tl;dr
CoreWeave reported Q2 revenue of $1.21 billion, exceeding expectations and showing more than triple growth from the previous year, but shares fell 11% in after-hours trading. The company posted a loss of 21 cents per share and a net loss of $290.5 million, with operating margin shrinking to 2% due t...
CoreWeave shares fell 11% in extended trading despite reporting earnings and guidance that surpassed expectations. The company posted a loss of 21 cents per share and reported revenue of $1.21 billion, exceeding the anticipated $1.08 billion. This revenue figure marks a more than threefold increase from $395.4 million in the previous year’s quarter.
CoreWeave recorded a net loss of $290.5 million compared to a $323 million loss in the second quarter of 2024. The company’s earnings per share were not directly comparable to LSEG estimates. Revenue growth remains limited by capacity constraints, as demand continues to outpace supply, according to CFO Nitin Agrawal. CoreWeave competes with cloud giants like Amazon by renting Nvidia chips to other companies.
The firm’s operating margin contracted sharply to 2% from 20% a year ago, mainly due to $145 million in stock-based compensation costs. Total debt stands at $11.1 billion. This report marks CoreWeave’s second quarterly financial disclosure since its public debut in March 2024.
During the earnings call, CEO Mike Intrator highlighted growing business with OpenAI, a major client and investor, and noted that Goldman Sachs and Morgan Stanley have become customers. Both banks played underwriting roles in CoreWeave’s IPO. Additionally, CoreWeave acquired Weights and Biases, an AI monitoring software startup, for $1.4 billion during the quarter.
Earlier in May, management revealed a 420% revenue surge alongside widening losses and nearly $9 billion in debt, yet the stock still doubled in value over the following month. For Q3, CoreWeave projects revenue between $1.26 billion and $1.30 billion, slightly above the $1.25 billion analysts expected. The 2025 revenue forecast increased to $5.15 billion–$5.35 billion, suggesting 174% growth, up from the prior $4.9 billion–$5.1 billion estimate and above analysts’ $5.05 billion consensus.
CoreWeave’s shares initially priced at $40 during its IPO have since surged to $148.75, giving the company a market capitalization exceeding $72 billion. Looking ahead, a large data center project in New Jersey, expected to provide up to 250 megawatts of capacity, is scheduled for completion in 2026. Executives are set to discuss these results and their outlook during a conference call at 5 p.m. ET.