Applied Digital Corporation (NASDAQ: APLD) shares closed at $18.05 on October 16, down 26.4% from the December 31, 2025 close, even though revenue and contracted capacity grew quickly. Recurring earnings have not yet caught up with the financing costs of building AI data centers. The fiscal 2026 annual report listed 1,410 contracted megawatts and about $36.2 billion in base-term contracted revenue, with revenue rising from $228.6 million to $611.3 million and operating cash flow turning positive at $89.7 million. In the first fiscal quarter of 2027, revenue reached $341.9 million, up 322%, but adjusted EBITDA of $64.4 million fell about $13.0 million short of the $77.383 million interest expense. The article notes that most of that quarter's revenue came from tenant fit-out services ($183.5 million) rather than base rent ($65.8 million), and that questions over cash, debt and dilution remain large.
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Original headline: Why Is Applied Digital Corporation ( NASDAQ : APLD ) Stock Down 26 % This Year ?
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