Shares of Applied Digital Corp (NASDAQ: APLD) fell more than 7% at Thursday’s open after the company reported third-quarter results that beat revenue expectations but were weighed down by hefty write-downs and stock-based compensation.
The blockchain and high-performance computing (HPC) firm posted a net loss attributable to common stockholders of $100.9 million, or $0.36 per share, well below the consensus estimate of a $0.10 loss per share.
Revenue, however, surged 139% year-over-year to $126.6 million, driven primarily by the company’s HPC data center hosting business, beating analysts’ $75.1 million forecast.
Adjusted net income was $33.2 million, or $0.09 per diluted share, and adjusted EBITDA reached $44.1 million, reflecting early contributions from newly operational AI data center capacity.
Applied Digital also announced the groundbreaking of Delta Forge 1, a roughly 300 MW AI data center campus, with initial operations expected by mid-2027. The company completed a $2.15 billion senior secured notes offering to finance the construction of 200 MW capacity at Polaris Forge 2 in North Dakota.
Strategically, Applied Digital strengthened the CoreWeave lease credit structure and is moving forward with a cloud business combination with EKSO to form ChronoScale, in which Applied Digital is expected to hold approximately 97% ownership.