Overview
- Applied Digital, which reported fiscal Q3 results Wednesday after the close, posted $126.6 million in revenue up 139% year over year and a net loss of $0.36 per share after a $59.7 million impairment tied to its cloud services unit.
- The company recognized its first full quarter of lease income from a fully operational 100 MW direct‑to‑chip liquid‑cooled data center, and the CEO said hyperscaler demand is the most aggressive he has seen.
- Management said the cloud services business impaired this quarter is now slated to combine with Ekso Bionics to form a new company, marking a shift in that portfolio.
- Applied Digital ended the quarter with about $2.1 billion in cash and $2.7 billion of total debt, and recent high‑coupon note issuances near 9.25% and 6.75% are expected to keep interest expense high and margins tight.
- Shares jumped during Wednesday’s regular session and then fell about 6% in Thursday premarket trading, reflecting a mixed reaction to the strong top line and ongoing losses.