Key financial results
- Revenue for the third quarter was $76.2 million compared with $44.8 million in the second quarter.
Revenue for the third quarter was $76.2 million compared with $44.8 million in the second quarter
- GAAP net income attributable to TeraWulf was $709.9 million compared with a net loss of $939.9 million in the second quarter.
GAAP net income attributable to TeraWulf was $709.9 million compared with a net loss of $939.9 million in the second quarter.
- Non-GAAP adjusted EBITDA was negative $12.8 million compared with negative $18.3 million in the second quarter.
Non-GAAP adjusted EBITDA was negative $12.8 million compared with negative $18.3 million in the second quarter.
- Cash and restricted cash totaled approximately $2.4 billion as of September 30.
Cash and restricted cash totaled approximately $2.4 billion as of September 30.
Business segment results
- HPC: HPC lease revenue increased 97% quarter-over-quarter to $63.0 million from $31.9 million and represented approximately 83% of total revenue.
HPC lease revenue increased 97% quarter-over-quarter to $63.0 million from $31.9 million and represented approximately 83% of total revenue.
- HPC: HPC revenue consisted primarily of $46.0 million of rent, $11.3 million of tenant fit-out revenue and $5.4 million of power pass-through revenue.
HPC revenue consisted primarily of $46.0 million of rent, $11.3 million of tenant fit-out revenue and $5.4 million of power pass-through revenue.
- HPC Leasing: Reported HPC Leasing segment profit margin was approximately 17% during the quarter compared with our long-term target of approximately 85%.
Reported HPC Leasing segment profit margin was approximately 17% during the quarter compared with our long-term target of approximately 85%.
Capital allocation
- At the justified data campus, the company contributed approximately $550 million of equity as of September 30.
At the justified data campus, we have contributed approximately $550 million of equity as of September 30
- Approximately $2.9 billion of project capital expenditures have been completed with approximately $1 billion remaining.
Approximately $2.9 billion of project capital expenditures have been completed with approximately $1 billion remaining.
Industry trends and dynamics
- Demand for compute remains extremely strong, and deliverable power remains scarce.
Competitive landscape
- Management stated that TeraWulf is an energy infrastructure company rather than a neocloud.
TeraWulf is not a neocloud. We are an energy infrastructure company.
Macroeconomic environment
- Management noted significant volatility across AI infrastructure driven by higher financing costs and leverage.
There has obviously been significant volatility across AI infrastructure. Investors are focused on higher financing costs, leverage
Growth opportunities and strategies
- Management remains confident in the target of contracting an incremental 250 to 500 megawatts of critical IT capacity annually.
we remain confident in our target of contracting an incremental 250 to 500 megawatts of critical IT capacity annually.
Financial guidance and outlook
- Management expects to exit the first quarter with approximately $700 million of annualized run rate leasing revenue.
we expect to exit the quarter with approximately $700 million of annualized run rate leasing revenue.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $76.2 million | Compared with $44.8 million in the second quarter |
| HPC lease revenue | $63.0 million | Increased 97% quarter-over-quarter from $31.9 million |
| GAAP net income attributable to TeraWulf | $709.9 million | Compared with a net loss of $939.9 million in the second quarter |
| Non-GAAP adjusted EBITDA | Negative $12.8 million | Compared with negative $18.3 million in the second quarter |
| Cash and restricted cash | $2.4 billion | As of September 30 |
How management sounded
Balanced (+30 on our -100 to +100 scale). Management expressed strong confidence in their execution capabilities, strategic positioning, and growing contracted revenue profile supported by investment-grade credit. Management sounded more upbeat than on 16% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Execution and readiness of Lake Mariner data halls CB-4 and CB-5 through Q4 2026 and Q1 2027.
- Regulatory approval proceedings for the 760-megawatt CCGT project with Kentucky Power expected by mid-2027.
- Finalization of project-level debt financing for the Justified data campus.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Balanced: TeraWulf reported second quarter revenue of $44.8 million driven by high-power compute expansion and reaffirmed its annual critical IT capacity contracting targets.
