Core Scientific(US:CORZ)2025-10-24 20:14Financial Performance - Total revenue for Q3 2025 was $81,103,000, a decrease of 15% compared to $95,354,000 in Q3 2024[24] - Digital asset self-mining revenue decreased to $57,438,000 in Q3 2025 from $68,138,000 in Q3 2024, representing a decline of 16%[24] - Gross profit for Q3 2025 was $3,905,000, compared to a loss of $156,000 in Q3 2024[24] - The net loss for Q3 2025 was $146,660,000, compared to a net loss of $455,259,000 in Q3 2024[24] - Operating loss for the nine months ended September 30, 2025 was $126,305,000, a significant decline from an operating income of $20,587,000 in the same period of 2024[24] - Consolidated total revenue for the nine months ended September 30, 2025, was $239,256,000, compared to $415,747,000 for the same period in 2024, a decline of 43%[140] Assets and Liabilities - Total current assets increased to $1,061,033,000 as of September 30, 2025, compared to $903,962,000 as of December 31, 2024, representing a growth of approximately 17.4%[21] - Total liabilities increased to $3,423,940,000 as of September 30, 2025, up from $2,418,995,000 at the end of 2024, reflecting a rise of approximately 41.5%[21] - The accumulated deficit grew to $(4,237,984,000) as of September 30, 2025, compared to $(3,735,218,000) at the end of 2024, an increase of about 13.5%[21] - The company’s total assets reached $2,295,980,000 as of September 30, 2025, compared to $1,598,815,000 at the end of 2024, an increase of approximately 43.7%[21] - Current liabilities surged to $669,863,000 from $134,562,000, marking an increase of approximately 396%[21] Digital Assets - Digital assets rose significantly to $241,355,000 from $23,893,000, indicating an increase of over 908%[21] - The company reported a total of $241.4 million in digital assets at the end of the period, up from $23.9 million at the beginning of the period[47] - As of September 30, 2025, the company held 2,116 bitcoin with a carrying value of $241.4 million, all produced from its bitcoin mining operations[293] Acquisition and Strategic Initiatives - The company has proposed an acquisition by CoreWeave, which is subject to stockholder approval and other conditions[11] - The company anticipates potential synergies and value creation from the integration with CoreWeave, although actual benefits may vary[11] - The company is transitioning its facilities to support high-density colocation services and AI workloads, indicating a strategic shift in business focus[37] - The company has entered into new agreements with CoreWeave, Inc. to leverage its digital infrastructure for AI and HPC workloads, marking an expansion into new service areas[38] Expenses and Cash Flow - The company reported a total cost of revenue of $77,198,000 for Q3 2025, down from $95,510,000 in Q3 2024[24] - Stock-based compensation for Q3 2025 amounted to $30,173,000, compared to $20,523,000 in Q3 2024[26] - The company experienced a loss on legal settlements amounting to $15,075,000 in Q3 2025[24] - Net cash provided by operating activities increased to $125.2 million from $29.1 million year-over-year[33] - The company reported a net cash used in investing activities of $467.4 million for the nine months ended September 30, 2025, compared to $66.4 million in 2024[33] Shareholder and Stock Information - The weighted average shares outstanding for basic and diluted shares increased to 318,562,000 in Q3 2025 from 292,486,000 in Q3 2024[24] - The Company adopted an equity-based management incentive plan, increasing authorized shares from 40 million to 48 million[124] - As of September 30, 2025, unrecognized compensation cost totals $161.6 million, with RSUs at $102.9 million, PSUs at $55.3 million, and MSUs at $3.3 million[129] Risk Factors - The company is facing various risks related to the proposed acquisition, including market price fluctuations and potential litigation[11] - The company cannot predict future market prices of bitcoin, which could materially affect revenue and net income[294] - A hypothetical 10% increase or decrease in the price of bitcoin during the three and nine months ended September 30, 2025, would have increased or decreased net loss by approximately $5.7 million and $18.7 million, respectively[295] - The company manages commodity price risk by entering into derivative instruments to manage variability in future cash flows from forecasted energy purchases[296] Lease and Capital Expenditures - Total lease expense for the three months ended September 30, 2025, was $5,533,000, an increase of 31.2% from $4,218,000 in 2024[82] - Total lease revenue for the three months ended September 30, 2025, was $14,951,000, a 44.3% increase from $10,338,000 in 2024[86] - The company has committed approximately $1.24 billion for capital expenditures related to high-density colocation services, with $860.6 million to be passed through to customers and $319 million funded by customers as prepaid base license fees[107]