CoreWeave Triples Revenue to $1.2B in Q2, Stock Tanks in After Hours Trade

Key Points

1. CoreWeave's revenue reached about $1.2 billion, tripling year over year, but it recorded a $290 million net loss due to interest costs and operational expenses.

2. The company faces resistance to its $9 billion all-stock takeover of CoreScientific, with shares dropping over 10% in after-hours trading.

3. CoreWeave's adjusted net loss widened to roughly $131 million despite $200 million in adjusted operating income, impacted by operating expenses and stock-based compensation.

4. The company's revenue backlog was approximately $30 billion, with adjusted operating margins at 16%, raising concerns about profitability in a capital-intensive business.

5. Analysts highlight risks such as thin operating margins, heavy fixed costs, and potential cash flow issues if AI training budgets slow or customer consolidation occurs.