Applied Digital Crushes Q4 Revenue Estimates by 173%, Guides for AI Buildout
APLD has more than doubled off its 52-week low of $9.79.
Summary
Applied Digital reported Q4 revenue of $258.7M, a 407% surge that beat estimates by 173%, and swung to an adjusted profit of $0.04 per share versus an expected loss. The results underscore the company's rapid scaling as it converts its massive AI data center pipeline into revenue. This follows a series of multi-billion-dollar, 15-year lease agreements with hyperscalers, including a $5.2B deal at Delta Forge 2 and a $7.5B deal at Delta Forge 1, which are now beginning to flow through the top line. CEO Wes Cummins called the AI infrastructure buildout the largest in modern economic history and sees demand remaining extremely robust. With 70% of contracted revenue backed by investment-grade hyperscalers, the earnings trajectory is gaining credibility. Shares rose 5.4% after hours, adding to a 7.6% year-to-date gain.
Updates
· SEC 8-K — The 8-K attaches the earnings press release, which details a $2.15B 6.750% senior secured notes offering due 2031, a $550M revolving credit facility, and a $300M bridge facility.
At the time of this announcement, APLD was trading at $27.83 on NASDAQ in the Technology sector, with a market capitalization of approximately $7.5B. The 52-week trading range was $9.79 to $50.73. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.