TeraWulf Reports Third Quarter 2026 Results
TERAWULF INC. (WULF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 TeraWulf Reports Third Quarter 2026 Results HPC lease revenue reaches $63.0 million, representing ~83% of third-quarter revenue 102 MW of critical IT capacity online at Lake Mariner, with an additional 336 MW under construction and progressing within cost guidance Se
How this was made
The 30-second read
Why it matters
The Q3 results reaffirm the company's growth trajectory and financial flexibility, which may attract investors seeking exposure to AI compute capacity.
Market read
First‑report earnings with material financial metrics provide a fresh catalyst for WULF, potentially influencing short‑term price action.
What to watch
The $2.4B cash balance and expanded credit facility provide a strong financial cushion for future capex.
HPC lease revenue reaches $63.0 million, representing ~83% of third-quarter revenue
HPC lease revenue expanded sharply and Lake Mariner had 102 MW of revenue-generating critical IT capacity online, while the Company reported an operating loss and negative non-GAAP Adjusted EBITDA. Reported net income was driven primarily by a change in fair value of warrant and derivative liabilities and a gain on sale of an equity interest.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $76.23M | – | – |
| Digital asset revenue, three months ended September 30, 2026GAAP | $13.24M | – | – |
| HPC lease revenue, three months ended September 30, 2026GAAP | $62.99M | – | – |
| Cost of revenue, three months ended September 30, 2026GAAP | $25.19M | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $37.74M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $56.78M | – | – |
| Depreciation, three months ended September 30, 2026GAAP | $29.64M | – | – |
| Operating loss, three months ended September 30, 2026GAAP | −$88.22M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$53.55M | – | – |
| Change in fair value of warrant and derivative liabilities, three months ended September 30, 2026GAAP | $728.4M | – | – |
| Gain on sale of equity interest in investee, three months ended September 30, 2026GAAP | $95.00M | – | – |
| Net income attributable to TeraWulf Inc., three months ended September 30, 2026GAAP | $709.9M | – | – |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $1.42 | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $(0.03) | – | – |
| Non-GAAP Adjusted EBITDA, three months ended September 30, 2026non-GAAP | −$12.80M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $155.0M | – | – |
| Operating loss, nine months ended September 30, 2026GAAP | −$390.8M | – | – |
| Net loss attributable to TeraWulf Inc., nine months ended September 30, 2026GAAP | −$657.6M | – | – |
| Non-GAAP Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | −$35.21M | – | – |
| Net cash used in operating activities, nine months ended September 30, 2026GAAP | −$178.9M | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | −$2.20B | – | – |
| Net cash provided by financing activities, nine months ended September 30, 2026GAAP | $1.01B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Digital asset revenue, three months ended September 30, 2026The Company operates existing bitcoin-mining infrastructure at Lake Mariner, portions of which are being repurposed to support contracted HPC development. | $13.24M | – | – |
| HPC lease revenue, three months ended September 30, 2026Lake Mariner operated 102 MW of revenue-generating critical IT capacity as of September 30, 2026. | $62.99M | – | – |
| Digital asset revenue, nine months ended September 30, 2026Digital asset revenue was reported in the condensed consolidated statements of operations. | $39.07M | – | – |
| HPC lease revenue, nine months ended September 30, 2026HPC lease revenue was reported in the condensed consolidated statements of operations. | $115.9M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of 2026 and early 2027; late 2027 through the second quarter of 2028 outlook
- NoteCB-4 remains on track for phased delivery and rent commencement during the fourth quarter.
- NoteCB-5 remains targeted to begin phased delivery in early 2027.
- NoteWULF Compute continues to progress within the Company’s previously disclosed cost guidance of $8 million to $10 million per critical IT MW.
- NotePhased ready-for-service completions at Justified are expected to begin in late 2027 and continue through the second quarter of 2028.
- NoteTarget of contracting 250 MW to 500 MW of incremental critical IT capacity annually.
What drove it
- HPC lease revenue was $62,986 (in thousands) during the third quarter and was described as approximately 83% of total revenue.
- Lake Mariner had 102 MW of revenue-generating critical IT capacity online as of September 30, 2026, with an additional 336 MW under construction across CB-4 and CB-5.
- The Company executed a 20-year lease with Anthropic for approximately 401 MW of critical IT capacity, representing approximately $19 billion of contracted revenue over the initial term.
- Muskie contracted power capacity increased from 500 MW to 1,000 MW, subject to approval by the Kentucky Public Service Commission.
- The sale of the 50.1% interest in the Abernathy Joint Venture generated $250 million of cash consideration during the quarter and resulted in a $95 million gain on sale.
Concerns
- Operating loss was $(88,225) (in thousands) and non-GAAP Adjusted EBITDA was $(12,801) (in thousands) for the third quarter.
- Third-quarter net income included a $728,442 (in thousands) change in fair value of warrant and derivative liabilities and a $94,995 (in thousands) gain on sale of equity interest in investee.
- Interest expense was $(53,554) (in thousands) during the third quarter.
- Net cash used in operating activities was $(178,948) (in thousands) and purchase of and deposits on plant and equipment were $(2,230,788) (in thousands) for the nine months ended September 30, 2026.
- The second 500 MW phase at Muskie is subject to approval by the Kentucky Public Service Commission.
What to watch
- CB-4 phased delivery and rent commencement during the fourth quarter.
- CB-5 phased delivery targeted to begin in early 2027.
- Justified ready-for-service completions expected to begin in late 2027 and continue through the second quarter of 2028.
- Receipt of $150 million on or before December 31, 2026 and approximately $130 million, subject to certain adjustments, on or before April 30, 2027 from the Abernathy Joint Venture sale.
- Progress against the target of contracting 250 MW to 500 MW of incremental critical IT capacity annually.
Balance sheet and cash flow
- Cash and cash equivalents were $1,602,127 (in thousands) as of September 30, 2026, compared with $3,266,389 (in thousands) as of December 31, 2025.
- Restricted cash was $486,702 (in thousands) in current assets and $266,491 (in thousands) in non-current assets as of September 30, 2026.
- Cash, cash equivalents and restricted cash were $2,355,320 (in thousands) at September 30, 2026.
- Property, plant and equipment, net was $4,580,681 (in thousands) as of September 30, 2026.
- Current portion of long-term debt was $81,330 (in thousands) and long-term debt was $3,032,094 (in thousands) as of September 30, 2026.
- Short-term convertible notes were $491,544 (in thousands) and convertible notes were $1,627,342 (in thousands) as of September 30, 2026.
- Purchase of and deposits on plant and equipment were $(2,230,788) (in thousands) for the nine months ended September 30, 2026.
- Proceeds from sale of equity in net assets of investee were $250,000 (in thousands) for the nine months ended September 30, 2026.
- Proceeds from issuance of common stock, net of issuance costs paid of $35,864, were $1,199,820 (in thousands) for the nine months ended September 30, 2026.
- Subsequent to quarter-end, commitments under the Revolving Credit Agreement increased from $250 million to $400 million, with an uncommitted accordion feature permitting up to $150 million of additional commitments, subject to certain conditions.
Analysis
Third-quarter revenue was $76,230 (in thousands), with HPC lease revenue of $62,986 (in thousands) and digital asset revenue of $13,244 (in thousands). HPC lease revenue represented approximately 83% of total revenue, according to the release. The revenue mix reflects the operational ramp at Lake Mariner, where 102 MW of revenue-generating critical IT capacity was online at September 30, 2026, while 336 MW across CB-4 and CB-5 remained under construction.
Profitability remained under pressure at the operating level. Cost of revenue was $25,188 (in thousands), operating expenses were $37,742 (in thousands), selling, general and administrative expenses were $56,781 (in thousands), and depreciation was $29,636 (in thousands). These costs contributed to an operating loss of $(88,225) (in thousands) and non-GAAP Adjusted EBITDA of $(12,801) (in thousands), compared with $18,126 (in thousands) in the prior-year quarter.
GAAP net income attributable to TeraWulf was $709,912 (in thousands), but the result included a $728,442 (in thousands) change in fair value of warrant and derivative liabilities and a $94,995 (in thousands) gain on sale of equity interest in investee. Interest expense was $(53,554) (in thousands). The Company completed the sale of its 50.1% interest in the Abernathy Joint Venture, received $250 million of cash consideration during the quarter, and expects additional consideration of $150 million on or before December 31, 2026 and approximately $130 million, subject to certain adjustments, on or before April 30, 2027.
Investment requirements were substantial during the nine months ended September 30, 2026. Net cash used in operating activities was $(178,948) (in thousands), purchase of and deposits on plant and equipment was $(2,230,788) (in thousands), and net cash provided by financing activities was $1,010,042 (in thousands). Cash, cash equivalents and restricted cash ended the period at $2,355,320 (in thousands). Subsequent to quarter-end, the Company expanded Revolving Credit Agreement commitments from $250 million to $400 million and added an uncommitted accordion feature permitting up to $150 million of additional commitments, subject to certain conditions.
The development outlook centers on Lake Mariner, Justified and Muskie. CB-4 is on track for phased delivery and rent commencement during the fourth quarter, while CB-5 is targeted to begin phased delivery in early 2027. Justified has a 20-year Anthropic lease for approximately 401 MW of critical IT capacity, representing approximately $19 billion of contracted revenue over the initial term, with phased ready-for-service completions expected from late 2027 through the second quarter of 2028. The Company reaffirmed its target of contracting 250 MW to 500 MW of incremental critical IT capacity annually.
Management, verbatim
Third-quarter results reflect strong execution across the business. Lake Mariner is delivering contracted capacity and generating revenue, Justified has the customer, credit support and construction framework to move forward at scale, and Muskie gives us a contracted path to a gigawatt of power. We remain disciplined about where we deploy capital and the returns we require. Our focus is simple: execute on our commitments, protect our economics and create long-term value for shareholders.
Paul Prager, Chairman and Chief Executive Officer of TeraWulf
We ended the quarter with substantial liquidity and further strengthened our financial flexibility through the Abernathy monetization and expansion of our revolving credit facility. With Lake Mariner progressing within cost guidance and Justified supported by investment-grade credit, we remain well positioned to fund our contracted development while maintaining balance sheet flexibility.
Patrick Fleury, Chief Financial Officer of TeraWulf
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow, investing cash flow and financing cash flow were not reported.
- Capital returns through share repurchases or dividends were not reported.
- Formal revenue, gross-margin, operating-expense and tax-rate guidance was not reported.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Sequential revenue and earnings comparisons were not reported.
- Percentage changes for individual revenue lines, expenses, operating loss, net income and Adjusted EBITDA were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
TeraWulf is a Nasdaq‑listed provider of large‑scale, power‑backed digital infrastructure serving AI and HPC workloads.
Ticker impact
TeraWulf filed its SEC 8‑K reporting Q3 2026 results with $76.2M revenue and $709.9M net income, reaffirming its capacity expansion targets.
likely modest upside as investors price in strong cash position and capacity growth, tempered by negative adjusted EBITDA.
First‑report earnings with material numbers and a reaffirmed guidance target provide fresh information that can move the stock in the near term.
Market effects
Highlights continued demand for power‑backed HPC infrastructure, reinforcing bullish sentiment for AI‑related data center stocks.
U.S. digital infrastructure sector may see modest buying pressure.
Limited to investors focused on AI compute capacity and crypto‑related mining exposure.
Counterpoint
Negative adjusted EBITDA and reliance on non‑cash warrant gains could signal underlying profitability concerns.
Key entities
- companyTeraWulf Inc.
Nasdaq‑listed digital infrastructure operator.
- customerAnthropic
AI firm with a 20‑year lease for 401 MW of capacity.
