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IT services · Technology · Fiscal year ends May 31
Applied Digital reported revenue of $611M in the fiscal year ended May 2026, up 324.0% from the year before. Operating income was −$236M, an operating margin of −38.7%, and net income was −$184M. Operating cash flow of $90M less capital expenditure of $2.9B left free cash flow of −$2.8B. Net debt was $3.4B.
Ranks among the 36 it services companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Revenue | 8.5 | 55.4 | 137 | 144 | 611 |
| Cost of revenue | 9.5 | 44.4 | 148 | 217 | 397 |
| Gross profit | −1.0 | 11.0 | −11.7 | −72.6 | 214 |
| Selling, general & admin | 19.9 | 53.9 | 97.8 | 108 | 332 |
| Operating income | −20.9 | −42.9 | −98.3 | −72.2 | −236 |
| Interest expense | 0.1 | 2.0 | 26.8 | 32.1 | 29.5 |
| Pre-tax income | −21.9 | −45.0 | −150 | −231 | −182 |
| Income tax | 0.5 | −0.5 | 0.1 | 0.1 | 1.8 |
| Net income | −23.5 | −44.6 | −149 | −231 | −184 |
| Diluted EPS | −0.41 | −0.47 | −1.31 | −1.16 | −0.91 |
| Diluted shares | 57.1 | 94.0 | 114 | 201 | 275 |
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Cash & equivalents | 38.8 | 29.0 | 3.3 | 44.0 | 1,592 |
| Receivables | 0.2 | 0.1 | 3.8 | 6.8 | 56.3 |
| Current assets | 40.4 | 45.7 | 404 | 133 | 4,663 |
| Net PP&E | 64.3 | 198 | 329 | 1,252 | 4,236 |
| Goodwill | – | – | – | 0.0 | 54.5 |
| Total assets | 120 | 264 | 763 | 1,870 | 9,929 |
| Payables | 13.3 | 6.4 | 105 | 251 | 395 |
| Deferred revenue | 3.9 | 48.7 | 39.4 | 3.6 | 4.7 |
| Current liabilities | 29.0 | 115 | 554 | 500 | 1,163 |
| Long-term debt | 7.2 | – | – | 678 | 4,960 |
| Total liabilities | 40.7 | 194 | 638 | 1,236 | 6,186 |
| Shareholders' equity | 72.3 | 59.5 | 125 | 498 | 1,717 |
| Backlog (remaining obligations) | 3.9 | 48.7 | – | – | – |
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Operating cash flow | −0.9 | 58.7 | 13.8 | −115 | 89.7 |
| Capital expenditure | 58.3 | 131 | 142 | 682 | 2,866 |
| Free cash flow | −59.1 | −72.5 | −128 | −797 | −2,776 |
| Depreciation & amortisation | 1.1 | 7.1 | 79.4 | 135 | 67.4 |
| Stock-based compensation | 12.3 | 32.1 | 17.4 | 22.7 | 220 |
| Share buybacks | – | 0.0 | 0.0 | 31.3 | 0.0 |
| Fiscal year | May 2022 | May 2023 | May 2024 | May 2025 | May 2026 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 547.9% | 146.6% | 5.5% | 324.0% |
| Gross margin | −11.2% | 19.9% | −8.6% | −50.3% | 35.1% |
| Operating margin | −244.4% | −77.5% | −72.0% | −50.1% | −38.7% |
| Net margin | −275.1% | −80.6% | −109.3% | −160.2% | −30.2% |
| Return on equityBlank when equity is negative | −32.5% | −75.0% | −119.6% | −46.4% | −10.7% |
| ROCEEBIT ÷ (assets − current liabilities) | −23.0% | −28.9% | −47.1% | −5.3% | −2.7% |
| Free cash flow margin | −691.6% | −131.0% | −93.7% | −552.7% | −454.1% |
| Cash conversion (CFO ÷ net income) | 0.04x | −1.32x | −0.09x | 0.50x | −0.49x |
| Receivable days | 10 | 1 | 10 | 17 | 34 |
| Payable days | 509 | 53 | 257 | 423 | 364 |
| Interest cover | −187x | −21.7x | −3.66x | −2.25x | −8.01x |
| Debt ÷ equity | 0.10x | – | – | 1.36x | 2.89x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | −31.6 | – | – | 634 | 3,368 |
| Current ratio | 1.39x | 0.40x | 0.73x | 0.27x | 4.01x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.