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.

• Revenue rose to $115.2M for Q1 2026 from $79.5M year-over-year, driven by higher colocation revenue and offset by lower digital asset self-mining revenue due to reduced bitcoin production and prices.

• Closed a $3.3 billion capital raise and senior secured notes offering at 7.75% due 2031, providing flexibility for accelerated development and future growth.

• 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, chipmakers, AI labs, and neocloud providers for site leasing.

Financial highlights

• Annualized colocation GAAP revenue exceeds $350 million, with 243 MW billable and more capacity expected to begin billing soon.

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

• SG&A for Q1 was just over $30 million, serving as a baseline for future corporate expenses.

• Increased target cash gross profit range for the CoreWeave contract to 80%-85%, up from 75%-80%.

• Cash and cash equivalents at quarter-end were $1.0B, up from $311M at year-end 2025.

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.

• Plan to deploy roughly $2 billion in capital expenditures in 2026, including site acquisitions and equipment procurement.

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

• Expansion plans in Pecos, TX and Muskogee, OK, targeting up to 1.5 GW gross power capacity each.

• Behind-the-meter solutions expected to accelerate power delivery and mitigate grid interconnection delays.