APLDApplied Digital Corporation
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is APLD?
Applied Digital Corporation earns −4.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 14 points below what the capital costs: growth destroys value
- Operating margin
- −38%
Operating margin · Information Technology Services median 9.5% · 12 months to Q1 2027
- Share count, year on year
- +14%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 26%
Gross margin
| Year | Operating margin |
|---|---|
| FY2022 | −244% |
| FY2023 | −77% |
| FY2024 | −72% |
| FY2025 | −50% |
| FY2026 | −39% |
Details›
- Gross margin12 months to Q1 2027
- 26%
- Operating margin12 months to Q1 2027
- −38%
- Net margin12 months to Q1 2027
- −44%
- Free cash flow margin
- −562%
- Revenue, trailing twelve months
- $793M
- Free cash flow, trailing twelve months
- −$4.46B
- Net income, trailing twelve months
- −$351M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −4.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from APLD and who it buys from, as the companies report it.
- Customer A59%
Share of revenue · FY2026 10-K
- Customer B25%
Share of revenue · FY2026 10-K
- Customer C12%
Share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; APLD’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Information Technology Services
Ranks #30 of 30 by RyuScore