Applied Digital (APLD) Q1 2025 earnings summary

Executive summary

• Revenue grew 67% year-over-year to $60.7 million, driven by Cloud Services growth.

• Net loss narrowed to $4.3 million from $11.5 million; adjusted net loss was $21.6 million.

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

• Closed a $160 million private placement with institutional investors, including NVIDIA and Related Companies.

• Ellendale’s 100 MW HPC facility is under construction, with a lease nearing completion and campus capacity planned to reach 400 MW.

Financial highlights

• Revenue was $60.7 million, up from $36.3 million year-over-year; data center hosting contributed $34.8 million and Cloud Services $25.9 million.

• Adjusted EBITDA was $20.0 million, up from $9.9 million year-over-year, with a 33% adjusted EBITDA margin.

• Net loss was $4.3 million ($0.03 per share), versus $11.5 million ($0.11 per share); adjusted net loss was $21.6 million ($0.15 per share).

• Depreciation and amortization rose to $34.4 million from $8.0 million year-over-year.

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

Outlook and guidance

• Management expects continued growth in Cloud Services and data center hosting, supported by robust customer pipelines.

• Additional GPU clusters are expected in the second half of the fiscal year, beginning December 1.

• The Ellendale lease for a 100 MW HPC facility is being finalized; two additional buildings are planned, bringing campus capacity to 400 MW.

• Three additional campuses totaling 1.4 GW are being marketed, with project financing negotiations underway.

• Liquidity was projected to be sufficient for at least 12 months, supported by recent financings and customer payments.