TeraWulf (NASDAQ:WULF) Releases Quarterly Earnings Results, Misses Estimates By $1.70 EPS

Key Points

• Q2 earnings missed expectations: TeraWulf reported a loss of $1.94 per share versus the consensus loss estimate of $0.24. Revenue totaled $44.77 million, slightly below expectations and down 6% year over year.
• Expansion plans advanced: The company signed a 401-megawatt, 20-year Anthropic lease representing approximately $19 billion in contracted revenue, while Lake Mariner’s operating capacity reached 102 megawatts and the Muskie campus added a potential gigawatt-scale development platform.
• Losses remained substantial: GAAP net loss widened to $939.9 million, largely due to a $755.7 million non-cash loss on Google warrants; adjusted EBITDA was negative $18.3 million, and higher project costs pushed estimated WULF Compute costs to about $9.1 million per critical megawatt.

TeraWulf (NASDAQ:WULF - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($1.94) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($1.70), FiscalAI reports. The firm had revenue of $44.77 million during the quarter, compared to analysts' expectations of $46.00 million. TeraWulf had a negative net margin of 611.46% and a negative return on equity of 305.07%. The company's revenue for the quarter was down 6.0% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.05) EPS.

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

• Lake Mariner execution advanced: CB3 is online and generating lease revenue, bringing operating critical IT capacity to 102 megawatts. CB4 remains on track for first-hall revenue in late September, while CB5 is expected to begin energization in early January.
• TeraWulf signed a 401-megawatt, 20-year lease with Anthropic at the Justified Data campus, representing approximately $19 billion of contracted revenue and expanding its direct customer relationships.
• The acquisition of the gigawatt-scale Muskie campus adds a utility-supported Kentucky development platform with contracted electric service expected in late 2028, while demand discussions could support expansion to as much as 2 gigawatts.
• TeraWulf agreed to sell its 50.1% Abernathy interest for approximately $530 million, including $250 million received in July, allowing it to recycle capital into projects it directly controls. Management said current liquidity and expected proceeds can fund Lake Mariner commitments, Muskie equity, Chesapeake, and other near-term opportunities without issuing additional equity.
• Second-quarter revenue rose to $44.8 million, but adjusted EBITDA was negative $18.3 million and GAAP net loss widened to $939.9 million, primarily because of a $755.7 million non-cash loss on Google warrants. Electrical labor constraints, evolving customer designs, and higher project costs lifted the estimated WULF Compute cost to approximately $9.1 million per critical megawatt.

TeraWulf Stock Performance

Shares of NASDAQ WULF traded down $0.44 during mid-day trading on Wednesday, hitting $18.44. 18,310,635 shares of the company were exchanged, compared to its average volume of 31,679,234. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 33.00. The firm has a market cap of $9.14 billion, a price-to-earnings ratio of -7.47 and a beta of 3.76. The stock has a 50 day simple moving average of $23.07 and a 200-day simple moving average of $19.41. TeraWulf has a 1-year low of $4.67 and a 1-year high of $29.84.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on WULF shares. Rosenblatt Securities reiterated a "buy" rating and set a $30.00 price target on shares of TeraWulf in a research report on Wednesday, July 15th. Chardan Capital assumed coverage on TeraWulf in a research note on Monday, July 27th. They issued a "buy" rating and a $32.00 price objective for the company. Jefferies Financial Group initiated coverage on TeraWulf in a report on Thursday, May 14th. They set a "buy" rating and a $28.00 target price for the company. Citigroup assumed coverage on shares of TeraWulf in a report on Monday, June 29th. They set a "buy" rating and a $36.00 target price on the stock. Finally, Zacks Research lowered TeraWulf from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $34.74.

Insider Transactions at TeraWulf

In other TeraWulf news, CEO Paul B. Prager sold 166,650 shares of TeraWulf stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $24.43, for a total value of $4,071,259.50. Following the sale, the chief executive officer owned 4,249,202 shares of the company's stock, valued at approximately $103,808,004.86. The trade was a 3.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On TeraWulf

Several institutional investors have recently made changes to their positions in WULF. Rafferty Asset Management LLC raised its holdings in TeraWulf by 42.9% during the fourth quarter. Rafferty Asset Management LLC now owns 19,038 shares of the company's stock worth $219,000 after purchasing an additional 5,713 shares during the last quarter. O Shaughnessy Asset Management LLC acquired a new stake in shares of TeraWulf during the 4th quarter worth $206,000. Guggenheim Capital LLC acquired a new position in shares of TeraWulf in the 4th quarter valued at about $203,000. SIH Partners LLLP acquired a new position in shares of TeraWulf during the 4th quarter valued at $190,000. Finally, Envestnet Asset Management Inc. boosted its position in shares of TeraWulf by 5.8% in the second quarter. Envestnet Asset Management Inc. now owns 41,375 shares of the company's stock worth $181,000 after buying an additional 2,258 shares during the period. 62.49% of the stock is currently owned by hedge funds and other institutional investors.

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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