TeraWulf Inc. reported a GAAP loss of $1.13 per share for the third quarter of 2025, while revenue totaled $50.58 million—below the consensus estimate of $55.7 million. The earnings miss was driven by a $1.09‑per‑share shortfall against the $-0.04 consensus EPS, reflecting the company’s heavy investment in high‑performance computing (HPC) infrastructure.
Revenue was largely driven by Bitcoin mining, which generated $43.38 million, and a nascent HPC segment that added $7.20 million. Cost of revenue rose to $17.10 million from $14.70 million in the same quarter a year earlier, pushing the gross margin to 15.5% from 18.5%. The higher cost of revenue reflects the capital‑intensive build‑out of new data‑center capacity at Lake Mariner and the associated operating expenses.
Year‑over‑year, revenue surged 87% from $27.10 million in Q3 2024, and quarter‑over‑quarter it grew 5.5% from $47.60 million in Q2 2025. Despite the strong growth, the results fell short of consensus estimates, underscoring the impact of the company’s transition from a mining‑centric model to a diversified HPC and AI hosting portfolio.
Management reiterated its guidance for continued expansion of HPC capacity and reaffirmed its long‑term strategy to leverage low‑carbon power assets. The company secured $5.2 billion in financing, expanded its partnership with Fluidstack and Google, and launched the Abernathy joint venture, all of which position TeraWulf for higher‑margin, contract‑based revenue streams.
Market reaction was mixed, with investors weighing the company’s strategic progress against the earnings miss. Headwinds include the ongoing investment costs and margin compression, while tailwinds stem from strong demand for HPC services and the company’s low‑carbon power advantage.
"I’m proud to report that with the benefit of our new financial support from Google and help of our partners, we’ve executed beyond our expectations, raising over $5.2 billion at attractive rates, creating durable equity value for our shareholders," said Paul Prager, Co‑Founder, Chairman & CEO.
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