Core Scientific, Inc.

Greetings. Welcome to Core Scientific fourth quarter fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to John Charbonneau, Vice President of Investor Relations. Thank you. You may begin.

Great. Good afternoon and welcome to Core Scientific's fourth quarter and full year 2025 earnings call. Before we begin, I need to remind you that statements made on this call, other than historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations. Words such as anticipates, estimates, expects, intends, and believes, and similar words and expressions are intended to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ substantially. For further information on these risks and uncertainties, we encourage you to review the risk factors discussed in the company's reports on Form 10-K 10Q, and 8K filed today with the Securities and Exchange Commission and the press release and slide presentation contained therein. The forward-looking statements we make today speak as of today only, and we do not undertake any obligation to update any such statement to reflect events or circumstances occurring after today. Today's presentation is available on our website, investors.corescientific.com. The content of this conference call contains information that is accurate as of today, March 2nd, 2026. Joining me today from Core Scientific are our CEO, Adam Sullivan, our Chief Operating Officer, Matt Brown, and our Chief Financial Officer, Jim Nygaard. We will conduct a question and answer session after management's remarks. We will now begin with remarks from Adam.

Good afternoon, everyone, and thank you for joining us. On our October 30th update call, we laid out four specific deliverables for this earnings call. First, we expect to design at least one new customer, an important step towards diversifying our customer base. Second, We plan to sign one new power expansion contract in an existing site. Third, we expected to sign a new large land and power agreement. And fourth, we plan on making a financing announcement. These are the building blocks for our future growth, expanding contracted revenue, increasing our power optionality, widening our footprint, and funding growth in a way that is responsible and repeatable. Before we talk about those four priorities, let's talk about execution. The complexity of these build-outs is enormous, and we've made incredible progress on our Core Week build-out, despite challenges in the market and the evolving criteria for operating the newest generation of GPUs. This requires the deep bench that Core Scientific has to adapt to changes in real time. Matt will cover the details, but here are the facts. As of this week, we'll have energized approximately 350 megawatts of capacity, of which close to 200 megawatts are currently billing. This puts us well halfway or the halfway mark of the Cori contract. When we say energized, we mean power has been delivered and is generally within 90 days of billing. The natural lag between energization and billing commencement varies by site and customer requirements. Now let's put that in perspective. Last year, we energized as many megawatts as our closest publicly traded peers combined. We were building and delivering while they were still signing their first AI contracts. And going forward, to keep this simple and consistent, we'll report megawatts when they start billing. In this business, the market will always talk about demand. Investors should stay focused on what actually matters here, execution. Schedules will always move. It's easy at mile two of a marathon to say that you're on pace, but these are large and complex projects that expose who can actually execute. We've shown we can build, turn on capacity at scale, and deliver for our customers. This leads directly into our pipeline. As this industry matures and evaluates opportunities against a more stringent criteria, we're confident we check those boxes through proven execution and true site readiness. And we're disciplined. We only sign contracts we know we can deliver on time and done right. That discipline is how we're building a durable, longstanding company, one defined by execution and known for being a great partner to our customers. That's what we set out to do, and it's exactly what we're doing today. And over time, that's what will separate us from the rest of the industry and position us to be a market leader for years to come. Now let me start by providing an update on the most visible item on our priority list, a new customer contract. We did not sign one by this call, and we are not satisfied with that. But the demand is there, and we have two sites under short exclusivity arrangements. We expect that this exercise will result in co-location leasing agreements in the near future. Our funnel is larger and broader than it was a few months ago, and we are in active discussions with hyperscalers, neoclouds, and large enterprises. This is a timing issue, not a demand issue. While we were operating under the merger agreement, hyperscalers simply would not engage with us. Those conversations restarted following termination, and we have made significant headway. Deals at this level are not a one-meeting exercise. It's a rigorous multi-step process. While hyperscalers have a longer contracting process, The path to project financing and delivery can oftentimes be more straightforward. The bottom line is we are engaged, moving through the process, and competing for the right long-term opportunities. Now on neoclouds, there is meaningful demand across the industry. However, for those deals to work for us, there needs to be a strong balance sheet standing behind the contract. In most cases, that means a hyperscaler, chip manufacturer, or another investment-grade guarantee. Putting that structure in place requires the due diligence of both the neocloud and investment grade guarantee, which adds more coordination and steps. And because these guarantees are new for many parties, they take time to negotiate and finalize. This is one reason we believe you've seen fewer neocloud deals announced across the industry recently. We are not going to compromise on counterparty strength because that protection matters over the life of the contract. Second, we said we plan to add new power at an existing site, and we delivered in Dalton, Georgia. Dalton will expand to 450 megawatts of total gross power capacity, including 120 megawatts of uncommitted leasable customer capacity. Our Dalton site is strategically located about 90 miles from Atlanta, sitting in the middle of an incredibly attractive demand corridor. We've been working towards this expansion with local stakeholders for over a year, and to support it, we've secured an additional 175 acres of land. This is what execution looks like, long-term planning, deep coordination, and strong partnerships with utilities and the local community. Late last year, we also increased leaseable customer capacity in Pecos, Texas to 200 megawatts, an area that has seen significant traction for high density compute. Given that demand, we're moving forward with the conversion of Pecos from Bitcoin mining to co-location. Pecos is in the Goldilocks zone for customer signing, meaning we've secured a general contractor, locked in long lead equipment, and conversion work is underway with a timeline to RFS within 12 months. This means Pecos is within a timeframe that customers are actively trying to solve for right now. Stepping back, our strategy remains the same. We expect every megawatt in our portfolio to be dedicated to co-location within the next three years. Third, we delivered on signing a new large land and power agreement through our contract to acquire a major new site in Hunt County, Texas. This site represents approximately 265 acres that we expect can support roughly 430 megawatts of gross power capacity or 285 megawatts of customer leaseable capacity. This location is about 45 miles outside of Dallas in one of the fastest growing colocation markets. We expect this to close by the end of Q1. And importantly, this site has a clear interconnection path. The ERCOT energization schedule was approved in 2024 and with power expected to begin coming online in 2027 and ramp through 2029. You've also seen the headlines around ERCOT. In our view, more discipline and transparency in that process is constructive. It helps reduce speculation and rewards companies with real sites, real plans, and the ability to execute. We believe this makes our two leasable sites in Texas, both Hunt and Pecos, even more attractive in the market given the clarity around their ability to deliver. As we sit here today, our pipeline is approximately 1.5 gigawatts of customer leasable capacity. This number is not a speculative position. It is not inflated with load studies. It only includes real opportunities with a clear line of sight to development, existing power under contract, new sites like Hunt, and available incremental power at both new and existing sites. Power matters, and we stay disciplined on it. But in the broader market, power is often treated as the bottleneck, and we think that can be overstated. In practice, the bigger constraints are often securing long-lead equipment and lining up experienced general contractors and subcontractors. The reality is simple. We already have more power in our pipeline than we can build over the next several years. And fourth, on financing, our balance sheet remains strong and we have a variety of financing options that Jim will cover here shortly. Looking at 2026, our priorities are straightforward. diversify our customer base, and execute on the Core Reap contract. We are focused on delivery, discipline, growth, and doing what we said we would do. I'll now turn it over to Matt to give an updated construction overview.