CoreWeave (CRWV) has announced its third-quarter earnings for 2025, reporting a revenue of $1.36 billion, marking a 134% increase year-over-year. This figure surpasses analysts’ expectations of $1.29 billion. However, the company also reported a net loss of $110 million, an improvement from a loss of approximately $360 million in the same quarter last year.
Record Revenue Growth of 134%
- Revenue: $1.36 billion vs. $1.29 billion expected
- Year-over-year revenue growth: 134% from $583.9 million
- Net loss: $110 million, improved from $360 million
- Earnings per share: Loss of 22 cents
CoreWeave’s growth is largely attributed to the increasing demand for artificial intelligence infrastructure. The company primarily rents out NVIDIA graphics processing units and has secured significant contracts with major cloud providers, including Google and Microsoft.
Lowered Full-Year Revenue Projections
Despite the strong Q3 performance, CoreWeave’s guidance for full-year revenue is projected to be below analysts’ estimates. The company anticipates revenue for 2025 to range between $5.05 billion and $5.15 billion, while analysts had expected approximately $5.29 billion.
Factors contributing to the lower revenue forecast include delays in the development of third-party data centers. CoreWeave CEO Mike Intrator noted that while there is a backlog of $55.6 billion and 2.9 gigawatts in contracted power, the company faces supply constraints related to the availability of “powered-shell” data centers.
Major Contracts with Industry Leaders
During the quarter, CoreWeave secured notable expansions, including a $6.5 billion deal with OpenAI and a six-year contract with Meta valued at up to $14.2 billion. The company also received its sixth contract from an unnamed leading hyperscaler.
These contracts are indicative of the growing reliance on AI technologies and the corresponding need for robust infrastructure to support these applications. CoreWeave’s business model is closely tied to the AI sector’s expansion, positioning it as a critical player in the market.
Stock Decline Amid Revenue Concerns
Following the earnings report, CoreWeave’s stock experienced a decline of over 5% in after-hours trading. The market’s reaction reflects concerns regarding the company’s future revenue guidance and ongoing supply chain challenges.
CoreWeave shares have increased by 164% since the company’s IPOs in March, indicating strong investor interest despite recent fluctuations. The company’s ability to maintain growth amidst supply constraints will be closely monitored by market analysts.
Challenges from Supply Chain Issues
Intrator emphasized that the current supply constraints are not related to power availability but rather to the construction timelines of data centers. He noted that while delays at one data center are impacting operations, the overall backlog remains unaffected due to the company’s diverse portfolio of 32 data centers.
This situation highlights the complexities in scaling operations within the rapidly evolving AI infrastructure market. Organizations relying on CoreWeave’s services may need to consider potential delays in service delivery as the company navigates these challenges.
CoreWeave’s Growth and Market Strategy
CoreWeave’s significant revenue growth in Q3 underscores its role as a key provider of AI infrastructure. However, the company’s lowered revenue guidance for the full year presents challenges that may affect its market position and operational strategy. Continued investment in infrastructure and management of supply chain issues will be essential for sustaining growth
