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Applied Digital Corporation (NASDAQ:APLD) Earnings Preview and Financial Health Analysis

  • Applied Digital Corporation anticipates an earnings per share loss of $0.11 with projected revenue of approximately $45.5 million.
  • The company's financial metrics reveal challenges, including a negative P/E ratio of -23.1 and a high debt-to-equity ratio of 1.41.
  • APLD's valuation ratios such as the price-to-sales ratio of 32.17 and enterprise value to sales ratio of 35.24 reflect high investor expectations despite its current lack of profitability.

Applied Digital Corporation, trading on the NASDAQ:APLD, specializes in high-performance and sustainably engineered data centers and colocation services. As the company prepares to release its quarterly earnings on October 9, 2025, Wall Street anticipates an earnings per share loss of $0.11, with projected revenue of approximately $45.5 million.

The company has scheduled a conference call on the same day at 5:00 p.m. Eastern Time to discuss its financial results for the fiscal first quarter ending August 31, 2025. This call will feature prepared remarks from management and a question-and-answer session, as highlighted by Applied Digital Corporation. A press release detailing the financial results will be issued after the market closes.

APLD's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of -23.1, indicating it is not currently profitable. Its price-to-sales ratio is 32.17, suggesting investors are willing to pay over 32 times the company's sales per share. This reflects high investor expectations despite the lack of profitability.

The enterprise value to sales ratio is 35.24, showing the company's valuation relative to its sales. However, the enterprise value to operating cash flow ratio is significantly negative at -65.81, highlighting difficulties in generating cash flow from operations. The negative earnings yield of -4.33% further underscores the company's profitability challenges.

APLD's debt-to-equity ratio stands at 1.41, indicating a higher level of debt compared to equity. Additionally, the current ratio is 0.77, which may suggest potential liquidity issues, as it is below the standard threshold of 1. These financial metrics provide insight into the company's current financial health and the challenges it faces.