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Nov 30, 2024
Applied Digital Q2 2025 Earnings Report
Reported a 51% increase in revenue and secured a $5.0 billion perpetual preferred equity financing facility.
Key Takeaways
Applied Digital reported a 51% increase in revenue to $63.9 million for the fiscal second quarter of 2025. The company secured a $5.0 billion perpetual preferred equity financing facility and energized the on-site main substation transformer at its Ellendale HPC data center.
Revenue increased by 51% year-over-year to $63.9 million.
Net loss was $138.7 million, impacted by losses on debt.
Adjusted EBITDA increased by 93% year-over-year to $21.4 million.
Entered into a $5.0 billion perpetual preferred equity financing facility with Macquarie Asset Management.
Forward Guidance
The company is in late stage negotiations for its Ellendale campus and believes it is well-positioned to capitalize on the growing demand for power and data centers.
Positive Outlook
- Strategic investments from CIM Group, NVIDIA, and Macquarie Asset Management validate the company's vision.
- These investments lower the cost of capital.
- These investments accelerate the development of the company's pipeline.
- The company is establishing a platform for building and operating multiple HPC data centers.
- Significant progress has been achieved this quarter.
Challenges Ahead
- Hyperscalers' timelines may extend longer than initially expected.
- Rapid expansion of hyperscale data centers presents challenges to electricity availability in the U.S.
- There could be a shortfall of approximately 36 GW in power availability for U.S. data centers by 2028.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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