Applied Digital Stock (APLD) A Pre-Market Mover On Earnings Beat

Applied Digital's stock price  is 21% higher in pre-market trading following the earnings release.

Applied Digital Corporation (APLD) experienced a significant surge in its stock price following the release of its fiscal first-quarter 2025 earnings report, which beat on both the top and bottom lines. The positive market reaction reflects growing confidence in the company's strategic direction and expansion within the high-performance computing (HPC) infrastructure sector.

The company reported first-quarter revenue of $64.2 million, significantly exceeding the consensus estimate of $45.46 million. This increase was primarily attributed to $26.3 million in revenue generated from tenant fit-out services associated with the company's HPC Hosting Business.

Earnings per share adjusted for the quarter was -$0.03, a solid beat on the consensus estimate of a $0.16 loss. Revenue increased to $60.7 million, marking a 67% increase compared to the same period last year, with cloud services contributing $25.9 million and data center hosting generating $34.8 million.

The company reported a net loss of $4.3 million, or $0.03 per share, an narrowing on the $11.5 million loss in the fiscal first quarter of 2024. However, the adjusted net loss stood at $21.6 million, or $0.15 per share.

Future Growth

A key development during the quarter was the signing of an additional 150 MW lease for its Polaris Forge 1 campus, bringing the total contracted capacity with CoreWeave to 400 MW. This agreement is projected to secure approximately $11 billion in prospective lease revenue over the 15-year term.

The company expects further capacity expansion beyond 1 gigawatt between 2028 and 2030, signifying long-term growth potential.

The financial position has also been strengthened by investments from institutional and accredited investors, including NVIDIA. The company ended the quarter with $86.6 million in cash and cash equivalents and $143.6 million in debt. Shareholders' equity nearly doubled over the past three months, reaching $241.8 million, driven by recent capital infusions.

The market's positive reaction to Applied Digital's earnings report and strategic developments underscores the company's potential in the AI and HPC infrastructure sectors. A beat on top and bottom lines, with solid messaging has seen APLD continue on it's meteoric rise, with gains of 275.5% already under the belt leading into the print.