$CORZ · Core Scientific, Inc./tx
Core Scientific reported Q3 fiscal 2026 results (quarter ended September 30, 2026). Total revenue was $232.9M, up from $164.2M in Q2 2026 and $81.1M in Q3 2025, driven by colocation revenue of $215.4M (up ~60% sequentially). GAAP net income was $1.2B, driven by a non-cash gain on the change in fair value of warrants; Adjusted EBITDA more than tripled sequentially to $133.6M with margins expanding to 57% from 25%. GAAP EPS was $0.47.
- Colocation revenue rose nearly 60% sequentially to $215.4M in Q3 2026.
- Billing reached 485 MW as of September 30, 2026, representing over $700M in average annualized colocation GAAP revenue.
- Adjusted EBITDA more than tripled sequentially to $133.6M, with margins expanding to 57% from 25%.
- Net income of $1.2B was driven by a non-cash warrant fair-value gain, not core operations.
- CapEx was $985.1M in Q3 2026, up from $797.5M in Q2 2026.
Markets closed — no regular-session reaction yet; extended-hours last trade $12.78 (+0.16% vs regular close) shows a muted initial response despite the headline net income swing.
The colocation business is scaling rapidly with strong margins, but reported net income is dominated by a non-cash warrant gain, so investors must look to Adjusted EBITDA and contracted capacity delivery.
Core Scientific's pivot to AI-focused high-density colocation mirrors peers converting mining capacity to HPC/AI data centers, with colocation now the dominant revenue stream.
Net income is heavily distorted by warrant fair-value changes tied to stock price, creating earnings volatility. Heavy CapEx ($985.1M in Q3) and $4.3B long-term debt against a stockholders' deficit of $1.09B raise leverage concerns.