Applied Digital Corp (NASDAQ:APLD) stock fell 2.68% (As on January 15, 11:15:15 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fiscal second quarter results, with revenue and adjusted earnings surpassing analyst estimates. The company reported a net loss of $138.7 million for the quarter, which included significant non-cash charges related to debt conversion and fair value adjustments. Adjusted EBITDA rose 93% YoY to $21.4 million. Applied Digital also announced a $5 billion perpetual preferred equity financing facility with Macquarie Asset Management for its high-performance computing business. The company said this agreement positions it to establish itself as a top-tier HPC data center operator in the United States. Further, Applied Digital is in late-stage discussions with multiple hyperscalers to finalize a lease agreement for its 100 MW facility, which is currently under construction. Additionally, the company plans to bring an extra 300 MW online through two additional buildings currently in the design stage. This will ultimately increase Ellendale’s total HPC capacity to 400 MW.

Moreover, during the three months ended November 30, 2024, the Company generated $27.7 million in revenues from the Cloud Services Business segment, representing an increase of 523% compared to $4.5 million during the three months ended November 30, 2023. During the three months ended November 30, 2024, the Company generated $36.2 million in revenue from the Data Center Hosting Business segment.

APLD in the second quarter of FY 25 has reported the adjusted loss per share of 6 cents, beating the analysts’ estimates for the adjusted loss per share of 14 cents. The company had reported the adjusted revenue growth of 51 percent to $63.9 million in the second quarter of FY 25, beating the analysts’ estimates for revenue of $63.39 million. The growth was primarily driven by the continued expansion of the Company’s Cloud Services business during the latter period, fueled by the deployment of additional GPU clusters. Selling, general and administrative expenses in the fiscal second quarter 2025 were $29.8 million compared to $20.3 million in the fiscal second quarter of 2024. Interest expense, net in the fiscal second quarter of 2025 increased $4.9 million, or 186%, from $2.6 million for the three months ended November 30, 2023 to $7.5 million for the three months ended November 30, 2024. As of November 30, 2024, the Company had $314.6 million in cash, cash equivalents, and restricted cash, along with $479.6 million in debt.