Core Scientific, Inc./txCORZ

Core Scientific, Inc./tx Leases Disclosure

10-KFiled Mar 2, 20263 min read
7.        LEASES
Lessee Accounting
The components of operating and finance leases are presented on the Company’s Consolidated Balance Sheets as follows (in
thousands):
Financial statement line item
December 31, 2025
December 31, 2024
Assets:
Operating lease right-of-use assets
Operating lease right-of-use assets
$108,484
114,472
Finance lease right-of-use assets
Other noncurrent assets
$1,843
5,873
Liabilities:
Operating lease liabilities,
  current portion
Other current liabilities
$12,343
9,974
Operating lease liabilities, net
  of current portion
Other noncurrent liabilities
$89,011
97,843
Finance lease liabilities, current portion
Other current liabilities
$—
1,669
Finance lease liabilities, net of
  current portion
Other noncurrent liabilities
$844
3
The components of lease expense were as follows (in thousands):
Year Ended December 31,
Financial statement line item
2025
2024
2023
Operating lease expense
Cost of colocation services
$13,853
$10,274
$—
Operating lease expense
Cost of digital asset self-mining
327
413
—
Operating lease expense
Cost of digital asset hosted mining
services
35
87
—
Operating lease expense
Selling, general and administrative
4,964
2,129
1,024
Short-term lease expense
Cost of digital asset self-mining
1,205
383
—
Variable lease expense
Cost of colocation services
1,270
1,455
—
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
570
1,106
11,424
Interest on lease liabilities
Interest expense, net
119
1,200
1,787
Total finance lease expense
689
2,306
13,211
Total lease expense
$22,343
$17,047
$14,235
Information relating to the lease term and discount rate is as follows:
December 31, 2025
December 31, 2024
Weighted Average Remaining Lease Term (Years)
Operating leases
7.5
8.5
Finance leases
4.9
0.7
Weighted Average Discount Rate
Operating leases
8.5%
8.5%
Finance leases
7.4%
12.5%
Information relating to lease payments is as follows (in thousands):
Year Ended December 31,
2025
2024
2023
Lease Payments
Operating cash flows from operating leases
$16,961
$16,328
$956
Operating cash flows from finance leases
$82
$1,856
$964
Financing cash flows from finance leases
$1,672
$6,038
$3,495
Supplemental Noncash Information
Finance lease right-of-use assets obtained in exchange for lease
obligations
$1,916
$—
$—
Operating lease right-of-use assets obtained in exchange for lease
obligations
$3,952
$111,736
$—
Increase in operating right-of-use assets due to lease modification
$1,327
$—
$—
The Company’s minimum payments under noncancelable operating and finance leases having terms in excess of one year are as
follows at December 31, 2025, and thereafter (in thousands):
Operating Leases
Finance Leases
2026
$20,301
$—
2027
20,734
—
2028
21,019
257
2029
20,754
440
2030
21,079
403
Thereafter
33,239
—
Total lease payments
137,126
1,100
Less: imputed interest
35,773
256
Total
$101,353
$844
Lessor Accounting
We generate revenue by leasing property to a customer under licensing agreements. The manner in which we recognize these
transactions in our financial statements is described in Note 2 — Summary of Significant Accounting Policies, Revenue Recognition
— Colocation Segment. There was no lease revenue during the year ended December 31, 2023.
The components of lease revenue were as follows (in thousands):
Year Ended December 31,
2025
2024
Lease Revenue
Operating lease revenue
$47,861
$17,498
Variable lease revenue
17,563
6,880
Total lease revenue
$65,424
$24,378
The following table represents the maturity analysis of operating lease payments expected to be received at December 31, 2025,
and thereafter (in thousands):
Operating Leases1
2026
$86,479
2027
89,386
2028
136,190
2029
164,823
2030
170,461
Thereafter
1,123,444
Total
$1,770,783
1 Operating lease payments expected to be received excludes $8.17 billion in total future noncancellable minimum lease payments for operating leases that have not yet
commenced as of December 31, 2025, which have initial lease terms of 12 years from commencement.
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Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 27, 2025
2023Mar 13, 2024
2022Apr 4, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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