Applied Digital Corporation (NASDAQ: APLD) saw its stock price plummet 8.38% in after-hours trading on Monday following the release of its fiscal third quarter 2025 results. The company, which designs and operates next-generation digital infrastructure for high-performance computing applications, reported mixed financial results that left investors concerned about its near-term prospects.

For the quarter ended February 28, 2025, Applied Digital reported revenue of $52.9 million, representing a 22% increase from the same period last year. However, this figure fell short of analyst expectations of $63.42 million. The company's adjusted earnings per share (EPS) of $(0.08) beat the consensus estimate of $(0.11), but still represented a net loss for the quarter. The net loss attributable to common stockholders widened to $36.1 million, up from $25.2 million in the prior year's comparable quarter.

Despite the disappointing financial results, Applied Digital highlighted ongoing negotiations with multiple US-based hyperscalers to lease up to 400 MW of capacity, including its Ellendale HPC data center currently under construction. The company also reported progress on its first 100 MW HPC facility in Ellendale, North Dakota, which is scheduled to be ready for service in the second half of this calendar year. However, investors seem to be taking a cautious stance, weighing the potential of these projects against the current financial performance and the broader economic uncertainties in the tech sector.