TeraWulf 2025 Q3 Earnings Record Net Loss Widens 1901.7% Despite 87% Revenue Surge

TeraWulf (WULF) reported Q3 2025 results marked by an 87% year-over-year revenue increase to $50.58 million, outpacing 2024 Q3’s $27.06 million. However, the company’s net loss widened to $455.05 million (1901.7% increase) and EPS fell to -$1.13 (1783.3% wider loss), missing consensus estimates by $1.09. Post-earnings, shares dropped 12.2% as analysts cited the steep net margin loss (-91.42%) and unfavorable Zacks Rank #4 (Sell).

Revenue

Digital asset revenue accounted for the majority at $43.38 million, while HPC lease revenue contributed $7.20 million, totaling $50.58 million in total revenue. The 86.9% year-over-year growth was driven by Bitcoin’s average price nearly doubling to $114,390 from $61,023, despite mining 377 Bitcoin (vs. 555 in 2024 Q3).

Earnings/Net Income

TeraWulf’s losses deepened to $1.13 per share in 2025 Q3 from $0.06 in 2024 Q3, while the net loss surged to $455.05 million from $22.73 million. The 1901.7% increase in losses underscores operational challenges despite revenue growth.

Post-Earnings Price Action Review

Following the earnings release, WULF shares tumbled 10.81% during the latest trading day, 17.59% for the week, and 8.44% month-to-date. The stock closed at $14.30 after-hours, down 2.5% from its $14.85 intraday high. Analysts noted the sharp decline aligned with the Zacks Rank’s “Sell” rating, reflecting investor skepticism over the widened losses and uncertain guidance.

CEO Commentary

CEO Paul Prager highlighted strategic progress, including a 360 MW HPC agreement with Fluidstack (backstopped by Google) and $3.2 billion in secured financing for Lake Mariner. He emphasized operational milestones like first HPC revenues and disciplined expansion via partnerships, expressing confidence in scaling the platform through power, permitting, and strategic alliances.

Guidance

Prager outlined ambitious HPC signing targets of 250–500 MW/year (up from 100–150 MW) and Abernathy JV potential (168–600 MW). The company expects normalized HPC margins (~85%) in Q4 2025 and continued Bitcoin mining through 2026, contingent on grid availability. Patrick Fleury reiterated $8–10 million/MW CAPEX guidance for Abernathy, with $1.3 billion in Google credit support.

Additional News

1. M&A Activity: TeraWulf secured $3.2 billion in senior secured notes for Lake Mariner data center expansion, funded by proceeds from three 10-year lease agreements with Fluidstack totaling $6.7 billion.

2. Partnerships: A 360 MW HPC agreement with Fluidstack, backed by Google, expanded TeraWulf’s footprint in the Southwest Power Pool via the Abernathy joint venture.

3. Insider Transactions: Director Amanda Fabiano sold 4,600 shares in August, reducing her ownership by 10.14%, valued at $39,744. This follows Google’s acquisition of 41 million shares (8% equity stake) through Fluidstack lease obligations.

TeraWulf’s Q3 results highlight a critical juncture as the company pivots from Bitcoin mining to AI infrastructure. While revenue surged, the steep losses and volatile stock price underscore the risks of scaling high-margin HPC operations. Analysts remain divided, with a “Moderate Buy” average rating and a $17.67 price target, though insiders own 19.9% of shares. The path forward hinges on executing $8–10 million/MW CAPEX plans and leveraging Google’s credit support to stabilize margins.