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APLD (Applied Digital) Operating Margin % : -35.79% (As of Feb. 2025)


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What is Applied Digital Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Applied Digital's Operating Income for the three months ended in Feb. 2025 was $-18.9 Mil. Applied Digital's Revenue for the three months ended in Feb. 2025 was $52.9 Mil. Therefore, Applied Digital's Operating Margin % for the quarter that ended in Feb. 2025 was -35.79%.

The historical rank and industry rank for Applied Digital's Operating Margin % or its related term are showing as below:

APLD' s Operating Margin % Range Over the Past 10 Years
Min: -1002.08   Med: -68.89   Max: -12.47
Current: -39.11


APLD's Operating Margin % is ranked worse than
84.7% of 2765 companies
in the Software industry
Industry Median: 3.78 vs APLD: -39.11

Applied Digital's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Applied Digital's Operating Income for the three months ended in Feb. 2025 was $-18.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2025 was $-86.5 Mil.

Warning Sign:

Applied Digital Corp has never been profitable in the past 3 years. It lost money every year.


Applied Digital Operating Margin % Historical Data

The historical data trend for Applied Digital's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Digital Operating Margin % Chart

Applied Digital Annual Data
Trend May04 May05 May06 May07 May08 May20 May21 May22 May23 May24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - -244.45 -79.53 -49.06

Applied Digital Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -77.82 -79.17 -24.21 -28.62 -35.79

Competitive Comparison of Applied Digital's Operating Margin %

For the Information Technology Services subindustry, Applied Digital's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Applied Digital's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Applied Digital's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Applied Digital's Operating Margin % falls into.


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Applied Digital Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Applied Digital's Operating Margin % for the fiscal year that ended in May. 2024 is calculated as

Operating Margin %=Operating Income (A: May. 2024 ) / Revenue (A: May. 2024 )
=-81.226 / 165.575
=-49.06 %

Applied Digital's Operating Margin % for the quarter that ended in Feb. 2025 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2025 ) / Revenue (Q: Feb. 2025 )
=-18.943 / 52.921
=-35.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Applied Digital  (NAS:APLD) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Applied Digital Operating Margin % Related Terms

Thank you for viewing the detailed overview of Applied Digital's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Applied Digital Business Description

Traded in Other Exchanges
Address
3811 Turtle Creek Boulevard, Suite 2100, Dallas, TX, USA, 75219
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.
Executives
Richard N Nottenburg director 1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Wes Cummins director, 10 percent owner, officer: CEO & Chairman 4505 LORRAINE AVE, DALLAS TX 75205
Douglas S Miller director C/O TELENAV, INC., 4655 GREAT AMERICA PK, SUITE 300, SANTA CLARA CA 95054
Virginia Moore director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN,INC., DALLAS TX 75219
Michael Maniscalco officer: Chief Technology Officer 3811 TURTLE CREEK BOULEVARD, SUITE 2100, DALLAS TX 75219
David Rench officer: Chief Financial Officer 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Regina Ingel officer: EVP - Operations 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Chuck Hastings director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Kelli Mcdonald director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Jason Zhang director 3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Richard S Rosenfeld officer: CFO 105 STONEBRIDGE ROAD, MONTCLAIR NJ 07042
James A Schwartz director 28 COTTRELL STREET, MYSTIC CT 06355
Riley Investment Management Llc 10 percent owner 11100 SANTA MONICA BLVD., SUITE 810, LOS ANGELES CA 90025
Riley Investment Partners Master Fund, L.p. 10 percent owner 11100 SANTA MONICA BOULEVARD, SUITE 810, LOS ANGELES CA 90025
Samuel A Kovnat director, officer: Chief Executive Officer