Core Scientific (CORZ) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 surged to $580.7 million, primarily due to a $634.3 million non-cash warrant liability revaluation, despite a 56% year-over-year revenue decline to $79.5 million as the company shifted from bitcoin mining to high-density colocation and AI/HPC workloads.

• Signed over 500 MW of colocation contracts in 2024, expanding to over $10 billion in potential revenue by 2025, with CoreWeave contracts providing recurring revenue, higher margins, and financial flexibility.

• Strategic priorities include diversifying the customer base, executing CoreWeave contracts, and expanding data center capacity through organic growth and M&A.

• The company is transitioning from bitcoin mining to high-density colocation, with mining operations being phased out as legacy contracts expire in 2025.

• The sales pipeline is expanding, especially among large enterprises, with several deals in negotiation ranging from 50-100 MW.

Financial highlights

• Q1 2025 total revenue was $79.5 million, down 56% year-over-year, with colocation revenue at $8.6 million and self-mining revenue at $67.2 million.

• Net income for Q1 2025 was $580.7 million, up from $210.7 million in Q1 2024, driven by non-cash warrant liability revaluation.

• Adjusted EBITDA for Q1 2025 was $(6.1) million, down from $88.0 million in the prior year.

• Cash and equivalents at quarter-end were $697.9 million, with liquidity including digital assets totaling $778.6 million.

• Total debt as of March 31, 2025, was $1.12 billion, down $5 million sequentially.

Outlook and guidance

• On track to deliver 250 MW of high-density colocation to CoreWeave by year-end 2025 and approximately 590 MW by early 2027.

• Targeting 300 MW of additional billable capacity at existing sites by end of 2027 and 400 MW through new site development over three years.

• Management expects colocation to provide more stable, recurring revenue and reduce exposure to bitcoin price volatility.

• Pro forma fully diluted share count as of May 1, 2025, was approximately 502 million; statutory effective tax rate modeled at 22% for 2025.

• Over $380 million in net operating loss carryforwards to reduce future cash taxes.