TeraWulf Inc. (NASDAQ: WULF) delivered a bruising fourth-quarter report this week, missing Wall Street expectations on both revenue and earnings as a prolonged slide in Bitcoin prices ate into the company's core mining business.
Key Takeaways
Q4 revenue and earnings missed expectations as Bitcoin’s drop hit mining income hard.
Mining revenue fell sharply quarter over quarter, driving a wider net loss.
Full-year revenue still grew 20%, despite a large GAAP loss driven mostly by non-cash items.
AI/HPC leasing revenue increased and remains the core growth focus.
Analysts stayed bullish, betting on the AI transition over short-term mining weakness.
The results, released February 26, capped a year of dramatic contrasts for the Easton, Maryland-based miner — strong annual growth on one hand, a deteriorating quarterly picture on the other.
A Rough Quarter by Any Measure
For the three months ended December 31, 2025, TeraWulf reported revenue of $35.8 million, well short of the $44.1 million analysts had penciled in. The loss per share came in at $1.66 — a stark departure from the $0.16 loss the market had anticipated.
The culprit was hard to miss. Bitcoin, which had traded near $125,000 in early October, had lost more than half its value by February 2026, hovering around $60,000. That collapse hit digital asset mining revenue hard, which fell to $26.1 million in Q4 from $43.4 million the prior quarter.
The full-year GAAP net loss widened to $661.4 million, though the bulk of that figure — some $429.8 million — stemmed from non-cash fair value adjustments on warrants and higher depreciation charges rather than operating losses alone.
Annual revenue, for its part, told a different story: $168.5 million for 2025, up 20% from the year prior.
Betting on AI
TeraWulf has been vocal about its ambitions beyond Bitcoin, and the Q4 report gave management another platform to press that case. High-performance computing lease revenue — the segment tied to AI infrastructure — rose to $9.7 million in Q4, up from $7.2 million the previous quarter, offering a rare bright spot in an otherwise difficult print.
The company says it secured $12.8 billion in long-term AI and HPC lease contracts during 2025, a figure that has become central to its investor pitch. To support that buildout, TeraWulf completed $6.5 billion in debt and equity-linked financing last year and is pursuing new site acquisitions in Kentucky and Maryland that would, if completed, double its total capacity to 2.8 gigawatts.
The company ended the year with $3.7 billion in total cash and restricted cash — a sizable buffer as it heads into what promises to be a capital-intensive period.
Wall Street Shrugs Off the Miss
Shares slipped roughly 1.5% to 3.8% in early trading following the report, a muted reaction given the size of the earnings shortfall. Over the past twelve months, WULF has gained more than 300%, a run largely credited to investor enthusiasm around its AI transition.
Several analysts held their ground. Rosenblatt raised its price target to $23.00 per share following the results, while Compass Point maintained a buy-equivalent rating with a $28.00 target. Both firms pointed to the HPC business as the reason to look past the mining weakness.
Whether that confidence holds will depend in large part on how quickly TeraWulf can shift its revenue mix — and whether Bitcoin cooperates along the way.
