Shares of Applied Digital Corporation (NASDAQ: APLD) plummeted 12.85% in after-hours trading on Monday following the release of the company's fiscal third quarter 2025 results that fell short of analyst expectations.
The digital infrastructure company reported revenue of $52.9 million for the quarter ended February 28, 2025, up 22% year-over-year but significantly below the consensus estimate of $63.42 million. While Applied Digital's adjusted loss per share of $0.08 beat expectations of a $0.11 loss, investors appeared more focused on the top-line miss and other concerning metrics.
Key factors contributing to the stock's sharp decline include:
While management highlighted ongoing negotiations with hyperscalers for future capacity and recent financing arrangements, investors appear concerned about the company's near-term growth trajectory and rising debt load. The after-hours sell-off extends Applied Digital's year-to-date stock price decline, which stood at approximately 28% prior to this latest drop.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.