Applied Digital Corp. (APLD)
Vertical SaaSSaaS Metrics & Investor Data — Q3 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
Applied Digital Corp. is undergoing a dramatic transformation, with trailing revenue surging from $0.14B to $0.37B year-over-year, a staggering 171.1% growth rate in Q1 2026. This marks a sharp acceleration from the prior period's tepid 5.5% growth, indicating a significant inflection point. However, this top-line explosion is accompanied by severely compressed gross margins, which fell from 7.6% to just 1.0%. The free cash flow (FCF) margin improved substantially from -120.4% to -52.5%, but remains deeply negative. The business is clearly prioritizing revenue scale over near-term profitability, operating at a massive cash burn rate relative to its revenue base.
Operational & Go-to-Market (GTM) Efficiency
The Rule of 40 score has swung wildly from a deeply negative -114.9 to a positive 118.6. This extreme swing is almost entirely driven by the revenue growth component, not operational efficiency, as the negative FCF margin heavily offsets it. The company does not report Net Revenue Retention (NRR) or CAC Payback, which are critical gaps for a SaaS business undergoing hypergrowth. This lack of visibility into customer unit economics and retention suggests that GTM efficiency is not yet a focus, with reinvestments likely directed toward scaling infrastructure and customer acquisition without clear evidence of returns. The negative FCF margin indicates that the current operating model is not self-sustaining.
Market Valuation & Sentiment
Despite operational inefficiencies, Wall Street sentiment is overwhelmingly bullish, with a consensus Buy rating (13 Buys, 0 Holds, 0 Sells) and an average price target of $63.88. The current EV/Revenue multiple has compressed from a lofty 84.4x to 36.5x, reflecting a market that is pricing in the high growth but also discounting the margin deterioration. Insider activity is concerning, with net insider selling of -$7,585.4K and no insider purchases in the last 10 filings. This selling by company insiders contrasts sharply with the bullish analyst consensus, suggesting that internal confidence may not align with external optimism. The market is effectively betting on a future where margins normalize, but the current financial profile remains high-risk.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
Applied Digital Corp. (APLD) is a Vertical SaaS SaaS company with a market cap of N/A as of Q3 2026. The company trades at N/A EV/Revenue and has delivered +336.9% revenue growth year-over-year. With a gross margin of 1% and FCF margin of -24.8%, Applied Digital Corp. scores 312 on the Rule of 40 — placing it in the top quartile of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
Rule of 40 is 312.2% (sector median: 32.8%) — outperforming peers by 279.4%.
Revenue Growth is 336.9% (sector median: 17.1%) — outperforming peers by 319.8%.
Gross Margin is 0.7% (sector median: 73.7%) — underperforming peers by 73.0%.
FCF Margin is -24.8% (sector median: 11.8%) — underperforming peers by 36.6%.
monitoringInvestor Metrics
From the makers of SaaSDB
Want a Full Research Brief on Applied Digital Corp.?
BriefStock runs real DCF, FCF yield, and P/E calculations from SEC filings — with 8-section research briefs updated after every earnings call.
rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.
Insider Trading Activity
90-Day Insider Sentiment: Mixed. Insiders executed 2 buy transactions ($6.7M) and 1 sell transactions ($683K) for a net buying of $6.0M. Last activity on Oct 16, 2026.
Analyst Ratings
From the makers of SaaSDB
Go deeper with BriefStock
SaaSDB shows you the benchmarks. BriefStock shows you whether the stock is fairly valued — with automated earnings transcripts, insider signal analysis, and institutional 13-F tracking.