Key Highlights
- Q2 revenue reached $2.58 billion, representing a 112% increase year-over-year and surpassing analyst projections
- The company reported a loss per share of -$1.14, outperforming Wall Street’s -$1.41 forecast
- Adjusted operating income totaled $128 million, nearly doubling the $66 million consensus projection
- The revenue backlog expanded to $130 billion, climbing from $99 billion three months earlier
- Shares of CRWV climbed over 15% during extended trading hours following the announcement
Shares of CoreWeave (CRWV) experienced a significant surge of more than 15% during after-hours trading on Tuesday following the AI cloud infrastructure company’s second-quarter earnings report that exceeded Wall Street projections across key metrics.
CoreWeave, Inc. Class A Common Stock, CRWV
During normal market hours, the stock had already gained 2.4%, closing at $90.32, before the post-market rally pushed shares to approximately $103.98.
The company’s quarterly revenue totaled $2.58 billion, slightly exceeding the analyst consensus of $2.56 billion and representing a robust 112% increase from the comparable quarter in the previous year.
The reported loss per share of -$1.14 came in significantly better than the anticipated -$1.41 that Wall Street analysts had projected.
The company’s adjusted operating income reached $128 million, approximately doubling the consensus forecast of $66 million and showing substantial improvement from the prior quarter’s $21 million.
Chief Executive Officer Michael Intrator characterized the results as representing “an important inflection point,” noting that the company’s expanding scale is now generating meaningful operating leverage. He also highlighted increasing enterprise adoption as a key factor driving demand growth.
CoreWeave’s committed revenue backlog grew to $130 billion, representing an increase from the $99 billion reported at the conclusion of the first quarter. Notably, the company disclosed that this figure excludes an additional $25 billion in third-quarter commitments, which would bring the combined total to approximately $155 billion.
This substantial backlog consists primarily of AI cloud infrastructure contracts with major technology companies including Microsoft, Meta, OpenAI, and various other clients.
Heavy Investment Continues
The company’s capital expenditure cash purchases totaled $6.4 billion during the second quarter, complemented by approximately $5 billion in finance lease assets added to the balance sheet. Overall, property, plant and equipment grew by $11.7 billion throughout the quarter.
Throughout the trailing twelve months, CoreWeave has deployed $20.6 billion in capital expenditures. The company’s full-year spending projection could approach $39 billion, representing an upward revision from the earlier estimate of $35 billion.
As of the end of June, the company carried $35 billion in total debt. Combined depreciation and interest expenses represented 79% of quarterly revenue, marking a 146% increase compared to the prior year.
CEO Intrator referenced Nvidia’s recently announced $500 billion investment platform as a mechanism that could potentially reduce CoreWeave’s capital costs in future periods.
Intensifying Competitive Landscape
Nvidia continues to maintain a strategic partnership with CoreWeave, holding a 9% equity stake and providing a $6.3 billion commitment to support unused server capacity within CoreWeave’s data center facilities.
However, the competitive environment is becoming more crowded. SpaceX has begun providing computing capacity to Anthropic and Google. Meanwhile, Meta is evaluating whether to make portions of its internal infrastructure available for external leasing.
Along with the second-quarter results, CoreWeave increased its full-year guidance for both revenue and adjusted operating income.
Wall Street analysts currently don’t anticipate the company will achieve positive adjusted pretax income until 2028.
Since company insiders gained the ability to sell shares approximately one year ago, CRWV stock has declined 9%. Most recently, CEO Intrator executed a sale of 307,692 shares last week at an average transaction price of $91.80.
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