Applied Digital reported fiscal third-quarter revenue of $126.6 million, a 139% increase year-over-year, driven by a fully operational 100-megawatt liquid-cooled facility serving AI clients. The company recorded a net loss of $100.9 million, or $0.36 per share, reflecting separation charges tied to spinning off its cloud services segment, while core hosting operations delivered non-GAAP earnings of $0.09 per share.

Management is pursuing an expansion to 1 gigawatt of total AI data center capacity, with a recent $2.15 billion debt offering to fund the build-out. The strategy underscores the capital intensity required to scale specialized infrastructure and positions the company to meet growing demand from hyperscale and enterprise AI customers.

Applied Digital’s stock slid roughly 6–7% following the earnings release as investors weighed the substantial net loss and impairment charges, including a $59.7 million cloud services write-down. Analysts remain largely bullish, with the majority rating the stock a buy or strong buy, and options traders have been active, trading call volume four times higher than average on key strike prices.