CoreWeave Inc. reported fourth‑quarter 2025 revenue of $1.572 billion, a 1.3% beat over the $1.55 billion consensus estimate, while diluted earnings per share fell to –$0.89 versus the –$0.21 expected by analysts. The company posted a net loss of $452 million and an adjusted net loss of $284 million, with adjusted EBITDA of $898 million, translating to a 57% margin—down from 65% in the same quarter a year earlier. Backlog grew to $66.8 billion, up from $55.6 billion at the end of Q3, giving CoreWeave a multi‑year view of demand that far exceeds its 2026‑27 revenue guidance.
Margin compression in Q4 2025 was driven by accelerated infrastructure investments. CoreWeave added roughly 260 MW of active power capacity, bringing total active capacity to over 850 MW, and its contracted power capacity reached 3.1 GW. CFO Nitin Agrawal explained that “Adjusted operating income was lower than expected as a result of deploying infrastructure ahead of our expectations,” highlighting that the company is front‑loading capital expenditures to capture future revenue, which temporarily erodes EBITDA margins.
For the first quarter of 2026, CoreWeave guided revenue of $1.9 billion to $2.0 billion—below the $2.29 billion analysts had projected—while full‑year 2026 revenue guidance remains in the $12 billion to $13 billion range. The company also reiterated its 2026 capital‑expenditure target of $30 billion to $35 billion, a sharp increase from the $14.9 billion spent in 2025, and reaffirmed its goal of ending 2026 with over 1.7 GW of active power. These guidance figures signal a cautious short‑term outlook amid heavy investment, but a confident long‑term trajectory supported by a robust backlog.
Investors reacted to the earnings miss and the aggressive capex plan, focusing on the widened net loss and the significant EPS shortfall. The EPS miss of –$0.89 versus –$0.21 was the primary driver of market concern, compounded by the company’s commitment to double its 2025 capex and the expectation that margin improvement will take time to materialize.
CoreWeave’s backlog of $66.8 billion underscores strong demand for AI‑centric cloud infrastructure, but the company’s debt load of $21 billion and the need to deploy capacity ahead of revenue recognition create short‑term profitability pressure. Management expects margins to recover sequentially, targeting low double‑digit levels by Q4 2026 and a long‑term margin of 25% to 30% as deployed capacity matures and higher‑margin services expand. The company’s strategic focus on AI workloads, partnerships with NVIDIA, and a growing customer base position it well for continued growth, even as it navigates the trade‑off between investment and profitability.
"We generated more than $5.1 billion of revenue, up 168% year‑over‑year, grew our contracted revenue backlog to $66.8 billion, an increase of $11.2 billion sequentially and more than $50 billion year‑over‑year," said CEO Michael Intrator. "Our revenue backlog grew to $66.8 billion, more than four times where we began the year, providing exceptional visibility as we scale into 2026 and beyond," added CFO Nitin Agrawal.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.