CoreWeave Inc (NASDAQ:CRWV) Reports Q2 2025 Revenue Beat but Mixed Profitability Metrics

CoreWeave Inc (NASDAQ:CRWV) reported its second-quarter 2025 financial results, delivering revenue that exceeded analyst expectations but showing mixed performance in profitability metrics. The AI infrastructure provider posted revenue of $1.21 billion, a 207% year-over-year increase from $395.4 million in Q2 2024. This result came in 12% above the consensus estimate of $1.10 billion, though the beat was narrower than Q1's 15% revenue surprise.

Key Financial Highlights vs. Estimates

• Revenue: $1.21B actual vs. $1.10B estimated (12% beat)
• EPS: -$0.27 actual vs. -$0.21 estimated (wider loss than expected)
• Adjusted EBITDA: $753.2M (62% margin) vs. $249.8M in Q2 2024
• Operating Income: $19.2M (2% margin), down from $77.7M (20% margin) YoY

The company's net loss improved to $290.5 million (-$0.60 per share) from $323.0 million (-$1.62 per share) in the prior-year quarter. However, the adjusted net loss of $130.8 million (-11% margin) was deeper than analysts anticipated, driven by significant interest expenses of $267 million related to the company's aggressive expansion financing.

Market Reaction and Context
Shares declined approximately 5.8% in after-hours trading following the earnings release, reflecting investor concerns about:

1. The smaller revenue beat compared to Q1
2. Higher-than-expected net losses despite strong top-line growth
3. Operating margin compression (2% vs. 20% YoY) as the company scales infrastructure

Operational Highlights from Press Release

• Revenue backlog grew to $30.1 billion
• Expanded partnership with OpenAI through a $4 billion deal (adding to existing $11.9B commitment)
• Added 600MW of contracted power capacity (now 2.2GW total)
• Completed acquisition of Weights & Biases and launched new AI developer tools
• Began development of 250MW greenfield data center campus in New Jersey

Forward-Looking Considerations
While CoreWeave didn't provide formal guidance, analysts currently estimate:

• Q3 2025 revenue: $1.28 billion
• Full-year 2025 sales: $5.15 billion

The company's ability to maintain its technology leadership in AI infrastructure (including being first to market with NVIDIA's Blackwell GB200 systems) suggests continued demand, though the market appears focused on profitability improvements as interest expenses weigh on results.

For detailed earnings estimates and historical performance, view CoreWeave's earnings estimates page.

Disclaimer: This analysis is based on available data and should not be considered investment advice. Investors should conduct their own research before making any financial decisions.