📊 APLD Key Takeaways
Is Applied Digital Corp. (APLD) a Good Investment?
Applied Digital is experiencing severe cash burn with negative operating cash flow of -$97.9M and massive negative free cash flow of -$899.4M, driven by extraordinarily high capital expenditure relative to revenue. Despite 5.5% revenue growth and a strong cash position of $1.9B, the company's negative profitability across all metrics (gross margin 5.8%, operating margin -27.9%, net margin -16.4%) indicates an unsustainable business model that is consuming capital at an alarming rate.
Applied Digital shows weak fundamental quality: revenue growth is modest at 5.5% while gross margin is only 5.8% and operating losses remain substantial. The balance sheet is currently supported by high cash and very low long-term debt, but deeply negative operating cash flow and extremely heavy capital spending make the business reliant on future execution to justify its asset buildout.
Why Buy Applied Digital Corp. Stock? APLD Key Strengths
- Strong liquidity position with $1.9B in cash and 4.82x current ratio providing runway for operations
- Revenue growth of 5.5% YoY shows top-line traction despite profitability challenges
- Low leverage with 0.00x debt-to-equity ratio and only $7.2M long-term debt minimizing financial distress risk
- Very strong liquidity with $1.91B of cash and current and quick ratios of 4.82x
- Low balance-sheet leverage with minimal long-term debt and near-zero debt-to-equity
- Large equity base and asset scale provide financial flexibility during buildout
APLD Stock Risks: Applied Digital Corp. Investment Risks
- Massive capital burn: -$899.4M free cash flow with CapEx at $801.5M suggests unsustainable investment cycle relative to $190.8M revenue
- Severe profitability deficit: negative operating margin of -27.9% and negative net margin of -16.4% indicate the business is unprofitable at all levels
- Cash runway concern: at current burn rate of ~$900M annually, the $1.9B cash position provides less than 2.5 years of runway without profitability inflection
- Profitability is weak with negative operating margin of -27.9% and net margin of -16.4%
- Free cash flow is severely negative at -$899.36M, indicating poor near-term cash generation quality
- Revenue growth is relatively modest versus the scale of capital investment, raising execution and return-on-capital risk
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Capital expenditure as percentage of revenue and CapEx efficiency metrics
- Gross margin expansion and operating leverage as revenue scales
- Cash balance depletion rate and timeline to cash flow breakeven
- Operating cash flow and free cash flow improvement
- Gross margin and operating margin expansion
Applied Digital Corp. (APLD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.82x current ratio provides a solid financial cushion.
APLD Profit Margin, ROE & Profitability Analysis
APLD vs Technology Sector: How Applied Digital Corp. Compares
How Applied Digital Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Applied Digital Corp. Stock Overvalued? APLD Valuation Analysis 2026
Based on fundamental analysis, Applied Digital Corp. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Applied Digital Corp. Balance Sheet: APLD Debt, Cash & Liquidity
APLD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Applied Digital Corp.'s revenue has grown significantly by 1,587% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.47 indicates the company is currently unprofitable.
APLD Revenue Growth, EPS Growth & YoY Performance
APLD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $52.9M | N/A | $-0.16 |
| Q2 2026 | $36.2M | -$14.5M | $-0.07 |
| Q1 2026 | $34.8M | -$4.2M | $-0.03 |
| Q3 2025 | $43.3M | N/A | $-0.16 |
| Q2 2025 | $42.2M | N/A | $-0.10 |
| Q1 2025 | $36.3M | N/A | $-0.03 |
| Q3 2024 | $14.1M | -$7.0M | $-0.07 |
| Q2 2024 | $12.3M | -$10.5M | $-0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Applied Digital Corp. Dividends, Buybacks & Capital Allocation
APLD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Applied Digital Corp. (CIK: 0001144879)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APLD
What is the AI rating for APLD?
Applied Digital Corp. (APLD) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APLD's key strengths?
Claude: Strong liquidity position with $1.9B in cash and 4.82x current ratio providing runway for operations. Revenue growth of 5.5% YoY shows top-line traction despite profitability challenges. ChatGPT: Very strong liquidity with $1.91B of cash and current and quick ratios of 4.82x. Low balance-sheet leverage with minimal long-term debt and near-zero debt-to-equity.
What are the risks of investing in APLD?
Claude: Massive capital burn: -$899.4M free cash flow with CapEx at $801.5M suggests unsustainable investment cycle relative to $190.8M revenue. Severe profitability deficit: negative operating margin of -27.9% and negative net margin of -16.4% indicate the business is unprofitable at all levels. ChatGPT: Profitability is weak with negative operating margin of -27.9% and net margin of -16.4%. Free cash flow is severely negative at -$899.36M, indicating poor near-term cash generation quality.
What is APLD's revenue and growth?
Applied Digital Corp. reported revenue of $190.8M.
Does APLD pay dividends?
Applied Digital Corp. does not currently pay dividends.
Where can I find APLD SEC filings?
Official SEC filings for Applied Digital Corp. (CIK: 0001144879) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APLD's EPS?
Applied Digital Corp. has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is APLD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Applied Digital Corp. has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is APLD stock overvalued or undervalued?
Valuation metrics for APLD: ROE of -2.2% (sector avg: 22%), net margin of -16.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy APLD stock in 2026?
Our dual AI analysis gives Applied Digital Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APLD's free cash flow?
Applied Digital Corp.'s operating cash flow is $-97.9M, with capital expenditures of $801.5M. FCF margin is -471.3%.
How does APLD compare to other Technology stocks?
Vs Technology sector averages: Net margin -16.4% (avg: 18%), ROE -2.2% (avg: 22%), current ratio 4.82 (avg: 2.5).