Applied Digital Corporation, a data center operator specializing in digital infrastructure solutions for high-performance computing (HPC) and artificial intelligence (AI) industries, reported third-quarter revenue of $52.9 million, representing a 22% year-over-year increase but falling short of the $63 million consensus estimate. The revenue shortfall was attributed to clients delaying lease renewals for data center space. Adjusted earnings per share were negative $0.08, although losses narrowed compared to prior periods. Following the earnings release, Applied Digital's shares declined by more than 13% in after-hours trading and fell up to 15% in subsequent sessions. The company announced a $375 million financing agreement with Sumitomo Mitsui Banking Corporation (SMBC) to advance the development of its Ellendale data center campus, expected to be operational in 2025. Additionally, Applied Digital plans to divest its Cloud Services business to concentrate on HPC operations and on-demand GPU cluster offerings. Despite the mixed quarterly results, the company anticipates strong demand from hyperscale customers and growth in the HPC sector going forward.