CoreWeave faced a pivotal moment on Monday as it unveiled its third-quarter financial results, crucially demonstrating whether its contracted future revenues could meet the substantial $50 billion benchmark set by Wall Street for the AI data-center and infrastructure sector. In a promising development, the company announced a significant increase in its revenue backlog, which includes remaining performance obligations and projected revenue estimates. The backlog surged to $55.6 billion, nearly doubling from $30 billion the previous quarter, buoyed by new contracts with major players like Meta, OpenAI, and the French AI startup, Poolside.
Despite this optimistic backdrop, CoreWeave reported an escalation in debt on its balance sheet and revised its full-year revenue guidance downward—results that caused the stock to drop by 6% in after-hours trading. Investor sentiment has become increasingly cautious, particularly amid fears that CoreWeave may serve as a bellwether for potential weaknesses in the AI industry and its related infrastructure expansion. Since mid-August, the stock has plummeted over 30%, indicating a growing skepticism within market circles.
The downward revision in revenue guidance was attributed to delays in construction at some of CoreWeave’s data centers. CEO Michael Intrator acknowledged the relentless demand for their services but also noted the unprecedented pressures on supply chains affecting industry-wide development timelines. He highlighted that delays were caused by a third-party developer, impacting the overall schedule but ensuring the original contract’s total value would be upheld.
CFO Nitin Agrawal provided a 2025 revenue outlook ranging from $5.05 billion to $5.15 billion, a slight decrease from previous guidance of $5.15 billion to $5.35 billion. Yet, he projected a substantial increase in capital expenditure for 2026, forecasting it would exceed double the amount expected for 2025, driven by the elevated demand for CoreWeave’s services.
The company reported revenues of $1.4 billion for the quarter, a substantial year-over-year increase from $584 million, exceeding analysts’ expectations. However, it continues to grapple with profitability issues, posting a net loss of $110 million, albeit an improvement from $359.8 million lost in the same quarter of the previous year. Adjusted net loss for the quarter was reported at $41 million compared to a break-even performance last year.
Notably, adjusted EBITDA rose to $838 million from $379 million, with operating income dropping to $51.9 million, down from $117.1 million the previous year. The operating margins contracted to 4% from 20%, yet adjusted operating income showed a healthy $217 million for the quarter.
Although Monday’s results were mixed, analysts remain wary of CoreWeave’s financial sustainability. Concerns have been raised about the company’s ambitious commitments to data center expansions, particularly when juxtaposed with its current revenues and cash flow. As it stands, CoreWeave faces $9.7 billion in bills due within the next year and carries a total debt load of $14 billion, increased from $7.6 billion and $11 billion respectively in the previous quarter. Additionally, the timeframe regarding $34 billion in scheduled lease payments spanning contracts set to commence until 2028 adds another layer of financial pressure. Interest expenses for the quarter reached $311 million, a steep rise from $104 million year-on-year.
Nonetheless, proponents of CoreWeave are optimistic about its future, asserting that revenue streams from new contracts will eventually surpass its debt obligations. The past few months have seen significant contract announcements, including a landmark $14.2 billion agreement with Meta for computing capacity and a deal with Poolside for a data center featuring 40,000 of Nvidia’s prized GPUs.
