Applied Digital (APLD) Q1 2025 earnings summary

Executive summary

• Revenue grew 67% year-over-year to $60.7 million for fiscal Q1 2025, driven by Cloud Services and data center capacity expansion.

• Net loss narrowed to $4.3 million from $11.5 million year-over-year; adjusted net loss was $21.6 million, impacted by expenses from non-revenue-generating facilities.

• Adjusted EBITDA rose to $20.0 million from $9.9 million year-over-year.

• Closed $160 million private placement with institutional investors, including NVIDIA and Related Companies, strengthening the balance sheet.

• Executive leadership changes: David Rench as Chief Administrative Officer and Saidal Mohmand as CFO, effective October 14, 2024.

Financial highlights

• Total revenue: $60.7 million, up 67% year-over-year; data center hosting revenue: $34.8 million; cloud services revenue: $25.9 million.

• Net loss: $4.3 million ($0.03 per share) vs. $11.5 million ($0.11 per share) in Q1 2024.

• Adjusted net loss: $21.6 million ($0.15 per share).

• Adjusted EBITDA: $20.0 million (33% margin), up from $9.9 million (27% margin) year-over-year.

• Cash, cash equivalents, and restricted cash: $86.6 million at quarter end; debt: $143.6 million.

Outlook and guidance

• Finalizing lease with a U.S.-based hyperscaler for a 100 MW HPC facility under construction at Ellendale, with plans to expand to 400 MW by 2027.

• Actively marketing three additional campuses totaling 1.4 GW and designing two new buildings to add 300 MW at Ellendale.

• Additional GPU clusters expected to be deployed in the second half of the fiscal year.

• Sufficient liquidity projected for at least 12 months, supported by recent financings and customer payments.

• Ongoing investments in property and equipment anticipated as HPC hosting facilities expand.