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Core Scientific, Inc./tx (CORZ)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY25 revenue was $78.6M, down 44% year over year and roughly flat sequentially; consolidated gross margin fell to 6% (vs. 28% YoY, 10% QoQ). Net loss was $936.8M, driven by $910.0M in non-cash fair value adjustments to warrants/CVRs tied to stock price; Adjusted EBITDA was $21.5M vs. $46.0M YoY and improved from Q1’s $(6.1)M .
  • Mix continued shifting from crypto to high-density colocation: colocation revenue rose to $10.6M (vs. $5.5M YoY), while self-mining declined to $62.4M (vs. $110.7M YoY) due to 62% fewer bitcoin mined, partly offset by ~50% higher average bitcoin price .
  • Liquidity remained solid at $754.1M (cash $581.3M; digital assets $172.8M); capex was $121.3M, with $90.3M funded by CoreWeave. No earnings call or deck due to the pending CoreWeave acquisition (exchange ratio 0.1235 CRWV shares per CORZ share; announced premium ~66% to unaffected price) — a near-term stock narrative catalyst .
  • Management reiterated the strategic pivot to high-density colocation and AI infrastructure; operational expansion at Denton, TX supported colocation growth .

What Went Well and What Went Wrong

What Went Well

  • Colocation scaling: revenue doubled YoY to $10.6M, supported by Denton expansion and CoreWeave contracts; management emphasized accelerating delivery timelines (“on track to deliver 250 MW by end of 2025”) earlier in Q1 .
  • Strategic positioning and partner momentum: the CoreWeave deal vertically aligns CORZ’s infrastructure with hyperscale AI demand; management framed the transformation as “an inflection point” for accelerated growth .
  • Adjusted EBITDA turned positive QoQ to $21.5M from $(6.1)M in Q1, reflecting operating improvements despite revenue headwinds .

What Went Wrong

  • Revenue and profitability compression: total revenue fell to $78.6M and gross profit to $5.0M (vs. $141.1M and $38.8M YoY), reflecting fewer BTC mined post-halving and the ongoing shift away from self-mining .
  • Large non-cash P&L volatility: net loss of $936.8M was driven by $909.958M mark-to-market on warrants/CVRs tied to stock price — masking underlying operating metrics and adding estimate noise .
  • Hosted mining attrition: hosted revenue declined to $5.6M (vs. $24.8M YoY) given strategic deemphasis of legacy hosting; gross margin compressed to 19% (vs. 30% YoY) .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$141.1 $79.5 $78.6
Gross Profit ($USD Millions)$38.8 $8.2 $5.0
Gross Margin (%)28% 10% 6%
Adjusted EBITDA ($USD Millions)$46.0 $(6.1) $21.5
Net Income (Loss) ($USD Millions)$(804.9) $580.7 $(936.8)
EPS (Basic, $)$(4.51) $1.44 $(0.04)
EPS (Diluted, $)N/A $1.25 N/A

Segment revenue and margins:

Segment KPIQ2 2024Q1 2025Q2 2025
Self-Mining Revenue ($USD Millions)$110.7 $67.2 $62.4
Self-Mining Gross Margin (%)28% 9% 5%
Hosted Mining Revenue ($USD Millions)$24.8 $3.8 $5.6
Hosted Mining Gross Margin (%)30% 46% 19%
Colocation Revenue ($USD Millions)$5.5 $8.6 $10.6
Colocation Licensing Gross Margin (%)16% 8% 16%

KPIs and balance sheet highlights:

KPIQ2 2024Q1 2025Q2 2025
Capex / Purchases of PP&E ($USD Millions)N/A$88.4 $121.3
Liquidity ($USD Millions)N/A$778.6 (cash+digital assets) $754.1 (cash+digital assets)
Cash & Equivalents ($USD Millions)N/A$697.9 $581.3
Digital Assets ($USD Millions)N/A$80.6 $172.8
Deferred Revenue ($USD Millions)N/A$60.9 $150.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Billable capacity delivery (MW)FY2025“On track to deliver 250 MW by end of 2025” No formal update; no call due to pending CoreWeave transaction Suspended/no update
Colocation revenue run rate ($)Entering 2026“Annualized colocation revenue of ~$360M” No formal update; no call due to pending CoreWeave transaction Suspended/no update

Note: Management did not provide Q2 FY25 financial guidance or host an earnings call/presentation due to the pending CoreWeave acquisition .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/high-density colocation initiativesSigned ~500–590 MW CoreWeave contracts; pivot from BTC mining; Austin/Auburn sites; path to 1.3 GW critical IT load by 2027 Continued Denton expansion; colocation revenue growth; pending CoreWeave acquisition to verticalize infrastructure Accelerating build-out; increased strategic alignment with hyperscale
Crypto mining operationsCash cost per BTC and hash costs disclosed; halving impact; self-mining margin compression Self-mining revenue and margins down; 62% fewer BTC mined YoY, partly offset by ~50% higher avg BTC price Deemphasis vs. colocation; continued margin pressure
Regulatory/legal/corporate actionsEmergence from bankruptcy; convertible notes; CoreWeave expansion agreements All-stock acquisition by CoreWeave (0.1235 exchange ratio; premium to unaffected price); shareholder/legal notices Transaction-driven governance and regulatory focus
Power economics & pass-throughHPC/colocation contracts include direct power pass-through; fixed license fees Colocation gross margin presented net of power pass-through; licensing margins in mid-teens Stable structure; scaling with delivery milestones

Management Commentary

  • “This quarter marks an inflection point for Core Scientific... delivering infrastructure at scale and positioning ourselves at the center of one of the most important shifts in modern computing.” — Adam Sullivan, CEO (Q1 FY25) .
  • “Verticalizing the ownership of Core Scientific’s high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion.” — Michael Intrator, CoreWeave CEO (acquisition release) .
  • “Together with CoreWeave, we will be well-positioned to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders.” — Adam Sullivan (acquisition release) .

Q&A Highlights

  • The company did not host a Q2 FY25 earnings call or provide an accompanying presentation due to the pending CoreWeave transaction, so there was no Q&A session or guidance clarifications this quarter .

Estimates Context

  • Wall Street consensus estimates via S&P Global were unavailable for CORZ Q2 FY25 (attempted retrieval yielded no data). As a result, comparisons vs. consensus EPS/revenue/EBITDA cannot be provided for this quarter [GetEstimates: Q2 2025 returned empty].
  • Implication: Given the strategic pivot and transaction-related suspension of formal guidance, sell-side models may need to further reflect colocation ramp timing, deferred revenue mechanics, and reduced self-mining contributions .

Key Takeaways for Investors

  • Near-term narrative is dominated by the CoreWeave acquisition: the fixed exchange ratio (0.1235 CRWV for each CORZ) and cited premium to the unaffected price create event-driven dynamics; closing targeted for Q4 2025 subject to approvals .
  • Operating mix shift continues: colocation growth (Denton ramp) offsetting self-mining declines post-halving; expect increasing deferred revenue and mid-teens licensing margins reflective of pass-through power .
  • P&L volatility remains elevated from non-cash fair value changes (warrants/CVRs); Adjusted EBITDA improved QoQ to $21.5M, but headline GAAP results obscured by large mark-to-market effects .
  • Liquidity strong with $754.1M (cash + digital assets) and significant CoreWeave-funded capex ($90.3M in Q2), supporting infrastructure delivery milestones through 2025–2027 .
  • With no Q2 call or guidance, focus shifts to execution milestones (MW delivered, site readiness, contract billings) and regulatory/proxy timeline for the acquisition .
  • Medium term: the business is transitioning to a high-density colocation platform with multi-year, take-or-pay economics; investor attention should track delivery cadence, customer diversification beyond CoreWeave, and unit economics of new sites .
  • Trading lens: event path (S-4/proxy, regulatory clearance) and milestone communications likely drive sentiment; fundamentals hinge on colocation ramp and reduced exposure to BTC mining margin volatility .