TeraWulf (WULF) - 2025 Q2 - Quarterly Results

TeraWulf Second Quarter 2025 Results Operational and Financial Highlights The company's revenue grew 34% YoY to $47.6 million, while Adjusted EBITDA decreased due to the halving event and higher power costs - The company is on schedule to deliver 72.5 MW of gross HPC hosting infrastructure to Core42 in 2025 and is targeting 200–250 MW operational by year-end 2026[2] - The decrease in self-mined bitcoin and increase in power cost per bitcoin were primarily attributed to the April 2024 halving event, rising network difficulty, and short-term power price volatility[7] Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Revenue | $47.6M | $35.6M | +33.7% | | Adjusted EBITDA | $14.5M | $19.5M | -25.6% | | BTC Mining Capacity (EH/s) | 12.8 | 8.8 | +45.5% | | Bitcoin Self-Mined | 485 | 699 | -30.6% | | Power Cost per Bitcoin | $45,555 | $22,954 | +98.5% | Management Commentary Management emphasized its dual strategy of developing digital infrastructure for HPC hosting and proprietary Bitcoin mining - The company is executing a strategy to develop scalable digital infrastructure for both HPC hosting and Bitcoin mining[9] - Significant progress has been made on the 72.5 MW HPC capacity for Core42, with revenues expected to begin in Q3 2025[9] - TeraWulf has secured interconnection approval to draw 500 MW from the grid at Lake Mariner, with pending approvals to reach up to 750 MW, positioning the company to meet strong demand[9] Financial Performance Analysis Revenue grew 34% to $47.6 million, while higher costs led to an increased net loss of $18.4 million for the quarter - The 34% increase in revenue was driven by a higher average bitcoin price and expanded mining capacity[10] - The 59% increase in cost of revenue was attributed to greater infrastructure utilization and slightly higher power costs in Upstate New York[10] Q2 2025 vs Q2 2024 Income Statement Highlights | Metric ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $47.6 | $35.6 | | Cost of Revenue (excl. depr.) | $22.1 | $13.9 | | Operating Loss | $(15.6) | $(6.8) | | Net Loss | $(18.4) | $(10.9) | Financial Position and Liquidity The company held $90.0 million in liquid assets against approximately $500.0 million in total outstanding debt as of June 30, 2025 - As of August 6, 2025, TeraWulf had 391,926,373 shares of common stock outstanding[12] Liquidity and Capitalization as of June 30, 2025 | Item | Amount | | :--- | :--- | | Cash, Cash Equivalents & Bitcoin | $90.0 million | | Total Outstanding Debt | ~$500.0 million | Consolidated Financial Statements This section presents the unaudited consolidated balance sheets, statements of operations, and statements of cash flows Consolidated Balance Sheets Total assets grew to $869.4 million, while total stockholders' equity declined to $174.3 million from year-end 2024 Balance Sheet Comparison ($ in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $89,993 | $274,065 | | Property, plant and equipment, net | $604,760 | $411,869 | | Total Assets | $869,408 | $787,511 | | Total current liabilities | $151,304 | $51,845 | | Convertible notes | $488,716 | $487,502 | | Total Liabilities | $695,076 | $543,066 | | Total Stockholders' Equity | $174,332 | $244,445 | Consolidated Statements of Operations The company reported a net loss of $18.4 million, or ($0.05) per share, on revenues of $47.6 million for the quarter Q2 Statement of Operations Summary ($ in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $47,636 | $35,574 | | Total costs and expenses | $63,226 | $42,339 | | Operating loss | $(15,590) | $(6,765) | | Net loss | $(18,370) | $(10,876) | | Loss per common share | $(0.05) | $(0.03) | Consolidated Statements of Cash Flows Net cash from operations was $1.7 million, while investing and financing activities resulted in a net cash decrease of $182.6 million Cash Flow Summary for Six Months Ended June 30, 2025 ($ in thousands) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,677 | | Net cash used in investing activities | $(132,096) | | Net cash used in financing activities | $(52,228) | | Net change in cash and cash equivalents | $(182,647) | Non-GAAP Financial Measures The company reported Adjusted EBITDA of $14.5 million, a decrease from $19.5 million in the prior-year quarter - The company defines non-GAAP "Adjusted EBITDA" as net loss adjusted for items including interest, taxes, depreciation, and other non-core items to allow for more meaningful comparisons of its core business[26][27] Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA ($ in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(18,370) | $(10,876) | | Adjustments (Interest, Depreciation, etc.) | $32,901 | $30,402 | | Non-GAAP Adjusted EBITDA | $14,531 | $19,526 |