Earnings Call Intelligence Subscribe
Home › Call Sheets › APLD › Q3'25
Call sheet · Q3'25

Applied Digital (APLD)

Q3'25 earnings call · held April 14, 2025 · compared with the Q2'25 call · management-credibility review
5/12
Disclosure score
4 high, 2 medium, 1 low flags
Financial quality
Bottom line
The sleeper story is that APLD just admitted defeat in AI compute and is retreating to being a landlord because hyperscalers won't lease to competitors. The headline Ellendale delay masks a bigger issue: they built before having customers and now need those customers' permission to exit Cloud. The binding constraint isn't power or construction, it's that hyperscalers have all the leverage when you're burning $50M/month. Management's tell: 'Our Cloud Business is typically viewed as a competitor.' My view changes if they announce a signed Ellendale lease at $15+ per megawatt with a hyperscale anchor.

The 30-second version

  • Cloud business strategic review is the real story: APLD admits it can't be both AWS and its customer
  • Ellendale leasing still unsigned but Macquarie/SMBC backing changes the game
  • Bitcoin hosting suddenly strategic again after being ignored for quarters

What changed this quarter

MetricQ2'25Q3'25Change
Total Revenue$63.9M (up 51% YoY)$52.9M (up 22% YoY)17% sequential decline
Cloud Services Revenue$27.7M$17.8M36% sequential collapse
Data Center Hosting Revenue$36.2M$35.2M3% sequential decline
Adjusted EBITDA$21.4M$10.0M53% sequential decline
Net Loss per Share$0.66$0.16Improved but still burning
Adjusted Net Loss per Share$0.06$0.0833% worse sequentially
Cash & Equivalents$314.6M$261.2M$53M burn in 3 months
Total Debt$479.6M$689.1M$209M debt increase
Cloud GPU Clusters6 clusters online4 reserved, 2 on-demandShift to spot model
Operating Cash FlowNot disclosedNot disclosedStill hiding OCF

Accountability tracked

6 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Subscribe to Earnings Call Intelligence
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.