 4,789 | 85,439 | 7,401 | ||||||||||||
Loss on change in fair value of related party debt | � | 8,116 | � | 8,116 | ||||||||||||
Loss on change in fair value of warrants | � | � | 6,421 | � | ||||||||||||
Loss on change in fair value of warrants issued to related parties | � | 5,696 | � | 5,696 | ||||||||||||
Loss on extinguishment of debt | � | � | 1,177 | � | ||||||||||||
Loss on extinguishment of related party debt | � | 154 | � | 2,507 | ||||||||||||
Loss on legal settlement | � | � | � | 2,380 | ||||||||||||
Preferred dividends | 1,402 | � | 2,615 | � | ||||||||||||
Restructuring expenses (5) | 668 | � | 711 | � | ||||||||||||
Other non-recurring expenses (6) | 69 | 45 | 627 | 169 | ||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 980 | $ | (173 | ) | $ | 19,627 | $ | 22,319 | |||||||
(1) | Represents costs incurred in the repair and replacement of equipment at 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 our defense of class action lawsuits and legal fees related to matters with certain former employees. We do not expect to incur these expenses on a regular basis. |
(4) | Represents the acceleration of expense related to assets that were abandoned by us due to operational failure or other reasons. Depreciation and amortization in this amount is included in Depreciation and Amortization expense within our calculation of EBITDA, and therefore is not added back as a management adjustment in our calculation of Adjusted EBITDA. |
(5) | Represents non-recurring expenses associated with employee separations. |
(6) | Represents expenses that are not representative of our expected ongoing costs. |
