TLDR
- WULF jumps 7% but drops 8% after hours on weak EBITDA outlook
- TeraWulf shifts to HPC as debt hits $5.8B and pressures sentiment
- Revenue seen at $30M–$35M as after-hours selling intensifies
- HPC growth rises, but leverage concerns trigger late selloff
- Liquidity improves, yet debt load weighs on WULF price action
TeraWulf (WULF) stock gained strongly during regular trading but reversed sharply after hours amid financial updates. The stock closed at $20.95, rising 7.71%, before falling to $19.24, down 8.16%. The move signaled late-session selling pressure following the company’s preliminary first-quarter results.
Financial Performance and Revenue Outlook
TeraWulf Inc. reported preliminary first-quarter 2026 revenue between $30 million and $35 million. Adjusted EBITDA is expected between $0 million and $3 million. Therefore, the figures reflect limited profitability despite ongoing infrastructure expansion.
The company confirmed that results remain unaudited and subject to final adjustments. However, management continues internal reviews and accounting procedures ahead of the official release. Final results may differ from current estimates when published in May 2026.
TeraWulf highlighted a shift in revenue composition toward high-performance computing hosting. More than half of revenue now comes from HPC-related operations. Hence, the company continues transitioning from traditional mining to contracted compute services.
Debt Structure and Liquidity Position
TeraWulf reported $3.1 billion in cash, cash equivalents, and restricted cash as of March 31, 2026. However, total debt reached $5.8 billion across multiple instruments. The balance sheet reflects a high leverage position despite strong liquidity reserves.
The debt includes $2.5 billion in convertible notes and $3.2 billion in senior secured notes.The company holds $100 million in delayed-draw bridge loans tied to Kentucky subsidiaries. Consequently, financing obligations remain significant relative to revenue expectations.
TeraWulf secured allocations for a revolving credit facility of up to $250 million. The facility is expected to mature in April 2030 and support working capital needs. Hence, the credit line aims to strengthen liquidity and fund ongoing operations.
Expansion Strategy and Operational Progress
TeraWulf continues expanding its infrastructure footprint with new data center developments. The company confirmed full delivery of CB-2 capacity across its Wulf Den, CB-1, and CB-2 sites. Therefore, all deployed capacity now contributes to revenue generation.
The company plans to fund the equity portion of its Kentucky data center project. The improved liquidity position supports near-term capital requirements and expansion goals. Consequently, management maintains focus on scaling compute capacity throughout 2026.
TeraWulf emphasized its transition toward stable, contracted revenue streams. HPC hosting agreements with creditworthy counterparties drive this shift. Hence, the company aims to reduce volatility linked to traditional mining operations.
The after-hours decline reflects market reaction to the company’s financial structure and outlook. While revenue diversification continues, debt levels and modest EBITDA projections weigh on sentiment. Therefore, price action highlights the balance between growth strategy and financial pressure.
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