Applied Digital Corporation
APLD Technology Information Technology Services
In the quarter to August 2026, revenue grew 432.4%, EPS fell 801.9%, free cash flow fell 506.7% and total debt rose 828.1%, each against the same quarter a year earlier. Revenue growth for three consecutive years.
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Applied Digital Corporation (APLD) Altman Z-score
Applied Digital Corporation's Altman Z-score for fiscal 2026 is 1.26, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 1.26 | 1.26 |
| FY2025 | 0.00 | 0.45 |
| FY2024 | −0.45 | (1.70) |
| FY2023 | 1.25 | (1.77) |
| FY2022 | 3.02 | — |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.35 | — | 0.42 | |
| Retained earnings / total assets | (0.07) | — | −0.09 | |
| EBIT / total assets | (0.02) | — | −0.08 | |
| Market value of equity / total liabilities | 1.59 | — | 0.95 | |
| Sales / total assets | 0.06 | — | 0.06 | |
| Altman Z-score | Distress zone | 1.26 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 2.16 | ||
Z and Z″ put Applied Digital Corporation in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| EXLS ExlService Holdings, Inc. compare | 8.6× |
| EPAM EPAM Systems, Inc. compare | 8.1× |
| G Genpact Limited compare | 3.3× |
| INGM Ingram Micro Holding Corporation compare | 3.1× |
| PSN Parsons Corporation compare | 3.1× |
| SAIC Science Applications International Corporation compare | 2.8× |
| APLD Applied Digital Corporation | 1.3× |
| CIFR Cipher Digital Inc. compare | 0.9× |
| GDS GDS Holdings compare | 0.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets