Applied Digital’s quarterly net loss widens

Applied Digital’s third-quarter net loss widened from last year due to rising expenses and a charge tied to its cloud business, overshadowing the company’s revenue ​beat on the back of strong demand for its data ‌center services.

Shares of the company fell 3% in extended trading on Wednesday. The stock has gained 13% this year, after more than tripling in 2025 on expectations of strong artificial ​intelligence-driven growth.

The quarter included a $59.7 million impairment charge related to ​the cloud services business. Applied Digital had previously classified the business ⁠as held for sale, but now plans to combine with Ekso Bionics ​to form a new company.

The company’s costs nearly tripled to $212.3 million for the ​quarter, as it ramped up investments into building and operating high-performance data centers.

In January, Applied Digital began construction of its Delta Forge 1 campus, a 300-megawatt data-center project ​across more than 600 acres in the southern U.S., with initial ​operations expected in mid-2027. Reuters