Core Scientific Announces Third Quarter 2026 Results
Core Scientific, Inc./tx (CORZ) filed an SEC Form 8-K — Results of Operations and Financial Condition. Core Scientific Announces Third Quarter 2026 Results MIAMI, Florida, November 5, 2026 - Core Scientific, Inc . ( NASDAQ: CORZ ), a leader in digital infrastructure for high-density colocation services (“HDC”), today announced financial results for the third quarter ended Septembe
How this was made
The 30-second read
Why it matters
The earnings beat underscores rapid scaling of AI‑related data center capacity, likely prompting short‑term buying interest.
Market read
First‑report earnings release with material revenue growth; immediate trading relevance for CORZ and sector peers.
What to watch
High capital expenditures ($985M) and large escrowed cash could constrain near‑term liquidity.
Core Scientific reported third-quarter revenue of $232.9 million, led by $215.4 million of colocation revenue, while net income was $1.2 billion following a non-cash warrant fair-value gain.
Colocation revenue increased nearly 60% sequentially to $215.4 million, consolidated gross margin reached 53%, and Adjusted EBITDA increased to $133.6 million. Reported net income benefited from a non-cash gain in the change in fair value of warrants, while capital expenditures remained substantial at $985.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $232.9M | – | – |
| Q3 2026 total cost of revenueGAAP | $109.6M | – | – |
| Q3 2026 gross profitGAAP | $123.3M | – | – |
| Q3 2026 consolidated gross marginGAAP | 53 % | – | – |
| Q3 2026 operating income (loss)GAAP | $72.35M | – | – |
| Q3 2026 net income (loss)GAAP | $1.18B | – | – |
| Q3 2026 net income (loss) per share, basicGAAP | $3.42 | – | – |
| Q3 2026 net income (loss) per share, dilutedGAAP | $0.47 | – | – |
| Q3 2026 weighted average shares outstanding, basicGAAP | 327,700 | – | – |
| Q3 2026 weighted average shares outstanding, dilutedGAAP | 469,006 | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $133.6M | more than tripled sequentially | – |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 57% | up from 25% | – |
| Q3 2026 billing MWother | 485 | – | – |
| Q3 2026 capital expendituresother | $985.1 | – | – |
| Nine months ended September 30, 2026 total revenueGAAP | $512.3M | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $223.4M | – | – |
| Nine months ended September 30, 2026 consolidated gross marginGAAP | 44 % | – | – |
| Nine months ended September 30, 2026 operating income (loss)GAAP | −$316.5M | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | −$324.4M | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $183.6M | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $296.2M | – | – |
| Nine months ended September 30, 2026 net cash used in investing activitiesGAAP | −$2.17B | – | – |
| Nine months ended September 30, 2026 purchases of property, plant and equipmentGAAP | −$1.49B | – | – |
| Nine months ended September 30, 2026 net cash provided by financing activitiesGAAP | $3.20B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Colocation SegmentContinued delivery of billing megawatts. | $215.4M | increased nearly 60% sequentially | – |
| Digital Asset Self-Mining SegmentDigital asset self-mining gross profit was $(7,492) and gross margin was (61) %. | $12.26M | – | – |
| Digital Asset Hosted Mining SegmentDigital asset hosted mining gross profit was $2,391 and gross margin was 46 %. | $5.17M | – | – |
What drove it
- Colocation revenue increased nearly 60% sequentially to $215.4 million, driven by continued delivery of billing megawatts.
- The company was billing for 485 MW of capacity as of September 30, 2026, representing over $700 million in average annualized colocation GAAP revenue.
- License fees were $157,265 and power fees passed through to customer were $57,556 within Q3 2026 colocation revenue.
- Colocation gross profit was $128,373 and colocation gross margin was 60 % in Q3 2026.
- The company stated it was nearing full delivery under its first colocation agreement and that construction under its second agreement was underway across five campuses.
Concerns
- Q3 2026 net income of $1,178,130 benefited from a $(1,034,358) change in fair value of warrants and contingent value rights.
- Digital Asset Self-Mining gross profit was $(7,492) and gross margin was (61) % in Q3 2026.
- Nine-month operating loss was $(316,539), including $266,488 of impairment of property, plant and equipment.
- Capital expenditures were $985.1 million in Q3 2026, and purchases of property, plant and equipment were $(1,494,979) for the nine months ended September 30, 2026.
- Long-term debt was $4,302,175 and total stockholders' deficit was $(1,092,078) as of September 30, 2026.
What to watch
- Delivery of additional billable customer power capacity beyond the 485 MW billed as of September 30, 2026.
- Execution toward full delivery under the first colocation agreement and construction progress under the second agreement across five campuses.
- The pace of capital expenditures and purchases of property, plant and equipment.
- The sustainability of colocation gross margin, which was 60 % in Q3 2026.
- Further changes in the fair value of warrants and contingent value rights, which materially affected reported net income.
Balance sheet and cash flow
- Cash and cash equivalents were $803,941 as of September 30, 2026, compared with $1,769,735 as of June 30, 2026 and $311,378 as of December 31, 2025.
- Digital assets were $2,690 as of September 30, 2026, compared with $49,675 as of June 30, 2026 and $222,000 as of December 31, 2025.
- Liquidity and DSRA was $1,744.2 million as of September 30, 2026, compared with $2,601.1 million as of June 30, 2026 and $694.8 million as of September 30, 2025.
- Long-term debt was $4,302,175 as of September 30, 2026, compared with $4,297,967 as of June 30, 2026 and $1,060,325 as of December 31, 2025.
- Total assets were $5,935,714 as of September 30, 2026, compared with $5,257,493 as of June 30, 2026 and $2,347,644 as of December 31, 2025.
- Total liabilities were $7,027,792 as of September 30, 2026, compared with $7,676,849 as of June 30, 2026 and $3,310,384 as of December 31, 2025.
- Total stockholders' deficit was $(1,092,078) as of September 30, 2026, compared with $(2,419,356) as of June 30, 2026 and $(962,740) as of December 31, 2025.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was $296,243, compared with $120,740 for the nine months ended September 30, 2025.
- Cash, cash equivalents and restricted cash at the end of the nine months ended September 30, 2026 was $1,641,544, compared with $453,443 for the nine months ended September 30, 2025.
Analysis
Core Scientific's third-quarter results were driven by the conversion of contracted colocation capacity into billing revenue. Total revenue was $232,866, with colocation revenue of $215,432, compared with $136,669 in the prior quarter and $14,951 in the prior-year quarter. Management attributed the nearly 60% sequential increase in colocation revenue to continued delivery of billing megawatts. Billing capacity reached 485 MW as of September 30, 2026, which the company said represented over $700 million in average annualized colocation GAAP revenue.
The revenue mix continued to shift toward colocation. Colocation gross profit was $128,373 and gross margin was 60 %, while consolidated gross profit was $123,272 and consolidated gross margin was 53 %. Digital asset self-mining remained loss-making, with revenue of $12,263, gross profit of $(7,492), and gross margin of (61) %. Digital asset hosted mining generated $5,171 of revenue, $2,391 of gross profit, and a 46 % gross margin.
Operating income was $72,350, compared with operating losses of $(78,468) in the prior quarter and $(54,792) in the prior-year quarter. Adjusted EBITDA was $133,568, compared with $41,103 in the prior quarter and $6,501 in the prior-year quarter. The company reported a 57% Adjusted EBITDA margin, up from 25%. GAAP net income was $1,178,130, but the result included a $(1,034,358) change in fair value of warrants and contingent value rights. The filing explicitly states that net income for the September and June 2026 quarters was primarily driven by warrant fair-value changes reflecting movements in the company's stock price.
Investment and financing activity remained substantial. Q3 capital expenditures were $985.1 million. For the nine months ended September 30, 2026, purchases of property, plant and equipment were $(1,494,979), cash paid for asset acquisitions was $(676,881), and net cash used in investing activities was $(2,165,915). Financing activities provided $3,199,838 during the nine-month period, including $4,275,250 in proceeds from the issuance of debt. Long-term debt was $4,302,175 as of September 30, 2026, while cash and cash equivalents were $803,941 and total stockholders' deficit was $(1,092,078).
The filing did not provide forward financial guidance. The principal operating milestones are the company nearing full delivery under its first colocation agreement and ongoing construction under its second agreement across five campuses. Investors should focus on the pace at which additional leased capacity becomes billable, the durability of colocation margins, capital deployment, and the continuing effect of warrant valuation changes on GAAP results.
Management, verbatim
Our execution at scale is translating into results, with a significant sequential increase in GAAP colocation revenue. We are nearing full delivery under our first colocation agreement while construction under our second is underway across five campuses. With revenue growing and substantial contracted capacity still to deliver, we have built a strong foundation for our next phase of growth.
Adam Sullivan, Chief Executive Officer of Core Scientific
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior outlook for comparison
- Share repurchase information
- Dividend information
- Quarterly operating cash flow
- Quarterly free cash flow
- Free cash flow for the nine months ended September 30, 2026
- Total leasable customer power capacity
- Leased customer power capacity
- Unleased customer power capacity
- Billable customer power capacity other than the reported billing MW
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Core Scientific is a Nasdaq‑listed provider of high‑density colocation services for AI workloads, recently transitioning mining facilities to colocation.
Ticker impact
Core Scientific reported Q3 2026 results with 60% sequential revenue growth to $215.4M and net income of $1.2B, a fresh primary disclosure.
likely upward as investors price in higher colocation revenue and improved margins
The earnings release is the first report of these numbers; the magnitude of revenue growth and profitability is material for a mid‑cap listed company.
Market effects
Highlights growing demand for high‑density colocation services supporting AI workloads, potentially benefiting peers in data‑center infrastructure.
Positive for U.S. tech infrastructure sector, especially firms with exposure to AI‑related data center demand.
Reinforces broader narrative of AI‑driven infrastructure spending worldwide.
Counterpoint
Net income includes a non‑cash warrant gain; cash flow may be weaker than headline profit suggests.
Key entities
- ExecutiveAdam Sullivan
CEO of Core Scientific, quoted on execution and growth.
