Core Scientific revenue jumps to $232.9 million as colocation expands
Key Facts
Core Scientific reported revenue of $232.9 million for the quarter ended September 30, 2026, compared with $164.2 million in the second quarter and $81.1 million in the same period of 2025, according to the company's results statement. The quarterly increase came as colocation revenue accelerated, becoming the largest component of the business. Revenue from the activity was $215.4 million, up nearly 60% from the previous quarter. The company attributed the increase to continued delivery of billable power capacity to customers. The shift in revenue mix reflects the company's pivot from digital asset mining to long-term contracted hosting services.
Colocation revenue rose from $15.0 million in the third quarter of 2025 to $215.4 million in the third quarter of 2026, according to the company's quarterly report filed with the U.S. Securities and Exchange Commission. The company linked the increase to the delivery of additional billable capacity to the customer. By contrast, revenue from self-mining digital assets fell to $12.3 million from $57.4 million a year earlier. The company said the amount of bitcoin mined declined 66%, while its average price fell 38% year over year. It framed the decline in mining alongside hosting growth as part of its strategy to reallocate power to long-term contracted services.
Gross profit was $123.3 million in the third quarter, compared with $70.0 million in the second quarter and $3.9 million in the third quarter of 2025, according to the results statement. The company also reported adjusted earnings before interest, taxes, depreciation and amortization of $133.6 million, compared with $6.5 million a year earlier. The company said this measure is not consistent with generally accepted accounting principles. Net income was $1.2 billion, after the company posted a net loss of $144.0 million in the same period of the previous year. The company attributed current net income primarily to a gain from a change in the fair value of warrants, distinguishing this accounting item from operating profitability measures.
Capacity leased to CoreWeave totaled about 590 megawatts at the end of September, of which 485 megawatts was billable, while the remaining 105 megawatts was at various stages of construction and commissioning, according to the quarterly report. The company said 485 megawatts of billable capacity represented more than $700 million in annualized colocation revenue. Chief Executive Adam Sullivan added: "We are nearing completion of delivery under our first colocation agreement, while construction is underway under our second agreement at five campuses." The company expects hosting revenue to continue growing as additional contracted capacity comes online. Converting capacity under construction into billable capacity is a direct factor in the expansion of this business.
The expansion was accompanied by heavy capital spending, with capital expenditures totaling $985.1 million in the third quarter, compared with $797.5 million in the second quarter. They reached $1.5 billion in the nine months ended September 30, including $180.9 million funded by CoreWeave under the existing colocation agreement. At the end of September, the company's cash, cash equivalents and digital assets totaled $806.6 million. The figures show the scale of investment required to build capacity for hosting services, alongside funding provided under the agreement. The company had set November 5, 2026, for its results announcement and management call before markets opened, with the call scheduled to begin at 8:30 a.m. Eastern time.
The company's shares, traded under the ticker CORZ, closed at $12.76 on November 4, 2026, according to EL7 data. Among published forecasts, Wall Street analysts' consensus revenue estimate for the third quarter was $196.85 million, according to MarketBeat, compared with actual revenue of $232.9 million. The estimate provides a benchmark for comparing the result, while company data show revenue growth centered on colocation as self-mining contracted. The company said bringing additional contracted capacity online would support the continuation of this shift in coming periods. It also said work on the second agreement was underway at five campuses, while it neared completion of delivery under the first agreement.