Core Scientific, Inc. (NASDAQ: CORZ), a leader in digital infrastructure for high-density colocation services (“HDC”), today announced financial results for the first quarter of 2026.
“Core Scientific is differentiated by our ability to combine capital readiness with speed to delivery,” said Adam Sullivan, Chief Executive Officer of Core Scientific. “We are investing ahead of contracts, advancing ready-for-service dates and moving development forward across multiple sites. That execution capability is accelerating customer discussions and reinforcing the value of our high-density compute infrastructure platform.”
First Quarter 2026 Financial Results
-
Total revenue was $115.2 million compared to $79.5 million in the first quarter of 2025.
- Colocation revenue was $77.5 million, up from $8.6 million in the first quarter of 2025, driven by incremental billable customer power capacity delivered to our customer during the quarter.
- Digital asset self-mining revenue was $30.1 million, down from $67.2 million in the first quarter of 2025, driven by the 45% decrease in bitcoin mined primarily due to the continued strategic shift to our colocation business and the 18% decrease in the average bitcoin price.
- Gross profit was $30.1 million compared to $8.2 million in the same period last year.
- Net loss was $347.2 million, compared to net income of $576.3 million in the first quarter of 2025. The net loss included $266.5 million of non-cash impairment charges, and a $30.8 million non-cash loss from changes in the fair value of warrants and contingent value rights.
- Non-GAAP Adjusted EBITDA was $4.4 million, compared to $(6.1) million for the prior year period, driven by a $35.7 million increase in total revenue and a $4.1 million favorable change in fair value of digital assets, partially offset by a $17.5 million increase in cash cost of revenue and a $11.9 million increase in adjusted operating expenses.
- Capital expenditures were $389.2 million, $129.9 million of which were funded by CoreWeave, Inc. pursuant to its existing colocation service agreements with the Company.
- Liquidity was $1.04 billion as of March 31, 2026, consisting of $1.01 billion of cash and cash equivalents and $37.3 million of bitcoin.
Conference Call and Earnings Presentation
In conjunction with this release, Core Scientific, Inc. will host a conference call today, Wednesday, May 6, 2026, at 4:30 pm Eastern Time that will be webcast live. Adam Sullivan, Chief Executive Officer, Matt Brown, Chief Operating Officer, Jim Nygaard, Chief Financial Officer and Jon Charbonneau,Vice President, Investor Relations will host the call.
Investors with Internet access may listen to the live audio webcast via the Investor Relations page of the Core Scientific, Inc. website, http://investors.corescientific.com or by using the following link https://event.choruscall.com/mediaframe/webcast.html?webcastid=VZaoQ5yv.
A supplementary investor presentation for the first quarter 2026 may be accessed at https://investors.corescientific.com/news-events/presentations.
Audio Replay
An audio replay of the event will be archived on the Investor Relations section of the Company’s website at http://investors.corescientific.com.
Upcoming Investor Events
Core Scientific will be attending the following investor events in May:
- TD Cowen 54th Annual Technology, Media & Telecom Conference, May 28, 2026; and
- B. Riley Annual Investor Conference, May 20, 2026
If applicable, live presentation webcasts and replay information will be available on the Company’s Investor Relations website.
About Core Scientific
Core Scientific is a leader in designing, building and operating large scale, purpose-built data centers for high-density colocation (“HDC”) services. Core Scientific operates facilities for high-density colocation services serving artificial intelligence-related (“AI”) workloads and is a premier provider of digital infrastructure, software solutions and services to its third-party customers. The majority of the Company’s revenue is derived from high-density colocation services, with the remainder derived from earning digital assets for the Company’s own account and from digital asset mining hosting services. The Company is in the process of repurposing its remaining mining facilities to support its high-density colocation services business as circumstances allow. Core Scientific’s facilities are located in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1), Oklahoma (1) and Texas (4). To learn more, visit www.corescientific.com.
Special Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Forward-looking statements may include words such as “aim,” “estimate,” “plan,” “project,” “forecast,” “goal,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, successfully complete construction of its data centers, source sufficient electrical energy, necessary long lead infrastructure components, supplies and equipment, the advantages and expected growth of the Company, the Company’s ability to source and retain talent, and our ability to source and consummate acquisitions of entities holding suitable land and power. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks, assumptions and uncertainties include those described in Part I. Item 1A. — “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.
There may be additional risks that the Company could not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release and should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. Accordingly, you should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.
|
Core Scientific, Inc. Condensed Consolidated Balance Sheets (in thousands, except par value) |
|||||||
|
|
March 31, |
|
December 31, |
||||
|
Assets |
|
|
|
||||
|
Current Assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
1,005,148 |
|
|
$ |
311,378 |
|
|
Restricted cash, current portion |
|
60,244 |
|
|
|
— |
|
|
Digital assets |
|
37,312 |
|
|
|
222,000 |
|
|
Customer funding receivable and other current assets |
|
352,128 |
|
|
|
362,159 |
|
|
Total Current Assets |
|
1,454,832 |
|
|
|
895,537 |
|
|
Property, plant and equipment, net |
|
1,344,924 |
|
|
|
1,293,299 |
|
|
Operating lease right-of-use assets |
|
105,986 |
|
|
|
108,484 |
|
|
Restricted cash, net of current portion |
|
80,593 |
|
|
|
— |
|
|
Other noncurrent assets |
|
83,229 |
|
|
|
50,324 |
|
|
Total Assets |
$ |
3,069,564 |
|
|
$ |
2,347,644 |
|
|
Liabilities and Stockholders’ Deficit |
|
|
|
||||
|
Current Liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
218,857 |
|
|
$ |
126,106 |
|
|
Accrued expenses |
|
364,479 |
|
|
|
511,957 |
|
|
Deferred revenue |
|
219,555 |
|
|
|
127,561 |
|
|
Notes payable, current portion |
|
993,944 |
|
|
|
— |
|
|
Warrant liabilities, current portion |
|
844,752 |
|
|
|
— |
|
|
Other current liabilities |
|
20,196 |
|
|
|
15,777 |
|
|
Total Current Liabilities |
|
2,661,783 |
|
|
|
781,401 |
|
|
Convertible and other notes payable, net of current portion |
|
1,061,651 |
|
|
|
1,060,325 |
|
|
Warrant liabilities, net of current portion |
|
116,495 |
|
|
|
936,107 |
|
|
Deferred revenue, net of current portion |
|
434,672 |
|
|
|
428,290 |
|
|
Other noncurrent liabilities |
|
100,649 |
|
|
|
104,261 |
|
|
Total Liabilities |
|
4,375,250 |
|
|
|
3,310,384 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ Deficit: |
|
|
|
||||
|
Preferred stock; $0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at March 31, 2026 and December 31, 2025 |
|
— |
|
|
|
— |
|
|
Common stock; $0.00001 par value; 10,000,000 shares authorized at March 31, 2026 and December 31, 2025; 316,949 and 314,231 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively |
|
3 |
|
|
|
3 |
|
|
Additional paid-in capital |
|
3,188,202 |
|
|
|
3,183,960 |
|
|
Accumulated deficit |
|
(4,493,891 |
) |
|
|
(4,146,703 |
) |
|
Total Stockholders’ Deficit |
|
(1,305,686 |
) |
|
|
(962,740 |
) |
|
Total Liabilities and Stockholders’ Deficit |
$ |
3,069,564 |
|
|
$ |
2,347,644 |
|
|
Certain prior year amounts have been reclassified for consistency with the current year presentation. |
|||||||
|
Core Scientific, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenue: |
|
|
|
||||
|
Colocation revenue |
$ |
77,539 |
|
|
$ |
8,573 |
|
|
Digital asset self-mining revenue |
|
30,105 |
|
|
|
67,179 |
|
|
Digital asset hosted mining revenue from customers |
|
7,600 |
|
|
|
3,773 |
|
|
Total revenue |
|
115,244 |
|
|
79,525 |
|
|
|
Cost of revenue: |
|
|
|
||||
|
Cost of Colocation services |
|
33,618 |
|
|
|
8,106 |
|
|
Cost of digital asset self-mining |
|
47,189 |
|
|
|
61,170 |
|
|
Cost of digital asset hosted mining services |
|
4,331 |
|
|
|
2,036 |
|
|
Total cost of revenue |
|
85,138 |
|
|
71,312 |
|
|
|
Gross profit |
|
30,106 |
|
|
|
8,213 |
|
|
Decrease in fair value of digital assets |
|
6,558 |
|
|
|
10,688 |
|
|
Loss on disposal of property, plant and equipment |
|
13,638 |
|
|
|
6 |
|
|
Impairment of property, plant and equipment |
|
266,488 |
|
|
|
— |
|
|
Colocation organizational and site startup costs |
|
8,665 |
|
|
|
11,667 |
|
|
Advisor fees |
|
333 |
|
|
|
603 |
|
|
Selling, general and administrative |
|
44,846 |
|
|
|
32,287 |
|
|
Operating loss |
|
(310,422 |
) |
|
|
(47,038 |
) |
|
Non-operating expense (income), net: |
|
|
|
||||
|
Interest expense (income), net |
|
4,857 |
|
|
|
(2,187 |
) |
|
Change in fair value of warrants and contingent value rights |
|
30,799 |
|
|
|
(621,464 |
) |
|
Loss on legal settlements |
|
500 |
|
|
|
— |
|
|
Other non-operating expense, net |
|
10 |
|
|
|
157 |
|
|
Total non-operating expense (income), net |
|
36,166 |
|
|
|
(623,494 |
) |
|
(Loss) income before income taxes |
|
(346,588 |
) |
|
|
576,456 |
|
|
Income tax expense |
|
600 |
|
|
|
205 |
|
|
Net (loss) income |
$ |
(347,188 |
) |
|
$ |
576,251 |
|
|
|
|
|
|
||||
|
Net (loss) income per share, basic |
$ |
(1.06 |
) |
|
$ |
1.42 |
|
|
Net (loss) income per share, diluted |
$ |
(1.06 |
) |
|
$ |
1.24 |
|
|
|
|
|
|
||||
|
Weighted average shares outstanding, basic |
|
322,911 |
|
|
|
315,186 |
|
|
Weighted average shares outstanding, diluted |
|
322,911 |
|
|
|
363,314 |
|
|
Certain prior year amounts have been reclassified for consistency with the current year presentation. |
|||||||
|
Core Scientific, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Cash flows from Operating Activities: |
|
|
|
||||
|
Net (loss) income |
$ |
(347,188 |
) |
|
$ |
576,251 |
|
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
16,648 |
|
|
|
19,731 |
|
|
Loss on disposal of property, plant and equipment |
|
13,638 |
|
|
|
6 |
|
|
Impairment of property, plant and equipment |
|
266,488 |
|
|
|
— |
|
|
Change in right-of-use assets |
|
3,169 |
|
|
|
2,676 |
|
|
Stock-based compensation |
|
17,761 |
|
|
|
16,185 |
|
|
Digital asset self-mining |
|
(30,119 |
) |
|
|
(67,441 |
) |
|
Proceeds from sale of digital assets generated by self-mining revenues1 |
|
208,249 |
|
|
|
— |
|
|
Decrease in fair value of digital assets |
|
6,558 |
|
|
|
10,688 |
|
|
Change in fair value of warrant liabilities |
|
31,835 |
|
|
|
(634,280 |
) |
|
Change in fair value of contingent value rights |
|
(1,036 |
) |
|
|
12,816 |
|
|
Amortization of debt discount |
|
1,675 |
|
|
|
1,732 |
|
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Customer funding receivable and other current assets |
|
10,107 |
|
|
|
(10,463 |
) |
|
Accounts payable |
|
5,874 |
|
|
|
(14,295 |
) |
|
Accrued expenses |
|
(16,361 |
) |
|
|
2,712 |
|
|
Deferred revenue from colocation services |
|
98,832 |
|
|
|
42,005 |
|
|
Deferred revenue from hosted mining services |
|
(456 |
) |
|
|
734 |
|
|
Other noncurrent assets and liabilities, net |
|
(35,797 |
) |
|
|
(4,098 |
) |
|
Net cash provided by (used in) operating activities |
|
249,877 |
|
|
|
(45,041 |
) |
|
Cash flows from Investing Activities: |
|
|
|
||||
|
Purchases of property, plant and equipment |
|
(389,226 |
) |
|
|
(83,980 |
) |
|
Proceeds from sales of property and equipment |
|
2,629 |
|
|
|
— |
|
|
Purchase of equity investments |
|
— |
|
|
|
(5,000 |
) |
|
Investments in intangible assets |
|
(55 |
) |
|
|
(36 |
) |
|
Net cash used in investing activities |
|
(386,652 |
) |
|
|
(89,016 |
) |
|
Cash flows from Financing Activities: |
|
|
|
||||
|
Principal repayments of finance leases |
|
(1,095 |
) |
|
|
(509 |
) |
|
Principal payments on debt |
|
— |
|
|
|
(3,955 |
) |
|
Taxes paid related to net share settlement of equity awards |
|
(21,722 |
) |
|
|
— |
|
|
Proceeds from exercise of warrants |
|
81 |
|
|
|
266 |
|
|
Proceeds for the issuance of term loan facility, net |
|
995,000 |
|
|
|
— |
|
|
Issuance costs for term loan facility |
|
(882 |
) |
|
|
— |
|
|
Net cash provided by (used in) financing activities |
|
971,382 |
|
|
|
(4,198 |
) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
834,607 |
|
|
|
(138,255 |
) |
|
Cash, cash equivalents and restricted cash—beginning of period |
|
311,378 |
|
|
|
836,980 |
|
|
Cash, cash equivalents and restricted cash—end of period |
$ |
1,145,985 |
|
|
$ |
698,725 |
|
|
|
|
|
|
||||
|
Certain prior year amounts have been reclassified for consistency with the current year presentation. |
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|
|
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|
1 Proceeds from digital assets received as noncash revenue consideration liquidated upon management’s discretion. |
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|
Core Scientific, Inc. Segment Results (in thousands, except percentages) (Unaudited) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2026 |
|
2025 |
||||
|
Colocation Segment |
(in thousands, except percentages) |
||||||
|
Colocation revenue: |
|
|
|
||||
|
License fees |
$ |
59,195 |
|
|
$ |
5,995 |
|
|
Power fees passed through to customer |
|
21,059 |
|
|
|
2,586 |
|
|
Maintenance and other |
|
(2,715 |
) |
|
|
(8 |
) |
|
Total colocation revenue |
|
77,539 |
|
|
|
8,573 |
|
|
Cost of colocation services: |
|
|
|
||||
|
Power fees passed through to customer |
|
21,059 |
|
|
|
2,586 |
|
|
Depreciation expense |
|
2,075 |
|
|
|
67 |
|
|
Employee compensation |
|
2,986 |
|
|
|
1,295 |
|
|
Facility operations expense |
|
6,755 |
|
|
|
3,852 |
|
|
Other segment items |
|
743 |
|
|
|
306 |
|
|
Total cost of colocation services |
|
33,618 |
|
|
|
8,106 |
|
|
Colocation gross profit |
$ |
43,921 |
|
|
$ |
467 |
|
|
Colocation gross margin |
|
57 |
% |
|
|
5 |
% |
|
|
|
|
|
||||
|
Digital Asset Self-Mining Segment |
|
||||||
|
Digital asset self-mining revenue |
$ |
30,105 |
|
|
$ |
67,179 |
|
|
Cost of digital asset self-mining: |
|
|
|
||||
|
Power fees |
|
27,271 |
|
|
|
30,319 |
|
|
Depreciation expense |
|
13,909 |
|
|
|
19,259 |
|
|
Employee compensation |
|
3,527 |
|
|
|
7,335 |
|
|
Facility operations expense |
|
1,972 |
|
|
|
3,280 |
|
|
Other segment items |
|
510 |
|
|
|
977 |
|
|
Total cost of digital asset self-mining |
|
47,189 |
|
|
|
61,170 |
|
|
Digital Asset Self-Mining gross profit |
$ |
(17,084 |
) |
|
$ |
6,009 |
|
|
Digital Asset Self-Mining gross margin |
|
(57 |
)% |
|
|
9 |
% |
|
|
|
|
|
||||
|
Digital Asset Hosted Mining Segment |
|
|
|
||||
|
Digital asset hosted mining revenue from customers |
$ |
7,600 |
|
|
$ |
3,773 |
|
|
Cost of digital asset hosted mining services: |
|
|
|
||||
|
Power fees |
|
3,303 |
|
|
|
1,367 |
|
|
Depreciation expense |
|
306 |
|
|
|
145 |
|
|
Employee compensation |
|
427 |
|
|
|
332 |
|
|
Facility operations expense |
|
234 |
|
|
|
148 |
|
|
Other segment items |
|
61 |
|
|
|
44 |
|
|
Total cost of digital asset hosted mining services |
|
4,331 |
|
|
|
2,036 |
|
|
Digital Asset Hosted Mining gross profit |
$ |
3,269 |
|
|
$ |
1,737 |
|
|
Digital Asset Hosted Mining gross margin |
|
43 |
% |
|
|
46 |
% |
|
|
|
|
|
||||
|
Consolidated |
|
|
|
||||
|
Consolidated total revenue |
$ |
115,244 |
|
|
$ |
79,525 |
|
|
Consolidated cost of revenue |
$ |
85,138 |
|
$ |
71,312 |
|
|
|
Consolidated gross profit |
$ |
30,106 |
|
|
$ |
8,213 |
|
|
Consolidated gross margin |
|
26 |
% |
|
|
10 |
% |
Core Scientific, Inc.
Non-GAAP Financial Measures
(Unaudited)
Adjusted EBITDA is a non-GAAP financial measure defined as our net (loss) income, adjusted to eliminate the effect of (i) interest income, interest expense, and other income (expense), net; (ii) provision for income taxes; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) loss on disposal and impairment of property, plant and equipment; (vi) site demolition costs incurred in connection with the conversion of existing facilities to colocation data center operations; (vii) change in fair value of warrant and contingent value rights; (viii) loss on legal settlements; (ix) post-emergence bankruptcy advisory costs incurred related to reorganization, and (x) certain additional non-cash items that do not reflect the performance of our ongoing business operations. For additional information, including the reconciliation of net income (loss) to Adjusted EBITDA, please refer to the table below. We believe Adjusted EBITDA is an important measure because it allows management, investors, and our Board of Directors to evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making the adjustments described above. In addition, it provides useful information to investors and others in understanding and evaluating our results of operations, as well as provides a useful measure for period-to-period comparisons of our business, as it removes the effect of net interest expense, taxes, certain non-cash items, variable charges and timing differences. Moreover, we have included Adjusted EBITDA in this earnings release because it is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic and financial planning.
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature or because the amount and timing of these items are not related to the current results of our core business operations which renders evaluation of our current performance, comparisons of performance between periods and comparisons of our current performance with our competitors less meaningful. However, you should be aware that when evaluating Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating this measure. Our presentation of this measure should not be construed as an inference that its future results will be unaffected by unusual items. Further, this non-GAAP financial measure should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). We compensate for these limitations by relying primarily on GAAP results and using Adjusted EBITDA on a supplemental basis. Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because not all companies calculate this measure in the same fashion. You should review the reconciliation of net (loss) income to Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.
The following table reconciles the non-GAAP financial measure to the most directly comparable U.S. GAAP financial performance measure, which is net (loss) income, for the periods presented (in thousands):
|
|
Three Months Ended March 31, |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Adjusted EBITDA |
|
||||||
|
Net (loss) income |
$ |
(347,188 |
) |
|
$ |
576,251 |
|
|
Adjustments: |
|
|
|
||||
|
Interest expense (income), net |
|
4,857 |
|
|
|
(2,187 |
) |
|
Income tax expense |
|
600 |
|
|
|
205 |
|
|
Depreciation and amortization |
|
16,553 |
|
|
|
19,731 |
|
|
Stock-based compensation expense |
|
17,761 |
|
|
|
16,185 |
|
|
Loss on disposal of property, plant and equipment |
|
13,638 |
|
|
|
6 |
|
|
Impairment of property, plant and equipment |
|
266,488 |
|
|
|
— |
|
|
Site conversion demolition costs |
|
— |
|
|
|
4,442 |
|
|
Change in fair value of warrants and contingent value rights |
|
30,799 |
|
|
|
(621,464 |
) |
|
Loss on legal settlements |
|
500 |
|
|
|
— |
|
|
Post-emergence bankruptcy advisory costs |
|
317 |
|
|
|
603 |
|
|
Other |
|
27 |
|
|
|
157 |
|
|
Adjusted EBITDA |
$ |
4,352 |
|
|
$ |
(6,071 |
) |
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