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Applied Digital’s Surge Tops Peers as Losses and Cash Burn Test Its Rich Valuation

A new comparison highlights rapid revenue gains despite deeply negative profitability and cash generation.

Overview

  • Forbes/Trefis finds Applied Digital up 538.6% over the past year, outpacing comparable data-center and crypto infrastructure names.
  • The company posted 63.0% revenue growth but recorded an operating margin of -28.0%, reflecting heavy AI/HPC build-out costs.
  • Analysis flags severely negative operating and free cash flow margins, underscoring ongoing cash burn.
  • Valuation screens elevated with a price-to-earnings ratio of -93.6, driven by the absence of profits.
  • Peer contrasts include Hut 8 with a 60.3% margin, highlighting the gap between APLD’s spending profile and more established operators’ efficiency.