Applied Digital Corp. (APLD) FY2025 10-K Annual Report
Applied Digital Corp. (APLD) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Jul 30, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Applied Digital Corp. FY2025 10-K Analysis
Business Overview
- • Core business model: Designer, developer, and operator of next-generation data centers for HPC, AI, and blockchain hosting in North America
- • Strategic shift: Cloud Services Business classified as held for sale, excluded from continuing operations and segment results starting FY2025
- • New HPC campus Polaris Forge 1 under construction in Ellendale with 400 MW capacity, first AI-focused data centers, leases signed for 250 MW
- • Employee count increased to approximately 205 full-time as of May 31, 2025, with expanded workforce and long-term incentive programs
- • Focus on vertical integration of power assets and targeting renewable energy to support environmentally conscious and scalable operations
Management Discussion & Analysis
- • Revenue from continuing operations $0; Data Center Hosting Business only; Cloud Services Business discontinued with $84.4M revenue FY25
- • Operating results: HPC Hosting Business pre-revenue; Data Center Hosting at full capacity (286 MW total) but no specific margin data disclosed
- • Best segment: Data Center Hosting (100% continuing ops revenue); Worst: Cloud Services Business discontinued with $84.4M revenue but classified as discontinued ops
- • Capital raised: $160M from private placement, $62.5M Series E-1 Preferred, $75M Series G Preferred, $14.6M ATM sales, $16.4M July 2024 ATM sales; Debt includes $450M Convertible Notes, $150M Macquarie Note repaid, $375M SMBC loan
- • Forward outlook: HPC Hosting to generate meaningful revenue CY2025 with CoreWeave leases; $900M MAM investment pending closing conditions; key risks include closing conditions and market demand for HPC infrastructure
Risk Factors
- • Regulatory risk from SEC inquiries on trading and short selling activities affecting stock liquidity and compliance costs
- • Geopolitical threat from U.S. tariffs on construction materials and specialized electricity equipment delaying HPC and AI projects
- • Operational risk from reliance on third-party power suppliers exposing to service failures and price volatility in power markets
- • Market disruption risk from major competitor customers exerting pricing pressure amid concentrated customer base (93% revenue from one customer)
- • Financial risk from high debt with multiple loans subject to restrictive covenants and potential refinancing at higher interest rates
Applied Digital Corp. FY2025 Key Financial MetricsXBRL
Revenue
$144M
▼ -12.9% YoY
Net Income
-$234M
▼ -56.5% YoY
Operating Margin
-11.7%
▲ +4812bp YoY
Net Margin
-162.1%
▼ -7191bp YoY
ROE
-47.0%
▲ +7263bp YoY
Total Assets
$1.9B
▲ +145.1% YoY
EPS (Diluted)
$-1.16
▲ +11.5% YoY
Operating Cash Flow
-$115M
▼ -936.6% YoY
Source: XBRL data from Applied Digital Corp. FY2025 10-K filing on SEC EDGAR. All figures in USD.
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