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Investing.com -- Applied Digital Corporation (NASDAQ:APLD), a designer and operator of digital infrastructure for high-performance computing applications, saw its shares surge 12.6% after reporting better-than-expected fourth-quarter earnings despite a revenue miss.
The company reported an adjusted loss of -$0.03 per share for its fiscal fourth quarter ended May 31, 2025, significantly better than analysts’ expectations of -$0.14 per share. However, revenue came in at $38 million, below the consensus estimate of $42.07 million, though up 41% from the same period last year. The stock’s strong performance reflects investors’ focus on the bottom-line improvement and the company’s recent strategic wins.
Applied Digital’s shares jumped following the results as investors reacted positively to the earnings beat and the company’s transformative lease agreements with CoreWeave. The company announced it had signed two 15-year lease agreements with the AI hyperscaler to deliver 250 megawatts of critical IT load at its North Dakota data center campus, expected to generate approximately $7 billion in contracted revenue. Additionally, CoreWeave has exercised an option for an additional 150MW, which would bring total contracted revenue to approximately $11 billion over the lease terms.
"These long-term leases mark a defining moment for Polaris (NYSE:PII) Forge 1, one of North America’s most ambitious data center projects," said Wes Cummins (NYSE:CMI), Chairman and CEO of Applied Digital. "Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt."
For the full fiscal year 2025, Applied Digital reported revenue of $144.2 million, up 6% YoY, and an adjusted EBITDA of $19.6 million. The company’s first 100MW HPC facility at the Polaris Forge 1 campus remains on track to be ready for service in the second half of 2025, with construction already underway on a second 150MW data center at the campus.
The company’s data center hosting business, which provides energized space to crypto mining customers, continues to operate at full capacity across its facilities in North Dakota, benefiting from Bitcoin prices hitting all-time highs.
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