Core Scientific Narrows Q3 Loss Amid Revenue Dip, Asset Growth

TL;DR

**Core Scientific is still bleeding cash, but the CoreWeave deal is their only shot at a turnaround, so watch that closely.**

AI Summary

Core Scientific, Inc. (CORZR) reported a net loss of $146.66 million for the three months ended September 30, 2025, a significant improvement from the $455.26 million net loss in the same period of 2024. Total revenue decreased to $81.10 million in Q3 2025 from $95.35 million in Q3 2024, primarily due to a drop in digital asset self-mining revenue from $68.14 million to $57.44 million and digital asset hosted mining revenue from $16.88 million to $8.71 million. However, colocation revenue increased from $10.34 million to $14.95 million. The company's gross profit improved to $3.91 million in Q3 2025 from a gross loss of $0.16 million in Q3 2024. A major factor in the reduced net loss was a lower change in fair value of warrants and contingent value rights, which decreased from $408.52 million in Q3 2024 to $74.86 million in Q3 2025. Selling, general and administrative expenses rose to $69.35 million from $40.35 million year-over-year. The company's total assets grew to $2.30 billion as of September 30, 2025, from $1.60 billion at December 31, 2024, driven by a substantial increase in digital assets from $23.89 million to $241.36 million and property, plant and equipment, net, from $556.34 million to $1.08 billion.

Why It Matters

This filing reveals Core Scientific's ongoing transition and financial health, particularly its ability to reduce net losses despite declining core mining revenues. The proposed acquisition by CoreWeave, Inc. is a critical strategic pivot, aiming to transform its business model from crypto mining to high-density colocation computing, which could significantly impact its competitive position against other data center operators. For investors, the substantial warrant liabilities and accumulated deficit of $4.24 billion remain key concerns, even as the company's asset base expands. Employees and customers will be watching the integration with CoreWeave closely for operational stability and service continuity in a rapidly evolving AI infrastructure market.

Risk Assessment

Risk Level: high — The company reported a net loss of $146.66 million for Q3 2025 and an accumulated deficit of $4.24 billion as of September 30, 2025, indicating significant financial distress. Total liabilities of $3.42 billion far exceed total assets of $2.30 billion, resulting in a stockholders' deficit of $1.13 billion. The ongoing reliance on the proposed acquisition by CoreWeave, Inc. introduces substantial execution risk, as highlighted by the extensive 'Cautionary Note Regarding Forward-Looking Statements' section.

Analyst Insight

Investors should closely monitor the progress and terms of the CoreWeave acquisition, as it is the primary driver for future value. Given the high risk and significant accumulated deficit, a 'wait and see' approach is prudent. Consider the potential for dilution and the long-term viability of the high-density colocation computing strategy post-acquisition before making any investment decisions.

Financial Highlights

debt To Equity

N/A

revenue

$81.10M

operating Margin

N/A

total Assets

$2.30B

total Debt

$3.42B

net Income

-$146.66M

eps

N/A

gross Margin

4.8%

cash Position

$453.44M

revenue Growth

-14.9%

Revenue Breakdown

Key Numbers

• $146.66M — Net Loss Q3 2025 (Improved from $455.26M net loss in Q3 2024)
• $81.10M — Total Revenue Q3 2025 (Decreased from $95.35M in Q3 2024)
• $57.44M — Digital Asset Self-Mining Revenue Q3 2025 (Down from $68.14M in Q3 2024)
• $14.95M — Colocation Revenue Q3 2025 (Increased from $10.34M in Q3 2024)
• $3.91M — Gross Profit Q3 2025 (Improved from a gross loss of $0.16M in Q3 2024)
• $74.86M — Change in Fair Value of Warrants Q3 2025 (Significantly lower than $408.52M in Q3 2024)
• $2.30B — Total Assets Sep 30, 2025 (Increased from $1.60B at Dec 31, 2024)
• $241.36M — Digital Assets Sep 30, 2025 (Substantially up from $23.89M at Dec 31, 2024)
• $1.08B — Property, Plant and Equipment, Net Sep 30, 2025 (Increased from $556.34M at Dec 31, 2024)
• $1.13B — Total Stockholders' Deficit Sep 30, 2025 (Worsened from $820.18M at Dec 31, 2024)

Key Players & Entities

• Core Scientific, Inc. (company) — registrant
• CoreWeave, Inc. (company) — proposed acquirer
• SEC (regulator) — Securities and Exchange Commission
• $146.66 million (dollar_amount) — net loss for Q3 2025
• $455.26 million (dollar_amount) — net loss for Q3 2024
• $81.10 million (dollar_amount) — total revenue for Q3 2025
• $95.35 million (dollar_amount) — total revenue for Q3 2024
• $4.24 billion (dollar_amount) — accumulated deficit as of September 30, 2025
• $1.13 billion (dollar_amount) — total stockholders' deficit as of September 30, 2025
• $3.42 billion (dollar_amount) — total liabilities as of September 30, 2025

FAQ

Risk Factors

• Digital Asset Price Volatility [high — market]: The company's revenue and profitability are highly sensitive to fluctuations in the market prices of digital assets. A significant decrease in digital asset prices, as seen in the reduction of self-mining revenue from $68.14M to $57.44M in Q3 2025, directly impacts the company's financial performance.
• Energy Costs and Availability [high — operational]: Core Scientific's operations are energy-intensive. Fluctuations in energy prices and availability can materially affect the cost of revenue. The cost of digital asset self-mining was $59.44M in Q3 2025, a substantial portion of total revenue.
• High Debt and Warrant Liabilities [high — financial]: The company carries significant liabilities, including $1.06B in convertible notes and $1.33B in warrant liabilities as of September 30, 2025. These obligations pose financial risks and can dilute equity.
• Evolving Digital Asset Regulations [medium — regulatory]: The regulatory landscape for digital assets is still developing and subject to change. New regulations could impact the company's operations, compliance costs, and overall business model.
• Dependence on Third-Party Infrastructure [medium — operational]: While colocation revenue is growing, the company's reliance on its own infrastructure for self-mining and hosted services means operational disruptions, such as equipment failures or maintenance issues, can impact revenue generation.
• Stockholders' Deficit [medium — financial]: As of September 30, 2025, the company has a total stockholders' deficit of $1.13B, indicating that liabilities exceed assets attributable to shareholders. This worsened from $820.18M at December 31, 2024.
• Competition in Mining and Hosting [medium — market]: The digital asset mining and hosting markets are competitive. Increased competition could lead to pricing pressures and reduced market share.
• Selling, General, and Administrative Expenses [low — operational]: SG&A expenses increased significantly to $69.35M in Q3 2025 from $40.35M in Q3 2024. Managing these costs effectively is crucial for profitability.

Industry Context

Core Scientific operates in the highly competitive digital asset mining and hosting industry. The sector is characterized by rapid technological advancements, significant capital expenditure requirements, and sensitivity to cryptocurrency market dynamics and energy costs. Companies like Core Scientific must balance operational efficiency with the volatile nature of digital asset prices and an evolving regulatory landscape.

Regulatory Implications

The digital asset industry faces increasing scrutiny from regulators globally. Potential new regulations concerning mining operations, digital asset custody, and financial reporting could impose additional compliance burdens and operational restrictions on Core Scientific, impacting its business model and profitability.

What Investors Should Do

1. Monitor digital asset price trends and their impact on revenue.
2. Analyze the growth and profitability of the colocation segment.
3. Assess the company's ability to manage its substantial debt and warrant liabilities.
4. Evaluate the trend in Selling, General, and Administrative (SG&A) expenses.
5. Observe the company's strategy for managing energy costs.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net loss of $146.66M, an improvement from Q3 2024. Total assets grew to $2.30B, driven by increases in digital assets and PP&E.
• 2024-12-31: End of Fiscal Year 2024 — Reported total assets of $1.60B and a stockholders' deficit of $820.18M.
• 2024-09-30: End of Q3 2024 — Reported a net loss of $455.26M, with a significant impact from warrant and CVR fair value changes ($408.52M).

Glossary

Digital asset self-mining revenue

Revenue generated from the company's own operations of mining digital assets like Bitcoin. (A primary revenue stream significantly impacted by market prices and operational costs.)

Digital asset hosted mining revenue

Revenue earned from providing hosting services for other entities' digital asset mining operations. (Another key revenue segment affected by demand for hosting and competitive pricing.)

Colocation revenue

Revenue from providing space, power, and cooling for customers to host their own mining equipment. (A growing segment indicating increased demand for infrastructure services.)

Warrant liabilities

Financial instruments that give the holder the right, but not the obligation, to purchase a company's stock at a specific price before expiration. These are often recorded at fair value and can fluctuate significantly. (A major liability for Core Scientific, with a substantial fair value of $1.33B, impacting the balance sheet and net income due to fair value adjustments.)

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative equity position for shareholders. (Indicates the company's financial leverage and the extent to which its equity has been eroded by losses.)

Accumulated deficit

The cumulative net losses of a company since its inception, minus any net profits. (Reflects the company's historical unprofitability, standing at $4.24B as of September 30, 2025.)

Property, plant and equipment, net

The net book value of a company's tangible assets used in its operations, such as buildings, machinery, and equipment, after deducting accumulated depreciation. (Represents significant investment in operational infrastructure, growing to $1.08B.)

Digital assets

Cryptocurrencies or other digital representations of value held by the company. (A significant asset class for Core Scientific, with holdings increasing from $23.89M to $241.36M.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Core Scientific has significantly reduced its net loss from $455.26 million to $146.66 million, largely due to a lower change in fair value of warrants and contingent value rights ($74.86M vs. $408.52M). However, total revenue declined by 14.9% to $81.10 million, primarily driven by lower digital asset self-mining and hosted mining revenues. Gross profit improved to $3.91 million from a gross loss, but SG&A expenses more than doubled to $69.35 million. Total assets saw a substantial increase to $2.30 billion, fueled by growth in digital assets and property, plant, and equipment, while the total stockholders' deficit widened to $1.13 billion.

Key Financial Figures

• $0.00001 — ch registered Common stock, par value $0.00001 per share CORZ The Nasdaq Global Sele
• $6.81 — of common stock at an exercise price of $6.81 per share CORZW The Nasdaq Global Sel
• $0.01 — of common stock at an exercise price of $0.01 per share CORZZ The Nasdaq Global Sel
• $0 — 1,300 shares of Common Stock, par value $0.00001, were outstanding. Table of Con

Filing Documents

• core-20250930.htm (10-Q) — 2111KB
• exhibit311-q32025xwithconf.htm (EX-31.1) — 14KB
• exhibit312-q32025xwithconf.htm (EX-31.2) — 14KB
• exhibit321-q32025xwithconf.htm (EX-32.1) — 4KB
• exhibit322-q32025xwithconf.htm (EX-32.2) — 4KB
• 0001628280-25-046272.txt ( ) — 10827KB
• core-20250930.xsd (EX-101.SCH) — 76KB
• core-20250930_cal.xml (EX-101.CAL) — 101KB
• core-20250930_def.xml (EX-101.DEF) — 386KB
• core-20250930_lab.xml (EX-101.LAB) — 807KB
• core-20250930_pre.xml (EX-101.PRE) — 596KB
• core-20250930_htm.xml (XML) — 1868KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements

Financial Statements 7 Condensed Consolidated Balance Sheets (Unaudited) 8 Condensed Consolidated Statements of Operations (Unaudited) 9 Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) 10 Condensed Consolidated Statements of Cash Flows (Unaudited) 13 Notes to Unaudited Condensed Consolidated Financial Statements 14 1 — Organization and Description of Business 14 2 — Summary of Significant Accounting Policies 14 3 — Property, Plant, and Equipment 19 4 — Balance Sheet Components 19 5 — Leases 20 6 — Convertible and Other Notes Payable 23 7 — Warrant Liabilities 24 8 — Fair Value Measurements 24 9 — Commitments and Contingencies 26 10 — Income Taxes 27 11 — Stock-Based Compensation 28 12 — Net Loss Per Share 30 13 — Segment Reporting 31 14 — Supplemental Cash Flow and Noncash Information 35 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 4.

Controls and Procedures

Controls and Procedures 64

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 64 Item 1A.

Risk Factors

Risk Factors 65 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69 Item 3. Defaults Upon Senior Securities 69 Item 4. Mine Safety Disclosures 69 Item 5. Other Information 69 Item 6. Exhibits 70

Signatures

Signatures 71 3 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, including, without limitation, statements under Part I. Item 2. — " Management's Discussion and Analysis of Financial Condition and Results of Operations," 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 be identified by the use of words such as "ability," "aim," "assume," "estimate," "plan," "possible," "project," "forecast," "goal," "opportunity," "intend," "will," "expect," "anticipate," "believe," "enable," "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, the Company's business strategies and initiatives, the Company's ability to source and retain talent and the proposed acquisition of the Company by CoreWeave, Inc. ("CoreWeave").. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this Quarterly Report on Form 10-Q, 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 cont

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 7 Core Scientific, Inc. Condensed Consolidated Balance Sheets (in thousands, except par value) September 30, 2025 December 31, 2024 Assets (Unaudited) Current Assets: Cash and cash equivalents $ 453,443 $ 836,197 Restricted cash — 783 Digital assets 241,355 23,893 Customer funding receivable and other current assets 366,235 43,089 Total Current Assets 1,061,033 903,962 Property, plant and equipment, net 1,078,803 556,342 Operating lease right-of-use assets 107,784 114,472 Other noncurrent assets 48,360 24,039 Total Assets $ 2,295,980 $ 1,598,815 Liabilities and Stockholders' Deficit Current Liabilities: Accounts payable $ 212,179 $ 19,265 Accrued expenses 358,270 64,670 Deferred revenue 83,739 18,134 Other current liabilities 15,675 32,493 Total Current Liabilities 669,863 134,562 Convertible and other notes payable, net of current portion 1,059,007 1,073,990 Warrant liabilities 1,330,483 1,097,285 Other noncurrent liabilities 364,587 113,158 Total Liabilities 3,423,940 2,418,995 Commitments and contingencies (Note 9) Stockholders' Deficit: Preferred stock; $ 0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock; $ 0.00001 par value; 10,000,000 shares authorized at September 30, 2025 and December 31, 2024; 308,381 and 292,606 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 3 3 Additional paid-in capital 3,110,021 2,915,035 Accumulated deficit ( 4,237,984 ) ( 3,735,218 ) Total Stockholders' Deficit ( 1,127,960 ) ( 820,180 ) Total Liabilities and Stockholders' Deficit $ 2,295,980 $ 1,598,815 Certain prior year amounts have been reclassified for consistency with the current year presentation. See accompanying notes to unaudited condensed consolidated financial statements. 8 Core Scientific, Inc. Condensed Consolidated Statements of Operations (in thousands, exce

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