TLDR
- Shares drop 10% after hours despite 100% YoY growth and record backlog gains
- CoreWeave Q2 revenue hits $1.21B; backlog climbs to $30.1B on strong demand
- Net loss widens to $290.5M as scaling costs weigh on rapid AI cloud expansion
- Vertical integration aims for $500M savings, 1.3GW capacity boost by 2027
- $6.4B financing secures liquidity for multi-billion-dollar OpenAI contract
CoreWeave, Inc. (CRWV) shares rose 6.42% in regular trading but fell 10.28% after hours to $133.46. The decline followed results that showed rapid expansion but continued net losses.
CoreWeave, Inc. reported record second quarter revenue of $1.21 billion and a contracted backlog of $30.1 billion. Revenue growth surged as demand accelerated across multiple industries, supported by major contracts including a multi-billion dollar expansion with OpenAI. The backlog rose by $4 billion sequentially, doubling year-to-date, showing broad adoption of CoreWeave’s AI cloud infrastructure. However, the company reported a net loss of $290.5 million despite the record revenue.
Revenue and Backlog Surge Signals Sustained Expansion
CoreWeave achieved over 100% year-over-year revenue growth in the quarter, driven by enterprise demand and multi-year contract expansions. The $30.1 billion backlog included diverse sectors such as healthcare, finance and industrials. This expansion indicated that demand is outpacing current supply capacity.
CoreWeave, $CRWV, Q2-25. Results:
📊 Adj. EPS: -$0.27 🟢
💰 Revenue: $1.21B 🟢
📈 Net Loss: $290.5M
🔎 Revenue tripled YoY to a record $1.21B, driven by robust AI infrastructure demand and major customer wins including OpenAI. pic.twitter.com/aa7kGK3iTp— EarningsTime (@Earnings_Time) August 12, 2025
The company’s AI cloud platform is positioned for high-performance workloads and advanced use cases. Customers range from global technology companies to startups in emerging markets. This wide reach supports a more balanced revenue pipeline.
Management highlighted that capacity additions and contract wins are positioning the firm for multi-year growth. The increase in backlog reflects repeat business and new clients. Both factors strengthen long-term revenue visibility.
Vertical Integration Strengthens Cost Structure
CoreWeave advanced its vertical integration strategy through the proposed acquisition of Core Scientific and the completed purchase of Weights and Biases. These moves are expected to reduce future lease liabilities by $10 billion. They also target $500 million in annual run rate savings by 2027.
The Pennsylvania data center investment expands total power capacity to more than 1.3 gigawatts after integration. This increase in owned infrastructure allows greater operational control and faster deployment. It also reduces reliance on third-party facilities.
By owning more of the value chain, the company aims to improve scalability and profitability. This approach aligns with the ongoing demand surge. It positions CoreWeave to meet future infrastructure needs efficiently.
Capital Market Access Supports Expansion Plans
During the quarter, CoreWeave secured $6.4 billion through high-yield offerings and a delayed draw term loan. This financing included a $2.6 billion facility for its $11.9 billion OpenAI contract. The cost of capital improved by 900 basis points compared with earlier facilities.
The company has raised over $25 billion in debt and equity since early 2024. It now has no major maturities until 2028, aside from vendor obligations. This strengthens liquidity while supporting rapid build-out plans.
Management stated that the financing strategy reduces funding costs and expands market access. These factors enable sustained infrastructure deployment. They also reinforce the company’s ability to handle large-scale contracts.
