APLDHIGH SIGNALFINANCIAL10-K

APLD underwent massive expansion with assets growing 145% to $1.9B and capital expenditures exploding to $58.3M, but operating cash flow turned deeply negative at -$115.4M and net losses widened significantly to -$149.3M.

The company appears to be in a major growth phase with substantial capital investment, evidenced by the dramatic increase in assets and capex alongside a 66% increase in outstanding shares suggesting significant equity raises. However, the severe deterioration in operating cash flow and widening losses indicate the company is burning through cash rapidly during this expansion, creating potential liquidity concerns despite improved cash balances.

Comparing 2025-07-30 vs 2024-08-30View on EDGAR →
FINANCIAL ANALYSIS

APLD shows a company in aggressive expansion mode with total assets nearly doubling to $1.9B and capital expenditures surging from $20K to $58.3M, funded by massive equity raises that increased stockholders' equity to $497.7M and outstanding shares to 261M. However, operations are consuming cash at an alarming rate with operating cash flow swinging from positive $13.8M to negative $115.4M, while net losses deepened to -$149.3M despite achieving positive gross profit of $11M. The combination of massive growth investment, deteriorating cash generation, and rising interest expense from $2M to $26.8M suggests significant execution risk during this capital-intensive expansion phase.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+291155%
$20K$58.3M

Capital expenditure jumped 291155% — major investment cycle underway; assess returns on deployment.

Current Assets
Balance Sheet
+1322.9%
$30.3M$430.6M

Current assets grew 1322.9% — improving short-term liquidity or inventory/receivables build.

Interest Expense
P&L
+1255.2%
$2.0M$26.8M

Interest expense surged 1255.2% — significant debt increase or rising rates materially impacting earnings.

Gross Profit
P&L
+1249.8%
-$957K$11.0M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Cash & Equivalents
Balance Sheet
+1144.4%
$3.3M$41.6M

Cash position surged 1144.4% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
-936.6%
$13.8M-$115.4M

Operating cash flow fell 936.6% — earnings quality concerns; investigate working capital changes and non-cash items.

Stockholders Equity
Balance Sheet
+298.7%
$124.8M$497.7M

Equity base grew 298.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Net Income
P&L
-234.4%
-$44.6M-$149.3M

Net income declined 234.4% — review whether driven by operations, interest costs, or non-recurring items.

Total Assets
Balance Sheet
+145.1%
$762.9M$1.9B

Asset base grew 145.1% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+93.8%
$638.0M$1.2B

Liabilities grew 93.8% — significant increase in debt or obligations, assess impact on financial flexibility.

LANGUAGE CHANGES
NEW — 2025-07-30
PRIOR — 2024-08-30
ADDED
The registrant had outstanding 261,519,794 shares of common stock as of July 29, 2025.
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Item 7A.
The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with that may cause our actual results to differ from those anticipated in such forward-looking statements.
You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this report.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all.
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REMOVED
The registrant had outstanding 157,438,246 shares of common stock as of August 27, 2024.
Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Item 7A.
These risks and others described under the section Risk Factors below are not exhaustive.
We provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Computing ("HPC") and Artificial Intelligence ("AI").
We operate in three distinct business segments, 4 including, Blockchain data center hosting (the "Data Center Hosting Business"), cloud services through a wholly owned subsidiary (the "Cloud Services Business") and HPC data center hosting (the "HPC Hosting Business"), as further discussed below.
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