Core Scientific, Inc./tx files 10-Q: quarterly report (10-Q)

Unless the context otherwise requires, all references in this section to “we,” “us,” “our,” the “Company,” “Core Scientific,” or “Core” refer to Core Scientific, Inc. and its subsidiaries.

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to promote understanding of the results of operations and financial condition of the Company. This MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited condensed consolidated financial statements and the accompanying notes to the unaudited condensed consolidated financial statements (Part I, Item 1 of this Form 10-Q) as well as the financial and other information included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 2, 2026. This section generally discusses the results of operations for the three and nine months ended September 30, 2026, compared to September 30, 2025.

Overview

Core Scientific, Inc. is a leader in designing, building and operating large-scale purpose-built data centers for HDC services. We develop and operate facilities serving AI and HPC related workloads and are a premier provider of digital infrastructure to our third-party customers. The majority of our revenue is derived from HDC services.

Our strategic objective is to maximize the value of our large-scale data center infrastructure portfolio by converting power capacity across our facilities into long-term contracted HDC revenue streams. We believe this strategy enhances the predictability of future cash flows, reduces the relative contribution of bitcoin market volatility to our operating results, and increases the long-term value of our infrastructure platform relative to its historical use in digital asset mining operations.

In 2024, we announced our first HDC contract with CoreWeave, a provider of HPC services, which was subsequently expanded to approximately 590 MW of leased customer power capacity across five sites. As of September 30, 2026, approximately 485 MW has commenced billing. During the nine months ended September 30, 2026, certain CoreWeave license agreements were assigned to a special purpose vehicle financing structure while CoreWeave remained a primary obligor under the agreements. See “Strategic Transition to High-Density Colocation Services” below for a more detailed discussion of this arrangement and the associated risks.

In July 2026, we announced our second HDC contract with AMD and a Neocloud counterparty for an aggregate of approximately 530 MW of critical IT capacity across five of our sites. Additionally, we provided AMD with a reservation capacity right to lease at certain times and circumstances an additional 1,925 MW of critical IT capacity through December 28, 2028. Revenue under the AMD and Neocloud leases is expected to commence in phases beginning in 2027 as contracted capacity is constructed and delivered. While our current colocation revenue remains concentrated with a single customer, we believe our relationship with AMD and Neocloud, combined with our available unleased power capacity, provides a meaningful opportunity to diversify our customer base over time.

As of September 30, 2026, we controlled approximately 2.6 GW of gross utility power capacity, or approximately 1.7 GW of total leasable customer power capacity across 11 data centers in seven U.S. states including Alabama (1), Georgia (2 ) , Kentucky (1), North Carolina (1), North Dakota (1), Oklahoma (1), and Texas (4). We continue to develop, convert and expand most of our facilities to support AI and HPC workloads while pursuing additional land and power opportunities to expand our data center footprint.

We expect colocation revenue to increase as additional contracted capacity is commissioned and delivered to our customers and as we add new customer relationships over time. We continue to operate a self-mining fleet at two facilities and provide hosted mining services to one remaining customer. Our hosted mining operations are expected to conclude by December 31, 2026, while we continue to wind down our self-mining operations.

2026 Highlights:

• On July 28, 2026, we announced a strategic commercial relationship with AMD with the potential to support up to 2.5 GW of leasable capacity, anchored by a 15-year agreement with AMD and a Neocloud counterparty for an aggregate of approximately 530 MW across five of our sites.

• Billable customer power capacity of 485 MW as of September 30, 2026, against 590 MW of leased customer power capacity to CoreWeave, with the remaining 105 MW in various stages of construction and commissioning.

• On August 25, 2026, we entered into an aggregate of $600 million of committed senior secured credit facilities, consisting of a $100 million senior secured revolving credit facility and a $500 million letter of credit facility, to support our data center developments. See "Liquidity and Capital Resources" below for additional information.

• On August 13, 2026, we completed the acquisition of Polaris DS LLC, which owns an approximately 40-acre site adjacent to our existing Muskogee, Oklahoma data center operations, containing a substation and electric service agreements providing for up to 440 MW of gross utility power capacity, for an aggregate purchase price of approximately $444.3 million in cash. For additional details, see Note 3 — Asset Acquisitions to our condensed consolidated financial statements.

• On May 6, 2026, our indirect wholly-owned subsidiary, Core Scientific Finance, completed a $3.3 billion offering of 7.75% Senior Secured Notes due 2031 (the "Senior Secured Notes”). The net proceeds were used to fund a debt service reserve account and to repay in full and terminate our Term Loan Facility. The Senior Secured Notes and related guarantees are secured by first-priority liens, among other things, on substantially all assets of Core Scientific Finance and its subsidiary guarantors, which own or operate our specified data center development projects. For additional details, see Note 7 — Debt to our condensed consolidated financial statements.

• On May 5, 2026, we closed on the acquisition of land and related electrical power in Hunt County, Texas for approximately $233 million in cash, which is expected to support approximately 430 MW of gross power capacity, with an approved ERCOT interconnection ramp schedule. For additional details, see Note 3 — Asset Acquisitions to our condensed consolidated financial statements.

Financial Results:

• Total revenue for the three and nine months ended September 30, 2026 was $232.9 million and $512.3 million, respectively, compared to $81.1 million and $239.3 million for the three and nine months ended September 30, 2025.