Core Scientific, Inc. (NASDAQ: CORZ), a leader in digital infrastructure for high-density colocation services (“HDC”), today announced financial results for the third quarter ended September 30, 2026.
“Our execution at scale is translating into results, with a significant sequential increase in GAAP colocation revenue,” said Adam Sullivan, Chief Executive Officer of Core Scientific. “We are nearing full delivery under our first colocation agreement while construction under our second is underway across five campuses. With revenue growing and substantial contracted capacity still to deliver, we have built a strong foundation for our next phase of growth.”
Recent Business Developments
- Colocation revenue increased nearly 60% sequentially to $215.4 million in the third quarter of 2026, driven by continued delivery of billing megawatts.
- Billing for 485 MW of capacity as of September 30, 2026, representing over $700 million in average annualized colocation GAAP revenue.
- Net income increased to $1.2 billion, benefiting from a non-cash gain in the change in fair value of warrants. Adjusted EBITDA more than tripled sequentially to $133.6 million, with margins expanding to 57%, up from 25%.
Financial Summary and Operating Metrics (in millions, except billing megawatts)
Metric | Q3 2026 | Q2 2026 | Q3 2025 | ||
Billing MW | 485 | 395 | N/A | ||
Colocation Revenue | $215.4 | $136.7 | $15.0 | ||
Total Revenue | $232.9 | $164.2 | $81.1 | ||
Gross Profit | $123.3 | $70.0 | $3.9 | ||
Net income (loss)(1) | $1,178.1 | $(1,155.3) | $(144.0) | ||
Adjusted EBITDA | $133.6 | $41.1 | $6.5 | ||
Capital Expenditures (“CapEx”)(2) | $985.1 | $797.5 | $244.5 | ||
Liquidity and DSRA(3) | $1,744.2 | $2,601.1 | $694.8 |
(1) | Net income (loss) for the quarters ended September 30, 2026 and June 30, 2026 were primarily driven by the change in fair value of warrants, reflecting changes in the Company’s stock price during the periods. |
(2) | CapEx includes purchases of property, plant and equipment and acquisitions of land and development rights. |
(3) | Liquidity and DSRA is comprised of cash and cash equivalents, digital assets, revolver availability, and all restricted cash including the debt service reserve accounts. Restricted cash as of September 30, 2026 and June 30, 2026 included funds held in escrow in connection with certain utility and development costs. As of June 30, 2026, restricted cash also included funds held in escrow for the now closed Polaris DS LLC acquisition. There was no restricted cash as of September 30, 2025. |
Conference Call and Earnings Presentation
In conjunction with this release, Core Scientific, Inc. will host a conference call today, Thursday, November 5, 2026, at 8:30 am Eastern Time that will be webcast live. Adam Sullivan, Chief Executive Officer, Jim Nygaard, Chief Financial Officer, and Jon Charbonneau, Senior 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=9RapppQ4
A supplementary investor presentation for the third 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.
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 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, contracted revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, successfully finance and complete construction of its data centers, source sufficient electrical energy, necessary long lead infrastructure components, supplies and equipment, the expected growth of the Company, the Company’s ability to source and retain talent, and our ability to source and acquire suitable additional 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 and in the Company’s Quarterly Reports on Form 10-Q. 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 (Unaudited, in thousands, except par value) | |||||||||||
September 30,
| June 30,
| December 31,
| |||||||||
Assets | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 803,941 | $ | 1,769,735 | $ | 311,378 | |||||
Digital assets | 2,690 | 49,675 | 222,000 | ||||||||
Customer funding receivable | 282,659 | 383,758 | 337,158 | ||||||||
Restricted cash, current portion | 201,745 | 165,745 | — | ||||||||
Other current assets | 131,115 | 74,731 | 25,001 | ||||||||
Total Current Assets | 1,422,150 | 2,443,644 | 895,537 | ||||||||
Property, plant and equipment, net | 2,630,353 | 1,774,142 | 1,293,299 | ||||||||
Intangibles, net | 737,531 | 228,625 | 1,076 | ||||||||
Operating lease right-of-use assets | 110,503 | 114,199 | 108,484 | ||||||||
Deferred lease incentive, net of current portion | 295,000 | — | — | ||||||||
Restricted cash, net of current portion | 635,858 | 615,911 | — | ||||||||
Other noncurrent assets | 104,319 | 80,972 | 49,248 | ||||||||
Total Assets | $ | 5,935,714 | $ | 5,257,493 | $ | 2,347,644 | |||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 120,876 | $ | 112,374 | $ | 126,106 | |||||
Accrued expenses | 779,520 | 509,189 | 511,957 | ||||||||
Deferred revenue, current portion | 309,065 | 287,201 | 127,561 | ||||||||
Warrant liabilities, current portion | 880,725 | 1,811,587 | — | ||||||||
Other current liabilities | 17,028 | 17,443 | 15,777 | ||||||||
Total Current Liabilities | 2,107,214 | 2,737,794 | 781,401 | ||||||||
Long-term debt | 4,302,175 | 4,297,967 | 1,060,325 | ||||||||
Deferred revenue, net of current portion | 264,506 | 367,242 | 428,290 | ||||||||
Warrant liabilities, net of current portion | 238,180 | 163,683 | 936,107 | ||||||||
Other noncurrent liabilities | 115,717 | 110,163 | 104,261 | ||||||||
Total Liabilities | 7,027,792 | 7,676,849 | 3,310,384 | ||||||||
Commitments and contingencies | |||||||||||
Stockholders’ Deficit: | |||||||||||
Preferred stock; $0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at September 30, 2026 and December 31, 2025 | — | — | — | ||||||||
Common stock; $0.00001 par value; 10,000,000 shares authorized at September 30, 2026 and December 31, 2025; 321,972 and 314,231 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 3 | 3 | 3 | ||||||||
Additional paid-in capital | 3,378,990 | 3,229,842 | 3,183,960 | ||||||||
Accumulated deficit | (4,471,071 | ) | (5,649,201 | ) | (4,146,703 | ) | |||||
Total Stockholders’ Deficit | (1,092,078 | ) | (2,419,356 | ) | (962,740 | ) | |||||
Total Liabilities and Stockholders’ Deficit | $ | 5,935,714 | $ | 5,257,493 | $ | 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 (Unaudited, in thousands, except per share amounts) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30,
| June 30,
| September 30,
| September 30,
| September 30,
| |||||||||||||||
Revenue: | |||||||||||||||||||
Colocation revenue | $ | 215,432 | $ | 136,669 | $ | 14,951 | $ | 429,640 | $ | 34,084 | |||||||||
Digital asset self-mining revenue | 12,263 | 21,535 | 57,438 | 63,903 | 187,041 | ||||||||||||||
Digital asset hosted mining revenue | 5,171 | 5,997 | 8,714 | 18,768 | 18,131 | ||||||||||||||
Total revenue | 232,866 | 164,201 | 81,103 | 512,311 | 239,256 | ||||||||||||||
Cost of revenue: | |||||||||||||||||||
Cost of colocation services | 87,059 | 56,686 | 11,066 | 177,363 | 28,602 | ||||||||||||||
Cost of digital asset self-mining | 19,755 | 33,700 | 59,438 | 100,644 | 180,197 | ||||||||||||||
Cost of digital asset hosted mining services | 2,780 | 3,771 | 6,694 | 10,882 | 13,314 | ||||||||||||||
Total cost of revenue | 109,594 | 94,157 | 77,198 | 288,889 | 222,113 | ||||||||||||||
Gross profit | 123,272 | 70,044 | 3,905 | 223,422 | 17,143 | ||||||||||||||
Loss (gain) on fair value of digital assets | (19,264 | ) | 9,368 | (10,957 | ) | (3,338 | ) | (30,066 | ) | ||||||||||
Loss on disposal of property, plant and equipment | 5,342 | 1,273 | 300 | 20,253 | 4,472 | ||||||||||||||
Loss on remeasurement of assets held for sale, net | 1,518 | 19,495 | — | 21,013 | — | ||||||||||||||
Impairment of property, plant and equipment | — | — | — | 266,488 | — | ||||||||||||||
Loss on contract termination | — | 41,948 | — | 41,948 | — | ||||||||||||||
Colocation organizational and site startup costs | 12,932 | 27,039 | 16,174 | 48,636 | 39,496 | ||||||||||||||
Advisor fees | 4,839 | 381 | 5,785 | 5,553 | 7,083 | ||||||||||||||
Selling, general and administrative | 45,555 | 49,008 | 47,395 | 139,408 | 124,272 | ||||||||||||||
Operating income (loss) | 72,350 | (78,468 | ) | (54,792 | ) | (316,539 | ) | (128,114 | ) | ||||||||||
Non-operating expenses (income), net: | |||||||||||||||||||
Loss on debt extinguishment | — | 5,435 | — | 5,435 | 1,377 | ||||||||||||||
Interest expense (income), net | 35,047 | 23,833 | (821 | ) | 63,737 | (4,193 | ) | ||||||||||||
Change in fair value of warrants and contingent value rights | (1,034,358 | ) | 1,045,515 | 74,864 | 41,956 | 363,358 | |||||||||||||
Loss on legal settlements | — | — | 15,075 | 500 | 15,504 | ||||||||||||||
Other non-operating expenses (income), net | 37 | 152 | (8 | ) | 200 | (73 | ) | ||||||||||||
Total non-operating expenses (income), net | (999,274 | ) | 1,074,935 | 89,110 | 111,828 | 375,973 | |||||||||||||
Income (loss) before income tax expense (benefit) | 1,071,624 | (1,153,403 | ) | (143,902 | ) | (428,367 | ) | (504,087 | ) | ||||||||||
Income tax expense (benefit) | (106,506 | ) | 1,907 | 125 | (103,999 | ) | 488 | ||||||||||||
Net income (loss) | $ | 1,178,130 | $ | (1,155,310 | ) | $ | (144,027 | ) | $ | (324,368 | ) | $ | (504,575 | ) | |||||
Net income (loss) per share, basic | $ | 3.42 | $ | (3.32 | ) | $ | (0.45 | ) | $ | (0.93 | ) | $ | (1.48 | ) | |||||
Net income (loss) per share, diluted | $ | 0.47 | $ | (3.32 | ) | $ | (0.45 | ) | $ | (0.93 | ) | $ | (1.48 | ) | |||||
Weighted average shares outstanding, basic | 327,700 | 325,329 | 318,562 | 325,334 | 317,363 | ||||||||||||||
Weighted average shares outstanding, diluted | 469,006 | 325,329 | 318,562 | 325,334 | 317,363 | ||||||||||||||
Supplemental information - stock based compensation: | |||||||||||||||||||
Cost of revenue | $ | 685 | $ | 1,283 | $ | 1,251 | $ | 2,821 | $ | 3,574 | |||||||||
Colocation organizational and site startup costs | 6,584 | 4,302 | 7,241 | 15,110 | 14,831 | ||||||||||||||
Selling, general and administrative | 17,916 | 12,655 | 21,454 | 43,255 | 51,896 | ||||||||||||||
Stock-based compensation expense, net of amounts capitalized | 25,185 | 18,240 | 29,946 | 61,186 | 70,301 | ||||||||||||||
Capitalized stock-based compensation | 57 | 519 | 227 | 1,202 | 623 | ||||||||||||||
Total stock-based compensation cost | $ | 25,242 | $ | 18,759 | $ | 30,173 | $ | 62,388 | $ | 70,924 | |||||||||
Certain prior year amounts have been reclassified for consistency with the current year presentation. | |||||||||||||||||||
Core Scientific, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2026 | 2025 | ||||||
Cash flows from Operating Activities: | |||||||
Net loss | $ | (324,368 | ) | $ | (504,575 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 50,133 | 54,816 | |||||
Loss on disposal of property, plant and equipment | 20,253 | 4,472 | |||||
Loss on remeasurement of assets held for sale, net | 21,013 | — | |||||
Impairment of property, plant and equipment | 266,488 | — | |||||
Change in operating lease right-of-use assets | 10,046 | 8,248 | |||||
Stock-based compensation | 61,186 | 70,301 | |||||
Digital asset self-mining revenue | (63,903 | ) | (187,396 | ) | |||
Proceeds from sales of digital assets generated by self-mining revenue(1) | 286,765 | — | |||||
Gain on fair value of digital assets | (3,338 | ) | (30,066 | ) | |||
Change in fair value of warrants and contingent value rights | 41,956 | 363,358 | |||||
Loss on debt extinguishment | 5,435 | 1,377 | |||||
Deferred income taxes | (105,816 | ) | — | ||||
Accrued interest capitalized to construction in progress | (23,273 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Customer funding receivable | 54,499 | (335,643 | ) | ||||
Accounts payable | (82,177 | ) | 105,615 | ||||
Accrued expenses | 167,124 | 244,977 | |||||
Deferred revenue from colocation services | 19,151 | 323,796 | |||||
Other current assets | (50,979 | ) | 11,500 | ||||
Other operating assets and liabilities, net | (53,952 | ) | (10,040 | ) | |||
Net cash provided by operating activities | 296,243 | 120,740 | |||||
Cash flows from Investing Activities: | |||||||
Purchases of property, plant and equipment | (1,494,979 | ) | (449,752 | ) | |||
Proceeds from sales of property, plant and equipment | 6,094 | 1,929 | |||||
Cash paid for asset acquisitions | (676,881 | ) | — | ||||
Other investing activities | (149 | ) | (15,160 | ) | |||
Net cash used in investing activities | (2,165,915 | ) | (462,983 | ) | |||
Cash flows from Financing Activities: | |||||||
Debt extinguishment payments | (1,000,000 | ) | (26,862 | ) | |||
Proceeds from the issuance of debt | 4,275,250 | — | |||||
Debt issuance costs | (50,907 | ) | — | ||||
Taxes paid related to net share settlement of equity awards | (35,152 | ) | (5,893 | ) | |||
Principal payments on debt | — | (8,613 | ) | ||||
Proceeds from exercise of warrants | 11,742 | 1,746 | |||||
Other financing activities | (1,095 | ) | (1,672 | ) | |||
Net cash provided by (used in) financing activities | 3,199,838 | (41,294 | ) | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,330,166 | (383,537 | ) | ||||
Cash, cash equivalents and restricted cash—beginning of period | 311,378 | 836,980 | |||||
Cash, cash equivalents and restricted cash—end of period | $ | 1,641,544 | $ | 453,443 | |||
Supplemental disclosures of other cash flow information: | |||||||
Cash paid for interest, net of capitalized interest | $ | 19,313 | $ | 15,285 | |||
Income tax payments | 640 | $ | 298 | ||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Purchases of property, plant and equipment in accounts payable and accrued expenses | $ | 429,937 | $ | 154,440 | |||
Reclass of property, plant and equipment to held for sale | $ | 51,262 | $ | — | |||
Operating lease right-of-use assets obtained in exchange for lease obligations | $ | 13,440 | $ | 2,154 | |||
Non-cash exercise of warrants | $ | 1,514 | $ | 24,692 | |||
Liabilities assumed in acquisition | $ | 115,790 | $ | — | |||
Issuance of warrants | $ | 296,423 | $ | — | |||
Interest capitalized to construction in progress | $ | 25,828 | $ | — | |||
Reconciliation of cash, cash equivalents and restricted cash within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows above: | |||||||
Cash and cash equivalents | $ | 803,941 | $ | 453,443 | |||
Restricted cash, current portion | 201,745 | — | |||||
Restricted cash, net of current portion | 635,858 | — | |||||
Total cash, cash equivalents and restricted cash | $ | 1,641,544 | $ | 453,443 | |||
(1) | Proceeds from digital assets received as noncash revenue consideration liquidated at management's discretion. |
Certain prior year amounts have been reclassified for consistency with the current year presentation. | |
Core Scientific, Inc. Segment Results (Unaudited, in thousands, except percentages) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30,
| June 30,
| September 30,
| September 30,
| September 30,
| |||||||||||||||
Colocation Segment | |||||||||||||||||||
Colocation revenue: | |||||||||||||||||||
License fees | $ | 157,265 | $ | 98,812 | $ | 9,848 | $ | 315,272 | $ | 22,853 | |||||||||
Power fees passed through to customer | 57,556 | 35,073 | 3,553 | 113,689 | 9,603 | ||||||||||||||
Maintenance and other | 611 | 2,784 | 1,550 | 679 | 1,628 | ||||||||||||||
Total colocation revenue | 215,432 | 136,669 | 14,951 | 429,640 | 34,084 | ||||||||||||||
Cost of colocation services: | |||||||||||||||||||
Power fees passed through to customer | 57,556 | 35,073 | 3,553 | 113,689 | 9,604 | ||||||||||||||
Depreciation expense | 10,061 | 4,621 | 219 | 16,757 | 389 | ||||||||||||||
Employee compensation | 6,419 | 4,801 | 2,209 | 14,206 | 4,651 | ||||||||||||||
Facility operations expense | 10,371 | 10,381 | 4,383 | 27,507 | 12,570 | ||||||||||||||
Other segment items(1) | 2,652 | 1,810 | 702 | 5,204 | 1,388 | ||||||||||||||
Total cost of colocation services | 87,059 | 56,686 | 11,066 | 177,363 | 28,602 | ||||||||||||||
Colocation gross profit | $ | 128,373 | $ | 79,983 | $ | 3,885 | $ | 252,277 | $ | 5,482 | |||||||||
Colocation gross margin | 60 | % | 59 | % | 26 | % | 59 | % | 16 | % | |||||||||
Digital Asset Self-Mining Segment | |||||||||||||||||||
Digital asset self-mining revenue | $ | 12,263 | 21,535 | $ | 57,438 | $ | 63,903 | $ | 187,041 | ||||||||||
Cost of digital asset self-mining: | |||||||||||||||||||
Power fees | 10,483 | 17,861 | 33,280 | 55,614 | 94,319 | ||||||||||||||
Depreciation expense | 7,173 | 9,897 | 15,474 | 30,978 | 52,792 | ||||||||||||||
Employee compensation | 1,255 | 4,052 | 7,803 | 8,834 | 23,411 | ||||||||||||||
Facility operations expense | 636 | 1,286 | 2,089 | 3,895 | 7,458 | ||||||||||||||
Other segment items(1) | 208 | 604 | 792 | 1,323 | 2,217 | ||||||||||||||
Total cost of digital asset self-mining | 19,755 | 33,700 | 59,438 | 100,644 | 180,197 | ||||||||||||||
Digital Asset Self-Mining gross profit | $ | (7,492 | ) | $ | (12,165 | ) | $ | (2,000 | ) | $ | (36,741 | ) | $ | 6,844 | |||||
Digital Asset Self-Mining gross margin | (61 | )% | (56 | )% | (3 | )% | (57 | )% | 4 | % | |||||||||
Digital Asset Hosted Mining Segment | |||||||||||||||||||
Digital asset hosted mining revenue from customers | $ | 5,171 | 5,997 | $ | 8,714 | $ | 18,768 | $ | 18,131 | ||||||||||
Cost of digital asset hosted mining services: | |||||||||||||||||||
Power fees | 1,987 | 2,356 | 4,793 | 7,646 | 9,367 | ||||||||||||||
Depreciation expense | 401 | 626 | 376 | 1,332 | 856 | ||||||||||||||
Employee compensation | 233 | 542 | 1,115 | 1,202 | 2,225 | ||||||||||||||
Facility operations expense | 119 | 167 | 297 | 520 | 665 | ||||||||||||||
Other segment items(1) | 40 | 80 | 113 | 182 | 201 | ||||||||||||||
Total cost of digital asset hosted mining services | 2,780 | 3,771 | 6,694 | 10,882 | 13,314 | ||||||||||||||
Digital Asset Hosted Mining gross profit | $ | 2,391 | $ | 2,226 | $ | 2,020 | $ | 7,886 | $ | 4,817 | |||||||||
Digital Asset Hosted Mining gross margin | 46 | % | 37 | % | 23 | % | 42 | % | 27 | % | |||||||||
Consolidated | |||||||||||||||||||
Consolidated total revenue | $ | 232,866 | $ | 164,201 | $ | 81,103 | $ | 512,311 | $ | 239,256 | |||||||||
Consolidated cost of revenue | $ | 109,594 | $ | 94,157 | $ | 77,198 | $ | 288,889 | $ | 222,113 | |||||||||
Consolidated gross profit | $ | 123,272 | $ | 70,044 | $ | 3,905 | $ | 223,422 | $ | 17,143 | |||||||||
Consolidated gross margin | 53 | % | 43 | % | 5 | % | 44 | % | 7 | % | |||||||||
(1) | Other segment items consist primarily of software and IT costs, travel, professional and contract services, and telecommunications costs. |
Core Scientific, Inc.
Non-GAAP Financial Measures
(Unaudited)
Adjusted EBITDA is a non-GAAP financial measure defined as our net loss, adjusted to eliminate the effect of (i) interest expense (income), 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) loss on remeasurement of assets held for sale; (vii) loss on contract termination; (viii) colocation organizational startup costs primarily related to the initial ramp up of new colocation sits and the conversion of existing facilities to colocation data center operations; (ix) loss on debt extinguishment; (x) change in fair value of warrant and contingent value rights; (xi) loss on legal settlements; (xii) post-emergence bankruptcy advisory costs incurred related to reorganization and (xiii) certain additional non-cash items that do not reflect the performance of our ongoing business operations. For additional information, including the reconciliation of net 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 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, for the periods presented (in thousands):
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30,
| June 30,
| September 30,
| September 30,
| September 30,
| |||||||||||||||
Adjusted EBITDA | |||||||||||||||||||
Net income (loss) | $ | 1,178,130 | $ | (1,155,310 | ) | $ | (144,027 | ) | $ | (324,368 | ) | $ | (504,575 | ) | |||||
Adjustments: | |||||||||||||||||||
Interest expense (income), net | 35,047 | 23,833 | (821 | ) | 63,737 | (4,193 | ) | ||||||||||||
Income tax expense (benefit) | (106,506 | ) | 1,907 | 125 | (103,999 | ) | 488 | ||||||||||||
Depreciation and amortization | 17,987 | 15,498 | 16,329 | 50,133 | 54,816 | ||||||||||||||
Stock-based compensation expense | 18,601 | 13,938 | 22,705 | 46,076 | 55,470 | ||||||||||||||
Loss on disposal of property, plant and equipment | 5,342 | 1,273 | 300 | 20,253 | 4,472 | ||||||||||||||
Loss on remeasurement of assets held for sale, net | 1,518 | 19,495 | — | 21,013 | — | ||||||||||||||
Impairment of property, plant and equipment | — | — | — | 266,488 | — | ||||||||||||||
Colocation organizational and site startup costs(1) | 12,932 | 27,039 | 16,174 | 48,636 | 39,496 | ||||||||||||||
Loss on contract termination | — | 41,948 | — | 41,948 | — | ||||||||||||||
Loss on debt extinguishment | — | 5,435 | — | 5,435 | 1,377 | ||||||||||||||
Change in fair value of warrants and contingent value rights | (1,034,358 | ) | 1,045,515 | 74,864 | 41,956 | 363,358 | |||||||||||||
Loss on legal settlements | — | — | 15,075 | 500 | 15,504 | ||||||||||||||
Post-emergence bankruptcy advisory costs(2) | 29 | 397 | 278 | 743 | 1,576 | ||||||||||||||
Merger transaction advisor fees(2) | 4,809 | (16 | ) | 5,507 | 4,809 | 5,507 | |||||||||||||
Other | 37 | 151 | (8 | ) | 200 | (73 | ) | ||||||||||||
Adjusted EBITDA | $ | 133,568 | $ | 41,103 | $ | 6,501 | $ | 183,560 | $ | 33,223 | |||||||||
(1) | Included in Colocation organizational and site startup costs are costs associated to Stock-based compensation expense of $6.6 million, $4.3 million, and $7.2 million for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively, and $15.1 million and $14.8 million for the nine months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2025, there was also $4.4 million in site conversion demolition costs. |
(2) | Included in Advisor fees on the condensed consolidated statements of operations. |
Term Library
Term (MW) | Definition | How management uses it |
Gross Utility Power Capacity | Total electric utility power capacity agreements associated with our data center sites under our control as of period end, including capacity that is commissioned for future use. | Used for portfolio planning and utility power allocation discussions. |
Total Leasable Customer Power Capacity | Our estimate of the total non-redundant customer IT load that our data center sites could support in the aggregate as of period end, regardless of whether such capacity has been contracted with customers or remains available for sale. This metric is representative of the amount of power available for customer use in servicing their workloads. | Used to assess total customer usable IT load available for leasing, evaluate leased versus unleased capacity, and plan conversion/development sequencing and sales capacity. |
Leased Customer Power Capacity | Power capacity that is committed to customers under executed customer contracts, regardless of whether service has commenced as of period end. | Used to monitor signed customer commitments and contracted backlog and to plan future deployment/commissioning requirements. |
Unleased Customer Power Capacity | The portion of Total Leasable Customer Power Capacity not committed under customer contracts as of period end. This metric is calculated as Total Leasable Customer Power Capacity minus Leased Customer Power Capacity. | Used to monitor remaining uncommitted customer IT load and to prioritize incremental contracting and conversion/commissioning plans. |
Billable Customer Power Capacity | Portion of Leased Customer Power Capacity for which service has commenced, and we are actively billing as of period end. | Used to monitor in-service customer power that is billing and to track deployment/commissioning pace and near-term revenue ramp. |
Please follow us on:
https://www.linkedin.com/company/corescientific/
https://twitter.com/core_scientific
https://www.youtube.com/@Core_Scientific
View source version on businesswire.com: https://www.businesswire.com/news/home/20261105707046/en/