10-Q · July 28, 2026
Core Scientific's operating transition accelerated in Q2: revenue reached $164.2 million, up from $78.6 million a year earlier, as colocation revenue rose to $136.7 million and gross margin expanded to 42.7%. However,…
Earnings analysis · 10-Q
CORZ earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Core Scientific delivered strong sequential and year-over-year improvement, with Q3 revenue of $232.9 million and diluted EPS of $0.47 versus $164.0 million and $(3.32) in Q2 2026. The filing supports continued…
Read full summary
Core Scientific delivered strong sequential and year-over-year improvement, with Q3 revenue of $232.9 million and diluted EPS of $0.47 versus $164.0 million and $(3.32) in Q2 2026. The filing supports continued expansion of the HPC colocation platform, with 1.7 GW of leasable customer capacity, but does not disclose current gross or operating margins, free cash flow, or numeric forward guidance. Material weaknesses, approximately $4.4 billion of debt, customer concentration and regulatory constraints remain significant offsets to the improved operating trend.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.47
What stood out
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Revenue and EPS improved sharply
Revenue increased to $232.9 million from $164.0 million in Q2 2026 and $81.0 million in Q3 2025, while diluted EPS improved to $0.47 from $(3.32) sequentially and $(0.45) year over year.
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Large data-center capacity footprint
The company controlled approximately 2.6 GW of gross utility power and approximately 1.7 GW of total leasable customer power capacity across 11 data centers in seven U.S. states as of September 30, 2026.
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Bitcoin holdings remain modest
The company held 32 bitcoin with a carrying value of $3 million at September 30, 2026. Bitcoin prices ranged from $57,779 to $97,877 during the first nine months of 2026.
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Warrant exercises raised cash
The company received $10.5 million from the exercise of Tranche 1 Warrants during the quarter, issuing 1.5 million common shares; an additional 0.3 million shares were issued upon Tranche 2 Warrant exercise with minimal cash proceeds.
What to watch
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Material weakness remains unresolved
The material weakness in internal control over financial reporting remained unremediated as of September 30, 2026. The deficiency previously caused material misstatements in property, plant and equipment and impairment expense that required restatement of previously issued annual and interim financial statements.
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Customer concentration remains high
HPC colocation revenue is currently derived from a single customer. Although lease agreements with AMD and a Neocloud counterparty were executed, revenue is not expected to begin until the beginning of 2027, leaving results dependent on CoreWeave until then.
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Heavy leverage and liquidity risk
The company had approximately $4.4 billion of aggregate principal indebtedness as of September 30, 2026. Debt service, restrictive covenants, refinancing needs and potential defaults could constrain liquidity and operating flexibility.
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Power and regulatory constraints
Regulatory and grid constraints could limit expansion: the company operates or plans to operate four data-center facilities in Texas, where large electricity loads may be subject to curtailment or disconnection during grid emergencies.
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Exposure to future interest-rate increases
Future borrowings under the revolving credit facility would bear interest at Adjusted Term SOFR plus 1.750% or an alternate base rate plus 0.750%; no borrowings were outstanding as of September 30, 2026, and the company has no interest-rate hedges.
Management's outlook
No forward revenue or EPS guidance was provided in the report; quantitative outlook was deferred to the earnings release or call.
Earlier filings 2
10-Q · May 6, 2026
Core Scientific, Inc. reported Q1 2026 results with total revenue of $115.2 million, a significant increase of 45% from $79.5 million in Q1 2025, but sustained a net loss of $347.2 million due to substantial impairment…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.