MeritValue

Applied Digital Corp.

APLDdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'

The thesis, from the filings

Applied Digital Corp. earns about -78% on invested capital, but has diluted owners by 382% 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 2022FY 2023FY 2024FY 2025FY 2026
Revenue$8.55M1$55.4M2$136.6M2$144.2M2$611.3M3
Net income−$23.5M4−$44.6M5−$149.3M5−$231.1M6−$184.3M6
Operating cash flow−$872,0007$58.7M8$13.8M9−$115.4M9$89.7M9
Capital expenditure$58.3M10$131.3M11$141.8M12$681.6M12$2.87B12
Free cash flow (derived)−$59.1M7−$72.5M8−$128M9−$797M9−$2.78B9
Total debt$7.19M13————
Cash & equivalents$38.8M14$29M15$3.34M16$44M17$1.59B17
Diluted shares57.1M94.0M114.1M201.2M275.2M

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
$62.41
your share of equity
Profit it earned you last year
−$6.7
Free cash flow it threw off
−$100.88
Debt you’d be carrying
—

10 shares is a claim on $62.41 of net worth that earned you −$6.7 and generated −$100.88 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-78% avg · 5y
FY22 -42%FY23 -111%FY24 -80%FY25 -40%FY26 -114%

It earned an average -78% 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
+382% shares · 5y

Share count is up 382% 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 v0.5.0
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 2022-05-31 · accession 0001144879-23-000176 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-05-31 · accession 0001144879-25-000021 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2026-05-31 · accession 0001144879-26-000048 (Revenues)
  4. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (NetIncomeLoss)
  5. 10-K · period ending 2023-05-31 · accession 0001144879-24-000216 (NetIncomeLoss)
  6. 10-K · period ending 2025-05-31 · accession 0001144879-26-000048 (ProfitLoss)
  7. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-05-31 · accession 0001144879-25-000021 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-05-31 · accession 0001144879-26-000048 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-05-31 · accession 0001628280-22-023816 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-05-31 · accession 0001144879-25-000021 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2024-05-31 · accession 0001144879-26-000048 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2022-05-31 · accession 0001628280-22-023816 (LongTermDebt)
  14. 10-K · period ending 2022-05-31 · accession 0001144879-23-000176 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-05-31 · accession 0001144879-24-000216 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-05-31 · accession 0001144879-25-000021 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2025-05-31 · accession 0001144879-26-000048 (CashAndCashEquivalentsAtCarryingValue)