MeritValue

Applied Digital Corp.

APLDdata completeness 88%5 fiscal years on file
The thesis, from the filings

Applied Digital Corp. earns about -53% on invested capital, but has diluted owners by 13215% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$01$8.55M2$55.4M3$136.6M3$144.2M3
Net income−$568,0004−$23.5M5−$44.6M6−$149.3M6−$231.1M7
Operating cash flow−$83,0008−$872,0009$58.7M10$13.8M10−$115.4M10
Capital expenditure$20,00011$58.3M11$131.3M12$141.8M12$681.6M12
Free cash flow (derived)−$103,0008−$59.1M9−$72.5M10−$128M10−$797M10
Total debt—$7.19M13———
Cash & equivalents$11.8M14$38.8M15$29M16$3.34M17$41.6M17
Diluted shares1.5M57.1M94.0M114.1M201.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$24.74
your share of equity
Profit it earned you last year
−$11.48
Free cash flow it threw off
−$39.61
Debt you’d be carrying
—

10 shares is a claim on $24.74 of net worth that earned you −$11.48 and generated −$39.61 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-53% avg · 5y
FY21 —FY22 -42%FY23 -111%FY24 -31%FY25 -27%

It earned an average -53% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+13215% shares · 5y

Share count is up 13215% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-05-31 · accession 0001628280-22-023816 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-05-31 · accession 0001144879-25-000021 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-05-31 · accession 0001628280-22-023816 (NetIncomeLoss)
  5. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (NetIncomeLoss)
  6. 10-K · period ending 2023-05-31 · accession 0001144879-24-000216 (NetIncomeLoss)
  7. 10-K · period ending 2025-05-31 · accession 0001144879-25-000021 (ProfitLoss)
  8. 10-K · period ending 2021-05-31 · accession 0001628280-22-023816 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-05-31 · accession 0001144879-25-000021 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-05-31 · accession 0001628280-22-023816 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-05-31 · accession 0001144879-25-000021 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2022-05-31 · accession 0001628280-22-023816 (LongTermDebt)
  14. 10-K · period ending 2021-05-31 · accession 0001628280-22-023816 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-05-31 · accession 0001144879-24-000216 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-05-31 · accession 0001144879-25-000021 (CashAndCashEquivalentsAtCarryingValue)