One-glance verdict
Overvalued
$-7.26 our estimate vs market $12.56
Wall Street consensus: $26.19 (-460.8% lower than our fair-value estimate)
273% below our estimate, beyond the bull case
Fundamentals snapshot
TeraWulf Inc.
WULF · NCM · Financial Services · Capital Markets
Current price
$12.56
52-week range
$9.51 - $29.84
Market cap
$6.30B
Balance sheet
Distressed
-2.12x Concerning
Net debt $3.66B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 13.3% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 1406.9% over 3 years.
- Risk Return on equity was -140.5% last year — the company lost money on shareholders' equity.
What this company does
TeraWulf Inc.
TeraWulf Inc. is a company that builds and runs facilities for digital activities like bitcoin mining (creating new digital currency) and powerful computer tasks, using clean and affordable energy. Their main income comes from these digital mining operations, which are important because they directly generate revenue from the value of the digital currency they mine. This business model means their success is tied to the price of bitcoin and the efficiency of their mining operations.
How the company got here
TeraWulf was founded in 2021 by individuals with backgrounds in the energy sector, aiming to build large-scale digital infrastructure powered by clean energy for bitcoin mining. The company went public in 2021 through a merger with IKONICS, which provided access to public markets. Early development focused on key mining sites in New York and Pennsylvania. As the digital asset market evolved, TeraWulf began to shift its strategic emphasis towards expanding its Lake Mariner site and diversifying into high-performance computing (HPC) and artificial intelligence (AI) hosting. This strategic pivot is rooted in the belief that access to power is a key constraint for the growing demand in AI compute.
What it actually does
TeraWulf builds and operates large data centers, which are essentially specialized buildings filled with powerful computers. These data centers are designed to handle intensive computing tasks. The company's core strategy involves securing access to large amounts of electricity at a low cost, and then using this power to run these specialized computers. This allows them to offer services for both digital asset mining, like Bitcoin, and for high-performance computing, which is used in fields like artificial intelligence.
Digital Asset Mining
This is TeraWulf's original business line, focused on mining digital assets, primarily Bitcoin. Bitcoin mining involves using powerful computers to solve complex mathematical problems. When these problems are solved, they help to validate transactions on the Bitcoin network, and the miners are rewarded with newly created Bitcoin. TeraWulf leverages its low-cost energy infrastructure to make this process more efficient. This segment accounted for approximately 90% of the company's revenue in 2025, though its share has been decreasing as the HPC segment grows.
HPC Leasing
This is a newer and rapidly growing part of TeraWulf's business. High-Performance Computing (HPC) involves using very powerful computers for complex calculations, often for tasks like artificial intelligence (AI) and machine learning. TeraWulf leases out space and power in its data centers to companies that need this computing power. In the second quarter of 2026, HPC leasing generated $31.9 million in revenue, making up about 71% of TeraWulf's total revenue for that period. This segment is seen as a more stable and potentially higher-margin revenue stream compared to Bitcoin mining.
What management is betting on now
TeraWulf's management is focused on leveraging its power-advantaged infrastructure to capture the growing demand for AI and high-performance computing. Their strategy involves securing long-term contracts with creditworthy customers for data center capacity, aligning capital deployment with this contracted demand, and executing development in phases. They are actively expanding their data center footprint and aiming to secure significant new IT capacity annually. This strategic shift aims to create a more stable and predictable revenue stream by focusing on the power needs of advanced computing, which they believe is a key bottleneck for the AI industry.
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 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
FY2026 Q3
$-876.92M
Revenue
$76.23M
Net income
$709.91M
Diluted EPS
-0.03
Operating cash flow
$-24.65M
Free cash flow
$-876.92M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $-7.26 vs current price $12.56
Wall Street consensus is the average analyst price target: $26.19 (-460.8% lower than our fair-value estimate).
Our most-likely fair value is $-7.26 a share — about 157.8% below today's price of $12.56, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $3.7B. Interest coverage -2.1x.
Net debt
$3.66B
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 $5.26B Interest coverage -2.12x This is the baseline the peer rows are being compared against.
Total debt $3.08B Interest coverage -16.99x Neither company has much profit cushion over interest right now.
Total debt $689.66M 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 $10.22B Interest coverage -6.39x Neither company has much profit cushion over interest right now.
Total debt $5.62B Interest coverage -9.23x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WULF
2 Rewards
2 Risks
Rewards
-
Revenue grew 13.3% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 1406.9% over 3 years.
-
Return on equity was -140.5% last year — the company lost money on shareholders' equity.
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
-34.94x
P/B
7.23x
P/S
33.01x
EV/EBITDA
-30.37x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
69.2%
Operating margin
-87.8%
Net margin
0.0%
ROE
-140.5%
ROA
-4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
6.04x
Current ratio
0.97x
Quick ratio
0.76x
Total debt
$5.26B
Total cash
$1.60B
Growth
How the business has been compounding
Revenue TTM
$190.84M
Revenue 5Y CAGR
74.4%
EPS TTM
-1.69
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-267.12M
Free CF TTM
$-1.18B
FCF margin
-620.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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