Applied Digital reports quarterly earnings miss and shares fall

Applied Digital (NASDAQ: APLD) released its quarterly earnings on Monday, reporting a loss per share of $0.39, which missed the consensus estimate of $0.09 by $0.30. The company posted a negative net margin of 52.84% and a negative return on equity of 15.91%. Shares traded down $0.81 to $26.38 after the announcement.

Analysts had been expecting strong revenue growth, with forecasts pointing to a 174% year‑on‑year increase for the current quarter after a 139% rise in the prior quarter. Despite the optimistic outlook, Applied Digital has missed revenue estimates in previous periods and is currently trading roughly 30% below its average price over the past month. Analyst price targets range from $36.50 to $90.00, with a consensus target of $67.15.

In related activity, director Richard N. Nottenburg sold 12,500 shares on April 30 at an average price of $34.59, totaling about $432,375.