TeraWulf Inc. (WULF) Earnings & Analysis

Latest quarter

TeraWulf reported Q2 FY2026 revenue of $44.8 million, above the consensus of $44.6 million but down from $47.6 million a year earlier. Its diluted loss per share widened to −$1.94 from −$0.05.

The filing shows that digital asset revenue fell to $12.8 million from $47.6 million. TeraWulf said it curtailed Bitcoin operations and repurposed or took two mining buildings out of service to support high-power compute development at Lake Mariner. CFO Patrick Fleury said HPC lease revenue reached $31.9 million and represented approximately 71% of total revenue.

TeraWulf’s gross margin rose to 72.3% from 53.6%, while its operating margin fell to −313.7% from −32.7%. The filing said higher selling, general and administrative expenses included an $82.6 million increase in stock-based compensation. Fleury said the company recorded a $755.7 million noncash loss from the change in fair value of Google warrants.

Free cash flow was −$979.0 million, compared with −$123.1 million a year earlier. The filing said higher investing cash outflows in the first half were primarily associated with infrastructure purchases for HPC expansion and data campus acquisitions.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Paul Prager said TeraWulf’s approach is to secure power infrastructure, contract capacity and deliver it in phases. After quarter end, the company signed a lease with Anthropic for approximately 401 megawatts of critical IT capacity at Justified Data, representing approximately $19 billion of contracted revenue over the initial 20-year term, he said.

At Lake Mariner, Prager said CB-3 was fully delivered and generating lease revenue in early July. He said that brought revenue-generating capacity at the campus to 102 megawatts and made $600 million of Google’s credit support for FluidStack’s obligations effective. CFO Patrick Fleury said CB-3 contributed only partial revenue in the second quarter.

Fleury said amendments to the FluidStack leases included increased contracted capacity and tenant-requested changes. TeraWulf will contribute approximately $150 million toward fit-out costs incurred through June 30, 2026; together, the amendments are expected to generate more than $500 million of incremental lease revenue over the initial lease terms, he said.

On margins, Fleury said reported HPC leasing segment profit margin was approximately 28%, including pre-revenue and development costs. After adjustments for those and tenant fit-out items, he put the margin at approximately 80%. He expects it to progress toward the company’s approximately 85% long-term target as more contracted capacity enters service and pre-revenue costs decline.

Asked about expanding beyond the company’s annual contracting target, CTO Nazar Khan cited financing and labor requirements and said large projects may progress in fits and starts. Prager said he could not quantify how large the opportunity could become, while noting active prospective-customer discussions at Muskie. On investment, Fleury said WULF Compute had completed approximately $2.3 billion of project capital expenditures, with approximately $1.7 billion remaining.

Guidance

Fleury said TeraWulf’s updated WULF Compute project cost estimate was approximately $9.1 million per megawatt, compared with approximately $8.6 million per megawatt financed in October 2025. He said the estimate remained within the original guidance range of $8 million to $10 million per critical IT megawatt.

Prager said the revised Lake Mariner schedule calls for energizing the first CB-4 data hall in late September and the first CB-5 data hall in very early January.