Applied Digital Corporation stock research
FY2026 Q3
Applied Digital (APLD) Gross Margin & Quarterly History
Explore Applied Digital Corporation (APLD) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Feb 28, 2026 · FY2026 Q3
Revenue was unchanged from the previous quarter but significantly higher than the same quarter last year. Gross profit increased sharply both sequentially and year over year, driven by a lower cost of revenue relative to revenue, resulting in a substantially improved gross margin.
- The most observable margin driver was the decline in cost of revenue compared to the preceding quarter, which fell while revenue remained stable, expanding gross margin markedly.
- Compared to the immediately preceding quarter, gross margin improved substantially as cost of revenue decreased. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was higher, but gross profit grew at a much faster pace, leading to a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.5%
Gross profit
$53.8M
Revenue
$126.6M
Cost of revenue
$72.8M
Quarter-over-quarter change
+21.9 pts
Year-over-year change
+35.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 31, 2025 | -$33.3M | $27.8M | -$61.1M | -83.5% |
| Aug 31, 2025 | $64.2M | $8.6M | $55.6M | 13.4% |
| Nov 30, 2025 | $126.6M | $26.0M | $100.6M | 20.6% |
| Feb 28, 2026 | $126.6M | $53.8M | $72.8M | 42.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2025
+21.9 pts
Year-over-year change
Feb 28, 2025
+35.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the decline in cost of revenue compared to the preceding quarter, which fell while revenue remained stable, expanding gross margin markedly.
Compared to the immediately preceding quarter, gross margin improved substantially as cost of revenue decreased. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was higher, but gross profit grew at a much faster pace, leading to a stronger gross margin.
Monitor whether cost of revenue can remain at a level that supports the current gross margin relative to revenue.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Applied Digital Corporation (APLD) | 42.5% |