Key Takeaways:
- Revenue of $2.58 billion beat consensus by $20 million
- Net loss narrowed to $626 million, better than the $757 million expected
- Contracted backlog reached $104 billion with 1.5 GW of active power
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CoreWeave revenue jumps 112% to $2.58B as backlog hits $104B
CoreWeave reported Q2 revenue of $2.58 billion, up 112% from a year earlier and above the $2.56 billion consensus, as the AI cloud provider's contracted backlog swelled to $104 billion.
The company said in a statement that demand for AI compute capacity continues to outpace supply, with 1.5 gigawatts of contracted power now active. CoreWeave's net loss widened to $626 million from $290 million a year earlier, though the loss came in narrower than the $757.1 million analysts expected.
Revenue for the quarter ended June 30 landed at the top of the company's own guidance range of $2.45 billion to $2.60 billion. Adjusted operating income came in within the guided $30 million to $90 million band, according to the statement. The company ended the quarter with $35 billion in debt to finance Nvidia graphics processing units and other equipment.
Shares rose more than 5% in after-hours trading Tuesday. The stock has gained 26% year to date, outpacing the S&P 500's 13% advance.
During the quarter, Meta committed an additional $21 billion to CoreWeave, while Anthropic signed a multi-year agreement and quantitative trading firm Jane Street pledged $6 billion. The company also expanded into Indonesia with three facilities totaling 360 megawatts and partnered with Leidos to serve US defense and intelligence workloads.
The $104 billion backlog, up from $99.4 billion at the end of Q1, represents contracted revenue not yet recognized. Roughly 36% of remaining performance obligations are expected to convert within 24 months, implying an annual revenue pool of about $17.8 billion against a fiscal 2026 midpoint of $12.5 billion.
CoreWeave's path to profitability hinges on converting that backlog into active power faster than depreciation and interest costs accumulate. Interest expense alone reached $536 million in Q1, more than eleven times adjusted operating income. Investors will watch the earnings call for updates on the year-end target of more than 1.7 gigawatts of active power and whether Q3 marks the expected margin inflection.
This article is for informational purposes only and does not constitute investment advice.
