Core Scientific(CORZ) - 2025 Q2 - Quarterly Results

Core Scientific Fiscal Second Quarter 2025 Results Financial and Corporate Highlights Core Scientific reported Q2 2025 results, featuring a pending CoreWeave acquisition, revenue decline, and a significant net loss driven by non-cash adjustments - Core Scientific entered an all-stock merger agreement with CoreWeave, converting each share into 0.1235 shares of CoreWeave Class A common stock[3] - Total revenue declined due to decreased digital asset self-mining revenue ($62.4 million) and hosted mining revenue ($5.6 million), partially offset by colocation revenue growth to $10.6 million[4] - Net loss was primarily driven by a $910.0 million non-cash fair value adjustment for warrants and contingent value rights[4] - The company maintained a strong liquidity position of $754.1 million, comprising $581.3 million in cash and $172.8 million in digital assets[4] Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 ($) | Q2 2024 ($) | | :--- | :--- | :--- | | Total Revenue | $78.6M | $141.1M | | Gross Profit | $5.0M | $38.8M | | Net Loss | $(936.8)M | $(804.9)M | | Adjusted EBITDA | $21.5M | $46.0M | | Capital Expenditures | $121.3M | N/A | Financial Statements This section presents unaudited condensed consolidated financial statements, detailing balance sheet changes, revenue decline, and cash flow usage Condensed Consolidated Balance Sheets Total assets increased to $1.98 billion and total liabilities to $3.04 billion, leading to a $1.06 billion stockholders' deficit Balance Sheet Summary | Account | June 30, 2025 (in thousands $) | December 31, 2024 (in thousands $) | | :--- | :--- | :--- | | Total Current Assets | $1,004,760 | $903,962 | | Property, plant and equipment, net | $828,603 | $556,342 | | Total Assets | $1,978,052 | $1,598,815 | | Total Current Liabilities | $562,722 | $134,562 | | Warrant liabilities | $1,316,690 | $1,097,285 | | Total Liabilities | $3,042,728 | $2,418,995 | | Total Stockholders' Deficit | $(1,064,676) | $(820,180) | Condensed Consolidated Statements of Operations Q2 2025 saw total revenue decline to $78.6 million and gross profit to $5.0 million, resulting in a $936.8 million net loss Q2 Statement of Operations Summary | Metric | Q2 2025 (in thousands $) | Q2 2024 (in thousands $) | | :--- | :--- | :--- | | Total Revenue | $78,628 | $141,102 | | Gross Profit | $5,025 | $38,817 | | Operating (Loss) Income | $(26,284) | $6,579 | | Change in fair value of warrants | $909,958 | $796,035 | | Net Loss | $(936,799) | $(804,896) | Condensed Consolidated Statements of Cash Flows Six-month cash flow showed $6.6 million used in operations and $213.1 million in investing, leading to a $255.6 million net cash decrease Six-Month Cash Flow Summary | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands $) | Six Months Ended June 30, 2024 (in thousands $) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(6,599) | $23,378 | | Net cash used in investing activities | $(213,066) | $(35,154) | | Net cash (used in) provided by financing activities | $(35,970) | $39,172 | | Net (decrease) increase in cash | $(255,635) | $27,396 | | Cash, cash equivalents and restricted cash—end of period | $581,345 | $97,105 | Segment Results Q2 2025 saw significant gross margin compression in digital asset mining segments, while the colocation segment demonstrated strong revenue growth Q2 2025 Segment Performance (vs. Q2 2024) | Segment | Revenue (in thousands $) | Gross Profit (in thousands $) | Gross Margin | | :--- | :--- | :--- | :--- | | Digital Asset Self-Mining | | | | | Q2 2025 | $62,424 | $2,835 | 5% | | Q2 2024 | $110,743 | $30,742 | 28% | | Digital Asset Hosted Mining | | | | | Q2 2025 | $5,644 | $1,060 | 19% | | Q2 2024 | $24,840 | $7,447 | 30% | | Colocation | | | | | Q2 2025 | $10,560 | $1,130 | 11% | | Q2 2024 | $5,519 | $628 | 11% | Non-GAAP Financial Measures Adjusted EBITDA, a key non-GAAP measure, decreased to $21.5 million in Q2 2025, with a detailed reconciliation provided - Management uses Adjusted EBITDA to assess operating performance by excluding non-cash items and charges unrelated to core business operations[27][28] Reconciliation of Net Loss to Adjusted EBITDA | Metric | Three Months Ended June 30, 2025 (in thousands $) | Three Months Ended June 30, 2024 (in thousands $) | | :--- | :--- | :--- | | Net loss | $(936,799) | $(804,896) | | Change in fair value of warrants and CVRs | $909,958 | $796,035 | | Depreciation and amortization | $18,756 | $29,477 | | Stock-based compensation expense | $24,170 | $8,494 | | Other Adjustments | $6,418 | $6,926 | | Adjusted EBITDA | $21,503 | $46,036 | Forward-Looking Statements This section cautions that forward-looking statements are subject to significant risks, including the CoreWeave acquisition, regulatory changes, and market volatility - Statements on projections, growth, and business scaling are forward-looking and subject to significant risks that could cause material differences in actual results[7][8] - Key risks include the CoreWeave acquisition, regulatory approvals, litigation, digital asset price volatility, power availability, and facility conversion challenges[9][10]