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CoreWeave (CRWV)
NASDAQ:CRWV
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CoreWeave
(NASDAQ:CRWV)
Select Model
Select Model
Rating:62Neutral
Price Target:
$145.00
▲(2.39% Upside)
CoreWeave, Inc. Class A demonstrates strong growth potential and market momentum, driven by impressive revenue growth and strategic positioning in AI cloud services. However, financial instability and valuation concerns due to high leverage and negative profitability weigh on the overall score.
Positive Factors
Revenue Growth
CoreWeave's substantial revenue growth highlights its strong market demand and successful expansion in AI cloud services, indicating a robust long-term growth trajectory.
Strategic Partnerships
The significant partnership with Meta underscores CoreWeave's competitive edge in cloud services, enhancing its market position and ensuring sustained revenue streams.
Contracted Backlog
A strong contracted backlog reflects high demand and provides revenue visibility, supporting CoreWeave's strategic growth plans and financial stability in the long term.
Negative Factors
High Leverage
High leverage and negative equity pose financial risks, potentially limiting CoreWeave's ability to invest in growth opportunities and affecting its long-term financial health.
Negative Free Cash Flow
Negative free cash flow indicates cash constraints, which may challenge CoreWeave's ability to fund operations and growth initiatives without additional financing.
Profitability Challenges
Ongoing profitability challenges, despite revenue growth, highlight operational inefficiencies that could hinder CoreWeave's ability to achieve sustainable financial success.
CoreWeave (CRWV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.97B
Dividend YieldN/A
Average Volume (3M)31.99M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees881
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.27
Shares Outstanding380,163,000
10 Day Avg. Volume31,844,951
30 Day Avg. Volume31,986,218
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue30.16
Enterprise Value/Gross Profit40.61
Enterprise Value/Ebitda58.85
Forecast
1Y Price Target
$152.92Price Target Upside7.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
CoreWeave Business Overview & Revenue Model
Company DescriptionCoreWeave, Inc. operates a cloud platform that provides scaling, support, and acceleration for GenAI. The company builds the infrastructure that supports compute workloads for enterprises. Its products include GPU compute, CPU compute, storage services, networking services, managed services, and virtual and bare metal servers. Additionally, its platform offers a fleet lifecycle controller, node lifecycle controller, tensorizer, and observability. The company's services also include VFX and rendering, AI model training, AI interference, and mission control. CoreWeave, Inc. was formerly known as Atlantic Crypto Corporation and changed its name to CoreWeave, Inc. in December 2019. CoreWeave, Inc. was incorporated in 2017 and is based in Livingston, New Jersey.
How the Company Makes MoneyCoreWeave makes money by providing cloud-based GPU computing services to businesses and developers. The company's primary revenue stream comes from renting out its GPU infrastructure on a pay-as-you-go basis or through subscription models, tailored to the client's computing needs. CoreWeave partners with leading tech companies and leverages advanced GPU technology to offer scalable and efficient compute solutions. The company's earnings are significantly influenced by the growing demand for high-performance computing across various sectors, including artificial intelligence, graphics rendering, and blockchain technology.
CoreWeave Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, strong contracted backlog, and successful capital market activities, reflecting a robust demand environment. However, it also noted an adjusted net loss and increased interest expenses due to infrastructure scaling.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Revenue grew 107% year over year to $1.2 billion in Q2, marking the first quarter with over $1 billion in revenue and $200 million in adjusted operating income.
Strong Contracted Backlog
The company ended Q2 with $30.1 billion in contracted backlog, up $4 billion from Q1 and doubling year to date. This includes a $4 billion expansion with OpenAI.
Increased Capacity and Power
Active power increased to nearly 470 megawatts, with plans to deliver over 900 megawatts by year-end. Total contracted power rose to 2.2 gigawatts.
Successful Capital Market Activities
CoreWeave raised $6.4 billion in capital markets through two high-yield offerings, lowering their cost of capital and securing over $25 billion since 2024.
Proposed Acquisition of Core Scientific
Expected to drive $500 million in fully ramped annual run rate cost savings by 2027 and eliminate over $10 billion in future lease liability overhead.
Negative Updates
Adjusted Net Loss
Adjusted net loss for Q2 was $131 million, impacted by increased interest expense due to scaling infrastructure, despite growth in adjusted operating income.
Interest Expense Increase
Interest expense for Q2 was $267 million, up from $67 million in 2024, due to increased debt to support infrastructure scaling.
Operating Expenses
Operating expenses in Q2 were $1.2 billion, including stock-based compensation of $145 million, driven by investments in data center and server infrastructure.
Company Guidance
During the second quarter of 2025, CoreWeave, Inc. reported impressive growth, with revenue increasing 107% year over year to $1.2 billion and achieving an adjusted operating income of $200 million. This quarter marked the first time the company surpassed both $1 billion in revenue and $200 million in adjusted operating income. The company ended the quarter with a contracted backlog of $30.1 billion, up $4 billion from the first quarter, indicating strong demand across various sectors including media, finance, and healthcare. The company also highlighted a significant increase in its active power capacity, closing at 470 megawatts, and plans to reach over 900 megawatts by the end of the year. Additionally, the company's capital expenditures hit $2.9 billion as it rapidly scales its infrastructure to meet the demand for AI cloud services. CoreWeave raised $6.4 billion in capital through various offerings, reducing its cost of capital and securing its position in the market. The guidance for the third quarter projects revenue between $1.26 billion and $1.3 billion, with full-year 2025 revenue expected to reach between $5.15 billion and $5.35 billion, highlighting the company's robust growth trajectory and strategic positioning in the AI cloud services sector.CoreWeave Financial Statement Overview
Summary
CoreWeave, Inc. Class A shows strong revenue growth but faces significant challenges with profitability and financial stability. High leverage and negative equity pose substantial financial risks, while robust operating cash flow is offset by negative free cash flow due to high capital expenditures.Income Statement
CoreWeave, Inc. Class A exhibits significant revenue growth year-over-year, indicating strong top-line expansion. However, the company faces challenges with profitability, as reflected by negative net income and poor net profit margins. Despite a positive gross profit margin, the negative EBIT and EBITDA margins highlight operational inefficiencies and high operating costs.45
Neutral
Balance Sheet
The balance sheet reveals a heavily leveraged position with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is alarming, reflecting high financial risk. Despite substantial assets, the equity deficit suggests potential solvency issues. The equity ratio is also negative, reinforcing the need for improved capital management.30
Negative
Cash Flow
Operating cash flow remains robust, showcasing the company's ability to generate cash from operations. However, substantial negative free cash flow due to high capital expenditures poses challenges. The company maintains a positive operating cash flow to net income ratio, but the negative free cash flow to net income ratio suggests an unsustainable cash flow situation.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 2.94B | 1.92B | 228.94M |
| Gross Profit | 2.18B | 1.42B | 160.16M |
| EBITDA | 1.51B | 480.04M | -426.43M |
| Net Income | -656.52M | -863.45M | -593.75M |
Balance Sheet | |||
| Total Assets | 26.24B | 17.83B | 4.98B |
| Cash, Cash Equivalents and Short-Term Investments | 1.71B | 1.36B | 219.51M |
| Total Debt | 7.14B | 10.62B | 2.00B |
| Total Liabilities | 22.42B | 18.25B | 5.57B |
| Stockholders Equity | 3.82B | -413.60M | -596.59M |
Cash Flow | |||
| Free Cash Flow | -7.36B | -5.95B | -1.11B |
| Operating Cash Flow | -3.35M | 2.75B | 1.83B |
| Investing Cash Flow | -7.34B | -8.66B | -3.15B |
| Financing Cash Flow | 7.47B | 7.46B | 1.79B |
CoreWeave Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $141.16B | 133.29 | 17.45% | ― | 14.87% | -57.43% | |
72 Outperform | $63.63B | 33.60 | 165.17% | ― | 14.46% | 48.06% | |
70 Neutral | $74.51B | ― | -11.04% | ― | 27.32% | -11.94% | |
67 Neutral | $49.55B | ― | -2.70% | ― | 23.31% | 31.04% | |
66 Neutral | $123.89B | 721.64 | -8.99% | ― | 23.46% | -270.07% | |
62 Neutral | $68.97B | ― | ― | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.