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May 31
Applied Digital Q4 2025 Earnings Report
Applied Digital reported its fiscal fourth quarter and full year 2025 financial results, highlighting significant revenue growth in its Data Center Hosting business and strategic advancements in its HPC Data Center Hosting segment.
Key Takeaways
Applied Digital demonstrated strong performance in its Data Center Hosting business, with a 41% increase in Q4 revenue. The company also secured transformative long-term lease agreements with CoreWeave for its HPC data centers, positioning itself for substantial future growth in the AI infrastructure market.
Q4 2025 revenue reached $38.0 million, a 41% increase year-over-year, primarily driven by increased capacity in the Data Center Hosting Business.
Net loss attributable to common stockholders for Q4 2025 was $26.6 million, a 25% improvement compared to the prior year.
Adjusted EBITDA for Q4 2025 was $1.0 million, a significant improvement from a loss of $0.2 million in the prior year.
The company signed transformative 15-year lease agreements with CoreWeave for 250MW of AI data center capacity, with an option exercised for an additional 150MW, projecting approximately $11 billion in total contracted revenue.
Applied Digital
Applied Digital
Applied Digital Revenue by Segment
Revenue by Segment
Data Center Hosting Business Revenue
CapyFin.com Forward Guidance
Applied Digital is strategically positioned for significant growth in the AI infrastructure market, driven by long-term lease agreements and an optimized data center development process.
Positive Outlook
- Secured approximately $11 billion in contracted revenue over 15 years from CoreWeave leases for 400MW of AI data center capacity.
- First 100 MW HPC facility at Polaris Forge 1 campus is on track to be operational in Q4 2025, with subsequent facilities planned for mid-2026 and 2027.
- Reduced projected build times for large-scale projects from 24 months to 12-14 months, enhancing efficiency and speed to market.
- Data center design in the Dakotas offers significant cost savings (up to $2.7 billion over 30 years for a 100MW facility) due to low-cost energy and efficient cooling.
- Strong relationships with major hyperscalers and a multi-gigawatt pipeline are expected to drive future growth.
Challenges Ahead
- The company is still reviewing strategic options for its Cloud Services Business, which has been classified as discontinued operations.
- Finalizing project financing for the Polaris Forge 1 campus is ongoing, which is crucial for long-term financial stability and growth.
- The company's financial results still show a net loss, although it has improved year-over-year.
- Significant debt of $688.2 million as of May 31, 2025.
- Future results are subject to risks including the ability to complete construction, finalize leases, raise additional capital, and maintain customer relationships.