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    CORZ
    Earnings call· Mar 2026(Q1 FY26)

    Core Scientific, Inc./tx Q1 FY26 earnings call CORZ

    May 6, 2026 Source

    Executive summary

    Core Scientific Q1 FY26 — AI Infrastructure Expansion and $3.3B Financing

    Core Scientific is rapidly scaling its high-density AI infrastructure platform, securing significant financing to accelerate development ahead of contracts. The company is strategically positioning its sites for hyperscaler demand, leveraging its execution track record and a repeatable build model. While exclusivity with one hyperscaler expired, strong demand from multiple others reinforces the value of its assets.

    Highlights

    4

    • Closed a $3.3 billion capital raise, yielding net proceeds of approximately $2.9 billion, to fund future growth and project development.

    • Delivered 243 megawatts of billable capacity to CoreWeave, including the full turnover of Marble (65 MW) and Dalton Phase I (30 MW) data centers.

    • Increased the target cash gross profit range for the CoreWeave contract to 80%-85%, up from the original target of 75%-80%.

    • Announced a path to approximately 1.5 gigawatts of gross power at both Muskogee and Pecos campuses, leveraging behind-the-meter solutions.

    Concerns

    2

    • Exclusivity with a hyperscaler for the Pecos and Muskogee sites expired, though three other hyperscalers immediately engaged in active discussions.

    • Bitcoin mining activity is expected to wind down significantly in the second half of 2026, with only one or two sites operating by year-end.

    Guidance & targets

    10
    CategoryTargetConfidence
    CoreWeave Billable Capacity
    more than 450 billable megawatts
    high materiality
    High
    CoreWeave Billable Capacity
    full 590 megawatts
    high materiality
    High
    Total Capital Expenditures
    roughly $2 billion
    high materiality
    High
    New Billable Capacity
    approximately 1 gigawatt
    high materiality
    High
    New Customer Contracts Delivery
    delivery starting in early 2027
    high materiality
    High
    Muskogee 82.5MW Building Delivery
    initial delivery expected in the second half of 2027
    medium materiality
    High
    Muskogee Additional Data Center Capacity
    deliver additional data center capacity outside of our current contract in late 2027
    medium materiality
    High
    RFS Timelines
    within the 12- to 14-month time frame
    medium materiality
    High
    Bitcoin Mining Activity
    continue winding down over the course of the year with a meaningful step down in miners online in the second half
    high materiality
    High
    Bitcoin Mining Sites Operating
    only have one or potentially two sites operating Bitcoin mining
    high materiality
    High

    Operational metrics

    18
    Cash gross profit range (CoreWeave contract)
    80%-85%up from 75%-80%
    Q1 FY26

    Increased target cash gross profit range for the CoreWeave contract.

    Interest rate (project bond financing)
    7.75%
    Q1 FY26

    Closed $3.3 billion CoreWeave project bond financing at this interest rate.

    Net proceeds (project bond financing)
    $2.9 billion
    Q1 FY26

    Net proceeds after closing costs and funding debt service reserve account.

    SG&A (cash basis)
    just over $30 million
    Q1 FY26

    First quarter SG&A on a cash basis, representing a reasonable baseline for corporate expenses.

    Billable capacity (CoreWeave)
    243 megawatts
    Q1 FY26

    Current billable capacity for CoreWeave.

    Annualized colocation GAAP revenue (CoreWeave)
    more than $350 million
    annualized

    Annualized revenue equivalent from 243 megawatts of billable capacity.

    Bitcoin holdings
    modest amount
    Q1 FY26

    Currently retaining only a modest amount of Bitcoin on the balance sheet after monetizing a significant portion earlier this year.

    Data center capacity (Marble)
    65 megawatts
    Q1 FY26

    Full turnover of Marble facility, bringing 65 megawatts of billable capacity online.

    Data center capacity (Dalton Phase 1)
    30 megawatts
    Q1 FY26

    Full site handover and delivery of 30 megawatts into service.

    Pecos campus scale
    300 megawatts to 1.5 gigawatts
    future

    Plan to scale the Pecos campus from 300 megawatts to 1.5 gigawatts.

    Pecos secured power
    additional 300 megawatts
    Q1 FY26

    Secured additional power for the Pecos campus expansion.

    Pecos initial facility size
    431,000 square foot 185-megawatt
    Q1 FY26

    Construction progressing on the initial facility at Pecos.

    Muskogee campus gross power
    1.5 gigawatts
    future

    Plans for expansion of the Muskogee site to 1.5 gigawatts of gross power. (Transcription note: transcript stated '1.5 megawatts' but context of '1 gigawatt of leasable capacity' implies '1.5 gigawatts' as an ASR correction.)

    Muskogee campus leasable capacity
    approximately 1 gigawatt
    future

    Approximately 1 gigawatt of leasable capacity at the expanded Muskogee site.

    Muskogee Polaris acquisition power
    roughly 440 megawatts
    Q1 FY26

    Power acquired through the Polaris transaction for the Muskogee site.

    Muskogee first building capacity
    82.5 megawatts
    Q1 FY26

    Development begun on the first 82.5 megawatt building at Muskogee.

    AI infrastructure earning revenue
    245 megawatts
    Q1 FY26

    Currently earning revenue on approximately 245 megawatts of AI infrastructure.

    Additional AI infrastructure earning revenue
    200 megawatts
    coming months

    Another 200 megawatts expected to be earning revenue in the coming months.

    Industry KPIs

    6
    MetricValueDetails
    Capacity CAPEX$2 billionUSD
    Revenue growthmore than $350 millionUSD
    Arr net new arrmore than $350 millionUSD
    Rpo current rpo590 megawattsMW
    Operating FCF margin rule of 4080%-85%%
    Ai product adoption monetization243 megawattsMW

    Orderbook & backlog

    1
    CoreWeave Contracted Capacity590 megawattsQ1 FY26

    Full contracted capacity to be delivered by early 2027.

    Deals & partnerships

    3
    CoreWeaveAI infrastructure colocation lease and project bond financing$3.3 billion12-year lease term

    Closed on a $3.3 billion capital raise supported by the CoreWeave contract, with proceeds for future growth and development. The bonds have a 7.75% interest rate and a lockbox structure.

    Hyperscaler (unnamed)Exclusivity agreement for Pecos and Muskogee sites

    Exclusivity process with a hyperscaler across Pecos and Muskogee expired. The company will now require clear milestones for future exclusivity agreements.

    Unnamed hyperscalers, chip makers, AI labs, Neo-cloud providersActive discussions for large-scale high-density capacity

    Three hyperscalers immediately engaged on Pecos and Muskogee after prior exclusivity expired. Broader engagement from various customer segments for high-density capacity.

    Capital programs

    3
    Total Capital Expendituresunderway$2 billion
    Period spend: $2 billion
    Funding: net proceeds from $3.3 billion project bond financing
    Start: 2026

    Benefit: approximately 1 gigawatt of new billable capacity

    Expected deployment of total capital expenditures in 2026, including acquisitions and pre-seeding new capacity.

    Hunt County, Texas site acquisitionclosed
    Period spend: part of $700 million
    Start: Q1 FY26

    Acquisition of the Hunt County, Texas site, which closed yesterday.

    Polaris acquisition (Muskogee, Oklahoma)announced
    Period spend: part of $700 million
    Start: Q1 FY26

    Benefit: roughly 440 megawatts

    Acquisition at the Muskogee, Oklahoma site, announced earlier today, contributing 440 megawatts.

    Risks & headwinds

    4
    Expiration of hyperscaler exclusivityQ1 FY26

    exclusivity has now expired

    Mitigation: Immediately engaged with three other hyperscalers on the same sites; new exclusivity agreements will include clear milestones to ensure timely progress.

    Bitcoin mining business winding downH2 FY26

    meaningful step down in miners online in the second half

    Mitigation: Transitioning towards high-density colocation; running the mining business to help offset contractual power costs during the transition period.

    Labor constraints for constructionongoing

    Labor is one of the primary constraints in the market

    Mitigation: Proactively investing in site development to secure and tie up labor through large general contractors; leveraging GCs' market influence to secure trades.

    Credit support for emerging customer segmentsongoing

    often require additional credit support

    Mitigation: Actively working with customers and financing partners on structures that can support long-term financeable commitments for chip makers, AI labs, and Neo-cloud providers.

    What to watch in Q2 FY26

    5

    CoreWeave billable capacity

    by end of summer
    Current243 megawatts
    Target>450 megawatts

    Why it matters

    Indicates progress on the primary contract and revenue generation, crucial for validating operational execution.

    Across our remaining contracted sites, we will continue delivering billable megawatts over the coming months while scaling execution on the CoreWeave contract, positioning us to deliver more than 450 billable by the end of the summer

    Q&A highlights

    8

    Why did the exclusivity with one hyperscaler expire, and what does it mean for the attractiveness of Pecos and Muskogee, given other hyperscalers are now engaging?

    Adam Sullivan stated that the sites remain incredibly attractive, and three hyperscalers immediately engaged after the exclusivity expired. While the exact reasons for the expiration are unclear, the company felt it was the best time to re-engage the market due to strong demand and competitive dynamics.

    “I mean, those sites, as you mentioned, are incredibly attractive, both Pecos and Muskogee, given their ability to scale, represent tremendous opportunity for hyperscaler. As we noted in the prepared remarks, three hyperscalers immediately engaged.”

    asked by Brett Knoblauch · answered by Adam Sullivan

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Shift to AI Infrastructure

    Core Scientific has successfully transitioned its strategy to support demanding compute workloads, translating it into execution by delivering high-density capacity at scale. The company's initial sites and CoreWeave contracts have provided a significant capital foundation for future growth, enabling it to become one of the largest multi-site AI infrastructure build-outs. This strategic pivot is enhancing operating credibility and providing capital for meaningful scaling.

    02

    Accelerated Development Model

    With the new $3.3 billion financing, Core Scientific is accelerating development across multiple sites, including Pecos, Muskogee, Hunt, Dalton Phase III, and Auburn. The company is investing ahead of contracts to secure land, labor, and equipment, aiming to bring Ready-for-Service (RFS) timelines within 12-14 months. This proactive approach addresses a critical need for customers seeking rapid deployment of high-density capacity.

    03

    Scaling Campuses and Power Strategy

    Core Scientific is scaling its campuses in a repeatable way, with plans for approximately 1.5 gigawatts of gross power at both Muskogee and Pecos. A key enabler is a proactive power strategy, including behind-the-meter options and securing natural gas infrastructure. This strategy aims to support solutions beyond existing grid capacity, accelerate time to power, enhance resilience, and reduce supply chain risk.

    04

    Commercial Momentum and Customer Engagement

    Despite the expiration of exclusivity with one hyperscaler for Pecos and Muskogee, three other hyperscalers immediately engaged, reinforcing the strategic value and demand for large-scale, high-density capacity. Core Scientific is seeing increased engagement from hyperscalers, chip makers, AI labs, and Neo-cloud providers. The company is actively working on financing structures to support long-term, financeable commitments from these diverse customer segments.

    05

    Operational Execution and Milestones

    Core Scientific delivered 243 megawatts of billable capacity to CoreWeave, including the full turnover of Marble (65 MW) and Dalton Phase I (30 MW) data centers. The company expects to deliver over 450 billable megawatts by the end of summer and the full 590 megawatts by early 2027. This demonstrates efficient execution, seamless transition from construction to revenue generation, and consistent alignment with customer timelines.

    06

    Financial Strength and Capital Deployment

    The $3.3 billion project bond financing, with net proceeds of $2.9 billion, significantly strengthens the company's capital position and validates the predictability of its contracted cash flows. Core Scientific plans to deploy roughly $2 billion in capital expenditures in 2026, including $700 million for the Hunt County site acquisition and Polaris acquisition, and pre-seeding approximately 1 gigawatt of new billable capacity for delivery starting in early 2027.

    AI-generated summary of the company’s earnings call. Not investment advice.