Applied Digital (APLD) 10-K Summary — Year Ended May 31, 2025
Applied Digital Corporation filed its annual report for the fiscal year ended May 31, 2025. The company reported revenue growth but continued to incur net losses and negative operating cash flow.
Key takeaway
Year ended May 31, 2025 · FY2025 10-K
Applied Digital Corporation filed its annual report for the fiscal year ended May 31, 2025. The company reported revenue growth but continued to incur net losses and negative operating cash flow.
Financial snapshot
Selected annual figures reported with the filing, shown separately from the narrative summary.
Annual revenue
$144.2M
Revenue reported for the fiscal year.
Operating income
-$16.8M
Income from operations reported for the year.
Net income
-$231.1M
Net income reported for the year.
Operating cash flow
-$115.4M
Cash generated by operating activities.
Annual revenue trend
Reported annual revenue and its change from the preceding fiscal year.
| Period ended | Revenue | Year-over-year change |
|---|---|---|
| May 31, 2022 | $8.5M | n/a |
| May 31, 2023 | $55.4M | +547.9% |
| May 31, 2024 | $136.6M | +146.6% |
| May 31, 2025 | $144.2M | +5.5% |
Business overview
Applied Digital Corporation develops and expands data center infrastructure. The company's business involves funding construction, supporting working capital, covering operating expenses, and financing capital expenditures for technology upgrades and facility enhancements.
Financial performance
Revenue increased compared to the prior year, but the company reported an operating loss and a larger net loss. Operating cash flow was negative, indicating cash outflows from core operations.
Material risks
The company has historically incurred losses and relied on equity and debt financings to fund operations. Its primary capital requirements include funding data center development and expansion, which may not be fully met by existing resources.
Liquidity and capital
The company believes existing cash, cash flows from operations, debt facilities, and access to capital markets will provide sufficient liquidity for debt obligations, working capital, and planned capital expenditures. Subsequent to the fiscal year end, it raised additional funds through stock sales and preferred stock issuance.
What to watch
Monitor whether the company can achieve positive operating cash flow and reduce its reliance on external financing to sustain operations.