Aggressive infrastructure investment is driving extreme cash burn, evidenced by a $720.2 million free cash flow deficit in 2026Q3 alongside $801.5 million in capital expenditures.
| Cash from Operations | -36.01M | -115.4M | 13.79M | 58.73M | -872K | -83K | -2.34M | -2.73M | -1.66M | -1.4M | -406.46K | -857.36K | -528.17K |
| Operating CF Margin % | - | -53.55% | 10.1% | 106.04% | -10.2% | - | -694.11% | -176.26% | -43.02% | -42.33% | -11.31% | -78.43% | -107.78% |
| Operating CF Growth % | 1014.52% | -936.61% | -76.51% | 6835.67% | -950.6% | - | 14.21% | -63.78% | -18.8% | -244.77% | 52.59% | -62.32% | - |
| Net Income | -186.28M | -231.06M | -149.67M | -45.61M | -22.49M | -568K | -3.29M | -2.79M | -2.26M | -1.41M | -424.21K | -943.97K | -809.1K |
| Depreciation & Amortization | 51.96M | 97.94M | 79.36M | 7.61M | 1.12M | 1K | 323.02K | 90.87K | 108K | 125.66K | 88.05K | 59.08K | 44.51K |
| Stock-Based Compensation | 107.21M | 22.7M | 17.36M | 32.07M | 12.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -540K | 540K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 130.84M | 144.4M | 60.67M | 504K | -9.19M | 236K | 565.98K | 38.12K | 116.54K | 22.18K | 62.96K | 65.15K | 24.52K |
| Working Capital Changes | -171.55M | -149.38M | 6.07M | 64.69M | 16.81M | 248K | 58.2K | -67.06K | 368.28K | -137.55K | -133.26K | -37.61K | 211.9K |
| Change in Receivables | -6.13M | -2.93M | -3.77M | 145K | -227K | 0 | 41.38K | 90.44K | 518.95K | -19.11K | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -108.04K | 0 | 0 | 0 |
| Change in Payables | -161.46M | -78.26M | 41.84M | -13.75M | 6.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -957.69M | -667.65M | -172.44M | -132.09M | -45.87M | -3.3M | 777.09K | 5.02M | 1.32M | -84.85K | -7.75M | -37.87K | -46.89K |
| Capital Expenditures | -198.26M | -681.6M | -141.81M | -131.28M | -54.97M | -3.3M | -67.41K | -80.54K | -131.23K | -105.54K | -224.81K | -3.35K | -7.97K |
| CapEx % of Revenue | 55.78% | 316.28% | 103.8% | 237% | 643.05% | - | 20% | 5.21% | 3.39% | 3.19% | 6.26% | 0.31% | 1.63% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -757.05M | 18.82M | -30.24M | 0 | 9.1M | 0 | 19.5K | 0 | 0 | 0 | -29.78K | -34.51K | -38.92K |
| Cash from Financing | 2.84B | 874.69M | 146.76M | 70.63M | 81.29M | 15.13M | 0 | 0 | 330 | -199.83K | 9.29M | 1.66M | 11.25K |
| Debt Issued (Net) | -455.01M | 693.97M | 17.37M | 68.77M | 7.1M | 0 | 0 | 0 | 0 | 0 | 0 | -72.6K | 11.25K |
| Equity Issued (Net) | 844.31M | 358.45M | 130.85M | -168K | 74.5M | 16.5M | 0 | 0 | 330 | -199.83K | 1000K | 1000K | 11.63K |
| Dividends Paid | -6.11M | -2.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -793K | -31.34M | 0 | -168K | 0 | 0 | 0 | 0 | 0 | -199.83K | 0 | 0 | -440 |
| Other Financing | 2.46B | -175.12M | -1.47M | 2.03M | -311K | -1.36M | 0 | 0 | 0 | 0 | 0 | 200K | -11.63K |
| Net Change in Cash | 1.67B | 89.23M | -11.89M | -2.73M | 34.55M | 11.75M | -1.56M | 2.29M | -349.26K | -1.69M | 1.14M | 761.82K | -563.81K |
| Free Cash Flow | -1.81B | -797M | -128.01M | -72.54M | -55.85M | -3.38M | -2.41M | -2.81M | -1.8M | -1.51M | -631.26K | -860.71K | -536.14K |
| FCF Margin % | -509.48% | -369.83% | -93.7% | -130.96% | -653.25% | - | -714.11% | -181.46% | -46.41% | -45.51% | -17.57% | -78.74% | -109.41% |
| FCF Growth % | -160.75% | -522.59% | -76.47% | -29.9% | -1549.81% | - | 14.27% | -56.29% | -19.18% | -138.71% | 26.66% | -60.54% | - |
| FCF per Share | -6.67 | -3.96 | -1.12 | -0.77 | -0.98 | -0.38 | -1.73 | -2.05 | -1.31 | -1.10 | -0.61 | -1.31 | -1.13 |
| FCF Conversion (FCF/Net Income) | 9.72x | 0.50x | -0.09x | -1.32x | 0.04x | 0.15x | 0.71x | 0.98x | 0.74x | 0.99x | 0.96x | 0.91x | 0.65x |
| Interest Paid | 0 | 62.71M | 17.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 105K | 5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High capital intensity
As reported in recent financial statements, APLD's operating cash flow of $55.0 million in 2026Q3 significantly diverges from its $99.3 million net loss, suggesting that non-cash adjustments and working capital shifts are currently playing a disproportionate role in the company's reported cash flow profile.
The persistent gap between net income and operating cash flow indicates that the company's reported earnings are heavily influenced by non-cash items, including substantial stock-based compensation. Investors should monitor whether this cash flow generation is sustainable or merely a byproduct of aggressive accrual management during this high-growth phase.
Based on the company's reported figures, the free cash flow trajectory remains deeply negative, culminating in a $720.2 million outflow in 2026Q3, which highlights the extreme capital requirements necessary to support the ongoing expansion of high-performance computing infrastructure and data center capacity.
The consistent inability to generate positive free cash flow suggests that the company is currently in a capital-intensive build-out phase that requires constant external funding. This trajectory warrants further investigation into when management expects to reach a self-funding inflection point, as current cash burn rates appear unsustainable without continued capital market access.
According to recent SEC filings, APLD's capital expenditures reached $801.5 million in 2026Q3, a massive investment that underscores the company's commitment to scaling its GPU-as-a-Service segment despite the significant risks associated with rapid hardware obsolescence and high-density power infrastructure development.
The high ratio of capital expenditure to revenue suggests that the company is prioritizing rapid asset accumulation over immediate operational efficiency. This strategy may indicate a belief in long-term demand, but it leaves the company vulnerable to any slowdown in the AI compute market or delays in facility energization.
As evidenced by the quarterly data, working capital changes have been highly erratic, with a $61.2 million outflow in 2026Q3, suggesting that the company's cash conversion cycle is currently strained by the complexities of managing large-scale infrastructure projects and evolving client payment terms.
The volatility in working capital appears to reflect the lumpy nature of large-scale hosting contracts and the timing of equipment procurement. Investors should monitor these fluctuations closely, as they may indicate underlying challenges in managing cash inflows relative to the company's aggressive operational expansion.
Quick answers to the most common questions about buying APLD stock.
Applied Digital Corporation (APLD) generated $-115.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Applied Digital Corporation (APLD) reported negative free cash flow of $797.0M in 2025, indicating capital requirements exceeded cash from operations.
Applied Digital Corporation (APLD) spent $681.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Applied Digital Corporation (APLD) returned $2.6M to shareholders via cash dividends and spent $31.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.