APLD Beats Four Straight, Stock Falls Below Insider Prices
Applied Digital beat EPS consensus by 121.1 percent in its most recent quarter, extending a four-quarter streak of 80-plus percent beats with trailing twelve-month revenue up 406.6 percent year-over-y
APLD Beats Estimates 4 Straight Quarters, Stock at $24
NEW YORK, September 2 —
Applied Digital Corporation (APLD) shares rallied in after-hours trading September 1 on reports of a purported $7.5 billion hyperscaler lease, but at $24.29 the stock sits below the price at which CEO Wes Cummins surrendered shares for taxes five weeks ago. Four consecutive triple-digit EPS beats have not resolved whether $5.10 billion in debt changes the story.
- Applied Digital beat EPS consensus by 121.1% in its most recent quarter, extending four straight quarters of 80%-plus surprises.
- Total debt of $5.10 billion outpaces cash of $1.59 billion; forward P/E is negative as analysts expect continued GAAP losses.
- Director Richard Nottenburg sold 75,000 shares at $31.15 on August 4; the stock now trades 22% below that price.
Four Beats, No Premium
Applied Digital, which builds and operates data centers for AI and HPC workloads alongside crypto mining infrastructure, has beaten EPS consensus by more than 80% in each of the last four quarters, topping estimates by 142.9% two quarters ago and 121.1% most recently. Trailing twelve-month revenue reached $0.61 billion, up 406.6% year-over-year. Against that track record, the stock at $24.29 represents a 67% discount to the analyst consensus of $74.22, per Applied Digital's current figures. Either the sell-side model is structurally wrong, or the market has identified a risk that earnings surprises do not capture. The $5.10 billion debt stack points toward the latter.
All Insider Prices Now Sit Above Market
The compensation activity in June and July adds context to the dislocation. CEO Wes Cummins received grants and surrendered shares for tax withholding at $45.20 in June, then again at $27.39 on July 31, per SEC filings, with the July batch alone valued at roughly $17.24 million. President Jason Zhang and COO Laura Laltrello each received grants on July 31 with withholding dispositions at the same reference price. Director Richard Nottenburg's open-market sale at $31.15 four days later, a voluntary transaction and not a mandatory withholding, is the harder signal to explain away. All of these prices now sit above where the stock trades.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| APLD | $6.9B | n/a | +66.5% |
| CRWV | $45.1B | n/a | -9.1% |
| NBIS | $54.2B | n/a | +213.9% |
| IREN | $14.5B | n/a | +27.5% |
| NVTS | $2.9B | n/a | +101.2% |
| BBAI | $1.4B | n/a | -37.6% |
What the Hyperscaler Lease Has to Prove
The after-hours rally on reports of a purported $7.5 billion hyperscaler lease is the most concrete potential catalyst for the stock. A deal of that scale would require Applied Digital to expand capacity, financed against a balance sheet carrying $3.51 billion in net debt, a 25.9% gross margin, and trailing GAAP EPS of -$0.87. With 21.3% of the float short, the lease's counterparty, draw schedule, and margin economics are the three numbers the next earnings call must confirm. See the full DCF model and price target →. Whether the lease shifts the stock above levels where insiders last transacted is the question the next quarter answers.
Current fundamentals, valuation and filing history for Applied Digital Corporation (APLD) are tracked on its Basis Report page.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
How much did Applied Digital beat earnings estimates by?
Applied Digital beat EPS consensus by 121.1 percent in its most recent quarter, extending four consecutive quarters of 80-plus percent beats. Trailing twelve-month revenue reached 0.61 billion dollars, up 406.6 percent year-over-year.
Why hasn't Applied Digital stock rallied despite strong earnings?
The stock at 24.29 dollars trades 67 percent below the 74.22 dollar analyst consensus and below where insiders sold shares. The market is pricing in concerns about the 5.1 billion dollar debt load and expected continued GAAP losses despite the earnings beats.
How much debt does Applied Digital carry?
Applied Digital carries 5.1 billion dollars in total debt and 1.59 billion in cash, creating 3.51 billion dollars in net debt. The debt position weighs on the forward P/E, which is negative as analysts expect continued losses.
What is the 7.5 billion dollar hyperscaler lease?
Applied Digital shares rallied September 1 on reports of a purported 7.5 billion dollar hyperscaler lease. The lease's counterparty, draw schedule, and margin economics must be confirmed at the next earnings call to determine if it can shift the stock higher.
What does Applied Digital do?
Applied Digital builds and operates data centers for AI and HPC workloads alongside crypto mining infrastructure. The company has demonstrated rapid revenue growth of 406.6 percent year-over-year with trailing twelve-month revenue of 0.61 billion dollars.
Applied Digital shares rallied in after-hours trading on approximately September 1, 2026, following reports of a new $7.5 billion hyperscaler lease—yet at $24.29 the stock sits below the price at which CEO Wes Cummins surrendered shares for tax withholding just five weeks ago. Four consecutive quarters of triple-digit EPS beats have not prevented the stock from declining 13% and then 7% in consecutive reported weeks, leaving investors to reconcile an operational narrative of persistent outperformance with a market price that insiders' own compensation events now mark as a discount.