TeraWulf's Q4 Loss Wider Than Expected, Revenues Rise Y/Y

TeraWulf Inc.’s WULF fourth-quarter 2025 adjusted loss of 28 cents per share came much wider than the Zacks Consensus Estimate of a loss of 13 cents. The company posted a loss of 8 cents in the year-ago quarter.

Revenues of $35.8 million increased 2.3% year over year but missed the consensus mark by 17.71%. The figure slipped from about $50.6 million quarter over quarter, largely due to reduced Bitcoin production and lower Bitcoin prices.

WULF's Q4 Segment Details

Digital asset revenues in the fourth quarter were $26.1 million, down from $43.4 million in the previous quarter, mainly due to lower Bitcoin production and weaker Bitcoin prices.

HPC lease revenues increased to $9.7 million for the quarter, up from $7.2 million in the previous quarter, as more high-performance computing capacity started generating recurring revenue.

Strategic & Operational Highlights in Q4

During the fourth quarter, TeraWulf made significant progress in transforming its business into a large-scale AI and high-performance computing (HPC) infrastructure platform.

The company secured 522 critical IT megawatts (MW) under long-term lease agreements across its Lake Mariner and Abernathy campuses. These agreements underpin more than $12.8 billion in long-term, credit-enhanced customer contracts, significantly strengthening revenue visibility and durability.

To support this expansion, TeraWulf completed approximately $6.5 billion in long-term financing. The capital will fund the build-out of hyperscale data centers and accelerate the growth of its HPC hosting platform, which has now become the company’s primary growth engine. Legacy bitcoin mining operations are being managed opportunistically.

At the center of this strategy are the Lake Mariner Data Campus (NYISO) and the Abernathy HPC Campus in Texas — the latter operated through a majority-owned joint venture with Fluidstack. The company also controls the Cayuga site (NYISO), capable of supporting up to 320 critical IT MW, providing a meaningful long-term expansion runway.

Leasing momentum at Lake Mariner has been strong. TeraWulf secured 60 MW with Core42 (commencing 2025/2026) and 80 MW with Fluidstack, credit-enhanced by Google (commencing 2026). Additionally, in October 2025, the company entered a joint venture with Fluidstack to develop 168 critical IT MW under a 25-year lease with annual escalators, with delivery targeted for the second half of 2026.

WULF’s Expansion Plan & Momentum in 2026

Building on its strong 2025 execution, TeraWulf is expanding its infrastructure footprint to support long-term AI and HPC demand. After year-end, the company plans to acquire a site in Kentucky and another in Maryland. These strategically located brownfield sites will improve geographic diversification and grid access.

TeraWulf’s total platform is expected to scale to approximately 2.9 gigawatts (GW) of gross capacity across five sites, significantly strengthening its multi-regional development pipeline.

This expanded footprint supports a structured and disciplined growth plan, enabling the company to target annual delivery of 250-500 critical IT megawatts. This positions TeraWulf to scale alongside accelerating AI infrastructure demand while maintaining capital discipline and long-term contracted visibility.

WULF’s Balance Sheet Details

As of Dec. 31, 2025, WULF had cash, cash equivalents and restricted cash of $3.72 billion compared with $712.8 million as of Sept. 30, 2025.

Total assets increased to $6.56 billion as of Dec. 31, 2025, compared with $2.45 billion at the end of Sept. 30, 2025.

WULF’s Zacks Rank & Stocks to Consider

Currently, WULF carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Finance sector are Alpine Income Property Trust PINE, Brookfield Asset Management BAM and W.P. Carey WPC. While Alpine Income Property Trust and Brookfield Asset Management sport a Zacks Rank #1 (Strong Buy) each, W.P. Carey carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alpine Income Property Trust shares have gained 19.7% over the past year. PINE’s long-term earnings growth rate is projected at 7.00%.

Brookfield Asset Management shares have declined 12.8% over the past year. BAM’s long-term earnings growth rate is anticipated at 15.28%.

W.P. Carey shares have appreciated 15.7% over the past year. WPC’s long-term earnings growth rate is estimated to be 2.97%.

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This article originally published on Zacks Investment Research (zacks.com).

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