Core Scientific Colocation Revenue Reaches $215.4 Million

The Tip Desk · November 11, 2026 · 2 min read

Billing capacity stood at 485 megawatts as of September 30, 2026, which the company said represented over $700 million in average annualized colocation GAAP revenue.

Core Scientific, Inc. (CORZ), a digital-infrastructure company focused on high-density colocation, reported colocation revenue of $215.4 million for the third quarter ended September 30, 2026, up nearly 60% from $136.7 million in the second quarter.

The company said the increase was driven by continued delivery of billing megawatts. Billing capacity stood at 485 megawatts as of September 30, 2026, up from 395 megawatts at June 30, and the company said that load represented over $700 million in average annualized colocation GAAP revenue.

Total revenue was $232.9 million, compared with $164.2 million in the second quarter. Gross profit was $123.3 million, and consolidated gross margin was 53%.

Colocation license fees were $157.3 million. Power fees passed through to the customer were $57.6 million. Colocation gross profit was $128.4 million, with a 60% colocation gross margin.

Digital asset self-mining revenue was $12.3 million and hosted mining revenue was $5.2 million. The company said the majority of revenue is derived from high-density colocation, with the remainder from earning digital assets for its own account and from digital asset mining hosting. It said it is repurposing remaining mining facilities to support colocation as circumstances allow.

Adjusted EBITDA was $133.6 million, more than triple the $41.1 million in the second quarter, with margins expanding to 57% from 25%. Operating income was $72.4 million, compared with an operating loss of $78.5 million in the second quarter. Colocation organizational and site startup costs were $12.9 million. Selling, general and administrative expense was $45.6 million.

Net income was $1.2 billion, or $0.47 a share on a diluted basis, after a $1.03 billion non-cash gain on the change in fair value of warrants and contingent value rights. The company said net income for the quarter was primarily driven by that warrant remeasurement, reflecting changes in the stock price. Interest expense, net, was $35.0 million.

Capital expenditures were $985.1 million, compared with $797.5 million in the second quarter. Liquidity and debt service reserve accounts were $1,744.2 million as of September 30, 2026, down from $2,601.1 million at June 30. Cash and cash equivalents were $803.9 million. Long-term debt was $4,302.2 million.

Chief Executive Officer Adam Sullivan said the company is nearing full delivery under its first colocation agreement while construction under a second is underway across five campuses, and that substantial contracted capacity remains to be delivered.

The company said it operates facilities in Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma and Texas.