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Core Scientific Announces Fiscal Second Quarter 2025 Results

Core Scientific, Inc. (NASDAQ: CORZ), a leader in digital infrastructure for high-density colocation services and digital asset mining, today announced financial results for the fiscal second quarter of 2025.

Fiscal Second Quarter 2025 Financial Results

  • Total revenue was $78.6 million compared to $141.1 million in the second quarter of 2024.
    • Digital asset self-mining revenue was $62.4 million, down from $110.7 million in the prior-year period. The decline was primarily driven by a 62% decrease in bitcoin mined, partially offset by a 50% increase in the average bitcoin price.
    • Digital asset hosted mining revenue was $5.6 million, down from $24.8 million in the same period a year ago. The decrease was driven by the continued strategic shift to our colocation business.
    • Colocation (formerly “HPC hosting”) revenue was $10.6 million, up from $5.5 million in the second quarter of 2024. The increase was due to the expansion of colocation operations into Denton, Texas during the second quarter of 2025.
  • Gross profit was $5.0 million compared to $38.8 million in the same period last year.
  • Net loss was $936.8 million, compared to $804.9 million in the prior-year period, primarily due to non-cash fair value adjustments of $910.0 million versus $796.0 million, respectively, related to warrants and contingent value rights driven by an increase in stock price.
  • Adjusted EBITDA was $21.5 million compared to $46.0 million for the prior year period.
  • Capital expenditures were $121.3 million, with $90.3 million funded by CoreWeave under the previously announced contractual agreements. In addition, the company spent $31.0 million in new site development at non-CoreWeave locations.
  • Liquidity position of $754.1 million, including $581.3 million of cash and cash equivalents and $172.8 million of digital assets at the end of the second quarter of 2025.

PENDING COREWEAVE TRANSACTION

On July 7, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CoreWeave. Pursuant to the Merger Agreement, subject to the terms and conditions set forth therein, CoreWeave will acquire the Company in an all-stock transaction. Pursuant to the Merger Agreement, each outstanding share of the Company’s common stock at the Effective Time (as defined in the Merger Agreement) will be cancelled and converted into a number of fully paid and non-assessable shares of CoreWeave Class A common stock, equal to the exchange ratio of 0.1235. The transaction is subject to the approval of the Company’s stockholders and customary closing conditions, including applicable regulatory approvals.

CONFERENCE CALL AND EARNINGS PRESENTATION

Due to the pending transaction, Core Scientific will not be hosting a conference call or providing an accompanying earnings presentation in conjunction with its second quarter 2025 earnings release. For further details and discussion of our financial performance please refer to our Form 10-Q for the quarter ended June 30, 2025.

ABOUT CORE SCIENTIFIC

Core Scientific, Inc. (“Core Scientific” or the “Company”) is a leader in digital infrastructure for high-density colocation services and digital asset mining. We operate dedicated, purpose-built facilities for high-density colocation services and are a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own fleet of computers (“miners”) to earn digital assets for our own account and we are in the process of converting most of our existing facilities to support artificial intelligence-related workloads and next generation colocation services. We currently derive the majority of our revenue from earning digital assets for our own account but expect to rapidly increase revenue derived from high-density compute. Our colocation facilities are located in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1), Oklahoma (1) and Texas (3). To learn more, visit www.corescientific.com.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Forward-looking statements may include words such as “aim,” “estimate,” “plan,” “project,” “forecast,” “goal,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, the advantages and expected growth of the Company and the Company’s ability to source and retain talent. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks, assumptions and uncertainties include those described in Part I. Item 1A. — “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.

Additional risk factors that may cause actual results to vary materially include, but are not limited to: the completion of the proposed acquisition of the Company by CoreWeave, Inc. (“CoreWeave”) on anticipated terms or at all, and the timing thereof, including obtaining regulatory approvals that may be required and the Company stockholder approval of the proposed transaction and the other conditions to the completion of the proposed transaction; uncertainty in the value of the consideration that Company stockholders would receive in the proposed transaction, if completed, due to fluctuations in the market price of CoreWeave common stock until closing; anticipated tax treatment of the proposed transaction for Company stockholders, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies, expansion and growth of the combined company following completion of the proposed transaction; the possibility that any of the anticipated benefits of the proposed transaction will not be realized or will not be realized within the expected time period; the ability of the Company to integrate its businesses successfully with CoreWeave’s and to achieve anticipated synergies and value creation; potential litigation relating to the proposed transaction that could be instituted against the Company, or its directors and officers; the risk that disruptions from the proposed transaction will harm the Company’s business, including current plans and operations and that management’s time and attention will be diverted on transaction-related issues; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; rating agency actions and the Company’s ability to access short- and long-term debt markets on a timely and affordable basis; legislative, regulatory and economic developments and actions targeting public companies in the artificial intelligence, power, data center and crypto mining industries and changes in local, national or international laws, regulations and policies affecting the Company; potential business uncertainty, including the outcome of commercial negotiations and changes to existing business relationships during the pendency of the proposed transaction that could affect the Company’s financial performance and operating results; certain restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions or otherwise operate its business; acts of terrorism or outbreak of war, hostilities, civil unrest, attacks against the Company or political or security disturbances; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the impacts of pandemics or other public health crises, including the effects of government responses on people and economies; global or regional changes in the supply and demand for power and other market or economic conditions that impact demand and pricing; changes in technical or operating conditions, including unforeseen technical difficulties; development delays at the Company’s data center sites, including any delays in the conversion of such sites from crypto mining facilities to high performance computing sites; the Company’s ability to earn digital assets profitably and to attract customers for its high density colocation capabilities; the Company’s ability to perform under its existing colocation agreements; the Company’s ability to maintain its competitive position in its existing operating segments; the impact of increases in total network hash rate; the Company’s ability to raise additional capital to continue its expansion efforts or other operations; the Company’s need for significant electric power and the limited availability of power resources; the potential failure in the Company’s critical systems, facilities or services the Company provides; the physical risks and regulatory changes relating to climate change; potential significant changes to the method of validating blockchain transactions; the Company’s vulnerability to physical security breaches, which could disrupt operations; a potential slowdown in market and economic conditions, particularly those impacting high density computing, the blockchain industry and the blockchain hosting market; price volatility of digital assets and bitcoin in particular; potential changes in the interpretive positions of the SEC or its staff with respect to digital asset mining firms; the likelihood that U.S. federal and state legislatures and regulatory agencies will enact laws and regulations to regulate digital assets and digital asset intermediaries; changing expectations with respect to ESG policies; the effectiveness of the Company’s compliance and risk management methods; the adequacy of the Company’s sources of recovery if the digital assets held by the Company are lost, stolen or destroyed due to third-party digital asset services; and those risks that will be described in the proxy statement/prospectus that will be included in the registration statement on Form S-4 that will be filed with the SEC in connection with the proposed transaction.

These risks, as well as other risks associated with the proposed transaction, will be more fully discussed in the proxy statement/prospectus that will be included in the registration statement on Form S-4 that will be filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors to be presented in the registration statement on Form S-4 will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. You should not place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes; actual performance and outcomes, including, without limitation, Core Scientific’s or CoreWeave’s actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which Core Scientific or CoreWeave operate, may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Neither Core Scientific nor CoreWeave assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Neither future distribution of this communication nor the continued availability of this communication in archive form on Core Scientific’s or CoreWeave’s website should be deemed to constitute an update or re-affirmation of these statements as of any future date.

There may be additional risks that the Company could not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release and should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. Accordingly, you should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

Core Scientific, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except par value)

(Unaudited)

 

 

June 30,

2025

 

December 31,

2024

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

581,345

 

 

$

836,197

 

Restricted cash

 

 

 

 

783

 

Digital assets

 

172,772

 

 

 

23,893

 

Customer funding receivable and other current assets

 

250,643

 

 

 

43,089

 

Total Current Assets

 

1,004,760

 

 

 

903,962

 

Property, plant and equipment, net

 

828,603

 

 

 

556,342

 

Operating lease right-of-use assets

 

108,584

 

 

 

114,472

 

Other noncurrent assets

 

36,105

 

 

 

24,039

 

Total Assets

$

1,978,052

 

 

$

1,598,815

 

Liabilities and Stockholders’ Deficit

 

 

 

Current Liabilities:

 

 

 

Accounts payable

$

215,055

 

 

$

19,265

 

Accrued expenses

 

180,641

 

 

 

64,670

 

Deferred revenue

 

150,127

 

 

 

18,134

 

Other current liabilities

 

16,899

 

 

 

32,493

 

Total Current Liabilities

 

562,722

 

 

 

134,562

 

Convertible and other notes payable, net of current portion

 

1,057,696

 

 

 

1,073,990

 

Warrant liabilities

 

1,316,690

 

 

 

1,097,285

 

Other noncurrent liabilities

 

105,620

 

 

 

113,158

 

Total Liabilities

 

3,042,728

 

 

 

2,418,995

 

Commitments and contingencies

 

 

 

Stockholders’ Deficit:

 

 

 

Preferred stock; $0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at June 30, 2025 and December 31, 2024

 

 

 

 

 

Common stock; $0.00001 par value; 10,000,000 shares authorized at June 30, 2025 and December 31, 2024; 303,146 and 292,606 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

 

3

 

 

 

3

 

Additional paid-in capital

 

3,026,645

 

 

 

2,915,035

 

Accumulated deficit

 

(4,091,324

)

 

 

(3,735,218

)

Total Stockholders’ Deficit

 

(1,064,676

)

 

 

(820,180

)

Total Liabilities and Stockholders’ Deficit

$

1,978,052

 

 

$

1,598,815

 

 

Certain prior year amounts have been reclassified for consistency with the current year presentation.

Core Scientific, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2025

 

2024

 

2025

 

2024

Revenue:

 

 

 

 

 

 

 

Digital asset self-mining revenue

$

62,424

 

 

$

110,743

 

 

$

129,603

 

 

$

260,702

 

Digital asset hosted mining revenue from customers

 

5,644

 

 

 

24,840

 

 

 

9,417

 

 

 

54,172

 

Colocation revenue

 

10,560

 

 

 

5,519

 

 

 

19,133

 

 

 

5,519

 

Total revenue

 

78,628

 

 

 

141,102

 

 

 

158,153

 

 

 

320,393

 

Cost of revenue:

 

 

 

 

 

 

 

Cost of digital asset self-mining

 

59,589

 

 

 

80,001

 

 

 

120,759

 

 

 

161,565

 

Cost of digital asset hosted mining services

 

4,584

 

 

 

17,393

 

 

 

6,620

 

 

 

37,474

 

Cost of Colocation services

 

9,430

 

 

 

4,891

 

 

 

17,536

 

 

 

4,891

 

Total cost of revenue

 

73,603

 

 

 

102,285

 

 

 

144,915

 

 

 

203,930

 

Gross profit

 

5,025

 

 

 

38,817

 

 

 

13,238

 

 

 

116,463

 

(Increase) decrease in fair value of digital assets

 

(29,797

)

 

 

584

 

 

 

(19,109

)

 

 

41

 

Decrease in fair value of energy derivatives

 

 

 

 

539

 

 

 

 

 

 

2,757

 

Loss (gain) on exchange or disposal of property, plant and equipment

 

4,166

 

 

 

(268

)

 

 

4,172

 

 

 

3,552

 

Selling, general and administrative

 

56,940

 

 

 

31,383

 

 

 

97,055

 

 

 

48,307

 

Operating (loss) income

 

(26,284

)

 

 

6,579

 

 

 

(68,880

)

 

 

61,806

 

Non-operating expense (income), net:

 

 

 

 

 

 

 

Loss on debt extinguishment

 

1,377

 

 

 

120

 

 

 

1,377

 

 

 

170

 

Interest (income) expense, net

 

(1,185

)

 

 

14,775

 

 

 

(3,372

)

 

 

28,862

 

Change in fair value of warrants and contingent value rights

 

909,958

��

 

 

796,035

 

 

 

288,494

 

 

 

735,921

 

Reorganization items, net

 

 

 

 

 

 

 

 

 

 

(111,439

)

Other non-operating expense, net

 

207

 

 

 

401

 

 

 

364

 

 

 

2,147

 

Total non-operating expense, net

 

910,357

 

 

 

811,331

 

 

 

286,863

 

 

 

655,661

 

Loss before income taxes

 

(936,641

)

 

 

(804,752

)

 

 

(355,743

)

 

 

(593,855

)

Income tax expense

 

158

 

 

 

144

 

 

 

363

 

 

 

350

 

Net loss

$

(936,799

)

 

$

(804,896

)

 

$

(356,106

)

 

$

(594,205

)

 

 

 

 

 

 

 

 

Net loss per share - basic and diluted

$

(0.04

)

 

$

(4.51

)

 

$

(0.21

)

 

$

(2.87

)

Weighted average shares outstanding - basic and diluted

 

317,985

 

 

 

178,505

 

 

 

316,593

 

 

 

207,092

 

 

Certain prior year amounts have been reclassified for consistency with the current year presentation.

Core Scientific, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

Six Months Ended June 30,

 

2025

 

2024

Cash flows from Operating Activities:

 

 

 

Net loss

$

(356,106

)

 

$

(594,205

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

Depreciation and amortization

 

38,487

 

 

 

58,473

 

Losses on exchange or disposal of property, plant and equipment

 

4,172

 

 

 

3,552

 

Amortization of operating lease right-of-use assets

 

5,404

 

 

 

2,752

 

Stock-based compensation

 

40,355

 

 

 

7,434

 

Digital asset self-mining and shared hosting revenue

 

(129,769

)

 

 

(260,701

)

Proceeds from sale of digital assets generated by self-mining and shared hosting revenues1

 

 

 

 

262,968

 

(Increase) decrease in fair value of digital assets

 

(19,109

)

 

 

41

 

Decrease in fair value of energy derivatives

 

 

 

 

(2,262

)

Increase in fair value of warrant liabilities

 

289,400

 

 

 

809,320

 

Decrease in fair value of contingent value rights

 

(906

)

 

 

(73,379

)

Loss on debt extinguishment

 

1,377

 

 

 

170

 

Amortization of debt discount

 

3,365

 

 

 

1,125

 

Non-cash reorganization items

 

 

 

 

(143,791

)

Non-cash PIK interest expense

 

 

 

 

2,339

 

Changes in operating assets and liabilities:

 

 

 

Customer funding receivable and other current assets

 

22,978

 

 

 

1,979

 

Accounts payable

 

(16,379

)

 

 

(11,480

)

Accrued expenses

 

(9,792

)

 

 

(46,257

)

Deferred revenue from colocation services

 

131,293

 

 

 

 

Deferred revenue from hosted mining services

 

700

 

 

 

(1,917

)

Other noncurrent assets and liabilities, net

 

(12,069

)

 

 

7,217

 

Net cash (used in) provided by operating activities

 

(6,599

)

 

 

23,378

 

Cash flows from Investing Activities:

 

 

 

Purchases of property, plant and equipment

 

(209,701

)

 

 

(35,029

)

Proceeds from sales of property and equipment

 

1,671

 

 

 

 

Purchase of equity investments

 

(5,000

)

 

 

 

Investments in internally developed software

 

(36

)

 

 

(125

)

Net cash used in investing activities

 

(213,066

)

 

 

(35,154

)

Cash flows from Financing Activities:

 

 

 

Principal repayments of finance leases

 

(1,125

)

 

 

(4,466

)

Principal payments on debt

 

(8,613

)

 

 

(28,348

)

Debt extinguishment payments

 

(26,862

)

 

 

 

Proceeds from exercise of warrants

 

630

 

 

 

367

 

Proceeds from issuance of new common stock

 

 

 

 

55,000

 

Proceeds from draw from exit facility

 

 

 

 

20,000

 

Restricted stock tax holding obligations

 

 

 

 

(3,390

)

Proceeds from exercise of stock options

 

 

 

 

9

 

Net cash (used in) provided by financing activities

 

(35,970

)

 

 

39,172

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(255,635

)

 

 

27,396

 

Cash, cash equivalents and restricted cash—beginning of period

 

836,980

 

 

 

69,709

 

Cash, cash equivalents and restricted cash—end of period

$

581,345

 

 

$

97,105

 

 

 

 

 

Certain prior year amounts have been reclassified for consistency with the current year presentation.

 
_______________

1 Proceeds from digital assets received as noncash revenue consideration liquidated nearly immediately after receipt as a routine operating activity.

Core Scientific, Inc.

Segment Results

(in thousands, except percentages)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2025

 

2024

 

2025

 

2024

Digital Asset Self-Mining Segment

(in thousands, except percentages)

Digital asset self-mining revenue

$

62,424

 

 

$

110,743

 

 

$

129,603

 

 

$

260,702

 

Cost of digital asset self-mining:

 

 

 

 

 

 

 

Power fees

 

30,720

 

 

 

41,174

 

 

 

61,039

 

 

 

86,157

 

Depreciation expense

 

18,058

 

 

 

28,174

 

 

 

37,317

 

 

 

55,652

 

Employee compensation

 

8,272

 

 

 

6,038

 

 

 

15,607

 

 

 

10,718

 

Facility operations expense

 

2,089

 

 

 

3,231

 

 

 

5,369

 

 

 

6,181

 

Other segment items

 

450

 

 

 

1,384

 

 

 

1,427

 

 

 

2,857

 

Total cost of digital asset self-mining

 

59,589

 

 

 

80,001

 

 

 

120,759

 

 

 

161,565

 

Digital Asset Self-Mining gross profit

$

2,835

 

 

$

30,742

 

 

$

8,844

 

 

$

99,137

 

Digital Asset Self-Mining gross margin

 

5

%

 

 

28

%

 

 

7

%

 

 

38

%

 

 

 

 

 

 

 

 

Digital Asset Hosted Mining Segment

 

 

 

 

 

 

 

Digital asset hosted mining revenue from customers

$

5,644

 

 

$

24,840

 

 

$

9,417

 

 

$

54,172

 

Cost of digital asset hosted mining services:

 

 

 

 

 

 

 

Power fees

 

3,208

 

 

 

11,301

 

 

 

4,574

 

 

 

24,795

 

Depreciation expense

 

334

 

 

 

1,041

 

 

 

479

 

 

 

2,311

 

Employee compensation

 

779

 

 

 

1,640

 

 

 

1,110

 

 

 

3,044

 

Facility operations expense

 

220

 

 

 

880

 

 

 

368

 

 

 

1,765

 

Other segment items

 

43

 

 

 

2,531

 

 

 

89

 

 

 

5,559

 

Total cost of digital asset hosted mining services

 

4,584

 

 

 

17,393

 

 

 

6,620

 

 

 

37,474

 

Digital Asset Hosted Mining gross profit

$

1,060

 

 

$

7,447

 

 

$

2,797

 

 

$

16,698

 

Digital Asset Hosted Mining gross margin

 

19

%

 

 

30

%

 

 

30

%

 

 

31

%

 

 

 

 

 

 

 

 

Colocation Segment

 

 

 

 

 

 

 

Colocation revenue:

 

 

 

 

 

 

 

License fees

$

7,010

 

 

$

3,818

 

 

$

13,005

 

 

$

3,818

 

Maintenance and other

 

86

 

 

 

38

 

 

 

78

 

 

 

38

 

Licensing revenue

 

7,096

 

 

 

3,856

 

 

 

13,083

 

 

 

3,856

 

Power fees passed through to customer

 

3,464

 

 

 

1,663

 

 

 

6,050

 

 

 

1,663

 

Total Colocation revenue

 

10,560

 

 

 

5,519

 

 

 

19,133

 

 

 

5,519

 

Cost of Colocation services:

 

 

 

 

 

 

 

Depreciation expense

 

104

 

 

 

14

 

 

 

171

 

 

 

14

 

Employee compensation

 

1,148

 

 

 

78

 

 

 

2,442

 

 

 

78

 

Facility operations expense

 

4,336

 

 

 

3,101

 

 

 

8,187

 

 

 

3,101

 

Other segment items

 

378

 

 

 

35

 

 

 

686

 

 

 

35

 

Cost of licensing revenue

 

5,966

 

 

 

3,228

 

 

 

11,486

 

 

 

3,228

 

Power fees passed through to customer

 

3,464

 

 

 

1,663

 

 

 

6,050

 

 

 

1,663

 

Total cost of Colocation services

 

9,430

 

 

 

4,891

 

 

 

17,536

 

 

 

4,891

 

Colocation gross profit

$

1,130

 

 

$

628

 

 

$

1,597

 

 

$

628

 

Colocation licensing gross margin

 

16

%

 

 

16

%

 

 

12

%

 

 

16

%

HPC Hosting gross margin

 

11

%

 

 

11

%

 

 

8

%

 

 

11

%

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

Consolidated total revenue

$

78,628

 

 

$

141,102

 

 

$

158,153

 

 

$

320,393

 

Consolidated cost of revenue

$

73,603

 

 

$

102,285

 

$

144,915

 

 

$

203,930

 

Consolidated gross profit

$

5,025

 

 

$

38,817

 

 

$

13,238

 

 

$

116,463

 

Consolidated gross margin

 

6

%

 

 

28

%

 

 

8

%

 

 

36

%

Core Scientific, Inc.

Non-GAAP Financial Measures

(Unaudited)

 

Adjusted EBITDA is a non-GAAP financial measure defined as our net loss, adjusted to eliminate the effect of (i) interest income, interest expense, and other income (expense), net; (ii) provision for income taxes; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) Reorganization items, net; (vi) unrealized fair value adjustment on energy derivatives; (vii) change in the fair value of warrant and contingent value rights, (viii) Colocation organizational startup costs which are not reflective of the ongoing costs incurred after startup, (ix) post-emergence bankruptcy advisory costs incurred related to reorganization which are not reflective of the ongoing costs incurred in post-emergence operations, and (x) certain additional non-cash items that do not reflect the performance of our ongoing business operations. For additional information, including the reconciliation of net income to Adjusted EBITDA, please refer to the table below. We believe Adjusted EBITDA is an important measure because it allows management, investors, and our Board of Directors to evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making the adjustments described above. In addition, it provides useful information to investors and others in understanding and evaluating our results of operations, as well as provides a useful measure for period-to-period comparisons of our business, as it removes the effect of net interest expense, taxes, certain non-cash items, variable charges and timing differences. Moreover, we have included Adjusted EBITDA in this earnings release because it is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic and financial planning.

 

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature or because the amount and timing of these items are not related to the current results of our core business operations which renders evaluation of our current performance, comparisons of performance between periods and comparisons of our current performance with our competitors less meaningful. However, you should be aware that when evaluating Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating this measure. Our presentation of this measure should not be construed as an inference that its future results will be unaffected by unusual items. Further, this non-GAAP financial measure should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). We compensate for these limitations by relying primarily on GAAP results and using Adjusted EBITDA on a supplemental basis. Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because not all companies calculate this measure in the same fashion. You should review the reconciliation of net income to Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.

 

The following table reconciles the non-GAAP financial measure to the most directly comparable U.S. GAAP financial performance measure, which is net loss, for the periods presented (in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2025

 

2024

 

2025

 

2024

Adjusted EBITDA

 

 

 

 

 

Net loss

$

(936,799

)

 

$

(804,896

)

 

$

(356,106

)

 

$

(594,205

)

Adjustments:

 

 

 

 

 

 

 

Interest (income) expense, net

 

(1,185

)

 

 

14,775

 

 

 

(3,372

)

 

 

28,862

 

Income tax expense

 

158

 

 

 

144

 

 

 

363

 

 

 

350

 

Depreciation and amortization

 

18,756

 

 

 

29,477

 

 

 

38,487

 

 

 

58,473

 

Stock-based compensation expense

 

24,170

 

 

 

8,494

 

 

 

40,355

 

 

 

7,434

 

Unrealized fair value adjustment on energy derivatives

 

 

 

 

(1,465

)

 

 

 

 

 

(2,262

)

Loss (gain) on exchange or disposal of property, plant and equipment

 

4,166

 

 

 

(268

)

 

 

4,172

 

 

 

3,552

 

Loss on debt extinguishment

 

1,377

 

 

 

120

 

 

 

1,377

 

 

 

170

 

Colocation startup costs

 

 

 

 

4,601

 

 

 

 

 

 

4,601

 

Post-emergence bankruptcy advisory costs

 

695

 

 

 

(1,380

)

 

 

1,298

 

 

 

307

 

Reorganization items, net

 

 

 

 

 

 

 

 

 

 

(111,439

)

Change in fair value of warrants and contingent value rights

 

909,958

 

 

 

796,035

 

 

 

288,494

 

 

 

735,921

 

Other non-operating expense, net

 

207

 

 

 

401

 

 

 

364

 

 

 

2,147

 

Other

 

 

 

 

(2

)

 

 

 

 

 

121

 

Adjusted EBITDA

$

21,503

 

 

$

46,036

 

 

$

15,432

 

 

$

134,032

 

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