Applied Digital Corporation stock research
FY2025 Q3
Applied Digital (APLD) Gross Margin — Quarter Ended Feb 28, 2025
In the current quarter, revenue was higher than the previous quarter and the year-ago quarter. Gross profit was lower than the prior quarter but higher than the year-ago quarter, while cost of revenue was higher than both periods. The gross margin weakened compared to the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Feb 28, 2025 · FY2025 Q3
In the current quarter, revenue was higher than the previous quarter and the year-ago quarter. Gross profit was lower than the prior quarter but higher than the year-ago quarter, while cost of revenue was higher than both periods. The gross margin weakened compared to the prior quarter but improved compared to the same quarter last year.
- The most significant observable driver was the increase in cost of revenue outpacing the increase in revenue, leading to a lower gross margin sequentially.
- Sequentially, gross margin weakened as revenue grew but gross profit declined. Compared to the same quarter a year earlier, gross margin improved from a negative position to a positive one.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.1%
Gross profit
$3.8M
Revenue
$52.9M
Cost of revenue
$49.1M
Quarter-over-quarter change
-30.2 pts
Year-over-year change
+15.7 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, 2024 | $14.7M | $10.1M | $4.6M | 68.8% |
| Aug 31, 2024 | $34.8M | $12.1M | $22.7M | 34.7% |
| Nov 30, 2024 | $36.2M | $13.5M | $22.7M | 37.3% |
| Feb 28, 2025 | $52.9M | $3.8M | $49.1M | 7.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2024
-30.2 pts
Year-over-year change
Feb 29, 2024
+15.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant observable driver was the increase in cost of revenue outpacing the increase in revenue, leading to a lower gross margin sequentially.
Sequentially, gross margin weakened as revenue grew but gross profit declined. Compared to the same quarter a year earlier, gross margin improved from a negative position to a positive one.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.