CoreWeave triples Q2 revenue to $1.2B but reports $290M net loss

CoreWeave, a leading provider of AI computing infrastructure, reported a dramatic surge in revenue for Q2 2025, tripling to $1.2 billion year-over-year [1]. The company attributed the increase to strong demand for AI computing power and the expansion of its infrastructure capabilities. Despite the impressive revenue growth, CoreWeave recorded a net loss of $290 million and adjusted net loss of $131 million, as rising interest costs and infrastructure expenditures weighed on its bottom line [1]. Operating margins shrank significantly, compressing from 20% a year earlier to just 2%, signaling growing pressure on profitability.

The company also disclosed a revenue backlog of approximately $30 billion, reflecting multi-year contracts for future compute capacity. While the backlog suggests long-term potential, it also highlights the capital-intensive nature of CoreWeave’s operations, which require sustained investment in hardware and infrastructure to meet delivery timelines [1]. Shares of CoreWeave fell over 10% in after-hours trading following the earnings report, as investors reacted to the widening losses and declining margins [1].

Industry observers raised concerns about the sustainability of CoreWeave’s business model, particularly its depreciation assumptions and the competitive landscape. Jeffrey Emanuel, CEO of blockchain infrastructure firm Pastel Network, noted that the company’s use of a six-year useful life for its H-100 GPUs might mask ongoing losses, which would be more apparent with more realistic depreciation schedules [1]. Additionally, the emergence of newer, more advanced hardware from competitors raises questions about CoreWeave’s ability to maintain its technological edge, especially as hyperscalers and cloud providers catch up in GPU access [1].

The company’s performance also comes amid ongoing resistance to its $9 billion all-stock acquisition of Core Scientific, with Two Seas Capital, Core Scientific’s largest shareholder, voicing opposition to the deal as “inadequate” [1]. This uncertainty, combined with thin margins and high fixed costs, has left CoreWeave more vulnerable to potential slowdowns in AI demand or shifts in customer spending behavior [1].

Analysts like Ram Kumar, contributor at OpenLedger, warned that without stronger margin expansion and higher utilization rates, CoreWeave risks slipping from its position as a high-growth disruptor to a low-return infrastructure player in a highly competitive and price-sensitive market [1]. The company must demonstrate a clear path to profitability to retain investor confidence, particularly in an environment where long-term contracts and software-driven customer stickiness will be key to maintaining resilience [1].

Source:

[1] CoreWeave Triples Revenue to $1.2B in Q2, Stock Tanks in After Hours Trade (https://decrypt.co/334894/coreweave-triples-revenue-q2-stock-tanks-after-hours-trade)