CoreWeave Q2 2025 Earnings: Revenue Soars Amid Supply Constraints and Strategic Expansion
CoreWeave Reports Robust Q2 2025 Financial Results
CoreWeave, the leading AI Hyperscaler, delivered a strong second quarter in 2025 with a remarkable 207% year-over-year revenue increase, reaching $1.21 billion. This growth was driven by unprecedented demand for AI cloud services and strategic customer expansions, including a $4 billion deal expansion with OpenAI and new partnerships with hyperscalers and various enterprises.
Financial Highlights
- Revenue: $1.21 billion, a 207% increase from Q2 2024
- Net loss: $291 million, improved from $323 million the previous year
- Adjusted operating income: $200 million (16% margin)
- Adjusted EBITDA: $753 million (62% margin)
- Capital expenditures: $2.9 billion, reflecting rapid scaling efforts
- Operating income margin shrank to 2% from 20% due to stock-based compensation costs
- Debt stands at $11.1 billion, with interest expenses higher than operating income, raising concerns over long-term profitability
Business Expansion and Technology Leadership
CoreWeave expanded its AI cloud platform capabilities through the acquisition of Weights & Biases, adding real-time model monitoring and inference services. The company announced a joint venture data center in Kenilworth, NJ, set for delivery in 2026, and increased total contracted power to 2.2 gigawatts, aiming for 900 megawatts of active power online by year-end. Their infrastructure supports both AI training and inference workloads, with a focus on performance, scalability, and flexible capacity products.
Market Reaction and Outlook
Despite beating revenue and guidance expectations, CoreWeave’s shares dropped due to concerns about earnings misses and high interest expenses. The company forecasted third-quarter revenue between $1.26 billion and $1.3 billion and raised full-year revenue guidance to $5.15-$5.35 billion. Management emphasized the supply constraints in AI infrastructure, facing challenges mainly due to powered shell availability and electric grid limitations.
CEO Mike Intrator’s Comments
“We are scaling rapidly to meet unprecedented demand for our purpose-built AI cloud platform which continues to set new benchmarks for performance and scalability. Our focus on owning infrastructure through vertical integration will drive operational efficiencies and cost savings,” stated CEO Mike Intrator.
Concerns and Risks
Analysts highlighted the risk from high debt levels and the company’s ability to cover interest expenses with operating income. There are also uncertainties regarding the proposed $9 billion acquisition of Core Scientific, which could face regulatory scrutiny. Additionally, supply constraints in power and hardware components pose challenges to scaling efforts.
Summary
CoreWeave’s Q2 2025 earnings reflect a company at the crossroads of rapid growth propelled by AI demand and the challenges of profitability and capital intensity. The company is aggressively expanding its footprint and technology stack while navigating a supply-constrained market and financial scrutiny.
Michael Intrator, Co-Founder and CEO of CoreWeave, speaks at the Nasdaq headquarters in New York on March 28, 2025. (Photo: Michael M. Santiago/Getty Images)
Sources: CNBC, CoreWeave Investor Relations, Investing.com, Investor’s Business Daily, Yahoo Finance
