TeraWulf Q2 2026 earnings: HPC reaches 71% of revenue as losses widen

TeraWulf (NASDAQ: WULF) reported Q2 2026 revenue of $44.8 million, down approximately 6% from $47.6 million a year earlier, while diluted loss per share widened to $1.94 from $0.05. HPC lease revenue reached $31.9 million and represented 71% of total revenue, but higher corporate expenses and a $755.7 million warrant fair-value charge contributed to a $939.9 million GAAP net loss attributable to TeraWulf.

Core earnings data

The revenue mix changed substantially during the quarter. New HPC lease revenue partly offset a 73% decline in digital asset revenue, which had accounted for all revenue in the prior-year period.

Profitability moved in the opposite direction. The operating loss widened to $140.5 million, while non-GAAP adjusted EBITDA shifted from a $14.5 million profit to an $18.3 million loss.

Adjusted EBITDA is a non-GAAP measure and excludes items including warrant remeasurement, stock-based compensation, interest, depreciation and certain transaction-related expenses.

Business and development performance

HPC leasing became TeraWulf’s largest revenue source in Q2. The company operated 81 MW of revenue-generating critical IT capacity at Lake Mariner as of June 30 and completed CB-3 in early July, increasing online capacity to 102 MW. That delivery also satisfied the applicable conditions for $600 million of Google credit support covering Fluidstack’s lease obligations.

Another 336 MW was under construction across CB-4 and CB-5. The first CB-4 data hall entered commissioning, with phased delivery and rent commencement expected during the second half of 2026. CB-5 remains scheduled to begin phased delivery in early 2027.

Several expansion events occurred after quarter-end and therefore did not contribute to Q2 revenue. TeraWulf signed a 20-year lease with Anthropic for approximately 401 MW of critical IT capacity at the Justified Data Campus. The agreement represents approximately $19 billion of contracted revenue over its initial term and as much as $33 billion if both five-year extensions are exercised. Initial delivery is expected in the second half of 2027, with full delivery in early 2028.

TeraWulf also agreed to sell its entire 50.1% interest in the Abernathy Joint Venture for approximately $530 million in cash. Separately, the Muskie Data Campus has agreements providing for up to 1 GW of electric service beginning in the fourth quarter of 2028, while the Chesapeake project received FERC authorization for the proposed Morgantown generating station acquisition but remains subject to other closing conditions and approvals.

HPC mix improved direct economics, but corporate costs kept EBITDA negative

Revenue less cost of revenue, before depreciation, was approximately $32.4 million, or 72.3% of revenue. That compares with approximately $25.5 million, or 53.6%, one year earlier. The roughly 18.7-percentage-point improvement coincided with HPC leases replacing part of the lower-revenue digital asset business.

However, the improvement did not translate into operating profitability. Combined selling, general and administrative expenses, including related-party SG&A, rose to $126.9 million from $14.3 million. Stock-based compensation was $83.9 million, compared with $1.3 million in Q2 2025, and the company also recorded a $14.4 million stock-based charitable contribution.

Below operating income, the $755.7 million change in the fair value of warrant liabilities was the largest contributor to the GAAP net loss. Interest expense also increased to $56.4 million from $4.0 million. The negative adjusted EBITDA result indicates that the deterioration was not solely attributable to warrant accounting and other excluded items.

Cash flow and balance sheet

Cash-flow figures were provided for the six months ended June 30 rather than for Q2 alone. Operating activities used $154.3 million during the first half of 2026, compared with $1.7 million provided in the prior-year period.

Investing activities used $1.61 billion, including $1.38 billion for purchases and deposits on plant and equipment and $231.4 million for an asset acquisition. Financing activities provided $1.07 billion, supported by $1.20 billion of net proceeds from common-stock issuance.

TeraWulf ended June with $3.03 billion of cash, cash equivalents and restricted cash, including $2.62 billion of unrestricted cash and cash equivalents. The total declined by $694.2 million during the first half as infrastructure spending exceeded financing inflows.

Current liabilities stood at $3.76 billion, above current assets of $2.81 billion. The current-liability total included $1.82 billion of warrant liabilities and $1.10 billion of short-term convertible notes. Property, plant and equipment increased to $3.60 billion from $1.51 billion at the end of 2025, reflecting the scale of the company’s ongoing development program.

Development outlook

TeraWulf reaffirmed its target of contracting 250 MW to 500 MW of incremental critical IT capacity annually. It also said WULF Compute remained within its previously disclosed development cost guidance of $8 million to $10 million per critical IT MW.

The company’s strategy is to match capital deployment with contracted customer demand and project financing. The planned Abernathy sale is part of that capital-recycling approach, with proceeds intended for opportunities where TeraWulf has greater control over infrastructure and customer relationships.

Recent insider transactions

The supplied six-month insider data showed purchases of 9.35 million shares across 33 transactions and sales of 2.05 million shares across seven transactions, resulting in net purchases of 7.30 million shares. Total insider holdings were reported at 113.64 million shares, with a 6.9% net purchase rate.

Among the most recent entries, one transaction included a clear date, direction and value. It should be viewed as an objective disclosure rather than evidence of management’s outlook.

Risks investors need to watch

• Construction and delivery execution: TeraWulf has 336 MW under construction at Lake Mariner and several larger campuses planned. Delays or costs above the stated $8 million to $10 million per critical IT MW range could postpone rent commencement and increase financing needs.
• Dependence on the HPC transition: HPC leases generated 71% of Q2 revenue, while digital asset revenue fell 73%. Reported growth increasingly depends on completing contracted HPC capacity and bringing it online on schedule.
• Capital intensity and financing: First-half investing cash outflow reached $1.61 billion, while the company raised $1.20 billion through common-stock issuance. Continued expansion requires substantial capital before many planned campuses begin generating revenue.
• Earnings volatility: Warrant remeasurement produced a $755.7 million quarterly charge, and stock-based compensation increased materially. These items can create large differences between GAAP net income, adjusted results and cash flow.
• Power and regulatory dependencies: Future campuses require power delivery, interconnection approvals, permits and remaining acquisition approvals. Several projects are not expected to begin operating until 2027 or later.

Summary

TeraWulf’s Q2 2026 results showed a clear shift from digital asset mining toward HPC leasing, with HPC already accounting for most revenue and improving direct revenue economics before depreciation. That transition has not yet produced company-wide profitability: corporate costs, interest expense and warrant accounting drove a much larger GAAP loss, while adjusted EBITDA also turned negative. The next operating milestones are the phased delivery of CB-4 and CB-5, execution of the Anthropic development schedule and management of the substantial capital required for the broader campus pipeline.