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Applied Digital APLD reported a second-quarter fiscal 2025 loss of 66 cents per share, missing the Zacks Consensus Estimate of a loss of 14 cents. The company reported a loss of 10 cents per share in the year-ago quarter.
Adjusting for loss on conversion of debt ($25.4 million), loss on change in fair value of debt ($87.2 million), diligence, acquisition, disposition, integration expenses, and litigation expenses ($9.5 million) and stock compensation ($3.5 million), the non-GAAP loss was 6 cents per share, wider than 5 cents per share reported in the year-ago quarter.
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Revenues of $63.9 million surged 51% year over year and were in line with the consensus mark. Cloud Services business revenues jumped 523% year over year to $27.7 million, driven by the deployment of additional GPU clusters. The Data Center Hosting business segment generated $36.2 million in revenues.
Applied Digital Corporation Price, Consensus and EPS Surprise
Applied Digital Corporation price-consensus-eps-surprise-chart | Applied Digital Corporation Quote
Applied Digital shares declined 7% following the fiscal second-quarter results. In the trailing 12 months, APLD shares have surged 54.4%, outperforming the Zacks Finance sector’s return of 21.1%.
APLD’s HPC Data Center & Data Center Hosting Update
Applied Digital’s HPC Data Center Hosting business designs, builds and operates next-generation data centers designed to provide massive computing power and support high-performance computing applications within a cost-effective model. It is in late-stage discussions with multiple hyperscalers to finalize a lease agreement for its 100 MW facility, which is currently under construction, in Ellendale, ND.
Data Center hosting business offers energized space to crypto mining customers. As of Nov. 30, 2024, APLD’s 106 MW facility in Jamestown, ND, and 180 MW facility in Ellendale, ND, are operating at full capacity.
APLD’s Costs Rise in Q2
Fiscal second-quarter cost of revenues jumped 76% year over year to $52.4 million as more facilities were energized and additional services were provided to the customers.
Adjusted EBITDA was $21.4 million, up 93% year over year in the fiscal second quarter.
In the reported quarter, selling, general and administrative expenses soared 46.8% year over year to $29.8 million.
Adjusted operating loss was $5.08 million, wider than the year-ago quarter’s loss of $2.3 million.
Interest expense appreciated 186% from the year-ago quarter to $4.9 million.