Applied Digital stock slumps 10% on wider-than-anticipated quarterly loss

Shares in Applied Digital Corp. (NASDAQ: APLD) tumbled more than 10% in Thursday premarket trading after the data center operator reported a larger-than-expected Q4.

The company posted a quarterly loss per share of $0.36, wider than the loss per share of $0.21 estimated by analysts. Revenue came in at $43.7 million for the quarter, above the consensus estimate of $35.96 million.

Adjusted EBITDA came in at $4.79 million, notably better than the estimated loss of $7.12 million.

The company reported an adjusted loss of $45.3 million for the quarter, which was negatively affected by $15.5 million in expenses. The net loss increased significantly to $64.8 million, compared to $6.5 million in the same period last year.

“By the end of June, we successfully resolved all transformer issues at our Ellendale Data Center Hosting facility, restoring it to full power capacity,” said Wes Cummins, Chairman and CEO of Applied Digital.

“Despite these short-term setbacks, we made significant progress on our key growth initiatives, particularly in expanding our Cloud Services business and executing an LOI with a U.S.-based hyperscaler for 400 MW capacity, which includes our 100 MW facility currently under construction and two future buildings.

By Vahid Karaahmetovic

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