Education
About Us
Working with TipRanks
Follow Us
Core Scientific Inc (CORZ)
NASDAQ:CORZ
Top Page
Core Scientific Inc
(NASDAQ:CORZ)
Select Model
Select Model
Rating:49Neutral
Price Target:
$16.00
▼(-11.60% Downside)
Core Scientific Inc. is facing significant financial challenges, with declining revenue, negative profitability, and financial instability. While the stock shows some positive technical momentum, the valuation is unattractive due to negative earnings and no dividend yield. The lack of earnings call insights and corporate events further limits the stock's appeal.
Positive Factors
Energy Efficiency
Energy-efficient operations help reduce costs and improve margins, providing a competitive advantage in the energy-intensive cryptocurrency mining industry.
Partnerships
Strategic partnerships enhance operational efficiency and cost optimization, supporting long-term growth and competitiveness in the blockchain infrastructure sector.
Cash Flow Improvement
Improving operating cash flow suggests better cash management, essential for sustaining operations and funding future growth initiatives in a capital-intensive industry.
Negative Factors
Financial Instability
Financial instability and high leverage increase risk, limiting the company's ability to invest in growth and weather economic downturns, impacting long-term viability.
Declining Revenue
Declining revenue indicates potential market share loss and operational challenges, which could hinder the company's ability to sustain growth and profitability.
Negative Profitability
Negative profitability margins reflect operational inefficiencies and cost management issues, posing challenges to achieving sustainable financial performance.
Core Scientific Inc (CORZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.52B
Dividend YieldN/A
Average Volume (3M)13.09M
Price to Earnings (P/E)―
Beta (1Y)2.99
Revenue Growth-39.43%
EPS Growth90.95%
CountryUS
Employees325
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.04
Shares Outstanding307,355,200
10 Day Avg. Volume11,735,539
30 Day Avg. Volume13,090,768
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue16.75
Enterprise Value/Gross Profit326.97
Enterprise Value/Ebitda-8.07
Forecast
1Y Price Target
$18.44Price Target Upside1.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Core Scientific Inc Business Overview & Revenue Model
Company DescriptionCore Scientific, Inc. operates facilities for digital asset mining and colocation services in North America. It provides blockchain infrastructure, software solutions, and services. The company mines digital assets for its own account and provides hosting colocation services for other large-scale miners. It operates in two segments, Equipment Sales and Hosting. The company owns and operates computer equipment that is used to process transactions conducted on one or more blockchain networks in exchange for transaction processing fees rewarded in digital currency assets, commonly referred to as mining; and datacenter facilities to provide colocation and hosting services for distributed ledger technology, also commonly known as blockchain. It also develops blockchain-based platforms and applications, including infrastructure management, security technologies, mining optimization, and recordkeeping. The company is headquartered in Austin, Texas. On December 21, 2022, Core Scientific, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.
How the Company Makes MoneyCore Scientific generates revenue primarily through cryptocurrency mining operations and hosting services. The company earns money by mining various cryptocurrencies, particularly Bitcoin, leveraging its large-scale data centers that are optimized for energy efficiency. Additionally, Core Scientific offers hosting services for third-party miners, charging fees for space, power, and maintenance of mining equipment. Key revenue streams include direct cryptocurrency mining profits, hosting fees, and potentially software solutions designed for blockchain applications. Significant partnerships with hardware manufacturers and energy providers also contribute to its earnings, allowing Core Scientific to optimize costs and enhance operational efficiency.
Core Scientific Inc Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, making strategic infrastructure investments and aligning with CoreWeave to capitalize on AI demand. Despite revenue and EBITDA challenges, Core Scientific demonstrates strong progress in expanding capabilities and securing a leading market position.Q1-2025 Updates
Positive Updates
Strategic Partnership with CoreWeave
CoreWeave contracts are foundational, with CoreWeave funding virtually all of the capital investment on deployments, keeping balance sheet leverage light and providing strategic flexibility.
Construction Progress and Capability Expansion
Significant progress in advancing 570 megawatts of billable capacity for CoreWeave, with notable achievements at the Denton facility, expected to be one of the largest GPU clusters in North America.
Strong Market Position in AI Infrastructure
Core Scientific positions itself as a leading provider of high-density infrastructure for AI workloads, leveraging dislocation in the market where traditional providers struggle to meet new demands.
Positive Large Enterprise Demand
Emerging demand from large enterprises for AI infrastructure, with potential deployments ranging from 50 to 100 megawatts, offering attractive return profiles.
Financial Strategy and Liquidity
$780 million liquidity position with minimal capital outlay on CoreWeave contracts, enabling strategic growth through traditional project financing structures.
Negative Updates
Revenue Decline
Total revenue for the quarter was $79.5 million, down 16% sequentially, primarily due to mining disconnections and relocations as sites are converted to support high-density colocation.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $6.1 million for the quarter, reflecting challenges in transitioning from Bitcoin mining to datacenter operations.
No New Customer Signings
Despite an expanding sales pipeline, no new customer signings have been reported, though negotiations with multiple customers are ongoing.
Company Guidance
In the Core Scientific earnings call for the first quarter of fiscal year 2025, the company provided guidance on several key metrics and strategic initiatives. Core Scientific is focusing on diversifying its customer base and executing on its contracts with CoreWeave, with a goal to expand its billable capacity to 590 megawatts by early 2027. The company is also working to reduce CoreWeave's representation to less than 50% of its billable capacity by the end of 2028. The strategic partnership with CoreWeave is crucial, with CoreWeave funding almost all of the capital expenditures for these deployments, allowing Core Scientific to maintain a light balance sheet leverage and use debt strategically for future growth. The company reported a total revenue of $79.5 million for the quarter, a decrease of 16% sequentially, and an adjusted EBITDA of negative $6.1 million, primarily due to mining disconnections and relocations. Core Scientific plans to add approximately 300 megawatts of billable capacity across existing sites by the end of 2027 and aims to expand into new geographies, targeting an additional 400 megawatts of buildable capacity through new site development over the next three years.Core Scientific Inc Financial Statement Overview
Summary
Core Scientific Inc. faces significant financial challenges with declining revenue, negative profitability margins, and financial instability reflected in a negative equity position. Cash flow remains negative despite some improvement in operating cash flow.Income Statement
Core Scientific Inc. has experienced declining revenue with a negative revenue growth rate of -15.2% in the TTM period. The company shows weak profitability with a gross profit margin of 5.1% and a significantly negative net profit margin of -309.1%. EBIT and EBITDA margins are also negative, indicating operational challenges.30
Negative
Balance Sheet
The balance sheet reflects financial instability with a negative stockholders' equity, leading to an undefined debt-to-equity ratio. The return on equity is positive due to negative equity, but this is misleading as it indicates substantial losses. The equity ratio is negative, highlighting financial distress.25
Negative
Cash Flow
Cash flow analysis shows a positive operating cash flow, but free cash flow remains negative. The free cash flow growth rate is improving, but the operating cash flow to net income ratio is low, indicating cash flow challenges relative to net losses.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 348.43M | 510.67M | 502.40M | 640.31M | 544.48M | 60.32M |
| Gross Profit | 17.84M | 121.07M | 123.46M | 8.40M | 238.86M | 9.39M |
| EBITDA | -723.12M | -1.16B | -63.12M | -1.84B | 167.61M | -2.74M |
| Net Income | -1.08B | -1.32B | -246.49M | -2.15B | 47.31M | -12.21M |
Balance Sheet | ||||||
| Total Assets | 1.98B | 1.60B | 712.16M | 807.69M | 2.44B | 225.58M |
| Cash, Cash Equivalents and Short-Term Investments | 581.35M | 836.20M | 50.41M | 15.88M | 117.87M | 8.67M |
| Total Debt | 1.06B | 1.20B | 865.54M | 37.73M | 818.81M | 40.29M |
| Total Liabilities | 3.04B | 2.42B | 1.31B | 1.22B | 1.05B | 136.35M |
| Stockholders Equity | -1.06B | -820.18M | -596.94M | -409.35M | 1.39B | 133.70M |
Cash Flow | ||||||
| Free Cash Flow | -256.94M | -52.06M | 48.95M | -178.79M | -116.01M | -25.33M |
| Operating Cash Flow | 12.92M | 42.90M | 65.11M | 205.19M | -56.73M | -23.77M |
| Investing Cash Flow | -273.10M | -95.19M | -3.00M | -590.78M | -423.84M | -15.14M |
| Financing Cash Flow | 744.42M | 819.57M | -44.65M | 306.15M | 603.53M | 40.72M |
Core Scientific Inc Technical Analysis
Positive
18.10
Price Trends
14.91
Positive
13.79
Positive
12.27
Positive
Market Momentum
0.90
Negative
75.54
Negative
81.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CORZ, the sentiment is Positive. The current price of 18.1 is above the 20-day moving average (MA) of 16.39, above the 50-day MA of 14.91, and above the 200-day MA of 12.27, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 75.54 is Negative, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CORZ.
Core Scientific Inc Risk Analysis
Core Scientific Inc disclosed 88 risk factors in its most recent earnings report. Core Scientific Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Core Scientific Inc Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.17B | 23.05 | 12.95% | ― | 13.02% | -2.57% | |
73 Outperform | $4.20B | 27.63 | 32.57% | ― | 22.02% | 12.42% | |
73 Outperform | $3.25B | 7.91 | 15.03% | 1.44% | 0.09% | 5.38% | |
68 Neutral | $3.49B | 12.04 | 24.48% | ― | 8.71% | 25.75% | |
67 Neutral | $3.96B | 48.00 | 8.73% | ― | 20.51% | 12.84% | |
49 Neutral | $5.52B | ― | 160.33% | ― | -39.43% | 90.95% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CORZ
Core Scientific Inc
18.10
6.08
50.58%
EEFT
Euronet Worldwide
88.06
-8.28
-8.59%
SPSC
SPS Commerce
104.51
-80.85
-43.62%
PAGS
Pagseguro Digital
9.58
1.62
20.35%
PAYO
Payoneer
6.07
-1.60
-20.86%
DLO
DLocal
14.03
5.78
70.06%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.