Core Scientific (CORZ) Reports Q1 2026 Revenue Surge Despite Net Loss
Core Scientific, Inc. (NASDAQ: CORZ) reported a 45% year-over-year increase in revenue for the first quarter of 2026, reaching $115.2 million. This growth reflects its strategic pivot towards high-density colocation services and artificial intelligence (AI) infrastructure. However, the company posted a $347.2 million net loss, largely driven by $266.5 million in non-cash impairment charges tied to its ongoing operational restructuring.
CEO Adam Sullivan highlighted Core Scientific's ability to "combine capital readiness with speed to delivery" as a key differentiator, emphasizing the company’s aggressive expansion across its U.S. campuses. Recent developments include the closure of a $3.3 billion senior secured notes offering to fund data center growth and the acquisition of land and power assets in Hunt County, Texas, for $233 million, adding 430 megawatts of capacity. The company’s total gross power capacity pipeline now stands at 4.5 gigawatts, with notable expansions planned in Pecos, Texas, and Muskogee, Oklahoma.
Breaking down the Q1 results, colocation revenue surged to $77.5 million from just $8.6 million a year ago, reflecting significant customer demand for AI and GPU-based computing services. However, digital asset self-mining revenue dropped to $30.1 million, down 55% from $67.2 million in Q1 2025, impacted by a 45% decline in bitcoin mined and an 18% drop in bitcoin prices. This continues Core’s strategic shift away from direct crypto mining to focus on infrastructure services.
The company’s gross profit improved to $30.1 million, up from $8.2 million in Q1 2025, despite higher cash operating costs and adjusted operating expenses. Adjusted EBITDA also turned positive at $4.4 million, compared to a loss of $6.1 million in the prior-year period, supported by higher colocation revenue and a $4.1 million boost from the fair value of digital assets.
Core Scientific’s liquidity position as of March 31, 2026, totaled $1.04 billion, comprising $1.01 billion in cash and cash equivalents and $37.3 million in bitcoin holdings. Capital expenditures hit $389.2 million during the quarter, reflecting the company’s aggressive investments in scaling its AI data center footprint, with $129.9 million funded through customer agreements with CoreWeave, Inc.
Notably, Core Scientific’s stock has been on a tear, hitting an all-time high of $23.66 on May 6, 2026, following the announcement of its Q1 results and news of its $421 million acquisition of Polaris DS LLC, a bitcoin mining operator. This deal aims to enhance the scalability of its Muskogee campus and further solidify its standing in the AI infrastructure market. The stock is up 3.69% in the past 24 hours, trading at $23.86, reflecting bullish sentiment around its AI-focused transition.
The company is also set to participate in prominent investor events later this month, including the B. Riley Annual Investor Conference on May 20 and the TD Cowen Technology, Media & Telecom Conference on May 28. These events could provide further insights into Core Scientific’s roadmap and growth trajectory.
For traders and investors, Core Scientific represents a high-risk, high-reward play as it doubles down on AI infrastructure while managing the financial fallout from its crypto-mining origins. The company’s ability to monetize its expanding data center footprint and navigate its heavy capital expenditure commitments will likely dictate its market performance in the coming quarters.