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    WULF
    Earnings call· Mar 2026(Q1 FY26)

    TERAWULF Q1 FY26 earnings call WULF

    May 8, 2026 Source

    Executive summary

    TeraWulf Q1 FY26 — HPC Leasing Revenue Surges Amidst Strategic Transition

    TeraWulf is executing a strategic transition from volatile Bitcoin mining to stable, contracted high-performance computing (HPC) leasing, with Q1 FY26 financials reflecting this shift. The company is leveraging its power-centric infrastructure development expertise to meet strong AI demand, focusing on capital discipline and long-term credit-backed contracts. Despite a significant GAAP net loss driven by non-cash items, liquidity remains robust, and the company is actively expanding its platform and pipeline.

    Highlights

    5

    • HPC leasing revenue increased to $21 million in Q1, up 117% from $9.7 million in Q4.

    • Cash and restricted cash totaled $3.1 billion as of March 31, 2026, with $1.5 billion available unrestricted cash at the parent entity post-equity raise.

    • Non-GAAP adjusted EBITDA improved to negative $4.1 million in Q1 from negative $50.9 million in Q4.

    • Secured a $250 million revolver from 8 different banks, indicating increased financial legitimacy.

    • Hawesville, Kentucky site is in late-stage negotiations for a customer, with expected signing in Q2.

    Concerns

    4

    • GAAP net loss in Q1 was $427.6 million, significantly wider than $126.6 million in Q4, primarily due to noncash fair value adjustments related to Google warrants and noncash stock-based compensation.

    • Total liabilities of $7.1 billion exceeded total assets of $7 billion as of March 31, 2026.

    • Revenue was $34 million, down from $35.8 million in 4Q '25, primarily driven by lower Bitcoin production.

    • Impairment of PP&E in 1Q was $25.7 million, including $8.9 million from shutting down a mining facility and $16.8 million related to Hawesville asset retirement obligations.

    Guidance & targets

    9
    CategoryTargetConfidence
    HPC Capacity Online
    480 megawatts
    high materiality
    High
    CB-3 Completion
    Completion of defined scope
    medium materiality
    High
    CB-4 Delivery
    Delivery
    medium materiality
    High
    CB-5 Delivery
    Delivery
    medium materiality
    High
    Morgantown FERC Decision
    Mid-summer time frame
    high materiality
    Medium
    Hawesville Customer Contract
    Customer in place
    high materiality
    High
    Lake Mariner 250MW Interconnect Feedback
    Feedback from ISO
    high materiality
    Medium
    Bitcoin Mining Hash Rate
    5 to 6 exahash
    medium materiality
    Medium
    Bitcoin Mining Business Exit
    Exit business
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    HPC Leasing
    Revenue significantly increased QoQ. As-reported profit margin of 50% is lower than the 85% long-term guidance due to tenant fit-out revenue, pre-revenue operating costs at WULF Compute, and development costs for uncontracted sites.
    Tenant fit-out revenue: $2.1 millionPre-revenue operating costs (WULF Compute): $3.5 millionDevelopment costs (uncontracted sites): $2.1 million
    		$21 million—117%50% (as-reported), 85% (adjusted)
    Digital Asset Mining
    Revenue declined primarily due to lower Bitcoin production. The segment provides strategic support during the transition and strong operating profit due to flexible load profile and demand response participation.
    Demand response proceeds: $14.1 million (up from $4.4 million in Q4)
    		$13 million—downstrong operating profit

    Operational metrics

    24
    Non-GAAP adjusted EBITDA
    -$4.1 millionimprovement from negative $50.9 million in Q4
    Q1 FY26

    Our non-GAAP adjusted EBITDA in Q1 was a negative $4.1 million, an improvement from negative $50.9 million in Q4.

    Cash and restricted cash balance
    $3.1 billion
    As of March 31, 2026

    As of March 31, 2026, cash and restricted cash totaled $3.1 billion.

    Available unrestricted cash
    $300 million
    As of March 31, 2026

    As of March 31, the TeraWulf parent entity held approximately $300 million of available unrestricted cash.

    Available unrestricted cash
    $1.5 billion
    Post-April 2026 equity raise

    This figure increased to approximately $1.5 billion when incorporating the impact of the equity we raised in April.

    WULF Compute gross cash
    $2.8 billion
    As of March 31, 2026

    As of March 31, 2026, WULF Compute remains on budget and had approximately $2.8 billion of gross cash

    WULF Compute net cash
    $2.3 billion
    As of March 31, 2026

    or $2.3 billion net of debt service reserve and interest during construction accounts

    WULF Compute CapEx spend complete
    $1.5 billion
    As of March 31, 2026

    with $1.5 billion of CapEx spend complete

    WULF Compute CapEx remaining
    $2.2 billion
    As of March 31, 2026

    and $2.2 billion remaining.

    Abernathy JV gross cash
    $1.4 billion
    As of March 31, 2026

    As of March 31, 2026, the JV had approximately $1.4 billion of gross cash

    Abernathy JV net cash
    $1 billion
    As of March 31, 2026

    or $1 billion net of debt service reserve, interest during construction, letter of credit and HoldCo LockBox accounts

    Abernathy JV CapEx spend complete
    $0.4 billion
    As of March 31, 2026

    with $0.4 billion of CapEx spend complete

    Abernathy JV CapEx remaining
    $0.9 billion
    As of March 31, 2026

    and $0.9 billion remaining.

    Equity raised year-to-date
    $1.2 billion
    YTD 2026

    We expect a portion of the approximately $1.2 billion of equity raised year-to-date will fund TeraWulf's equity contribution to the Kentucky project.

    Bridge credit facility repaid
    $100 million
    Subsequent to Q1 FY26

    subsequent to the quarter, we repaid the $100 million draw on the bridge credit facility and terminated the facility.

    Operating expenses
    $11.2 millionrose from $8.8 million
    Q1 FY26

    Quarter-over-quarter operating expenses rose to $11.2 million from $8.8 million.

    SG&A expenses
    $127.8 millionrose from $66.6 million
    Q1 FY26

    Quarter-over-quarter, SG&A expense rose to $127.8 million from $66.6 million.

    Adjusted SG&A expenses
    $26.3 milliondecreased from $60.1 million in Q4
    Q1 FY26

    After adjusting for stock-based compensation, SG&A decreased from $60.1 million in Q4 to $26.3 million in Q1, in line with our prior guidance of $75 million to $100 million for 2026.

    Interest expense
    $67.1 millioncompared to $62.4 million in Q4
    Q1 FY26

    Interest expense in Q1 was $67.1 million compared to $62.4 million in Q4

    Interest income
    $29.4 millioncompared to $31.5 million in Q4
    Q1 FY26

    and we recognized interest income of $29.4 million in Q1 compared to $31.5 million in Q4.

    Actual interest paid
    $5.3 millioncompared to $6.9 million in Q4
    Q1 FY26

    Actual interest paid during Q1 was $5.3 million compared to $6.9 million in Q4.

    Loss from change in fair value of warrant liabilities
    $216.3 millioncompared to $5.2 million in Q4
    Q1 FY26

    Change in fair value of warrant liabilities in 1Q and 4Q was losses of $216.3 million and $5.2 million, respectively, related to the Google warrants. This is a noncash loss and does not affect our liquidity.

    Equity in net loss of investee
    $11.5 millioncompared to a net loss of $4.1 million in 4Q
    Q1 FY26

    Equity in net loss of investee, net of tax for 1Q was $11.5 million compared to a net loss of $4.1 million in 4Q, which represents TeraWulf's 50.1% share of the net loss of the Abernathy joint venture

    Bitcoin Mining Hash Rate
    5 to 6 exahash
    Current

    I think today, we're somewhere probably between 5 and 6 exahash.

    Revolver credit facility
    $250 million
    Current

    one thing we put in the release today that I think our whole team is really proud of is $250 million revolver from 8 different banks, that a group of global leaders and financial institutions.

    Industry KPIs

    4
    MetricValueDetails
    Capacity CAPEX60 megawattsMW
    Revenue growth$34 millionUSD
    Rpo current rpo60 critical megawattsMW
    Operating FCF margin rule of 4050% (as-reported), 85% (adjusted)%

    Deals & partnerships

    5
    Fluidstack and GoogleHPC leasing

    TeraWulf is executing against existing contracts with Fluidstack and Google at Lake Mariner, coordinating energization with hardware deployment for CB-3, CB-4, and CB-5.

    Core42HPC leasing

    In March, CB-2 achieved Ready for Service (RFS) and the lease with Core42 commenced. All 60 critical megawatts of capacity have been delivered to Core42.

    Hypertec and FluidstackHPC infrastructure development

    The Abernathy joint venture project is being delivered under a lump sum EPC agreement with Hypertec, with Fluidstack leading development and construction. TeraWulf holds a 50.1% share.

    UndisclosedHPC leasing

    TeraWulf is in late-stage negotiations for a customer at the Hawesville, Kentucky site, with high confidence of signing in Q2. The process has been very competitive.

    UndisclosedPower-backed site acquisition

    Acquisition of Morgantown site in Maryland, which is a highly attractive asset in a power-constrained region, subject to FERC approval.

    Risks & headwinds

    6
    GAAP Net LossQ1 FY26

    $427.6 million

    Mitigation: Management notes these are noncash items and do not affect liquidity.

    Impairment of PP&EQ1 FY26

    $25.7 million

    Mitigation: The mining facility shutdown is part of the strategic transition to HPC operations.

    Power ConstraintsOngoing

    increasingly constrained

    Mitigation: TeraWulf's strategy focuses on controlling energy-advantaged sites, engineering infrastructure around power, and pursuing integrated campuses where generation, storage, and compute are designed together. They aim to partner with utilities to develop new sites.

    Regulatory Approval Risk (Morgantown)Mid-summer 2026

    subject to regulatory approval

    Mitigation: Management is highly confident FERC approval will come and is not spending significant capital until then.

    Political/NIMBY RiskOngoing

    slowly but surely picking up

    Mitigation: Engage early and transparently with communities, educate on economic benefits (jobs, investment), and address misinformation about environmental impact or electricity prices. Emphasize thoughtful, responsible, and constructive development.

    Bitcoin Mining Ramp DownQ1 FY26 and ongoing

    lower Bitcoin production

    Mitigation: This is a deliberate strategic transition to higher-value HPC workloads, with mining serving its purpose to build infrastructure and monetize power.

    What to watch in Q2 FY26

    5

    Hawesville Customer Contract

    Q2 FY26
    CurrentLate-stage negotiations
    TargetCustomer in place

    Why it matters

    Securing a customer for this large-scale campus is critical for validating the company's expansion strategy and generating new HPC revenue.

    I have said that we expect to have a customer in place in the second quarter, and I remain highly confident.

    Q&A highlights

    5

    What sites are most exciting post-Kentucky, and will new sites be added in FY26/FY27?

    Paul Prager expressed excitement about Kentucky's expansion potential and Morgantown's strategic location, pending FERC approval. He confirmed the team is actively working on adding "a couple of more pretty compelling sites" to the pipeline, but it's premature to discuss specifics. The focus remains on execution for existing projects.

    “I think there's a couple of things that they like a lot. It would be premature to talk about them right now, Mike. But again, I think Kerri's experienced teams -- their capabilities will be demonstrated in our ability to add a couple of more pretty compelling sites to the queue.”

    asked by Mike Grondahl · answered by Paul Prager

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Shift to HPC

    TeraWulf is actively transitioning its business model from Bitcoin mining to high-performance computing (HPC) leasing, leveraging its established infrastructure and power control expertise. This shift is evidenced by the significant increase in HPC leasing revenue to $21 million in Q1 FY26, representing a 117% increase QoQ, while Bitcoin production revenue declined. The company views its future as contracted, long-duration compute infrastructure, with mining serving as a foundational step for infrastructure development and operational expertise.

    02

    Infrastructure Development & Coordination

    The company is progressing construction for Fluidstack and Google at Lake Mariner, with CB-3 on track for completion by end of May, and CB-4 and CB-5 for Q3 and Q4 FY26 delivery, respectively. Execution at this scale requires tight coordination between power infrastructure, equipment procurement, construction delivery, and customer hardware deployment, which TeraWulf emphasizes as a key differentiator. Customer-driven design refinements are incorporated to reduce execution risk and improve long-term outcomes.

    03

    Power-Centric Strategy & Site Expansion

    TeraWulf positions itself as a power company that builds digital infrastructure, focusing on sourcing and controlling power, operating generation, and integrating systems at scale. The broader AI build-out is increasingly constrained by power, making integrated campuses with generation, storage, and compute critical. The company has added new power-backed capacity, including the Hawesville, Kentucky site, and is progressing the Morgantown acquisition in Maryland, which is subject to mid-summer FERC approval. These sites offer significant expansion potential in power-constrained regions.

    04

    Market Dynamics & Utility Partnerships

    Demand for HPC capacity remains very strong, with active engagement from hyperscalers and AI compute platforms. TeraWulf anticipates increasing opportunities to partner directly with utilities to develop new sites, as utilities seek experienced partners to deliver infrastructure, equipment, and financial support. The market is moving towards a higher bar for execution certainty around grid access, favoring scaled, well-capitalized operators with development and power experience.

    05

    Financial Discipline & Liquidity

    TeraWulf maintains a disciplined approach, contracting first and deploying capital second, focusing on durable power control, scalable development, credit-backed counterparties, and capital efficiency. The company ended Q1 FY26 with substantial liquidity, including $3.1 billion in cash and restricted cash, and a fully funded development pipeline. The parent entity held approximately $300 million of available unrestricted cash, increasing to $1.5 billion after an April equity raise.

    AI-generated summary of the company’s earnings call. Not investment advice.