Key Highlights
- Q1 revenue reached $2.08 billion, representing 112% year-over-year growth and surpassing the $1.97 billion analyst forecast
- Second-quarter revenue projection of $2.45B–$2.60B fell short of the $2.69 billion Street consensus
- Net loss expanded to $740 million compared to $315 million in the prior-year period
- Contracted revenue backlog climbed to nearly $100 billion, adding $33 billion quarter-over-quarter
- Shares declined more than 5% during Friday’s premarket session
CoreWeave delivered another impressive quarter of explosive revenue expansion, yet the market reaction was decidedly negative. Shares tumbled more than 5% in Friday’s premarket session following the company’s disappointing second-quarter revenue projection.
CoreWeave, Inc. Class A Common Stock, CRWV
First-quarter revenue totaled $2.08 billion, reflecting 112% growth compared to the year-ago quarter and topping the Street’s $1.97 billion projection. However, the revenue upside was quickly eclipsed by below-consensus profitability metrics and a second-quarter outlook that disappointed investors.
Management projected second-quarter revenue in the range of $2.45 billion to $2.60 billion. The Street had been anticipating $2.69 billion. This shortfall proved sufficient to trigger a selloff when the forecast was disclosed during Thursday afternoon’s earnings presentation.
The company’s net loss ballooned to $740 million during the quarter, a significant increase from the $315 million loss recorded in the comparable year-earlier period. Interest expenses alone totaled $536 million — equivalent to 26% of quarterly sales.
The per-share loss registered at $1.40. Though this represents a marginal improvement versus the $1.49 loss from a year prior, it fell well below the analyst consensus of $0.91.
Capital Investments Continue Accelerating
Full-year capital expenditure projections were increased by approximately $500 million at the midpoint, now spanning $31 billion to $35 billion. Executives attributed the increase to rising component costs. The company deployed nearly $7 billion in capital during Q1 alone, with another $7 billion to $9 billion earmarked for the current quarter.
CoreWeave concluded Q1 carrying $25 billion in outstanding debt alongside $10 billion in lease obligations. Additionally, the firm has binding commitments totaling $38.5 billion for future lease arrangements. Year-to-date in 2026, CoreWeave has secured more than $21 billion through a combination of equity offerings, credit facilities, and debt placements.
The company’s largest recently-secured loan features a floating rate near 6%, representing favorable terms. The blended average interest rate has decreased by 0.8 percentage points this year, following a three-point decline throughout 2025.
Contracted Revenue Pipeline Expands
A particularly noteworthy metric: the contracted revenue pipeline has swelled to approximately $100 billion, growing by $33 billion during the three-month period. Chief Executive Michael Intrator characterized it as the company’s most successful bookings quarter to date.
Microsoft continues to represent the company’s largest client, contributing approximately two-thirds of 2025 revenues. However, expanding agreements with Meta Platforms and OpenAI are gaining momentum, which should drive greater revenue diversification moving forward.
Jefferies analysts highlighted the anticipated second-half profitability acceleration as a critical factor to monitor — management projects just $81 million in adjusted operating profit during the first six months, compared to $919 million expected in the latter half. This represents a substantial ramp that leadership must execute successfully.
The firm also crossed the 1 gigawatt threshold for active power capacity and maintains a target exceeding 8 GW by decade’s end.
Full-year revenue and profitability guidance remained intact, with only capital expenditure projections modified. Analysts currently anticipate annual revenue will reach $12.5 billion for the current fiscal year.
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