TeraWulf (NASDAQ:WULF) Posts Quarterly Earnings Results, Misses Estimates By $0.84 EPS

Key Points

• TeraWulf missed earnings expectations for the quarter, reporting EPS of -$1.01 versus the -$0.17 consensus. Revenue came in at $34.01 million, slightly below estimates and down 1.1% year over year.
• The company is pivoting toward HPC leasing and AI infrastructure, with $21 million in HPC lease revenue in Q1, up 117% sequentially. Management highlighted this as a move toward more stable, contracted revenue streams beyond Bitcoin mining.
• Liquidity remains strong despite large losses, with $3.1 billion in cash and restricted cash at quarter-end. However, GAAP net loss widened sharply due to non-cash charges, including a $216.3 million fair-value loss on Google warrants and a $25.7 million impairment.

TeraWulf (NASDAQ:WULF - Get Free Report) issued its quarterly earnings data on Friday. The company reported ($1.01) earnings per share for the quarter, missing the consensus estimate of ($0.17) by ($0.84), FiscalAI reports. TeraWulf had a negative return on equity of 131.48% and a negative net margin of 392.64%.The business had revenue of $34.01 million during the quarter, compared to the consensus estimate of $34.49 million. During the same quarter last year, the company earned ($0.16) EPS. TeraWulf's revenue for the quarter was down 1.1% on a year-over-year basis.

Here are the key takeaways from TeraWulf's conference call:

• HPC leasing is ramping: HPC lease revenue was $21 million in Q1 (up 117% QoQ), marking an early shift from Bitcoin mining toward stable, credit-backed, contracted revenue streams.
• Operational execution at Lake Mariner: 60 MW of critical IT capacity is energized and generating revenue (Core42 RFS), with CB3 scope due end of May and CB4/CB5 on track for Q3/Q4 2026.
• Strong liquidity and funding position: Cash and restricted cash totaled $3.1 billion at quarter end, with additional capital raised in April boosting parent available cash and funded build programs at WULF Compute and the Abernathy JV.
• Large non-cash and one-time financial hits: GAAP net loss was $427.6 million driven by a $216.3 million fair-value loss on Google warrants, $25.7 million PP&E impairment, and elevated interest expense, though adjusted EBITDA improved to negative $4.1 million.
• Pipeline and power-as-asset strategy: Added the Hawesville site (immediate power) and progressing the Morgantown acquisition (FERC decision expected mid-summer), emphasizing utility partnerships and on-site generation to address industry power constraints.

TeraWulf Stock Performance

NASDAQ WULF traded down $0.63 on Friday, reaching $23.39. 36,205,868 shares of the stock were exchanged, compared to its average volume of 31,936,500. TeraWulf has a one year low of $2.89 and a one year high of $25.76. The firm has a market capitalization of $10.18 billion, a PE ratio of -14.35 and a beta of 3.84. The company's 50-day simple moving average is $17.54 and its two-hundred day simple moving average is $15.15. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 33.00.

Insiders Place Their Bets

In other TeraWulf news, CEO Paul B. Prager sold 79,200 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $20.62, for a total transaction of $1,633,104.00. Following the sale, the chief executive officer owned 884,320 shares in the company, valued at approximately $18,234,678.40. This trade represents a 8.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Patrick Fleury sold 26,414 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $16.14, for a total transaction of $426,321.96. The SEC filing for this sale provides additional information. In the last 90 days, insiders have bought 13,094 shares of company stock worth $200,392 and have sold 954,200 shares worth $16,390,854. 19.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On TeraWulf

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisory Services Network LLC bought a new stake in TeraWulf during the 3rd quarter worth approximately $29,000. PNC Financial Services Group Inc. raised its position in shares of TeraWulf by 44.4% during the fourth quarter. PNC Financial Services Group Inc. now owns 7,722 shares of the company's stock valued at $89,000 after buying an additional 2,376 shares during the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in shares of TeraWulf during the fourth quarter valued at approximately $117,000. Brooklyn Investment Group bought a new stake in shares of TeraWulf during the fourth quarter valued at approximately $128,000. Finally, One68 Global Capital LLC bought a new stake in shares of TeraWulf during the fourth quarter valued at approximately $134,000. Institutional investors own 62.49% of the company's stock.

Analyst Upgrades and Downgrades

WULF has been the topic of several recent research reports. Morgan Stanley reiterated an "overweight" rating and issued a $41.50 price objective on shares of TeraWulf in a research note on Monday, April 27th. Cantor Fitzgerald increased their price objective on shares of TeraWulf from $24.00 to $30.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. Keefe, Bruyette & Woods lowered their price objective on shares of TeraWulf from $24.00 to $23.00 and set an "outperform" rating on the stock in a research note on Wednesday, March 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of TeraWulf in a research note on Friday, March 27th. Finally, Arete Research initiated coverage on shares of TeraWulf in a research note on Monday, March 23rd. They issued a "buy" rating and a $30.00 price objective on the stock. Twelve equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, TeraWulf presently has a consensus rating of "Moderate Buy" and an average target price of $25.83.

Key TeraWulf News

Here are the key news stories impacting TeraWulf this week:

• Positive Sentiment: TeraWulf reported $21 million in HPC lease revenue, signaling early traction in its AI infrastructure pivot and helping support the bull case for future recurring revenue. TeraWulf generates $21M in HPC lease revenue as AI infrastructure pivot accelerates
• Positive Sentiment: The company said it has a strong cash position, including a $3.1 billion reserve cited in coverage, which gives it more flexibility to fund growth and data center buildout. TeraWulf (WULF) Stock Slides Despite Q1 Revenue Jump and $3.1B Cash Reserve
• Positive Sentiment: Management reaffirmed its growth strategy, targeting 250–500 MW of new contracted capacity annually and saying the development timeline remains on track at WULF Compute. TeraWulf Reports First Quarter 2026 Results
• Positive Sentiment: Investor sentiment appears to be getting a boost from the AI angle, with some coverage noting the stock is rising despite weak earnings because traders are buying into the longer-term data center story. TeraWulf Earnings Disappoint. But the Stock Is Rising on AI Momentum.
• Neutral Sentiment: The company closed a $250 million revolving credit facility, which improves liquidity but is mainly a financing update rather than an immediate earnings driver. TeraWulf Reports First Quarter 2026 Results
• Negative Sentiment: Q1 EPS of -$1.01 missed the -$0.17 consensus by a wide margin, and revenue of $34.01 million also came in slightly below expectations, underscoring ongoing profitability pressure. TeraWulf Posts Steep Loss As It Pivots To A.I. Data Centres
• Negative Sentiment: Reported results showed a very wide negative net margin and a negative return on equity, reinforcing concerns that the pivot will take time before it translates into durable earnings. TeraWulf Inc. (WULF) Reports Q1 Loss, Tops Revenue Estimates

About TeraWulf

TeraWulf, Inc NASDAQ: WULF is a digital asset infrastructure company focused on the development and operation of zero-carbon bitcoin mining facilities. The company integrates sustainable power generation with high-density data center technologies to deliver environmentally responsible digital asset mining services. Its core business revolves around designing, building and operating large-scale mining projects powered exclusively by renewable or emissions-free energy sources.

One of TeraWulf’s flagship projects is “Project Nautilus,” located in Tompkins County, New York, which harnesses hydroelectric power sourced from the New York State Electric & Gas (NYSEG) grid.

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