Abstract

TeraWulf Inc. will report fiscal results on February 26, 2026, Post Market; this preview summarizes last quarter’s actuals and the current quarter’s projections, highlighting revenue, margins, and adjusted EPS alongside consensus directional expectations and media commentary through February 19, 2026.

Market Forecast

Market expectations point to a modest sequential reset but year-over-year expansion in the current quarter. Based on the company’s latest forecast set for the quarter, revenue is estimated at $45.78 million with an estimated year-over-year growth of 21.58%; forecast EBIT is -$23.17 million with an estimated year-over-year contraction of 138.67%; forecast EPS is -$0.14 with an estimated year-over-year contraction of 298.08%. The latest quarter’s gross profit margin was 66.15%, and the net profit margin was not disclosed; the company posted a net loss attributable to shareholders last quarter and a negative adjusted EPS; no explicit current-quarter guidance for gross margin, net margin, or adjusted EPS was provided beyond the forecasts. The main business is concentrated in digital asset operations, contributing $43.38 million last quarter, and high-performance computing leasing, contributing $7.20 million. The most promising segment remains digital asset operations given its scale and sensitivity to network hash rate and asset prices; last quarter its revenue base was $43.38 million, and management’s internal forecast implies a year-over-year revenue lift of 21.58% at the consolidated level.

Last Quarter Review

In the previous quarter, TeraWulf Inc. reported revenue of $50.58 million, a gross profit margin of 66.15%, a GAAP net loss attributable to the parent company of $455.00 million, and an undisclosed net profit margin; adjusted EPS was -$0.08, and revenue grew 86.92% year over year while adjusted EPS improved versus consensus but remained negative. Net profit fell sharply quarter on quarter as reflected by a quarter-on-quarter change of -2,377.14%, likely reflecting non-cash or one-time charges against earnings and continued investment intensity. Operationally, the revenue mix was led by digital asset operations at $43.38 million and high-performance computing leasing at $7.20 million, underscoring the company’s concentration in core mining-related activities and an emerging contribution from leasing services; the breadth of growth was skewed toward the digital asset segment on a larger base.

Current Quarter Outlook

Main business: Digital asset operations

The company’s core digital asset operations anchor group revenue and margin dynamics. With last quarter’s gross profit margin at 66.15%, the profitability of mining remains largely a function of realized coin prices, network difficulty, power price hedging, and fleet efficiency. For the current quarter, the revenue estimate of $45.78 million suggests a year-over-year expansion of 21.58%, though sequential revenue appears set to normalize from the prior quarter’s $50.58 million, consistent with variability in network hash rate, block rewards, and curtailment during peak power periods. The negative EBIT forecast of -$23.17 million and the projected EPS of -$0.14 indicate that, while gross profitability is supportive, operating leverage and depreciation tied to the fleet and infrastructure continue to weigh on bottom-line metrics. Investors should monitor operating uptime, energy cost per MWh, and any fleet upgrades that could shift the efficiency curve and reduce unit costs; improvements here would be the most direct lever for narrowing the EBIT loss despite a potentially choppy top line.

Most promising business: High-performance computing leasing

The high-performance computing leasing segment contributed $7.20 million last quarter and remains a smaller but potentially diversifying revenue stream. While not large enough to drive group-level results alone, leasing can provide steadier utilization-based revenue, partially offsetting the cyclicality inherent in digital asset operations. The expansion of this line depends on demand for compute capacity from enterprise and AI workloads and the company’s ability to secure power at competitive rates while offering reliable uptime. In the near term, the segment’s revenue trajectory will likely track incremental deployments and customer onboarding pace; should the company successfully add contracted capacity, the leasing business could gradually lift consolidated gross margins and dampen earnings volatility by adding more predictable cash flows.

Factors most impacting the stock this quarter

Margin trajectory versus revenue normalization will be central to investor reaction. With gross margin previously at 66.15% and EBIT forecast remaining negative, the market will gauge whether operating costs, depreciation, and overhead are stabilizing relative to revenue. Any update on efficiency enhancements—such as higher-performance rigs, improved power contracts, or curtailment strategies—could materially shift the earnings path. Another focus will be cash burn and balance-sheet flexibility given the persistent EBIT loss profile; clarity around capex cadence and funding could influence sentiment. Finally, segment mix and forward commentary on leasing pipeline versus mining capacity expansion will help frame the resilience of revenue and margins through different pricing and difficulty regimes, affecting expectations for the path back toward breakeven EPS.

Analyst Opinions

Across recent institutional commentary captured through February 19, 2026, the majority view skews cautiously positive, citing ongoing year-over-year revenue growth and improving operating efficiency, while acknowledging that EBIT and EPS remain negative and sensitive to external conditions. Bullish analysts emphasize that a 21.58% year-over-year revenue estimate provides a supportive growth backdrop for scale benefits to materialize as newer infrastructure ramps and as the company refines power management, suggesting potential for sequential margin stabilization even if revenue moderates from the prior quarter’s level. They also point to the contribution from high-performance computing leasing as an early-stage hedge against mining cyclicality, a factor that could help smooth revenue and bolster gross margin durability over time. On the same theme, optimistic views highlight that the company’s gross profit margin of 66.15% last quarter evidences a favorable unit economics base from which to drive operating improvements, particularly if fleet efficiency measures reduce energy intensity per hash. In this framework, price targets and ratings reflect a bias toward the upside case that EBIT losses can narrow as the installed base scales and as potential operating adjustments take effect. The bullish majority acknowledges risks from volatile asset prices and network difficulty but frames them against the tangible year-over-year growth trajectory embedded in the current-quarter revenue estimate and the strategy to broaden leasing revenues. Overall, the prevailing perspective expects the February 26, 2026, Post Market release to reaffirm the growth trend while setting a clearer path toward better operating leverage in coming quarters.