Applied Digital (APLD) Reports Improved Financials post Cloud Services Sale

By Ahmed Jameison • Saturday, May 31 11:08 • Permanent Link

Applied Digital Corporation has released its unaudited pro forma condensed consolidated financial statements, illustrating the potential effect of the sale of its Cloud Services Business. The unaudited pro forma condensed consolidated balance sheet as of February 28, 2025, compared to the APLD Total, shows that current assets increased from $274,259,000 to $647,267,000 after adjusting for the potential sale of the Cloud Services Business. Additionally, total assets remained the same at $1,707,345,000.

When comparing the unaudited pro forma condensed consolidated statement of operations for the nine-month period ended February 28, 2025, to the APLD Total, the adjusted figures reveal a decrease in revenue from $175,567,000 to $104,254,000. Furthermore, the operating income improved from a loss of $28,075,000 to a gain of $13,861,000 after accounting for the potential sale of the Cloud Services Business.

Looking at the fiscal year ended May 31, 2024, the unaudited pro forma condensed consolidated statement of operations demonstrates a decrease in revenue from $150,814,000 to $121,857,000 after adjusting for the potential sale of the Cloud Services Business. Moreover, the operating income improved from a loss of $98,339,000 to a loss of $32,853,000.

In the fiscal year ended May 31, 2023, the unaudited pro forma condensed consolidated statement of operations also reflects changes. The revenue remained the same at $55,392,000, and the operating loss improved from a loss of $44,002,000 to a loss of $42,911,000 after adjusting for the potential sale of the Cloud Services Business.

The adjustments are based on currently available information and certain estimates and assumptions, and therefore, the actual effects of these transactions will differ from the transaction accounting adjustments. It's important to note that the sale of the Cloud Services Business is subject to adjustments as the sale has not yet been finalized, and the differences between these preliminary estimates and the final sale accounting may be material. As a result of these announcements, the company's shares have moved -2.98% on the market, and are now trading at a price of $6.83. Check out the company's full 8-K submission here.

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