Revenue growth accelerated to 139.3% in 2026Q3, yet the company remains unprofitable with a net margin of -78.4% due to elevated operating expenses.
| Sales/Revenue | 355.45M | 215.51M | 136.62M | 55.39M | 8.55M | 0 | 337K | 1.55M | 3.87M | 3.31M | 3.59M | 1.09M | 490.03K |
| Revenue Growth % | 84.9% | 57.74% | 146.64% | 547.94% | - | - | -78.21% | -60.03% | 16.89% | -7.87% | 228.77% | 123.07% | - |
| Cost of Goods Sold | 259.24M | 192.81M | 106.65M | 44.39M | 21.89M | 1K | 218.61K | 1.43M | 2.48M | 2.36M | 2.48M | 858.34K | 504.75K |
| COGS % of Revenue | - | 89.47% | 78.07% | 80.13% | 256.08% | - | 64.87% | 92.38% | 64.01% | 71.26% | 69.01% | 78.52% | 103% |
| Gross Profit | 96.22M | 22.7M | 29.96M | 11M | -13.34M | -1K | 118.39K | 117.91K | 1.39M | 951.44K | 1.11M | 234.75K | -14.72K |
| Gross Margin % | 27.07% | 10.53% | 21.93% | 19.87% | -156.08% | - | 35.13% | 7.62% | 35.99% | 28.74% | 30.99% | 21.48% | -3% |
| Gross Profit Growth % | - | -24.25% | 172.31% | 182.47% | -1334200% | - | 0.4% | -91.53% | 46.37% | -14.56% | 374.35% | 1694.8% | - |
| Operating Expenses | 185.04M | 94.95M | 45.02M | 55.06M | 7.55M | 331K | 2.82M | 3.17M | 3.65M | 2.56M | 1.56M | 1.18M | 808.41K |
| OpEx % of Revenue | - | 44.06% | 32.95% | 99.4% | 88.37% | - | 835.36% | 205.11% | 94.24% | 77.29% | 43.45% | 108.18% | 164.97% |
| Selling, General & Admin | 194.91M | 94.95M | 45.02M | 55.06M | 7.55M | 331K | 2.53M | 3.04M | 2.59M | 2M | 1.39M | 1.14M | 762.9K |
| SG&A % of Revenue | - | 44.06% | 32.95% | 99.4% | 88.37% | - | 750.87% | 196.7% | 67% | 60.46% | 38.7% | 104.48% | 155.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 284.72K | 130.23K | 1.05M | 557.14K | 170.83K | 40.44K | 45.51K |
| R&D % of Revenue | - | - | - | - | - | - | 84.49% | 8.42% | 27.24% | 16.83% | 4.75% | 3.7% | 9.29% |
| Other Operating Expenses | -1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -88.83M | -72.25M | -15.05M | -44.05M | -20.9M | -332K | -2.7M | -3.05M | -2.25M | -1.61M | -448.07K | -947.8K | -823.13K |
| Operating Margin % | -24.99% | -33.53% | -11.02% | -79.53% | -244.45% | - | -800.23% | -197.49% | -58.25% | -48.55% | -12.47% | -86.71% | -167.97% |
| Operating Income Growth % | - | -379.92% | 65.83% | -110.81% | -6194.58% | - | 11.72% | -35.51% | -40.23% | -258.78% | 52.73% | -15.15% | - |
| EBITDA | -51.22M | 11.35M | 6.42M | -36.79M | -19.78M | -331K | -2.62M | -2.96M | -2.15M | -1.48M | -360.01K | -888.72K | -778.62K |
| EBITDA Margin % | -14.41% | 5.26% | 4.7% | -66.41% | -231.35% | - | -778.51% | -191.62% | -55.46% | -44.76% | -10.02% | -81.3% | -158.89% |
| EBITDA Growth % | -140.66% | 76.67% | 117.46% | -86% | -5875.23% | - | 11.49% | -38.1% | -44.84% | -311.62% | 59.49% | -14.14% | - |
| D&A (Non-Cash Add-back) | 37.61M | 83.6M | 21.48M | 7.27M | 1.12M | 1K | 73.18K | 90.87K | 108K | 125.66K | 88.05K | 59.08K | 44.51K |
| EBIT | -131M | -175.42M | -55.64M | -44.15M | -21.83M | -332K | -3.28M | -2.8M | -2.23M | -1.38M | -408.32K | -939.93K | -802.24K |
| Net Interest Income | -27.78M | -14.74M | -17.71M | -1.98M | -112K | -236K | 97.59K | 240.92K | 283.95K | 223.59K | 39.75K | 5.64K | 14.03K |
| Interest Income | 3.12M | 3.12M | 931K | 0 | 0 | 0 | 97.59K | 240.92K | 283.95K | 223.59K | 39.75K | 7.87K | 20.89K |
| Interest Expense | 30.9M | 17.86M | 18.64M | 1.98M | 112K | 236K | 0 | 0 | 0 | 0 | 0 | 2.23K | 6.86K |
| Other Income/Expense | -59.71M | -131.35M | -59.23M | -2.07M | -1.05M | -236K | -582.42K | 252.94K | 21.61K | 223.59K | 39.75K | 5.64K | 14.03K |
| Pretax Income | -148.54M | -203.61M | -74.28M | -46.13M | -21.95M | -568K | -3.28M | -2.8M | -2.23M | -1.38M | -408.32K | -942.16K | -809.1K |
| Pretax Margin % | -41.79% | -94.48% | -54.37% | -83.28% | -256.71% | - | -973.06% | -181.14% | -57.69% | -41.8% | -11.36% | -86.19% | -165.11% |
| Income Tax | 5K | 102K | 96K | -523K | 540K | 0 | 7.14K | -13.59K | 24.8K | 27.66K | 15.89K | 1.81K | 0 |
| Effective Tax Rate % | -0% | -0.05% | -0.13% | 1.13% | -2.46% | 0% | -0.22% | 0.49% | -1.11% | -2% | -3.89% | -0.19% | 0% |
| Net Income | -186.28M | -231.06M | -149.27M | -44.65M | -23.52M | -568K | -3.29M | -2.79M | -2.26M | -1.41M | -424.21K | -943.97K | -809.1K |
| Net Margin % | -52.41% | -107.22% | -109.26% | -80.6% | -275.12% | - | -975.18% | -180.26% | -58.34% | -42.64% | -11.8% | -86.36% | -165.11% |
| Net Income Growth % | 23.34% | -54.79% | -234.35% | -89.82% | -4040.85% | - | -17.86% | -23.51% | -59.92% | -232.77% | 55.06% | -16.67% | - |
| Net Income (Continuing) | -148.55M | -203.71M | -74.38M | -45.61M | -22.49M | -568K | -3.29M | -2.79M | -2.26M | -1.41M | -424.21K | -943.97K | -809.1K |
| Discontinued Operations | 1000K | -27.36M | -75.3M | 0 | -1.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 986.23M | 0 | 0 | 10.16M | 6.98M | 0 | 0 | 0 | 0 | 0 | 0 | 1.18K | 0 |
| EPS (Diluted) | -0.69 | -1.16 | -1.31 | -0.48 | -0.41 | -0.06 | -2.34 | -2.04 | -1.62 | -1.02 | -0.42 | -1.44 | -1.73 |
| EPS Growth % | 47.35% | 11.45% | -172.92% | -17.07% | -583.33% | - | -14.71% | -25.93% | -58.82% | -142.86% | 70.83% | 16.76% | - |
| EPS (Basic) | - | -1.16 | -1.31 | -0.48 | -0.41 | -0.06 | -2.34 | -2.04 | -1.62 | -1.02 | -0.42 | -1.44 | -1.73 |
| Diluted Shares Outstanding | 271.67M | 201.19M | 114.06M | 93.98M | 57.12M | 8.9M | 1.39M | 1.37M | 1.37M | 1.37M | 1.03M | 658.01K | 473.2K |
| Basic Shares Outstanding | 271.67M | 201.19M | 114.06M | 93.98M | 57.12M | 8.9M | 1.39M | 1.37M | 1.37M | 1.37M | 1.03M | 658.01K | 473.2K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
High capital intensity
As reported in recent financial filings, Applied Digital achieved a significant revenue acceleration to $126.6 million in 2026Q3, representing a 139.3% year-over-year growth rate that underscores the company's aggressive transition from legacy blockchain hosting toward high-performance AI-compute infrastructure and cloud service delivery models.
The sharp uptick in top-line performance suggests that the company is successfully converting its energized power capacity into active compute revenue. However, investors should monitor whether this growth trajectory remains sustainable or if it is merely a function of lumpy, non-linear facility energization cycles.
Based on the company's latest income statement, gross margins fluctuated significantly, reaching 42.5% in 2026Q3 compared to 13.4% in 2026Q1, indicating that Applied Digital's profitability is highly sensitive to the specific mix of hosting contracts and the underlying efficiency of its power purchase agreements.
The wide variance in gross margins suggests that the company has yet to achieve a stable, predictable cost structure as it scales its GPU-as-a-Service offerings. This volatility warrants further investigation into whether the recent margin expansion is a permanent structural improvement or a temporary benefit from favorable power curtailment credits.
According to the provided data, Applied Digital's SG&A expenses surged to $82.7 million in 2026Q3, which significantly outpaced the growth in gross profit and resulted in a persistent operating loss that highlights the company's current inability to achieve meaningful operating leverage at this stage of development.
The disconnect between revenue scaling and administrative overhead suggests that the company is currently prioritizing rapid infrastructure deployment over immediate bottom-line efficiency. This aggressive spending profile may indicate that management is attempting to capture market share in the AI-compute space at the expense of near-term profitability.
As evidenced by the income statement, Applied Digital recorded $50.1 million in stock-based compensation during 2026Q3, a figure that represents a substantial portion of revenue and contributes to the company's reported net loss of $99.3 million, complicating the assessment of true operational performance.
The heavy reliance on equity-based incentives suggests that the company's path to GAAP profitability is obscured by significant non-cash charges. Investors should consider whether this compensation structure aligns with long-term shareholder value or if it serves as a persistent drag on earnings per share.
Based on the reported figures, the company's net margin of -78.4% in 2026Q3, combined with a history of volatile net income, suggests that Applied Digital faces significant risks regarding its ability to fund ongoing capital expenditures without further dilutive financing or increased debt burdens.
Short-term observers may point to the company's high cash burn and reliance on external capital as a primary risk factor for long-term viability. The potential for hardware obsolescence in the GPU segment further complicates the narrative, as the company must continuously reinvest to remain competitive against hyperscale providers.
Quick answers to the most common questions about buying APLD stock.
For fiscal year 2025, Applied Digital Corporation (APLD) reported total revenue of $215.5M. This represents a 43878.0% increase compared to $0.5M in 2002.
Applied Digital Corporation (APLD) reported a net loss of $231.1M for the fiscal year ending 2025.
Applied Digital Corporation (APLD) reported an operating income of $-72.3M, resulting in an operating profit margin of -33.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Applied Digital Corporation (APLD) generated $22.7M in gross profit for the year, representing a gross profit margin of 10.5%. This demonstrates the company's core pricing power and production efficiency.