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CoreWeave’s AI Infrastructure Growth Marred by Debt and Profitability Concerns
CoreWeave’s AI Infrastructure Growth Marred by Debt and Profitability Concerns
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BTCCSquare news:
CoreWeave's explosive revenue growth in AI infrastructure leasing masks deepening financial vulnerabilities. The company posted $1.21 billion in Q2 2025 revenue—a threefold increase year-over-year—yet operating income dwindled to a precarious $19.2 million. High-interest debt servicing now threatens viability, with $267 million in quarterly interest payments dragging net losses to $290.5 million.
Leverage remains the critical fault line. CoreWeave's $11 billion debt load carries punishing 9.25% rates on recent unsecured notes, putting annual interest obligations on track to exceed $1 billion. While adjusted EBITDA of $753 million suggests underlying operational strength, cash FLOW remains negative as capital expenditures outpace earnings.
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