Key Highlights
- Analysts project Q4 revenue at $1.55 billion, representing a 101% increase from the prior year, alongside an anticipated net loss of $342 million.
- The company’s remaining performance obligations (RPO) are expected to reach $60–$65 billion, climbing from $55 billion in the previous quarter.
- Nvidia has committed a $2 billion equity stake in CoreWeave, strengthening their strategic alliance.
- The AI infrastructure company holds approximately $19 billion in combined debt and lease obligations to support data center expansion.
- Shares have surged 148% from the March IPO price but experienced post-earnings declines of 21% and 16% following recent quarterly reports.
CoreWeave prepares to unveil its fourth-quarter financial results Thursday amid heightened investor scrutiny.
CoreWeave, Inc. Class A Common Stock, CRWV
The cloud infrastructure specialist has delivered impressive market returns, climbing roughly 40% year-to-date and posting a 148% gain since going public in March. Yet the company’s post-earnings performance suggests volatility ahead.
Following its two most recent quarterly announcements, shares tumbled significantly — dropping 21% after one release and 16% after another. Such patterns have market participants approaching Thursday’s report with measured expectations.
Analyst consensus calls for fourth-quarter revenue reaching $1.55 billion, marking a 101% year-over-year expansion. However, projections also indicate a net loss of $342 million, based on FactSet data.
The widening deficit stems primarily from interest costs associated with CoreWeave’s substantial borrowing. As of September’s quarter-end, the enterprise carried close to $19 billion in combined debt and lease commitments.
The company’s strategy follows a capital-intensive cycle: secure long-term client agreements, leverage those contracts to obtain financing, construct data center facilities, produce revenue streams, then pursue additional funding. The approach continues delivering results, though sustainability questions persist.
CoreWeave’s contracted revenue pipeline, measured as remaining performance obligations, exceeded $55 billion in the prior quarter. Jefferies analyst Brent Thill forecasts this metric will advance to $60–$65 billion for Q4, with significant momentum anticipated during 2026’s opening half.
Major clients include Microsoft, Meta Platforms, and OpenAI — an impressive roster that provides lenders with collateral confidence for continued financing.
Nvidia Expands Strategic Partnership
In a significant development last month, Nvidia revealed a $2 billion equity commitment to CoreWeave alongside an enhanced collaboration agreement. Nvidia maintains multiple relationship dimensions with CoreWeave: semiconductor supplier, service customer, existing investor — and now substantial equity stakeholder.
Citi analyst Tyler Radke highlighted that Nvidia will function as “a high-investment-grade counterparty” enabling CoreWeave to obtain land rights, power resources, and infrastructure assets under more favorable terms. Jefferies characterized the arrangement as a “force multiplier.”
Market observers view this transaction as mechanism for reducing CoreWeave’s capital costs, addressing a persistent financial challenge.
Debt Questions Remain
Recent developments haven’t been entirely favorable. CoreWeave reduced its full-year 2025 revenue forecast during the previous quarter following data center construction setbacks, lowering projections from $5.15–$5.25 billion to $5.05–$5.15 billion.
Last Friday brought additional pressure when reports emerged suggesting alternative asset manager Blue Owl encountered difficulty placing CoreWeave data center debt with institutional lenders — despite Nvidia’s involvement. Both organizations disputed the reporting.
Complicating matters is Magnetar, CoreWeave’s most significant early-stage backer. At the IPO, Magnetar controlled 96 million shares — approximately one-fifth of outstanding stock. Following lockup expiration in August, the fund systematically reduced its position. By December’s conclusion, holdings stood at 68 million shares, though this stake still comprised roughly half of Magnetar’s portfolio value.
Full-year 2025 revenue consensus sits at $5.11 billion. Market participants will scrutinize 2026 guidance for both sales projections and capital expenditure plans when CoreWeave delivers Thursday’s results.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
