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TeraWulf (WULF) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 5, 2026

Source: earnings call transcript

Executive summary

TeraWulf Q2 FY26 — Execution and Expansion Drive Strong Contracted Revenue

TeraWulf delivered a strong quarter marked by significant execution at Lake Mariner, bringing CB-3 online and securing $600 million in credit support. The company expanded its Kentucky platform with a $19 billion Anthropic lease and the Muskie acquisition, while strategically divesting the Abernathy JV to focus on larger, directly controlled opportunities. Despite non-cash losses and pre-revenue costs impacting profitability, the firm's focus on power-advantaged infrastructure and long-duration contracts positions it for continued growth and value creation.

Highlights

5

  • Total revenue increased 31.8% QoQ to $44.8 million, driven by additional HPC capacity.

  • HPC lease revenue grew 52% QoQ to $31.9 million, representing 71% of total revenue.

  • Executed a 20-year lease with Anthropic for 401 MW at Justified data campus, representing approximately $19 billion of contracted revenue.

  • Divested Abernathy joint venture for $530 million, achieving a 20% IRR on initial investment.

  • Completed CB-3 at Lake Mariner, bringing 102 critical megawatts online and making $600 million of Google's credit support effective.

Concerns

5

  • GAAP net loss attributable to TeraWulf increased to $939.9 million from $427.6 million QoQ, primarily due to noncash fair value adjustment of Google warrants.

  • Non-GAAP adjusted EBITDA was negative $18.3 million, reflecting pre-revenue operating and development costs.

  • Cost of revenue (exclusive of depreciation) increased to $12.4 million from $2.4 million QoQ, mainly due to lower demand response proceeds.

  • Operating expenses increased to $23.4 million from $11.2 million QoQ, driven by scaling platform ahead of HPC capacity.

  • Electrical labor constraints and evolving customer requirements led to an updated Wulf Compute project cost estimate of $9.1 million per megawatt, up from $8.6 million financed in October 2025.

Guidance & targets

CategoryTargetConfidence
Incremental critical IT capacity contracted annually
250 to 500 megawatts
high materiality
High
Full year adjusted SG&A
$75 million to $100 million
medium materiality
High
Wulf Compute total project costs per critical IT megawatt
Approximately $9.1 million
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
HPC Leasing
Reported margin includes $2.8 million of tenant fit-out revenue/costs, $6.8 million of pre-revenue operating costs, and $6.0 million of development costs. Adjusted HPC Leasing segment profit margin was approximately 80% after adjusting for these items. Expects margins to progress toward long-term target of 85%.
HPC lease revenue as % of total revenue: 71%
$31.9 million—52%28%

Deals & partnerships

Anthropic Long-term lease for critical IT capacity approximately $19 billion initial 20-year lease term

Lease for approximately 401 megawatts of critical IT capacity at the Justified data campus in Kentucky.

Abernathy joint venture Sale of entire interest in the joint venture approximately $530 million

Allows TeraWulf to focus on larger-scale opportunities directly controlled.

Muskie Data campus Acquisition of a gigawatt-scale development site

Located in Eastern Kentucky, developed in partnership with Kentucky Power (an AEP company). Electric service arrangements under a data center tariff for 1 gigawatt.

Morgantown site (Chesapeake) Proposed acquisition of a site with existing generation and infrastructure

Includes approximately 210 megawatts of existing grid-connected generation and long-term expansion potential.

Risks & headwinds

Electrical labor constraints Ongoing

approximately 1,000 electricians at peak

Mitigation:Added a second electrical contractor and scaled workforce; working with Fluor and other vendors to put parameters around labor costs and lock in ranges.

Design optimization and evolving customer requirements Ongoing

Added complexity to execution; reflected in updated Wulf Compute project cost estimate of $9.1 million per megawatt.

Mitigation:Working closely with FluidStack to optimize electrical, cooling, and operational requirements; revised delivery schedules developed collaboratively to align infrastructure readiness with hardware deployment.

Regulatory and political headwinds (e.g., New York Executive Order, Texas backlog) Near-term to long-term

New York Executive Order described as an effort to establish a framework, not a permanent ban; Texas backlog over 400 gigawatts.

Mitigation:Developing sites that demonstrate credible and redundant power delivery, assume appropriate cost responsibility, and support additional generation capacity; focusing on regional diversity to avoid reliance on single regulatory regimes; proactive engagement with regulators, utilities, and local communities.

Project cost increases (Wulf Compute) Project duration

Total project costs estimated at approximately $9.1 million per megawatt, up from $8.6 million financed in October 2025.

Mitigation:FluidStack lease amendments recovered incremental costs, generating over $500 million in additional revenue over initial lease terms; focusing on mid-teens return on capital for projects.

What to watch in Q3 FY26

CB-4 first data hall energization and revenue generation

Late September
Current In Level 2 commissioning
Target Begin generating lease revenue

Why it matters

Marks a key milestone for Lake Mariner expansion and contributes to HPC lease revenue.

We remain on track to reach level for and begin generating lease revenue from the first data hall in late September.

Find out whether WULF delivers this. Inve re-checks your case every morning.

Q&A highlights

How do utility partnerships work, specifically regarding economics and whether utilities share project economics, using Kentucky Power as an example?

Nazar Khan explained that integrated utilities like Kentucky Power (AEP) contract for load and then find generation to support it. They expect TeraWulf to commit to transmission build-out and backstop energy. The economics depend on location (driving transmission costs) and market price for energy.

“With the integrated utilities, Kentucky Power being an example and AEP being an example, I think they are independently solving for contracting for the load. So they've signed up [indiscernible] a lot of capacity with us under an LOA transmission agreement and then they go find the generation to support that.”

asked by Nick Giles · answered by Nazar Khan

2 min read 6 chapters

Detailed narrative

Lake Mariner Execution and Milestones

TeraWulf successfully delivered CB-3 at Lake Mariner, bringing 102 critical megawatts online and generating lease revenue. This completion also activated $600 million of Google's credit support for FluidStack's lease obligations. The company is on track to energize the first data hall at CB-4 in late September and the first data hall at CB-5 in early January, following updated delivery schedules developed in coordination with the tenant.

Kentucky Platform Expansion

The company significantly expanded its presence in Kentucky by executing a 20-year lease with Anthropic for 401 megawatts at the Justified data campus, representing approximately $19 billion in contracted revenue. Additionally, TeraWulf acquired the Muskie Data campus, a gigawatt-scale development site in partnership with Kentucky Power, which provides a utility-supported development pathway with contracted electric service and a state-approved framework.

Strategic Capital Recycling and Portfolio Focus

TeraWulf agreed to sell its entire interest in the Abernathy joint venture for $530 million, generating a 20% internal rate of return. This divestiture allows the company to focus management resources and capital on larger-scale opportunities where it directly controls the site, power infrastructure, development process, and customer relationships, reinforcing its strategy of creating long-term value.

Chesapeake Acquisition and Regional Diversity

The Federal Energy Regulatory Commission (FERC) authorized the acquisition of the Morgantown site in Chesapeake, clearing a significant regulatory hurdle. This site includes 210 megawatts of existing generation and potential for up to 1 gigawatt of data center capacity, supporting regional grid reliability. TeraWulf emphasizes regional diversity across its pipeline to mitigate dependence on single grids or regulatory regimes.

Addressing Regulatory and Labor Challenges

Management acknowledged increasing formal requirements for large load development, such as New York's executive order, and views them as opportunities for experienced developers. The company is proactively addressing electrical labor constraints by adding a second electrical contractor and scaling its workforce to maintain targeted delivery schedules, while also optimizing designs in close collaboration with customers.

Financial Implications of FluidStack Lease Amendments

Amendments to the FluidStack leases at Lake Mariner involve TeraWulf contributing approximately $150 million for tenant fit-out costs. In return, Wulf Compute expects to receive over $300 million of incremental lease revenue over the initial 10-year term, plus an additional $200 million from increased contracted capacity, totaling over $500 million in incremental lease revenue. This enhances the project's deleveraging profile and equity layer.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.