Applied Digital Corporation (Nasdaq: APLD) is a designer, builder, and operator of next-generation digital infrastructure for high-performance computing (HPC) applications, cloud services, and data center hosting. For the fiscal second quarter ended November 30, 2024, the company generated revenues of $63.9 million, a 51% increase from $42.2 million in the same period a year ago.

Applied Digital reported a net loss of $138.7 million, compared to a net loss of $10.5 million in the corresponding quarter of the prior year. The net loss per basic and diluted share stood at $0.66, an increase from a loss of $0.10 per share year-over-year. Adjusted net loss for the quarter was $12.6 million, versus an adjusted loss of $5.0 million in the prior year’s second quarter.

The adjusted EBITDA for the fiscal second quarter reached $21.4 million, reflecting a 93% increase from $11.1 million year-over-year. Adjusted net loss per diluted share was $0.06, compared to a loss of $0.05 in the same quarter of the previous year. Operating expenses included $29.8 million in selling, general, and administrative costs, up from $20.3 million a year earlier.

Total revenues for the six months ended November 30, 2024, were $124.6 million, compared to $78.5 million for the same period in the previous fiscal year. The cost of revenues stood at $113.4 million for the six-month period, compared to $55.0 million in the same period last year.

As of November 30, 2024, cash, cash equivalents, and restricted cash totaled $314.6 million, while total debt amounted to $479.6 million. The company anticipates investment from Macquarie Asset Management (MAM) of up to $900 million for its HPC business, which will aid in developing its HPC data center campus in Ellendale and future projects.

During the quarter, the company completed a $450 million offering of 2.75% Convertible Senior Notes due in 2030, raising approximately $435.2 million after expenses. Funds from this offering will be allocated for share repurchases and general corporate purposes. Interest expenses for the fiscal second quarter increased by $4.9 million, totaling $7.5 million compared to the prior year’s $2.6 million.

Overall, Applied Digital appears to be in a growth phase with substantial increases in revenue and adjusted EBITDA, alongside significant funding arrangements to support future development within the high-performance computing sector.