One-glance verdict
Overvalued
$-5.18 our estimate vs market $15.74
Wall Street consensus: $33.69 (-750.6% lower than our fair-value estimate)
404% below our estimate, beyond the bull case
Fundamentals snapshot
TeraWulf Inc.
WULF · NCM · Financial Services · Capital Markets
Current price
$15.74
52-week range
$10.47 - $29.84
Market cap
$7.85B
Balance sheet
Distressed
-2.12x Concerning
Net debt $2.62B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 1406.9% over 3 years.
- Risk Return on equity was -1211.8% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -285.1% to -307.0% over 3 years.
What this company does
TeraWulf Inc.
TeraWulf runs large facilities full of powerful computers that work to create new Bitcoin in a process called "mining." The company's revenue (the money it makes from its business activities) comes mainly from the new Bitcoin it is rewarded with for this work. Because mining uses a huge amount of electricity, TeraWulf's strategy focuses on using low-cost, clean energy sources to power its operations.
How the company got here
TeraWulf was founded in 2021 by people with a background in the energy industry, who saw an opportunity in the growing need for large amounts of electricity for computing. The company went public in late 2021 by merging with an existing publicly traded company, which is a faster way to get listed on a stock exchange. Initially focused on mining Bitcoin, TeraWulf built large data centers, which are buildings full of powerful computers, at locations with access to low-cost and often carbon-free power, like nuclear and hydropower. This focus on cheap, reliable energy has been a core part of its strategy from the beginning. Over time, the company realized that the same powerful infrastructure used for Bitcoin could also be used for other energy-hungry computing tasks, like artificial intelligence (AI).
What it actually does
Think of TeraWulf as a landlord for high-powered computers. The company builds and operates large facilities, called data centers, that provide the huge amounts of electricity and cooling needed to run thousands of specialized computers 24/7. Instead of selling a physical product you could buy in a store, it provides the essential digital infrastructure that powers technologies like Bitcoin and artificial intelligence. Customers either pay TeraWulf to run their own computers in these facilities or TeraWulf uses the computers itself to earn digital currency.
Bitcoin Mining
This was TeraWulf's original business and is still a key part of its operations. The company uses its own powerful, specialized computers (often called miners) to solve complex math problems. When it solves a problem, it helps to verify and secure the global Bitcoin network, and in return, it is rewarded with new Bitcoin. TeraWulf then sells this Bitcoin to make money. This segment's revenue (money earned) can change based on the price of Bitcoin and the difficulty of the math problems.
High-Performance Computing (HPC) and AI Hosting
This is a newer and rapidly growing part of TeraWulf's business. The company leases space in its data centers to other companies that need massive computing power for tasks like developing artificial intelligence. In this arrangement, the customer brings their own computers, and TeraWulf provides the secure building, electricity, cooling, and operational support. This business provides a more stable, predictable income through long-term lease agreements, similar to how a commercial landlord collects rent. Recently, the revenue from this segment has grown to be larger than the company's Bitcoin mining revenue.
What management is betting on now
Management is making a big bet that the demand for power-hungry artificial intelligence will continue to explode. They are strategically shifting from being just a Bitcoin miner to becoming a major provider of the essential infrastructure for AI and other high-performance computing (HPC) tasks. The company is focused on securing more large sites with access to massive amounts of low-cost power to build new data centers. By signing long-term leases with major tech companies, they aim to create more predictable and stable revenue streams, making the business less dependent on the volatile price of Bitcoin.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-41.65M
FY2024 Q4
$-196.36M
FY2025 Q1
$-37.20M
FY2025 Q2
$-174.75M
FY2025 Q3
$-268.26M
FY2025 Q4
$-703.16M
FY2026 Q1
$-540.54M
FY2026 Q2
$-992.27M
Revenue
$44.77M
Net income
$-939.92M
Diluted EPS
-1.94
Operating cash flow
$-136.71M
Free cash flow
$-992.27M
Fetching…
Sources
Revenue
$34.01M
Net income
$-427.63M
Diluted EPS
-1.01
Operating cash flow
$-17.59M
Free cash flow
$-540.54M
Fetching…
Sources
Revenue
$35.84M
Net income
$-126.58M
Diluted EPS
-0.32
Operating cash flow
$-88.17M
Free cash flow
$-703.16M
Fetching…
Sources
Revenue
$50.58M
Net income
$-455.05M
Diluted EPS
-1.13
Operating cash flow
$-36.69M
Free cash flow
$-268.26M
Fetching…
Sources
Revenue
$47.64M
Net income
$-18.37M
Diluted EPS
-0.05
Operating cash flow
$-54.81M
Free cash flow
$-174.75M
Fetching…
Sources
Revenue
$34.41M
Net income
$-61.42M
Diluted EPS
-0.16
Operating cash flow
$56.49M
Free cash flow
$-37.20M
Fetching…
Sources
Revenue
$140.05M
Net income
$-29.20M
Diluted EPS
-0.09
Operating cash flow
$-42.72M
Free cash flow
$-196.36M
Fetching…
Sources
Revenue
$27.06M
Net income
$-22.73M
Diluted EPS
-0.06
Operating cash flow
$-20.93M
Free cash flow
$-41.65M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-5.18 vs current price $15.74
Wall Street consensus is the average analyst price target: $33.69 (-750.6% lower than our fair-value estimate).
Our most-likely fair value is $-5.18 a share — about 132.9% below today's price of $15.74, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $2.6B. Interest coverage -2.1x.
Net debt
$2.62B
Interest coverage
-2.12x
TeraWulf Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
WULF
BASELINE
TeraWulf Inc.
Total debt $5.24B Interest coverage -2.12x This is the baseline the peer rows are being compared against.
Total debt $2.47B Interest coverage -16.99x Neither company has much profit cushion over interest right now.
Total debt $877.80M Interest coverage -14.22x Neither company has much profit cushion over interest right now.
Total debt $1.79B Interest coverage -9.44x Neither company has much profit cushion over interest right now.
Total debt $7.84B Interest coverage -6.39x Neither company has much profit cushion over interest right now.
Total debt $5.59B Interest coverage -9.23x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WULF
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 1406.9% over 3 years.
-
Return on equity was -1211.8% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -285.1% to -307.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-65.69x
P/B
53.36x
P/S
47.54x
EV/EBITDA
-38.66x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
69.3%
Operating margin
-307.0%
Net margin
0.0%
ROE
-1,211.8%
ROA
-4.8%
Health
Liquidity and balance-sheet strength
Debt / equity
35.50x
Current ratio
0.75x
Quick ratio
0.70x
Total debt
$5.24B
Total cash
$2.62B
Growth
How the business has been compounding
Revenue TTM
$165.19M
Revenue 5Y CAGR
74.4%
EPS TTM
-4.46
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-279.16M
Free CF TTM
$-1.18B
FCF margin
-716.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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