Forensic Analysis · Technology / Software · as of Jun 27, 2026
Applied Digital Corp. (APLD)
A forensic read on Applied Digital Corp. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-0.9
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-15.1%
ROE
$11.2B
Market cap
0.05%
Dividend yield
Applied Digital Corp. earns a F (Poor — capital at risk) forensic quality grade, and its Altman Z-score is -0.9, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+131.9%Accruals ratio.Net operating assets grew +131.9% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -32% of net operating assets.
-1%Return on invested capital.Return on invested capital is -1% and rising from -32% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+84.1%/yrShare-count dilution.Diluted share count changed +252% over the last 3 years to FY2025 (+84.1%/yr). The count is GROWING — existing holders are being diluted. That's ~84.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~252%.
16% of revStock-based comp load.Stock-based compensation ran 16% of revenue in FY2025 — about $0.11 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-160.2%
Debt / Equity0.01x
Free Cash Flow$-797.0M
Latest Revenue$144.2M
Return on Equity-46.4%
Revenue Growth YoY+5.5%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Applied Digital Corp.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about APLD's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown