CoreWeave had a busy Monday as it shared its third-quarter financial results. Many were curious about its ability to reach the $50 billion revenue target that Wall Street had set for the booming AI infrastructure sector.
In its announcement, CoreWeave reported its revenue backlog is now $55.6 billion, a huge jump from $30 billion last quarter. This increase comes from contracts with major companies like Meta and OpenAI. Both earnings and revenue exceeded what analysts had predicted.
However, the company’s journey hasn’t been without bumps. CoreWeave’s debt has risen, and it lowered its revenue forecast for the year. Following the earnings call, the stock dropped by 6% in after-hours trading. Investors are wary. Some even view CoreWeave as a warning sign for the AI industry.
The revised revenue guidance pointed to delays in building data centers. CEO Michael Intrator explained, “Even with high demand for our services, we’re facing challenges in our supply chain.” He added that a partner responsible for some data center construction is behind schedule.
Chief Financial Officer Nitin Agrawal expects the company to earn between $5.05 billion and $5.15 billion in full-year 2025. This is slightly lower than previous forecasts. However, adjustments in delivery schedules mean that CoreWeave will keep the value of its original contracts.
Looking at capital spending, Agrawal indicated it will range from $12 billion to $14 billion in 2025, a decrease from earlier estimates. Still, he expects a surge in spending for 2026, thanks to the company’s growing backlog.
CoreWeave’s reported revenue for the last quarter was $1.4 billion, which is nearly double the $584 million from the same time last year. However, a net loss of $110 million shows profits remain elusive, despite a slight improvement from last year.
Analysts have concerns about CoreWeave’s financial commitments due to its large debt. Currently, it has $9.7 billion in bills due within a year and $14 billion in total debt—an increase from earlier figures. Additionally, CoreWeave faces $34 billion in scheduled lease payments for contracts starting before 2028, with interest costs skyrocketing as well.
Conversely, supporters of CoreWeave remain hopeful. They believe the future revenue from existing contracts will outweigh current debts. The company recently secured significant deals, including a $14.2 billion agreement with Meta and another contract for a data center featuring 40,000 Nvidia GPUs.
As the landscape of AI continues to evolve, experts underscore a crucial point: staying financially healthy in a rapidly changing market is vital. Understanding how companies manage debt and infrastructure will be critical as they navigate this boom.
For those interested in the wider implications, you can dive deeper into the challenges facing AI companies in today’s market. Economic factors, changing demand, and technological advancements are all setting the stage for a new era in cloud services.
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data-center, revenue guidance, CoreWeave, Nitin Agrawal, Michael Intrator
