Core Scientific (CORZ) Q3 2025 earnings summary

Executive summary

• Transitioned from bitcoin mining to high-density colocation services for AI and HPC workloads, aiming for more stable and predictable revenue streams by repurposing existing facilities and infrastructure.

• Entered a merger agreement with CoreWeave, Inc. in July 2025, with an all-stock transaction pending shareholder and regulatory approval; a special shareholder meeting is scheduled for October 30, 2025.

• Majority of revenue still from bitcoin self-mining, but colocation segment is growing rapidly with new data center capacity coming online.

• Total revenue for Q3 2025 was $81.1 million, down from $95.4 million in Q3 2024, reflecting declines in digital asset mining and hosted mining, partially offset by growth in high-density colocation revenue.

• Net loss narrowed to $146.7 million from $455.3 million in the prior-year period, mainly due to a smaller non-cash fair value adjustment for warrants and contingent value rights.

Financial highlights

• Total revenue for the nine months ended September 30, 2025 was $239.3 million, down 42% from $415.7 million year-over-year.

• Net loss for the nine months was $502.8 million, a significant improvement from a $1.05 billion net loss in the prior year period.

• Adjusted EBITDA for the nine months was $13.0 million, down from $144.2 million year-over-year; Q3 2025 adjusted EBITDA was $(2.4) million, compared to $10.1 million in Q3 2024.

• Gross margin declined to 7% from 28% year-over-year, reflecting the impact of the bitcoin halving and business transition; consolidated gross margin was 5% in Q3 2025, up from 0% in Q3 2024.

• Cash and cash equivalents at September 30, 2025 were $453.4 million, down from $836.2 million at year-end 2024.

Outlook and guidance

• Plans to deliver 250MW of billable colocation capacity by year-end 2025, with continued conversion of mining facilities to support AI and HPC workloads.

• Management expects the colocation segment to reduce exposure to bitcoin price volatility and provide more predictable cash flows.

• Confident in liquidity position to meet operating and capital needs over the next twelve months and beyond.

• The company expects to rapidly increase revenue from high-density colocation and is repurposing mining facilities to support AI-related workloads and next-generation colocation services.