Core Scientifc - CW27 | 10-Q: FY2025 Q2 Revenue: USD 78.63 M

Revenue: As of FY2025 Q2, the actual value is USD 78.63 M.

EPS: As of FY2025 Q2, the actual value is USD -0.04.

EBIT: As of FY2025 Q2, the actual value is USD -26.28 M.

Digital Asset Self-Mining Segment

• Revenue: $62.4 million for Q2 2025, down from $110.7 million in Q2 2024.
• Cost of Revenue: $59.6 million for Q2 2025, down from $80.0 million in Q2 2024.
• Gross Profit: $2.8 million for Q2 2025, down from $30.7 million in Q2 2024.
• Gross Margin: 5% for Q2 2025, down from 28% in Q2 2024.

Digital Asset Hosted Mining Segment

• Revenue: $5.6 million for Q2 2025, down from $24.8 million in Q2 2024.
• Cost of Revenue: $4.6 million for Q2 2025, down from $17.4 million in Q2 2024.
• Gross Profit: $1.1 million for Q2 2025, down from $7.4 million in Q2 2024.
• Gross Margin: 19% for Q2 2025, down from 30% in Q2 2024.

Colocation Segment

• Revenue: $10.6 million for Q2 2025, up from $5.5 million in Q2 2024.
• Cost of Revenue: $9.4 million for Q2 2025, up from $4.9 million in Q2 2024.
• Gross Profit: $1.1 million for Q2 2025, up from $0.6 million in Q2 2024.
• Gross Margin: 11% for Q2 2025, consistent with 11% in Q2 2024.

Consolidated

• Total Revenue: $78.6 million for Q2 2025, down from $141.1 million in Q2 2024.
• Total Cost of Revenue: $73.6 million for Q2 2025, down from $102.3 million in Q2 2024.
• Gross Profit: $5.0 million for Q2 2025, down from $38.8 million in Q2 2024.
• Gross Margin: 6% for Q2 2025, down from 28% in Q2 2024.

Future Outlook and Strategy

• Core Business Focus: The company is transitioning from bitcoin mining to high-density colocation services, aiming to provide more stable and predictable revenue streams. The company is constructing, refurbishing, reallocating, or converting most of its ten facilities to support artificial intelligence-related workloads and high-density colocation services for HPC customers. The company will continue to mine digital assets until it identifies actionable alternative high-density colocation service business opportunities.
• Non-Core Business: The company is focusing on expanding its high-density colocation customer base and increasing available infrastructure to provide high-density colocation services to HPC customers. The company is also seeking additional opportunities and engaging additional customers in the high-density colocation services segment to expand its business into these areas.
• Priority: The company is prioritizing the transition to high-density colocation services, with a focus on leveraging its existing infrastructure and expertise to support HPC workloads and artificial intelligence-related applications. The company is also focusing on meeting its fiscal 2025 ready-for-service dates and expanding its high-density colocation customer base.