TLDR
- CoreWeave tops revenue, but losses deepen and shares slide after hours.
- 110% growth isn’t enough as margins slip and profitability misses hit the stock.
- Debt climbs past $21B as CoreWeave scales power and absorbs rising costs.
- Backlog jumps to $66.8B, yet investors punish weak earnings and expenses.
- AI cloud expands to 850MW, but higher financing costs weigh on results.
CoreWeave (CRWV) shares fell sharply after hours as the company reported strong revenue growth but weaker profitability. The stock closed at $97.63 and then dropped to $90.69 after the release. Market reaction turned negative even though the company posted better revenue than expected.
CoreWeave, Inc. Class A Common Stock, CRWV
CoreWeave Reports Strong Growth but Stock Declines
CoreWeave reported fourth quarter revenue of $1.57 billion and exceeded consensus expectations. The company recorded 110% year-over-year growth and expanded its AI cloud footprint further. The stock still moved lower as earnings metrics missed projections.
The company posted a quarterly loss per share of 89 cents and widened its annual loss. It also reported higher operating expenses that offset revenue gains. The company confirmed a net loss of $452 million for the quarter.
CoreWeave ended the year with $21.37 billion in debt and higher interest expenses. The company faced a notable rise in financing costs as it scaled infrastructure. Yet management signaled continued expansion as workloads increased across multiple sectors.
Power Capacity Expansion and Technology Milestones Support Future Scale
CoreWeave expanded its active power capacity to more than 850 megawatts during the quarter. It also increased contracted power commitments to 3.1 gigawatts to prepare for rising demand. This expansion demonstrated the company’s push to secure long-term supply.
The company achieved new technology milestones across AI infrastructure and secured key partnerships. It earned top recognition from industry performance rankings and supported advanced training workloads. It expanded its platform with new storage and reinforcement learning services.
CoreWeave continued to strengthen its cloud platform with new tools and acquisitions. It integrated solutions that support developers and enterprises across complex AI workflows. It also launched features that aimed to reduce costs and simplify large-scale migrations.
Financial Position Strengthens but Margins Remain Under Pressure
CoreWeave increased its credit facility to $2.5 billion and raised $2.6 billion in notes. These moves supported expansion plans and improved financial flexibility. Margins continued to compress despite strong revenue performance.
Adjusted EBITDA reached $898 million but fell short of consensus expectations. The adjusted EBITDA margin slipped as the company absorbed higher operating costs. Adjusted net loss increased as spending continued.
The company also built a revenue backlog of $66.8 billion, signaling strong forward contracts. This backlog offered clear visibility into future periods as demand strengthened. The stock declined because profitability trailed revenue momentum.
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