Applied Digital Corporation (APLD) Dividend Safety Gauge & 10-Year DRIP Compounder

Per the Roarable RQD rating, APLD scores 37 out of 100, earning a letter grade of D- and the verdict "Roarable Sell — Vulnerable Balance Sheet & Flow." The fundamental cash engine pillar scores 9 of 20, reflecting ROIC of -21.7% and an FCF yield of 1.06%, which signals that the business is not yet generating returns on invested capital. The whale 13F flow pillar scores 6 of 20, indicating weak institutional accumulation and options positioning in the source data. The insider conviction pillar scores 10 of 20 based on SEC Form 4 and Congressional PTR cluster flow. The macro regime fit pillar scores 5 of 20, with a beta of 1.17 pointing to above-market sensitivity. The forensic balance sheet pillar scores 7 of 20, anchored by an Altman Z-Score of 1.44, a Piotroski F-Score of 7/9, and a Debt/Equity ratio of 0.91.

For a prospective investor evaluating the stock today, the upside case rests on the company's revenue growth trajectory and its cash balance, while the valuation tradeoff is that the stock carries a forward P/E of 20 against negative trailing EPS of -0.83. The lowest-scoring pillars (fundamental cash engine and macro regime fit) suggest that the primary risks are operating losses and sensitivity to broader market swings. The forensic pillar's middling score reflects a balance sheet that is neither distressed nor robust, so the margin for error on further losses is a central consideration.

Per the SEC financials, revenue grew substantially from $136.6M in FY 2023 to $611.3M in FY 2025, but operating losses persisted in every reported period. Per the market data, gross margin is 35.1%, operating margin is -38.7%, and net margin is -40.9%, with ROIC at -21.7%. The Altman Z-Score is 1.44 and the Piotroski F-Score is 7/9, per the forensic balance sheet inputs in the RQD rating. Debt/Equity is 0.91, and reported cash rose to $1913.4M in FY 2025 against debt of $1420.9M.

Per the recent news feed, the most prominent headline is "Applied Digital Corporation (APLD) Reports Q1 Loss, Tops Revenue Estimates," flagged RED as RISK WATCH. Another item reports on "Applied Digital Reports Fiscal First Quarter 2027 Results," flagged YELLOW. Additional YELLOW market-wire items include a TradingView report, a Seeking Alpha piece titled "Applied Digital: Capacity Expansion A Catalyst For P/S Expansion," and a Schaeffer's Investment Research item titled "Earnings Preview: Short Sellers Target Applied Digital Stock." A Globe and Mail item reports that Wells Fargo issued a Buy rating on the stock. Per the Butterfly Supply-Chain Graph, the supply chain is listed as NONE, with no butterfly links and no proprietary signals.

• What are the company's specific products, customers, and revenue drivers behind the jump from $144.2M to $611.3M in revenue?
• What is the trailing P/E and EV/EBITDA, which the source data marks as unavailable?
• What is the composition and expected trajectory of the $1420.9M debt load relative to the $1913.4M cash position?
• What drove the RED-flagged Q1 loss headline, and how does it compare to the reported FY 2025 net loss of $-250.3M?
• Which institutional and insider holders are positioned in the stock, given that holder data is absent?