TeraWulf Inc. Q4 FY2025 earnings call

• 2025 was a defining year for transitioning to a scaled AI infrastructure platform. Acquired Beowulf electricity and data, secured site control at Cayuga, signed large lease with Fluidstack, and replicated model in Texas. • Delivered WolfDen, CB1, CB2A, with CB2B expected online in March. CB3 expected in mid-May, CB4 and CB5 on schedule. Abernathy joint venture on track. • Focus on disciplined delivery, managing scope, timing, and cost. Design optimization increased critical IT capacity and lease revenue.

In 2025, revenue was $168.5 million, up 20% from 2024. HPC lease revenue increased to $16.9 million for the full year, with Q4 HPC lease revenue at $9.7 million. Cost of revenue increased due to higher power prices. Operating expenses rose with platform scaling. Depreciation and interest expense increased. Non-GAAP-adjusted EBITDA was negative $23.1 million in 2025. The HPC leasing segment is ramping, with contracted revenue shifting from volatile Bitcoin mining revenue.

• Targeted 250 to 500 megawatts of contracted capacity annually through the end of the decade. • CB4 and CB5 have targeted lease commencement dates of third quarter and fourth quarter of 2026 respectively. • Kentucky site targets 480 megawatts online in the second half of 2027. • Expect FERC approval for Morgantown within three to six months.

• Non-cash fair value adjustments related to Google Warrant and non-cash depreciation impacted financial results. • Abernathy Joint Venture has not yet commenced operations and has a net loss. • Changes in market conditions, power prices, and regulatory approvals could impact execution and financial performance.

Q: Mike Rondal asked about Kentucky site details and Maryland site strengths.

A: Paul Prager discussed Kentucky site's strong reception, immediate power availability, and active discussions with hyperscalers. Nazir Khan talked about Maryland site's power and generation aspects, aligning with market trends.

Q: Tim Horan asked about Kentucky site pricing and construction schedule.

A: Paul Prager and Nazir Khan spoke about labor, procurement, and unlevered yield considerations.

Q: Chris Bendler asked about PUE and battery power.

A: Nazar Khan explained PUE factors and battery storage's role in making sites net energy suppliers.

Q: Nick Giles asked about Cayuga and Kentucky permits.

A: Nazir Khan and Paul Prager discussed permit processes and timelines.

Q: Darren Apna asked about competitive process and range of contracted capacity.

A: Paul Prager and Nazir Khan talked about competitive environment and calibrated guidance of 250 to 500 megawatts.

Q: Brent Knobloch asked about Kentucky site vs others and expansion.

A: Paul Prager discussed Kentucky's demand and regional diversity.

Q: Michael Donovan asked about critical IT megawatt per building.

A: Nazar Khan explained base design of critical IT megawatts.

Q: John Todaro asked about political regulatory and headcount.

A: Paul Prager and Nazar Khan discussed regulatory engagement and headcount growth.

Q: Martin Toner asked about Morgantown phase one timing.

A: Paul Prager discussed remediation and timing for Morgantown phase one.