AI Takeaway
CORZ reported Q1 FY2026 revenue of $115.2M (+44.9% YoY) with improved gross margins, but posted a net loss of $347.2M and a deeply negative stockholders' equity of -$1.31B, driven by a massive surge in current liabilities and operating losses.
Revenue
$115.24M
++44.92% YoY
EPS (Basic)
$-1.06
-174.65% YoY
Gross Margin
26.1%
++15.80% YoY
Operating Income
$-310.42M
-559.94% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue surged 44.9% YoY to $115.2M in Q1 FY2026 from $79.5M in the prior-year period, reflecting increased Bitcoin mining activity and higher average Bitcoin prices. This top-line growth significantly outpaced cost of revenue growth of 19.4%, resulting in gross profit expanding 266.6% to $30.1M.
Source: Source: 10-Q Income Statement
Gross margin improved dramatically to 26.1% from 10.3% in the prior-year quarter, a gain of approximately 15.8 percentage points YoY. This improvement suggests better mining economics, likely aided by favorable Bitcoin prices relative to energy costs.
Source: Source: 10-Q Income Statement / Key Ratios
Operating income deteriorated sharply to -$310.4M from -$47.0M in the prior year, a decline of 559.9% YoY, despite improved gross profit. This implies substantial charges below the gross profit line — likely impairments, stock-based compensation, or restructuring costs — that overwhelmed operational gains.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCORZ's stockholders' equity stood at -$1.31B as of Q1 FY2026, worsening from -$308.8M a year ago. This means total liabilities far exceed total assets, indicating the company is technically insolvent on a book-value basis. Sustained losses and growing liabilities could further erode the balance sheet.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $-1.06 versus the $-0.07 analyst consensus — a -1380.4% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $115.24M | $79.53M | +44.92% |
Cost of Revenue | $85.14M | $71.31M | +19.39% |
Gross Profit | $30.11M | $8.21M | +266.57% |
Operating Income | $-310.42M | $-47.04M | -559.94% |
Net Income | $-347.19M | $576.25M | -160.25% |
EPS (Basic) | $-1.06 | $1.42 | -174.65% |
EPS (Diluted) | $-1.06 | $1.24 | -185.48% |
SG&A Expense | $44.85M | $32.29M | +38.90% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $3.07B | $1.5B | +104.90% |
Current Assets | $1.45B | $833.18M | +74.61% |
Total Liabilities | $4.38B | $1.81B | +142.14% |
Current Liabilities | $2.66B | $195.51M | +1261.46% |
Stockholders' Equity | $-1.31B | $-308.82M | -322.80% |
Cash & Equivalents | $1.01B | $697.94M | +44.02% |
Long-Term Debt | $1.06B | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $249.88M | $-45.04M | +654.78% |
Investing Cash Flow | $-386.65M | $-89.02M | -334.36% |
Financing Cash Flow | $971.38M | $-4.2M | +23239.16% |
D&A | $16.65M | $19.73M | -15.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 26.1% | 10.3% | +15.80% |
Operating Margin | -269.4% | -59.1% | -210.21% |
Net Margin | -301.3% | — | — |
ROE | 26.6% | — | — |
ROA | -11.3% | — | — |
Current Ratio | $0.547 | — | — |
Debt to Equity | $-3.351 | — | — |
CORZ reported Q1 FY2026 revenue of $115.2M (+44.9% YoY) and a dramatically improved gross margin of 26.1% vs. 10.3% a year ago. However, the company posted a net loss of $347.2M and an operating loss of $310.4M, driven by large charges below the gross profit line, and faces serious balance sheet stress with negative stockholders' equity of -$1.31B.
CORZ's revenue grew 44.9% year-over-year to $115.2M in Q1 FY2026, up from $79.5M in the prior-year period. This growth is primarily attributable to increased Bitcoin mining activity and likely higher average Bitcoin prices during the quarter.
CORZ is not profitable at the net income or operating income level in Q1 FY2026, reporting a net loss of $347.2M and an operating loss of $310.4M. However, gross profit improved significantly to $30.1M (+266.6% YoY), and operating cash flow turned positive at $249.9M, suggesting the core mining business generates cash despite large non-cash charges.
CORZ's financial health shows significant stress: stockholders' equity is deeply negative at -$1.31B, the current ratio is only 0.55 (well below the 1.0 safety threshold), and current liabilities surged 1,261.5% YoY to $2.66B. The company raised $971.4M through financing activities to bolster its cash balance to $1.01B, but the balance sheet remains highly leveraged and fragile.
CORZ swung from a net income of $576.3M in Q1 of the prior year to a net loss of $347.2M in Q1 FY2026, a change of over $923M. The prior year's large profit was likely driven by gains on Bitcoin holdings or financial instruments, while Q1 FY2026 was burdened by a $310.4M operating loss driven by substantial charges (such as impairments or stock-based compensation) that far exceeded the improved gross profit of $30.1M.