Core Scientific Inc. Tranche 2 Warrants (CORZZ)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable economics and a margin of safety. CORZZ is not an operating company; it is a tranche of warrants, so my first question is what claim it gives, at what strike and expiry. That said, the underlying Core Scientific runs infrastructure for high-density colocation and digital asset mining. Top-line momentum is real: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $164.2M, up from $78.6M in fiscal Q2 2025. But the bottom line is alarming. Fiscal Q2 2026 net income was -$1.2B, or diluted EPS -$3.32, after fiscal Q1 2026 net income of -$347.2M. FY2025 revenue was $319.0M with net income of -$288.6M, and FY2024 was -$1.4B on $510.7M of revenue. FairStock's trailing FCF is -$957.8M, a -16.7% FCF yield. FairStock's Altman Z is -1.10, Piotroski is 3/9, and ROCE is -2.43%. Those are not signs of financial strength. The Lynch category is none because the company lost money in each of the last four years. At the 2026-09-04 close of $17.80, the warrant sits near its 52-week high of $17.88, while the given market cap is $5.7B and the FairStock Score is 27/100. There is no P/E because there are no earnings, and I see no margin of safety in the figures. The business may have growth, but a warrant amplifies both upside and ruin. I'd need a visible path to positive cash flow and precise warrant terms before calling this anything other than speculative.

In plain English: This is a warrant tied to Core Scientific, which runs data centers for crypto mining and high-density computing. The business is growing sales quickly but losing large amounts of money and burning cash. At $17.80, the price looks expensive relative to current losses and cash flow.

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Data as of 2026-09-04 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer