$CORZ · Core Scientific, Inc./tx
Core Scientific filed its Q3 FY2026 10-Q. Total revenue rose 187.1% YoY to $232.9M, driven by colocation revenue of $215.4M (vs $15.0M a year ago) as the company pivots to AI/HPC hosting. Gross profit was $123.3M with 52.9% gross margin. Reported net income of $1.178B ($0.47 diluted EPS) was almost entirely a non-cash $1.03B gain from the change in fair value of warrants and contingent value rights; operating income was $72.4M. Nine-month results show a $324.4M net loss, including a $266.5M PP&E impairment and $41.9M contract-termination loss.
- Colocation revenue surged to $215.4M in Q3 from $15.0M a year earlier.
- Digital asset self-mining revenue fell to $12.3M from $57.4M YoY.
- Q3 net income of $1.178B included a $1.03B non-cash warrant/CVR fair-value gain.
- Nine-month net loss of $324.4M included a $266.5M PP&E impairment.
- Total stockholders' deficit widened to $1.09B from $962.7M at year-end.
Shares fell 10.39% to $12.76 in the regular session, though extended-hours last trade of $13.07 (+2.43% vs close) suggests some after-hours stabilization. The drop likely reflects the gap between headline net income and the non-cash warrant gain driving it.
The headline profit is a non-cash accounting artifact, masking a costly strategic pivot from bitcoin mining to AI colocation.
The pivot from bitcoin self-mining to AI/HPC colocation mirrors peers like IREN and Hut 8, with CoreWeave as a key customer driving the colocation ramp.
The $266.5M nine-month PP&E impairment and $41.9M contract-termination loss signal the self-mining business is being wound down at a cost. A $1.09B stockholders' deficit and $4.30B long-term debt (up from $1.06B) raise leverage concerns.