Company Overview
Core Scientific, Inc. operates as a provider of infrastructure for high-density colocation services and digital asset mining within the United States, functioning across three distinct segments: Colocation, Digital Asset Self-Mining, and Digital Asset Hosted Mining. The company's core offerings encompass the provision of space, power, cooling, and facilities operation necessary to support these high-intensity computing activities. Situated within the Technology sector and specifically the Software - Infrastructure industry, the firm's classification reflects its focus on the underlying technological capabilities required for data processing and cryptocurrency mining operations. The company demonstrates a significant market presence with a market capitalization of $5.20B and generates annual revenue of $319.02M, supported by a workforce of 325 employees. These valuation and revenue figures indicate that Core Scientific holds a substantial position in its industry, commanding a market cap that exceeds ten times its trailing twelve-month revenue, which suggests high market expectations for future profitability or growth potential despite current financial constraints.
Financial Health
The company reported revenue of $319.02M over the trailing twelve months, yet this generated a net income of -$280,740,000 and an EBITDA of -$107,388,000. The substantial gap between positive revenue and negative net income reveals a cost structure where operating expenses significantly outweigh gross profits, resulting in a net loss that is more than double the magnitude of the EBITDA loss. Free cash flow stands at -$539,492,096, indicating that the company is burning through cash reserves rapidly, which severely limits its financial flexibility and ability to fund operations or capital expenditures without external financing. The gross margin is 17.1%, while the operating margin is -78.5% and the profit margin is -90.5%, illustrating that for every dollar of revenue, the company retains only a small fraction before costs, and the final profit margin indicates that the vast majority of revenue is consumed by expenses. On the balance sheet, the company holds $311.38M in cash against $1.16B in debt, and the debt-to-equity ratio is N/A, suggesting a highly leveraged position where cash on hand is insufficient to cover total debt obligations without refinancing or new capital. The current ratio is 1.15, which indicates that the company possesses just enough current assets to cover its current liabilities, leaving little buffer for short-term liquidity shocks. Return on Equity is N/A due to the lack of positive equity, while Return on Assets is -5.8%, revealing that management is currently generating negative returns on the total assets deployed in the business.
Valuation Assessment
The valuation metrics present a complex picture with a P/E Ratio (TTM) of N/A and a Forward P/E of 39.24, implying that while trailing earnings are negative, the market prices in significant expected earnings growth to justify a multiple nearly 40 times projected earnings. The price-to-book ratio is -5.38, which indicates that the market values the company at a negative multiple relative to its book value, a situation typical for loss-making firms where the market discounts the asset base due to the inability to convert assets into immediate positive equity value. Alternative valuation metrics such as the price-to-sales ratio of 16.29 and an EV/EBITDA of -56.32 suggest that the stock is priced based on revenue multiples and future earnings potential rather than current profitability or asset coverage. The stock trades within a 52-week range bounded by a high of $23.63 and a low of $6.20, and given the current market dynamics, the price sits significantly below the 52-week high, reflecting recent market pressure. The beta of 6.90 indicates extreme price volatility, meaning the stock is expected to move roughly seven times as much as the broader market in either direction, representing a high-risk profile for traders and investors.
Growth & Income
Revenue growth year-over-year is -16.0%, while earnings growth is N/A, indicating that the company is currently contracting in terms of top-line sales and lacks positive earnings growth to offset this decline. Because earnings are negative, they are not growing faster than revenue in a traditional sense; rather, the negative earnings growth is N/A, which implies that the loss per share dynamics are shifting alongside the shrinking revenue base. The company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning that instead of distributing income to shareholders, the company reinvests its limited earnings or borrows funds to sustain operations. The overall growth and income profile is characterized by significant revenue contraction and a complete absence of dividend income, highlighting a strategy focused on survival and potential future expansion rather than current shareholder returns.