CoreWeave Delivers Blistering Growth in First Post-IPO Report, But CapEx Surge Raises Eyebrows

In its highly anticipated first earnings report since going public in March 2025, CoreWeave (CRWV) delivered staggering top-line growth and affirmed its rising stature as a central player in the generative AI infrastructure space. The company reported first-quarter revenue of $981.6 million, up an eye-popping 420% from the year-ago period and comfortably above consensus estimates in the $857–$869 million range. The report served as both a validation of the company’s business model and a window into the breakneck pace of AI data center expansion—but also revealed rising costs and a capex commitment that rattled some investors.

Results vs. Expectations: Revenue Blowout, Profit Under Pressure

CoreWeave’s $982 million in Q1 revenue beat Street expectations by more than 14%, driven by robust demand for its AI cloud services, particularly among hyperscale customers. Adjusted EBITDA landed at $606 million—slightly below the $617 million consensus—while the company posted a net loss of $314.6 million, or a loss of $1.49 per share, missing expectations for a loss between $0.12 and $0.21. The wider loss stemmed largely from surging operating costs, including $177 million in stock-based compensation.

Despite that, analysts were quick to highlight the revenue momentum. Mizuho raised its price target to $70 from $46, noting that CoreWeave's growth profile and backlog position it favorably relative to its AI infrastructure peers, even at a valuation premium of 25x CY26 EV/EBIT.

Backlog and CapEx: High Confidence, Higher Spending

While the net loss raised some concerns, the report’s most eye-catching detail was CoreWeave’s 2025 capex guidance—raised to $20 billion to $23 billion, up from previous estimates of $17 billion to $20 billion. Management emphasized this increase is directly tied to signed, long-term “take-or-pay” contracts, including a recently announced $4 billion extension with OpenAI and a major deal with Google. The company’s revenue backlog now stands at $29 billion, up from $26 billion at the end of Q1, indicating continued visibility and robust demand for its Nvidia-powered AI cloud platform.

This expansion, however, will come at a cost: free cash flow for 2025 is now projected to be negative $19.1 billion, versus a previous estimate of negative $15.5 billion. Management reassured investors that financing is secured, including a $1.5 billion upsized revolving credit facility backed by GPU assets.

Margins Compress as Buildout Intensifies

Gross margin for the quarter expanded 440bps year-over-year, but at 16.6%, it still missed internal targets by about 110 basis points. Operating margins also came in lighter than hoped. The margin pressure stems from rapid scale-up: ongoing investments in compute capacity, headcount, and product development weighed on profitability and are likely to persist through 2025. Analysts noted that while the EBITDA miss was modest, investors will be closely monitoring whether the company can manage cost discipline without stalling growth.

A Bellwether for AI Infrastructure—and Nvidia

The most important takeaway from CoreWeave’s print may be what it implies about broader AI infrastructure demand. Its aggressive capex ramp and multi-billion dollar commitments to Nvidia’s next-gen Blackwell chips (GB200/GB300) suggest that the AI training and inference boom is still in early innings. The company’s willingness to spend big—and ability to secure GPU-based financing—also bodes well for equipment makers, notably Nvidia, Broadcom, and Marvell.

Barclays called CoreWeave a “poster child for GenAI infrastructure scale,” while noting that many investors still need to acclimate to its unique model—one where RPO doesn’t fully reflect contractual demand, and operating losses are part of the long-term scaling strategy.

Crypto Ties: Rising Tide for AI Infrastructure

Though not directly tied to cryptocurrency mining, CoreWeave’s roots in the GPU space and blockchain compute have made it a proxy for sentiment in both AI and digital asset ecosystems. With bitcoin rebounding and AI names catching a fresh bid from OpenAI partnership headlines, CoreWeave finds itself at the confluence of two of the most narrative-rich trades in tech. This week’s headlines about a potential $4 billion expansion with OpenAI reinforced that positioning and triggered a swift rebound in the stock after early morning declines.

Market Reaction: Volatility Post-Print

Shares of CRWV initially dropped 6–7% in after-hours trading following the earnings release due to margin compression and the sticker shock of the $23 billion capex figure. However, the stock quickly reversed and moved into positive territory during Thursday’s session, up over 7% by midday, as investors digested the full scope of the revenue backlog and OpenAI deal. The stock has more than doubled since its $40 IPO, though it remains volatile given the limited float and high borrow cost.

Conclusion: Still in “Land Grab” Mode

CoreWeave’s first quarter as a public company made clear that it isn’t playing for incremental growth—it’s going after category dominance. The company is unapologetically spending now to secure long-term contracts and cement its status as a premier AI cloud infrastructure provider. Investors are still trying to square that ambition with traditional profitability metrics, but as AI adoption accelerates, CoreWeave may have timed its IPO perfectly to ride the next wave of secular growth.