CoreWeave Posts Strong Revenue Growth Amid Persistent Losses and Capacity Constraints

CoreWeave's quarterly revenue surged past Wall Street expectations, reaching $1.21 billion—a threefold increase from the $395.4 million reported in the same period last year. Yet the AI infrastructure provider's stock fell 9% after hours as investors weighed widening losses against this explosive growth.

The company's net loss narrowed slightly to $290.5 million, while operating margins collapsed to 2% from 20% year-over-year. $145 million in stock-based compensation and mounting debt—now at $11.1 billion—continue to pressure profitability. "Demand for our Nvidia GPU rentals still outpaces supply," CFO Nitin Agrawal told analysts, highlighting persistent capacity constraints.

CoreWeave's expansion with OpenAI underscores the voracious appetite for AI compute resources, even as it battles cloud giants like AWS for market share. The earnings miss comes just months after its March IPO, signaling public market investors may demand clearer paths to profitability from AI infrastructure plays.