CoreWeave’s Revenue Triples to $1.2B in Q2 Amid Margin Compression and Investor Concerns

CoreWeave reported a staggering revenue surge to $1.2 billion in Q2, marking a threefold increase year-over-year. Yet, the AI infrastructure provider's stock plummeted 10% in after-hours trading as investors balked at shrinking operating margins and widening losses.

Operating margins collapsed to just 2%, down from 20% a year prior, while net losses reached $290 million. CEO Michael Intrator attributed the spending surge to "unprecedented demand for AI" infrastructure, but analysts warn hardware depreciation may be masking deeper financial strain.

The earnings disappointment comes as CoreWeave faces pushback on its proposed $9 billion acquisition of Core Scientific, with major shareholders calling the all-stock deal "inadequate." Adjusted net losses widened to $131 million despite $200 million in operating income, revealing the costly nature of its expansion.