CoreWeave Inc-A(US:CRWV)2025-11-13 21:19IPO and Financing - In March 2025, the company completed its IPO, issuing 36,590,000 shares at $40.00 per share, resulting in net proceeds of $1.4 billion[226]. - The company issued $2.0 billion in aggregate principal amount of senior notes due 2030 in May 2025, with a 9.25% interest rate[289][290]. - The company amended its Revolving Credit Facility on November 10, 2025, increasing the capacity to $2.5 billion and extending the maturity to November 2029[272]. - The company anticipates future investments may require significant debt and/or equity financing, which could lead to dilution for stockholders[267]. - The company’s ability to raise additional capital on favorable terms is uncertain, which could adversely affect its business objectives[267]. Revenue and Growth - Revenue for the three months ended September 30, 2025, was $1,364,676, a 134% increase from $583,941 in the same period of 2024; for the nine months, revenue was $3,559,096, up 205% from $1,167,996[244]. - Approximately 80% of the revenue increase for the three months ended September 30, 2025, was due to expansion within the existing customer base[244]. Costs and Expenses - Cost of revenue for the three months ended September 30, 2025, was $368,824, representing a 158% increase from $143,134 in 2024; for the nine months, it was $943,885, up 203% from $311,192[245]. - Technology and infrastructure expenses for the three months ended September 30, 2025, rose by $462 million, or 162%, driven mainly by a $349 million increase in depreciation and amortization[249]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $40 million, or 880%, primarily due to a $20 million rise in personnel costs[251]. - General and administrative expenses for the three months ended September 30, 2025, increased by $118 million, or 352%, largely due to a $97 million rise in personnel-related expenses[253]. - Interest expense, net for the three months ended September 30, 2025, increased by $206 million, or 198%, attributed to higher borrowing levels[257]. - Cost of revenue for the three months ended September 30, 2025, increased by $226 million, or 158%, compared to the same period in 2024, primarily due to higher data center operating costs[247]. - General and administrative expenses are expected to rise as the company incurs additional costs related to operating as a public entity[236]. Net Income and Loss - Operating income for the three months ended September 30, 2025, was $51,850, compared to $117,116 in the same period of 2024; for the nine months, operating income was $43,589, down from $211,684[241]. - The net loss for the three months ended September 30, 2025, was $110,124, compared to a net loss of $359,807 in the same period of 2024[241]. - The company generated significant losses from operations, reflected in an accumulated deficit of $2.2 billion as of September 30, 2025[264]. Cash Flow and Liquidity - Net cash provided by operating activities was $1.5 billion for the nine months ended September 30, 2025, a decrease from $2.6 billion for the same period in 2024[299]. - Net cash used in investing activities increased to $6.3 billion for the nine months ended September 30, 2025, compared to $5.2 billion for the same period in 2024, driven by higher capital investments in infrastructure[300]. - Net cash provided by financing activities rose to $5.8 billion for the nine months ended September 30, 2025, up from $4.1 billion in 2024, primarily due to debt issuance and IPO proceeds[301]. - As of September 30, 2025, the company had total liquidity of $6,741.8 million, an increase from $5,767.3 million as of December 31, 2024[268]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1.9 billion, along with $1.1 billion of restricted cash[306]. Risks and Challenges - A 100-basis point increase in interest rates would increase interest expense related to floating-rate facilities by approximately $23 million for the three months and $45 million for the nine months ended September 30, 2025[307]. - The company is exposed to foreign currency risks due to international transactions, particularly in British pounds, Euros, and Swedish krona, which may negatively affect future revenue[308]. - The company has foreign currency derivative contracts to mitigate some foreign currency exchange risks, although these do not eliminate the impact entirely[309]. - Inflation has not materially affected the company's financial condition, but rising personnel-related costs could pose challenges if not offset by price increases[310].