APLD Applied Digital Corp.

Overview and Growth

In fiscal 2026, Applied Digital Corp. recorded $611.31M of revenue, net loss of $250.26M, and an operating cash inflow of $89.69M. Revenue of $611.31M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 167.5% above fiscal 2025 revenue of $228.57M, marking a year-over-year increase. The company reported diluted EPS of -$0.91, adding a shareholder-level measure to the absolute income figures considered below. A diluted share base of 275.19M links the aggregate earnings figure to diluted EPS and helps frame the per-share comparison. Compared with 201.19M diluted shares in fiscal 2025, the current 275.19M base was 36.8% higher. At period end, total assets were $9.93B, framing the scale of the company’s operating and financing commitments. The revenue-to-assets relationship was 0.06x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $214.45M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 35.1% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $236.46M after the reported operating expense base. An operating margin of -38.7% reflected costs exceeding revenue-level gross profit by 38.7% of sales. The bottom-line result was a net loss of $250.26M after operating, financing, tax, and other recognized items. Net margin was -40.9%, reflecting a loss equal to 40.9% of reported revenue. EBITDA was negative $169.07M, showing a deficit before interest, taxes, depreciation, and amortization. The company reported a pretax loss of $181.53M, before the effect of income taxes. Measured against revenue, the pretax deficit represented 29.7%. The reported income-tax provision was $1.79M, the amount recognized between pretax income and the final net-income result. Relative to period-end equity, the net loss represented 14.5%. Relative to total assets, the net loss represented 2.5%. The net loss widened to $250.26M from $233.68M in fiscal 2025.

Liquidity and Capital Structure

At period end, the $9.93B asset base was financed through $6.19B of liabilities and $1.72B of equity. The near-term balance sheet paired $4.66B of current assets with $1.16B of current liabilities at the reporting date. Current assets covered current liabilities by 4.01x, leaving a positive buffer for near-term obligations. The company held $1.59B in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 136.9%, excluding receivables and other current assets. Book equity represented 17.4% of total assets, quantifying the balance-sheet share supported by shareholder capital. The liabilities-to-assets relationship was 62.3%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 16.0%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 431.0% from $1.87B in fiscal 2025, leaving current total assets higher year over year. Book equity was 246.5% higher than fiscal 2025 equity of $497.69M, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $89.69M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital expenditures used $2.87B, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. The company recorded a $2.78B cash deficit after capital spending for the period. The free-cash-flow deficit equaled 454.1% of revenue, showing the post-investment cash shortfall relative to sales. Relative to total assets, the post-investment cash deficit measured 28.0%. Operations shifted from absorbing $115.40M in fiscal 2025 to generating $89.69M of cash.

Based on the annual report for the fiscal year ending May 31, 2026. Analysis generated Oct 21, 2026.