TeraWulf reports US$76.2M revenue as HPC leases dominate sales
Lease revenue reached US$63 million, but a non-cash warrant adjustment boosted profit and Justified still faces project financing.
Julian Okafor
Data-centre leases now generate about 83 per cent of quarterly sales at a business that still operates bitcoin mines. TeraWulf Inc. NASDAQWULF, a U.S. developer and operator of power-backed computing infrastructure, reported third-quarter revenue of US$76.2 million on Friday.
The Nov. 6 release reported approximately US$709.9 million in net income, benefiting from a non-cash change in the fair value of warrants. Its non-GAAP adjusted EBITDA was negative US$12.8 million, separating the headline profit from the company's adjusted operating measure.
The NASDAQWULF quote records a US$12.53 close at 4:00 p.m. EST on Nov. 3. That quote predates Friday's results and does not establish a market reaction to them.
The next operating milestone is phased delivery and rent commencement at Lake Mariner's CB-4 building during the fourth quarter of 2026. The company ended September with approximately US$2.4 billion of cash, cash equivalents and restricted cash combined, while a separate Kentucky development still requires anticipated project financing.
Lease Revenue Nearly Doubled From June
HPC lease revenue reached US$63 million in the quarter ended Sept. 30. That compares with approximately US$31.9 million in the quarter ended June 30, according to TeraWulf's second-quarter income statement, showing how operating leases are changing its sales mix.
Total revenue in the June quarter was approximately US$44.8 million. The September quarter's lease contribution accounts for most of the increase, while TeraWulf continues to operate mining infrastructure at its New York campus and repurpose portions for contracted computing development.
The Nov. 6 release attributes the large reported net profit to a benefit from warrant remeasurement, rather than presenting that profit as rental cash generation. It also reports a US$95 million gain from selling its majority interest in the Abernathy joint venture during the quarter.
At Lake Mariner, TeraWulf had 102 megawatts of revenue-generating critical IT capacity operating at Sept. 30. Another 336 megawatts were under construction across CB-4 and CB-5, so most of that combined operating and construction capacity had yet to reach service.
Quarter-End Cash Includes Restricted Balances
The September cash headline combines unrestricted and restricted categories. It therefore cannot be treated as a statement that US$2.4 billion is freely available for every construction project.
The Abernathy disposal supplied US$250 million in cash during the September quarter. TeraWulf expects another US$150 million on or before Dec. 31, 2026. Approximately US$130 million, subject to adjustments, is due on or before April 30, 2027.
Those future instalments were not September cash receipts. The Nov. 6 update also says TeraWulf increased revolving credit commitments to US$400 million from US$250 million after quarter-end.
An additional US$150 million accordion is uncommitted and conditional. It is a possible expansion of financing capacity, rather than cash already raised or a lender commitment already secured.
“We ended the quarter with substantial liquidity and further strengthened our financial flexibility through the Abernathy monetization and expansion of our revolving credit facility,” TeraWulf chief financial officer Patrick Fleury said in the Nov. 6 release.
TeraWulf's Nov. 4 financing and construction update described credit support for anticipated debt financing at Justified. Credit support and completed borrowing remain separate steps, so that announcement did not establish that the entire development had been funded.
The results follow Mugglehead's report on the Justified lease financing framework. Friday's recognized lease revenue adds an operating result to that construction story. TeraWulf's lease with privately held Anthropic, its AI customer at Justified, totals approximately US$19 billion over an initial 20-year term.
Read more: TeraWulf secures Google credit support for US$19B Anthropic lease
Delivery Dates Separate Sales From Contracted Capacity
Justified's lease covers approximately 401 megawatts of critical IT capacity. TeraWulf expects phased ready-for-service completions to begin in late 2027 and continue through the second quarter of 2028.
The Nov. 4 update also said guaranteed maximum construction pricing was being established as engineering and procurement progressed. That leaves financing terms, final pricing and physical delivery as distinct execution tests before the contracted development becomes an operating asset.
Friday's update reaffirmed a target of contracting 250 to 500 megawatts of additional critical IT capacity annually. That is a contracting target, rather than guidance that the same capacity will enter service each year.
The nearest test comes at TeraWulf's Nov. 6 earnings call, scheduled for 8 a.m. EST. Beyond that call, CB-4's fourth-quarter rent commencement and CB-5's targeted early-2027 phased delivery will test how quickly construction adds recognized lease revenue.
