Core Scientific (CORZ) Q1 2026 earnings summary

Executive summary

• Achieved a major milestone as colocation revenue scaled to cover operating costs and expand margins, marking a shift from Bitcoin mining to high-density colocation and AI workloads.

• Delivered 243 MW of billable capacity, with plans to exceed 450 MW by end of summer and 590 MW by early 2027, and expanded gross power capacity pipeline to 4.5 GW.

• Closed a $3.3 billion capital raise through senior secured notes at 7.75% interest, providing significant resources for future growth and project development.

• Operates across 7 states with a total of ~3.0 GW in leasable customer power and a $10B+ contracted revenue pipeline, including a 12-year, $10B+ CoreWeave contract.

• Engaged in active discussions with hyperscalers, chip makers, AI labs, and neo cloud providers, reflecting strong market demand.

Financial highlights

• Annualized colocation GAAP revenue exceeds $350 million, with more capacity expected to begin billing soon; average annualized revenue from CoreWeave contract is ~$850 million.

• Total revenue was $115.2 million for Q1 2026, up 45% year-over-year, driven by colocation growth.

• Colocation revenue surged to $77.5 million (67% of total), up from $8.6 million (11%) year-over-year.

• Net loss was $347.2 million, compared to net income of $576.3 million in the prior year, reflecting $266.5 million in non-cash impairment charges and a $30.8 million loss in fair value of warrants and contingent value rights.

• Adjusted EBITDA improved to $4.4 million from $(6.1) million year-over-year.

Outlook and guidance

• Strategic transition underway to high-density colocation services, expected to provide more stable, predictable revenue and reduce exposure to bitcoin price volatility.

• Expect to deploy roughly $2 billion in capital expenditures in 2026, including site acquisitions and equipment procurement, supporting over 1 GW of new capacity development.

• Expansion plans in Pecos, TX and Muskogee, OK, targeting up to 1.5 GW gross power capacity each, with behind-the-meter solutions to accelerate power delivery.

• Positioned to sign new customer contracts with capacity available for delivery starting in early 2027.

• Management expects sufficient liquidity for at least the next twelve months, supported by cash, operating cash flows, and customer funding.