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CORZ

Core Scientific


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Earnings

2026Q1 Review (Claude)

CORZ | Earnings Review

Core Scientific, Inc. | 2026 Q1 reported May 6, 2026 BMO | Analysis date: May 7, 2026 | Daloopa company_id None
Revenue
$115.2M (+45% YoY)
Mixed: beat ~$111M avg Street, missed Zacks $120M; Q1'26 = inflection point; colocation ($77.5M) overtook self-mining ($30.1M) for first time
Adj EBITDA
+$4.4M (FLIPPED POSITIVE)
vs -$42.7M Q4'25 / -$2.4M Q3'25; first quarter colocation gross profit covers SG&A; margin 4%
GAAP / Adj EPS
-$1.06 / -$0.10
GAAP miss vs -$0.02 cons (driven by $266.5M PP&E impairment + $30.8M warrant MTM); clean -$0.10 vs -$0.07
Capital Structure
$3.3B PROJECT BOND CLOSED
7.75% rate, ~$2.9B net; secured by CoreWeave cash flows; liquidity $1.04B (+$830M QoQ); funds ~1 GW dev capacity
First call after CoreWeave merger termination — and a clean inflection on every operational metric. CORZ's Q1'26 print marks: (1) colocation overtaking self-mining ($77.5M vs $30.1M) for the first time; (2) Adj EBITDA flipping positive at $4.4M after 3 straight negative quarters; (3) $3.3B project bond closed at 7.75% (secured by CoreWeave cash flows, ~$2.9B net) the morning of the print — removes the principal capital constraint on the next 1+ GW of HPC dev. Total revenue $115.2M (+45% YoY) — first growth print since bankruptcy emergence Q1'24. Headline beats vs Street: revenue mixed (beat avg $111M, missed Zacks $120M); Adj EBITDA flipped positive vs ~breakeven Street; GAAP EPS -$1.06 missed -$0.02 cons but driven entirely by $266.5M legacy-mining PP&E impairment + $30.8M non-cash warrant/CVR MTM (clean EPS -$0.10 vs -$0.07). Operational drivers: CoreWeave colocation 243 MW billing (~$350M annualized), 350 MW energized; on track for 450 MW billing by end of summer 2026; 590 MW (full CoreWeave contract) by early 2027. Margin upgrade: cash gross margin target raised from 75-80% to 80-85% on CoreWeave contract (mgmt cites 2 years of cost experience). HPC backlog ~$10.2B over 12 years; pipeline expanded to 4.5 GW with Pecos and Muskogee both being scaled to ~1.5 GW gross. BTC mining wind-down accelerating: only 1-2 mining sites left by YE 2026; ~1,900 BTC sold for $175M in January 2026; self-mining revenue down 73% from Q2'24 peak. FY26 capex: ~$2.0B (~$700M for Hunt County + Polaris/Muskogee acquisitions, balance for ~1 GW new dev capacity); first explicit FY number. SG&A baseline ~$30M/quarter cash. CoreWeave merger context: Shareholders rejected the $9B all-stock deal Oct 30, 2025 (203M Against vs 21M For; ISS recommended Against — Two Seas killed it on valuation); commercial hosting contract survived. CORZ used Q1 to validate standalone path. Tone: most confident call since merger termination; capital structure narrative validated by bond close. Conspicuous Q&A absence: No analyst directly probed merger termination, strategic alternatives, or CoreWeave 590 MW lease security — Street pivoted entirely to forward growth narrative. Key open risk: hyperscaler exclusivity at Pecos/Muskogee EXPIRED in the quarter (no second anchor signed); 3 hyperscalers re-engaged immediately but contract signing still pending — gating event for re-rate. Watch: (1) second-anchor hyperscaler signing (comp benchmarks: IREN/MSFT $9.7B/200MW, CIFR/AWS $9.3B/300MW, WULF $12.8B); (2) Capex pace vs 2027 RFS dates; (3) BTM gas-power monetization at OK sites; (4) Potential renewed take-private bid (BTIG upgraded to Buy post-termination).
Key Metrics Trends
Metric Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
Bitcoin self-mining revenue ($M) $111M $68M $80M $67M $62M $57M $42M $30M
Bitcoin self-mining revenue ($M) YoY % - - - - -43.6% -15.7% -47.2% -55.2%
Hosted mining revenue ($M) $25M $17M $6M $4M $6M $9M $6M $8M
Hosted mining revenue ($M) YoY % - - - - -77.4% -48.5% -3.1% +100.0%
Colocation / HPC revenue ($M) $6M $10M $8M $9M $11M $15M $31M $78M
Colocation / HPC revenue ($M) YoY % - - - - +92.7% +45.6% +268.2% +801.2%
Total revenue ($M) $141M $95M $95M $80M $79M $81M $80M $115M
Total revenue ($M) YoY % - - - - -44.3% -15.0% -15.9% +44.9%
Adj EBITDA ($M) $46M $10M $13M $-6M $22M $-2M $-43M $4M
Adj EBITDA ($M) YoY % - - - - -53.3% -123.8% -421.1% -172.1%
Adj EBITDA margin % 33.0% 11.0% 14.0% -8.0% 27.0% -3.0% -54.0% 4.0%
Adj EBITDA margin % YoY chg (bps) - - - - -600 -1400 -6800 +1200
CoreWeave MW billing (period-end) 0.0 0.0 16.5 24.5 50.0 100.0 200.0 243.0
CoreWeave MW billing (period-end) YoY % - - - - - - +1112.1% +891.8%
Cash & equivalents ($M) $0M $253M $836M $780M $581M $453M $311M $1.0B
Cash & equivalents ($M) YoY % - - - - - +79.1% -62.8% +28.8%
_Trajectory: deep J-curve, inflecting in Q1'26. Revenue peaked at $179M in Q1'24 (post-bankruptcy sugar-high), troughed at ~$79M for four straight quarters (Q1-Q4'25), and re-inflected to $115M (+45% YoY) in Q1'26 — driven entirely by CoreWeave colo billing scaling from $31M → $77M QoQ. Adj EBITDA went negative 3 of last 5 quarters (Q1/Q3/Q4'25) and just flipped back to +$4.4M in Q1'26 — first quarter where colocation covers operating costs. Self-mining is being deliberately wound down: revenue from $150M (Q1'24) → $30M (Q1'26); BTC produced down ~75% YoY in 2025; mgmt expects only 1-2 mining sites left by YE'26. Inflection points: Jan-2024 bankruptcy emergence; Q2-2024 CoreWeave deal (HPC revenue starts); Apr-2024 BTC halving; 2025 CoreWeave merger overhang (frozen hyperscaler dialogue); Oct-2025 shareholders reject merger; 2026Q1 — first growth quarter post-merger termination + $3.3B project bond at 7.75% closes 5/6/26. Verdict: Inflection real on operational metrics; sustainability depends on second anchor hyperscaler signing (Pecos/Muskogee exclusivity expired without renewal — 3 re-engaged but unsigned)._

Beat/Miss

Guidance

Catalysts

Street Q&A

Contradictions

Read-Throughs

This Quarter vs Consensus
MetricConsensusActualVarianceRead
RevenueAvg ~$111M / Zacks $120M$115.2MMixedAbove avg, below Zacks; +45% YoY
Adj EBITDA~Breakeven+$4.4MFLIP POSITIVEFirst quarter colocation covers SG&A
GAAP EPS-$0.02-$1.06-$1.04 MISSDriven by $266.5M PP&E impairment + $30.8M warrant MTM (non-cash)
Adj / Clean EPS-$0.07-$0.10-$0.03 small missClean EPS smaller miss
Colocation revenue$77.5M+801% YoYBeat — step-function ramp
Self-mining revenue$30.1M-55% YoYWind-down per plan
CoreWeave MW billing~200 MW (start of Q1)243 MW exiting Q1+43 MWBeat — on track for 450 MW by summer
Capex$389M~3x prior trendInvesting into ~$2B FY guide
Cash & liquidity$1.04B+$830M QoQBond proceeds + BTC monetization
L4Q EPS beat rate0/4Mining wind-down + accounting noise
L4Q Adj EBITDA beat rateMixedQ1'26 the inflection
Pattern: Q1'26 is THE inflection quarter; prior 4 were trough. EPS missed 4 quarters straight on faster mining wind-down + warrant MTM noise. Q1'26 is first quarter of: (1) colocation > self-mining; (2) positive Adj EBITDA in 4 quarters; (3) revenue growth post-bankruptcy. Mgmt framing: CFO Jim Nygaard called Q1 an "inflection point" — colocation now covers opex; CoreWeave cash GP target raised 75-80% → 80-85%; 243 MW billable ($350M annualized); on track for 590 MW by early 2027. CoreWeave merger termination context: Shareholders rejected $9B all-stock deal Oct 30, 2025 (203M Against vs 21M For; ISS recommended Against; Two Seas killed on valuation). Commercial hosting contract survived. CORZ used Q1 to validate standalone path: closed $3.3B project bond at 7.75% same day; ~$2B 2026 capex; Hunt County + Polaris/Muskogee acquisitions; pipeline expanded toward 4.5 GW. Hyperscaler exclusivity at Pecos/Muskogee EXPIRED in the quarter but 3 hyperscalers immediately re-engaged — flagged as the key open risk to monitor.
Guidance Deep Dive
MetricPrior (Q4'25)New (Q1'26)Mid / Impliedvs PriorRead
CoreWeave cash gross margin75-80%80-85%82.5%+500 bpsReal upgrade — 2 yrs cost experience
FY26 Capexn/a (no explicit number)~$2.0B$2.0BFirst explicit guide~$700M Hunt+Polaris + ~1 GW dev
CoreWeave MW billing200 MW (Q4'25 exit)243 MW (Q1'26)On track450 MW by end of summer; 590 MW early 2027
Annualized GAAP colo revenue~$350M (243 MW)Implied $700M+ by YE26 at full pace
SG&A baseline~$30M/Q cash$120M FYNew anchorDisciplined cost base
$3.3B project bondClosed 5/6/26 @ 7.75%$2.9B netCapital constraint removedSecured by CoreWeave cash flows
HPC contracted backlog$10.2B over 12 yrs$10.2B + bondValidatedBond market validates CoreWeave contract
Pipeline (gross MW)1.5 GW leasable4.5 GW grossMaterially expandedPecos 1.5 GW + Muskogee ~1 GW post-Polaris + others
BTC mining footprint1-2 sites by YE 2026Wind-down acceleratingMost BTC monetized
CoreWeave % of contracted revenue100%100% (still)<50% by 2028 (silent)Goalpost gone silentDiversification target effectively unachievable
Hunt County (TX) acquisitionClosed Q1'26285 MWMW-purchase M&A pivot
Polaris/Muskogee acquisition440 MW (~$700M combined w/ Hunt)Speed-to-market via M&A
Tone: most confident call since merger termination. Capital structure narrative validated by bond close. CoreWeave margin target raised. Pipeline materially expanded. Risk: CORZ now investing ~$2B capex AHEAD of contracts ("first data hall to RFS" guardrail). If second-tenant signings slip past 2027 RFS dates, uncommitted capacity risk grows. CoreWeave still 100% of contracted revenue — diversification target (formerly "<50% by 2028") has gone silent. Hyperscaler exclusivity at Pecos/Muskogee expired without conversion (mgmt spun positively as "3 hyperscalers immediately re-engaged" but it's been 7+ months without a signing). Power, not capital or land, is the constraint: behind-the-meter (BTM) gas-fired generation now mainstream at ~12-14 month lead times and grid-cost-parity to tenants. Oklahoma BTM legislation explicitly cited as bullish for OK siting competitiveness vs Texas. BTC mining wind-down to 1-2 sites by YE 2026 — bearish read for pure-play miners (RIOT, MARA, BITF), bullish for HPC pivoters.
Upcoming Catalysts
#CatalystTimingWhat to WatchRead
1Second-anchor hyperscaler contractPending — exclusivity expired Q1'263 hyperscalers re-engaged at Pecos/Muskogee; comp benchmarks: IREN/MSFT $9.7B/200MW, CIFR/AWS $9.3B/300MW, WULF $12.8B#1 re-rate event — 7+ months without signing
2CoreWeave 590 MW full deliveryEarly 2027243 MW billing today → 450 MW by summer → 590 MW early '27; ~$725M/yr annualized at fullLocks in $10.2B backlog over 12 years
3$3.3B project bond closed5/6/26 (today)7.75% rate, ~$2.9B net; secured by CoreWeave cash flows; funds ~1 GW devCapital constraint removed
4FY26 capex execution (~$2.0B)Through FY26First-data-hall-to-RFS guardrail; speculative vs contracted ratioInvesting ahead of contracts
5Pecos 1.5 GW expansionMulti-yearPower capacity build-out; behind-the-meter (BTM) gas commissioningLargest single-site asset
6Muskogee ~1 GW post-PolarisMulti-yearOK BTM legislation tailwind; integration of 440 MW PolarisOK as siting alternative to TX
7Hunt County TX (285 MW closed)Multi-yearGreenfield development cadence; ~$700M combined w/ PolarisMW-purchase M&A wedge
8BTC mining wind-down to 1-2 sites by YE 2026Through FY26Exit pace; remaining hash rate; BTC monetizationNEGATIVE for pure-play miners
9Oklahoma BTM legislationFY26-FY27OK siting competitiveness vs Texas; lead times ~12-14 monthsStructural tailwind
10Strategic alternatives / take-private bidFY26-FY27Two Seas killed CoreWeave deal on valuation; renewed bid plausible post-bond closeBTIG upgraded to Buy post-termination
11Hyperscaler 2026 capex $660-725B (+77% YoY)FY26MSFT $80B Azure backlog gated by power; US shortfall 11+ GW todayMacro tailwind
12Cash gross margin upgrade 75-80% → 80-85%Through FY26Validation in Q2/Q3 printsReal upgrade
13Auburn AL — 30 MW Tier 3 inferenceFY26Niche site; original framing as 'major development' walked backSmaller than expected
14BTC price (current ~$82K spot 5/6/26)OngoingHalving impact on self-mining; legacy thesis fadingIncreasingly irrelevant
15Power capacity / grid constraintsMulti-yearERCOT (TX), TVA (TN), OK utility commissionPower IS the moat
16Q2'26 printAug 2026MW ramp confirmation; second-anchor signing; capex paceConfirms inflection durability
Street Q&A
#Analyst (Firm)TopicMgmt ResponseQuality
1Multiple analysts (Cantor, Needham, Oppenheimer, Compass Point, Canaccord, Macquarie, Craig-Hallum, Ladenburg, B. Riley, KBW)Q1 print + bond close + margin upgradeSullivan/Brown/Nygaard: $3.3B bond at 7.75% closes today; 243 MW billing; CoreWeave cash GM raised 75-80% → 80-85%; FY26 capex ~$2.0B.Well Answered — quantified
2Multiple analystsPecos/Muskogee hyperscaler exclusivity expirationSullivan: "3 hyperscalers immediately re-engaged" but DEFLECTED on why exclusivity expired and would not commit to contract signing timing. "Hard to determine the exact reasons."Hard deflection — biggest open risk
3Multiple analystsPipeline expansion to 4.5 GWSullivan: Pecos to 1.5 GW gross (was 200 MW leasable); Muskogee to ~1 GW post-Polaris; Hunt 285 MW; standardized greenfield design.Well Answered — site-by-site
4Multiple analystsCapital structure / financingBond closed today @ 7.75%; ~$2.9B net to corporate; funds non-CoreWeave dev. Liquidity $1.04B (+$830M QoQ).Well Answered
5Multiple analystsBTC self-mining wind-downSullivan: 1-2 sites by YE 2026; ~1,900 BTC sold for $175M January 2026; mining "in runoff."Well Answered — explicit timeline
6Multiple analystsBrownfield vs greenfield strategyBrown: brownfield conversions explicitly called out as harder than expected; go-forward greenfield-only with standardized design.Well Answered — candid
7Multiple analystsBehind-the-meter (BTM) gas powerSullivan: ~12-14 month lead times added; blended cost "not materially different" from grid; OK BTM legislation tailwind.Well Answered — quantified lead time
8Multiple analystsCoreWeave contract security post-merger terminationMgmt deflected indirectly — no analyst directly probed; merger break did not disrupt commercial contract.Conspicuous absence
9(Not asked)Strategic alternatives / take-private bidNot pressed by Street. BTIG separately upgraded to Buy post-termination.Blind spot
10(Not asked)Two Seas / merger termination detailsNot directly probed. Sullivan validated standalone path implicitly through bond close + capex pace.Blind spot
Contradictions
#TopicSeverityStatement AStatement BWhy it's a tension
1CoreWeave <50% by 2028 diversification targetHigh — silent goalpostQ4'24 / Q1'25: "Customer concentration target: CoreWeave <50% by 2028" (repeated verbatim)Q4'25 / Q1'26: NO MENTION of <50% by 2028 targetWith still 0% diversification as of May 2026, the target is effectively unachievable but never formally retracted. Material messaging tension.
2BTC mining strategyMedium — strategic pivotQ4'24 / Q1'25: Block 3nm ASIC purchase as "exciting fleet refresh"; BTC holdings as "hedge to retain upside"Q4'25 / Q1'26: Mining "in runoff"; BTC monetized (~1,900 sold for $175M); only 1-2 sites by YE 2026Strategic pivot from BTC self-mining to HPC-only happened over 2025; not formally announced as pivot.
3Pipeline / enterprise narrativeMedium — channel disappearedQ1'25: 50-100 MW enterprise channel as "significant growth factor"Q4'25 / Q1'26: Enterprise channel disappeared; investment-grade guarantees declared mandatoryNeocloud counterparty confidence retracted in Q4'25.
4250 MW by YE 2025 targetLow-Medium — definition shiftQ4'24: "250 MW billable by YE 2025"YE 2025 actual: 213 MW energized; metric redefined from 'billable' to 'energized' mid-streamMissed target; metric redefinition obscures miss.
5Pre-merger CoreWeave framingMedium — admitted ex-postQ1'25: Merger as purely accretive; no concentration concernQ4'25 / Q1'26: Mgmt admitted merger period FROZE hyperscaler engagement; merger termination unfreezes pipelineAdmitted ex-post that merger had real customer-engagement cost.
6Capital-light narrativeMedium — narrative reversalQ1'25: "Capital-light balance sheet" framingQ1'26: $3.3B project bond at 7.75%; liquidity fell $830M → $530M before bond; total debt now ~$2.06BCapital-light narrative ended; CORZ now levered to fund growth. Justified by contracted CoreWeave cash flows.
7Auburn AL framingLow — scope reductionQ4'24: Auburn as "potentially major development"Q4'25: Auburn = 30 MW Tier 3 niche inference siteMaterial scope reduction.
8590 MW by early 2027None — consistentAll 4 calls: 590 MW CoreWeave by early 2027Consistent across all 4 calls.
9Cash gross margin targetNone — positive revisionQ1'26: 75-80% → 80-85%Positively revised with more visibility — not a contradiction.
Indirect Read-Throughs
NameRelationshipWhat CORZ signaledRead-through
CoreWeave (CRWV)Major customer + ex-merger partnerCash GM target raised 75-80% → 80-85%; schedule on track; bond market validated CRWV cash flows; merger terminated but commercial relationship intactPOSITIVE — execution validation
IREN (Iris Energy)Bitcoin miner pivoting to HPC peerComp benchmark: IREN/MSFT $9.7B / 200 MW deal — sets pricing reference for CORZ second-anchor signingPOSITIVE — comp benchmark
Cipher Mining (CIFR)Bitcoin miner pivoting to HPC peerComp benchmark: CIFR/AWS $9.3B / 300 MW dealPOSITIVE — comp benchmark
TeraWulf (WULF)Bitcoin miner pivoting to HPC peerComp benchmark: WULF $12.8B in AI contracts; bond-market template validatedPOSITIVE
Riot Platforms (RIOT) / Marathon Digital (MARA) / Bitfarms (BITF)Pure-play BTC mining peersCORZ exiting BTC mining entirely by YE 2026 (1-2 sites left); 1,900 BTC sold for $175M Jan 2026NEGATIVE — sector consolidation; HPC pivot is the future
Microsoft (MSFT)Hyperscaler — re-engaged at Pecos/MuskogeeMSFT $80B Azure backlog gated by power; one of 3 hyperscalers re-engaged after exclusivity expiredPOSITIVE for CORZ if signed; reflects MSFT power scarcity
Google (GOOGL) / AWS (AMZN) / Meta (META) / Oracle (ORCL)Hyperscalers (general)2026 capex $660-725B (+77% YoY); US power shortfall 11+ GW todayPOSITIVE — demand backdrop
NVIDIA (NVDA) / AMDGPU suppliersNot directly named; CORZ is power infrastructure for GPUsNEUTRAL — adjacent
Equinix (EQIX) / Digital Realty (DLR)Data center REITsNot directly named; CORZ competes on speed-to-market for hyperscaler AI capacityMIXED — different products (CORZ = greenfield AI capacity, EQIX/DLR = retail/wholesale colo)
Texas grid (ERCOT) / Oklahoma utility commissionPower suppliersOK BTM legislation cited; OK siting now competitive vs TX; ERCOT rules favor BTMPOSITIVE for OK; competitive for TX
Tennessee (TVA)Power supplier (Marble NC area)Not directly namedNeutral
BlackRock (BLK) / Fidelity / Bitcoin ETFsBTC ETF / spot playersBTC monetization happened in January 2026 at favorable pricesIndirect
Polaris (acquired)M&A target440 MW Muskogee acquisition; integration planStrategic — speed-to-market
Hunt County TX (acquired)M&A target285 MW; ~$700M combined with PolarisStrategic — MW-purchase M&A wedge
Two Seas (activist)Killed CoreWeave mergerNot directly named on call; killed deal on valuationPotential renewed take-private bid
BTIG (sell-side)Sell-side analystUpgraded CORZ to Buy post-terminationPOSITIVE sentiment

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