TeraWulf Inc.

Revenue was $44.8 million in Q2 versus $34.0 million in Q1. HPC lease revenue increased 52% quarter over quarter to $31.9 million and represented approximately 71% of total revenue. Cost of revenue, excluding depreciation, was $12.4 million versus $2.4 million in Q1; operating expenses were $23.4 million versus $11.2 million; SG&A was $126.9 million versus $127.8 million, and adjusted SG&A was $28.6 million versus $26.3 million. Reported HPC leasing segment profit margin was approximately 28%, while adjusted for tenant fit-out revenue/costs, pre-revenue operating costs and development costs, margin was approximately 80%. GAAP net loss attributable to TeraWulf was $939.9 million versus $427.6 million in Q1, and non-GAAP adjusted EBITDA was negative $18.3 million versus negative $4.1 million. Cash and restricted cash were about $3.0 billion at June 30; unrestricted parent cash was about $1.2 billion, rising to about $1.45 billion after the initial $250 million Abernathy payment. At WULF Compute, gross cash was about $1.9 billion, or about $1.5 billion net of reserves and construction accounts. Management said approximately $2.3 billion of project capex has been completed with about $1.7 billion remaining, and total project cost is now estimated at about $9.1 million per megawatt. Forward-looking items included CB-4 initial delivery in late September, CB-5 energization in very early January, more than $500 million of incremental lease revenue from the FluidStack amendments, and no need to access the equity markets based on current liquidity and expected Abernathy proceeds.

Paul Prager framed the quarter as one of execution and expansion: CB-3 was delivered, Lake Mariner is converting contracted capacity into recurring revenue, and the company added another major lease in Kentucky with Anthropic. He emphasized TeraWulf’s model of controlling power-secured infrastructure, contracting with high-quality customers, delivering in phases, and recycling capital into larger opportunities it directly controls. His tone was confident and strategic, but he repeatedly stressed discipline, power control, and execution certainty over pure growth for growth’s sake.

Patrick Fleury focused on the financial profile shifting toward long-duration contracted HPC revenue. He highlighted the $44.8 million of Q2 revenue, the 52% jump in HPC lease revenue to $31.9 million, the approximately 28% reported HPC leasing margin and approximately 80% adjusted margin, and the very large noncash Google warrant loss of $755.7 million that drove the GAAP net loss. He also pointed to strong liquidity, including about $3.0 billion of cash and restricted cash, about $1.45 billion of unrestricted parent liquidity after the initial Abernathy payment, and about $1.5 billion of gross cash at WULF Compute net of reserves and construction accounts. On capital allocation, he said current liquidity plus expected Abernathy proceeds should fund remaining Lake Mariner commitments, planned Justified equity, Muskie letter-of-credit needs, Chesapeake, and other new sites without equity issuance, while keeping leverage conservative.

Analysts pressed on utility partnerships, tenant credit quality, pipeline size, labor constraints, political/regulatory risk, and financing. Management said utility partners such as Kentucky Power are effectively solving for load and generation separately, while TeraWulf focuses on transmission commitments, energy backstops, and credit support; they also said the company prefers direct deals with high-quality counterparties and expects tenant diversification over time. On pipeline and execution, management said 250 to 500 megawatts annually is the current operating bound because labor, contractor capacity, and financing are real constraints, though it sees strong demand for later-year capacity, especially around Muskie. On financing, Patrick said future projects will follow a project-finance style structure with conservative leverage rather than being 95% to 100% levered, and that Hawesville and Muskie will likely be financed in debt markets, with Muskie likely in the first half of next year.