AI Takeaway
WULF reported a dramatic deterioration in Q1 FY2026, with net loss widening to -$427.6M (vs. -$61.4M prior year) and negative stockholders' equity of -$78.8M, driven by massive balance sheet expansion and surging liabilities, even as gross margin improved sharply to 60.1%.
Revenue
$34.01M
-1.14% YoY
EPS (Basic)
$-1.01
-531.25% YoY
Gross Margin
60.1%
++39.89% YoY
Operating Income
$-162.14M
-171.92% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue declined marginally by 1.1% YoY to $34.0M in Q1 FY2026 from $34.4M, suggesting the top line remained stable even as the company underwent a dramatic balance sheet restructuring.
Source: Source: 10-Q Income Statement
Gross profit nearly tripled to $20.4M (from $7.0M), with gross margin expanding from 20.2% to 60.1%, primarily due to a 90.4% collapse in cost of revenue from $24.6M to $2.4M — a significant shift in cost structure.
Source: Source: 10-Q Income Statement
Total assets surged 733.2% YoY to $7.01B, while total liabilities exploded 956.4% to $7.09B, resulting in negative stockholders' equity of -$78.8M. Cash & equivalents grew to $2.63B, suggesting large-scale debt-financed capital raises.
Source: Source: 10-Q Balance Sheet
2 more insights available
Upgrade to unlockWULF's stockholders' equity turned deeply negative at -$78.8M in Q1 FY2026, compared to positive $170.4M a year ago. With total liabilities of $7.09B exceeding total assets of $7.01B, the company is technically insolvent on a book-value basis, raising serious concerns about financial sustainability.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-0.92 versus the $-0.18 analyst consensus — a -404.1% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $34.01M | $34.41M | -1.14% |
Cost of Revenue | $2.36M | $24.55M | -90.38% |
Gross Profit | $20.45M | $6.96M | +193.81% |
Operating Income | $-162.14M | $-59.63M | -171.92% |
Net Income | $-427.63M | $-61.42M | -596.27% |
EPS (Basic) | $-1.01 | $-0.16 | -531.25% |
EPS (Diluted) | $-1.01 | $-0.16 | -531.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.01B | $841.16M | +733.23% |
Current Assets | $2.87B | $230.05M | +1146.45% |
Total Liabilities | $7.09B | $670.79M | +956.43% |
Current Liabilities | $2.38B | $120.93M | +1872.16% |
Stockholders' Equity | $-78.77M | $170.38M | -146.24% |
Cash & Equivalents | $2.63B | $218.16M | +1105.52% |
Long-Term Debt | $3.1B | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-17.59M | $56.49M | -131.14% |
Investing Cash Flow | $-712.82M | $-61.06M | -1067.34% |
Financing Cash Flow | $100.38M | $-51.33M | +295.58% |
Share Buybacks | $0 | $33.29M | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 60.1% | 20.2% | +39.89% |
Operating Margin | -476.7% | -173.3% | -303.41% |
Net Margin | -1257.3% | — | — |
ROE | 542.9% | — | — |
ROA | -6.1% | — | — |
Current Ratio | $1.202 | — | — |
Debt to Equity | $-89.959 | — | — |
WULF reported a net loss of -$427.6M in Q1 FY2026, far worse than the -$61.4M loss a year ago, while revenue was nearly flat at $34.0M. The standout positive was gross margin expanding to 60.1% from 20.2%, but this was overshadowed by a massive balance sheet expansion that pushed total liabilities to $7.09B and stockholders' equity into negative territory at -$78.8M.
WULF's net loss widened to -$427.6M from -$61.4M, with the gap between operating loss (-$162.1M) and net loss suggesting roughly $265M in additional below-the-line charges, likely interest expense or fair value losses tied to its $3.1B long-term debt. The company also saw operating cash flow turn negative to -$17.6M, compared to +$56.5M in the prior year period.
WULF's financial health is under significant stress: stockholders' equity is negative at -$78.8M, total liabilities of $7.09B exceed total assets of $7.01B, and the company is burning cash operationally. While the current ratio of 1.20x and cash balance of $2.63B provide some near-term liquidity, the scale of debt and recurring losses present serious long-term concerns.
WULF's gross margin surged to 60.1% from 20.2% because cost of revenue fell 90.4% YoY to just $2.4M, even as revenue remained roughly flat at $34.0M. This dramatic cost reduction likely reflects a change in business mix, accounting treatment, or operational efficiency, though the filing text was not available to confirm the exact driver.
Based on the financial data, the most prominent risks include negative stockholders' equity (-$78.8M), a $3.1B long-term debt burden with negative operating cash flow, and a net loss of -$427.6M in a single quarter. The company's current ratio of just 1.20x against $2.38B in current liabilities also signals potential liquidity vulnerability if asset values decline or debt cannot be rolled over.