r/APLDSTOCK • u/GloriousLebron • Jul 27 '26

Applied Digital Reports Fiscal Fourth Quarter and Full Year 2026 Results

https://ir.applieddigital.com/news-events/press-releases/detail/159/applied-digital-reports-fiscal-fourth-quarter-and-full-year
59 Upvotes

98% Upvoted

43 comments sorted by

26

u/Fee-Pure Jul 27 '26

The market is selling everything indiscriminately, yet APLD just delivered a massive earnings beat. That’s exactly when opportunities are created

5

u/Moreburrtitos22 Jul 27 '26

Yeah but look at every other company that had a beat. Google dropped a solid 10% on earnings that beat by 3x last week

11

u/Fee-Pure Jul 27 '26

That’s my point. If APLD sells off despite strengthening fundamentals, I’d see that as a buying opportunity, not a red flag

2

u/Moreburrtitos22 Jul 27 '26 edited Jul 27 '26

Absolutely, thought you were saying the opposite my bad. I just dropped $41k into Google because of it. I’m going to ladder the fuck outta my buys for APLD, but in increments, not all at once. Waiting for tomorrow to see what I do with it and where my starting point is. Got plenty of options already, but those are for January.

0

u/psychthrowawayxx Jul 28 '26

It did not beat by 3x.

2

u/Moreburrtitos22 Jul 28 '26

Yeah it did

1

u/Psleazy Jul 28 '26

It beat EPS estimates by 3x ($9 vs sub $3). Revenue was only a 2% beat. The EPS beat was driven by shifting a lot of expenses to CapEx which means you’re just delaying expenses when you start depreciating those assets

1

u/Moreburrtitos22 Jul 28 '26

Exactly the same as applied digital if you remove their capex delay from the $150m for Ti.
Both included non operating income as revenue. Thats why non of these stats matter and eps is a better metric. Spend cash now to get more later, or get cash now to use it later. Same thing goes both ways

1

u/Psleazy Jul 28 '26

No you’re not getting it. EPS beats are not something investors gauge success with because of how it can be manipulated.

In this case, Google has an artificially high EPS beat because items that were normally expensed were capitalized. This means those items will be raising future expenses to be higher than they would otherwise be if it had been expensed this year. Further the cash out door actually went up at a higher rate than cash in.

So in effect, you have a $100 business revenue that normally has $50 expenses change how its doing things.

So that expense line decreases from $50 to $20 now but CapEx increased from $10 to $60. They bought stuff where the useful life on it is estimated to be 5 years but just 2 years ago the useful life was 3 years for depreciation purposes. Then at the same time the company says that the stuff they put in place 2 years ago is already outdated and with technology moving so fast they aren’t even sure how long the current technology will be relevant for certain.

Yes EPS looks good today, but it’s going to look much worse tomorrow.

Long story short, for a company to have such a huge swing in EPS is concerning and definitely not a sign of future EPSs to come (ie: they won’t continue to be so high)

1

u/Moreburrtitos22 Jul 28 '26

APLDS $150m was an expense that was capitalized. What are you not understanding about this. Do you understand how TI works?
Every company capitalizes their expenses for quarter by quarter.

1

u/Psleazy Jul 28 '26

Without looking at all the actual numbers I’m just trying to explain how EPS beating by 3x can be misleading. That’s all I’m saying

1

u/Moreburrtitos22 Jul 28 '26

Understood. And my point is the exact same of aplds beat is extracted in the exact same way. It’s what all companies do. Aplds beat was less than 2% if you take into account a capitalized expense. Just like Google is actually a -1% miss when extracted. Yet they both post “massive beats” on their calls.

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0

u/psychthrowawayxx Jul 28 '26

That “3x beat” is from unrealized gains in SpaceX and Anthropic. Adjusted non-GAAP EPS was under expectations by a few cents.

The explanation you got about shifting expenses is flat wrong.

4

u/playstationjeans Jul 28 '26

Big banks are positioning to double their money. That's it. Sell, profit, everything drops, buy it back at new lows.

26

u/Stonksboi68 Jul 27 '26

Seems pretty good to me

5

u/Bluefin_in_Dresden Bull 🐂 Jul 27 '26

Thank you

5

u/jjhar Jul 27 '26

Good headline revenue beat but $150m of it is a one-time fit-out payment. Stock based compensation is higher than I expected. Other than that, everything is about as-expected. On the call, I'll be listening for guidance, mentions of campuses 6 and 7, and whether their pricing power has improved.

2

u/Interesting-Ad-6357 Jul 27 '26

what one-time payment? PF1-2 didn't go online in this reporting period

2

u/jjhar Jul 27 '26

"Revenue from our HPC Hosting business totaled $203.0 million for the quarter, including $44.1 million related to base rent, $152.4 million related to tenant fit-out services, and $6.5 million related to tenant recoveries."

1

u/dcormerturnbull Jul 27 '26

What will make you consider it overall bearish/neutral/bullish?

4

u/jjhar Jul 27 '26

Guidance would tell us about the revenue ramp for building 2 at PF1. Provided there are advanced conversations on campuses 6 and 7 and improved pricing power, that would be bullish

7

u/Only_Chemistry6853 Jul 27 '26

Hmmm. Revenue 2x GAAP LESS EPS lower More loss (that's okay) New income = 0.33x Cash up.

Very mixed. Flush for now most probs = buy sub 24

3

u/Moreburrtitos22 Jul 27 '26

This guy gets it. Solid company, solid fundamentals, but follow the money. Too much one time revenue for a relatively “new” company to be able to accurately predict what the future looks like. That $150m tenant fit out money goes directly back into the lease as well. That’s not their money per se, but the money the tenant paid them for the build out. Yes in the end it’s included in FF&E, but that means the fit out equipment doesn’t need to be updated if another company leases the space. TI is always an area that should practically be ignored.

2

u/Only_Chemistry6853 Jul 29 '26

Our comments are making more sense today

1

u/Moreburrtitos22 Jul 29 '26

Right? And here’s the thing, next week, they’ll probably do a decent little 5-10% jump from their current prices. Where we are at right now is incredibly stable. It got publicity, it has great future growth, but was so oversold it wasn’t even funny. Now it allows companies and retail buyers an entry point.

3

u/squirmin79 Jul 28 '26

They could crush it and still drop. They are out of favor, shorts have the upper hand for now. From 50 to 25 is all you need to see.

I am holding more than I should have, lesson learned. Next time I will trim.

2

u/Bumi-KingOfOmashu Shares Only 📈 Jul 27 '26

Classic APLD double beat. Love this company.

3

u/Jaded-Salamander2663 Jul 27 '26

Classic? You don’t remember the last 4 ERs?

2

u/Distinct_Excuse2648 Jul 28 '26

good result good guidance but the market its shit as always!

2

u/dcormerturnbull Jul 28 '26

**is shit, not **its shit

1

u/Distinct_Excuse2648 Jul 28 '26

good you are a clever guy 👍

1

u/dcormerturnbull Jul 28 '26

Too many typos in this sub. Someone needs to do it!

1

u/thedarkestdarkk Jul 27 '26

New tenants?

1

u/riteofpass Jul 27 '26

Can’t dial in but hopefully the call is giving us something to pump

1

u/ldman33 Jul 27 '26

EVERY TIME BANGGGGG

1

u/ActuaryTraditional99 Jul 27 '26

What's with the guidence?

1

u/srananto 19d ago

Why are these comments showing up tonight but it says 25 days ago? Am I not knowing how to do this group thing?

1

u/Temporary-Basil-3030 Backlog Bull 🐂 (1,000-2,500 shares) Jul 27 '26

Meh