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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.
Applied Digital
Applied Digital
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.
- Adding new capacity requires lengthy planning, regulatory approvals, and the development of new generation and transmission infrastructure.
- These processes can span years or even decades.