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Feb 28
Applied Digital Q3 2025 Earnings Report
Applied Digital reported Q3 2025 results with a net loss despite revenue growth driven by the Cloud Services segment.
Key Takeaways
Applied Digital posted $52.9M in revenue, up from the previous year, but recorded a net loss of $36.1M. The company advanced development on its Ellendale data center and secured $375M financing from SMBC. It also announced plans to divest its Cloud Services business.
Total revenue grew to $52.9 million, a 22% increase year-over-year.
Adjusted EBITDA reached $10 million, compared to a loss of $1.3 million in Q3 2024.
Cloud Services revenue increased 220% year-over-year to $17.8 million.
Net loss for the quarter was $36.1 million, an improvement from $62.8 million a year ago.
Applied Digital
Applied Digital
Applied Digital Revenue by Segment
Applied Digital Revenue by Geographic Location
Forward Guidance
The company expects to sharpen its strategic focus by selling the Cloud Services business and scaling its Ellendale HPC Campus.
Positive Outlook
- SMBC $375M financing secured to support data center expansion
- MAM's commitment of up to $5B investment in digital infrastructure
- Operational progress on Ellendale 100 MW HPC facility
- Resolution of technical GPU deployment issues
- Leadership expansion with new COO onboarding
Challenges Ahead
- Cloud Services revenue dropped sequentially due to model transition
- Technical challenges in GPU deployment impacted revenue timing
- Net loss of $36.1M highlights continued profitability pressures
- Increased interest expense due to higher leverage
- Loss on extinguishment of debt and fair value of warrants