CoreWeave's Q3 Loss Narrows Y/Y, Revenues Up, Stock Down

Core Insights - CoreWeave, Inc. (CRWV) reported a third-quarter 2025 loss per share of 22 cents, an improvement from a loss of $1.82 in the same quarter last year [1] - Adjusted net loss for the quarter was $41 million, compared to adjusted net income of $67 million a year ago [1] - Revenues reached a record $1.3647 billion, exceeding the Zacks Consensus Estimate by 6.8% and representing a 134% year-over-year increase, driven by demand for the AI-cloud platform [2][10] Revenue and Contracts - CoreWeave secured major customer wins, including a multi-year deal with Meta worth approximately $14.2 billion and an expanded partnership with OpenAI totaling $6.5 billion, bringing total commitments to about $22.4 billion [4][10] - Revenue backlog increased to $55.6 billion, up 271% year over year, nearly doubling quarter over quarter, driven by contracts with OpenAI, Meta, and hyperscalers [6][10] Infrastructure and Technology - The company added around 120 MW of active power, reaching approximately 590 MW in total, and expanded contracted power to 2.9 GW [5] - Key technology milestones included the deployment of NVIDIA GB300 NVL72 systems and the acquisition of OpenPipe to enhance AI training capabilities [5] Financial Performance - Total operating expenses were $1.3 billion, compared to $466.8 million in the prior year, with operating income at $51.9 million, down from $117.1 million [11] - Adjusted operating income was $217.2 million, up 74% year over year, while adjusted operating margin decreased to 16% from 21% [11] - As of September 30, 2025, the company had $3 billion in cash and cash equivalents, with cash provided from operating activities of $1.7 billion [12] Outlook and Market Reaction - The company lowered its 2025 revenue outlook to between $5.05 billion and $5.15 billion, down from a previous estimate of $5.15 billion to $5.35 billion [7] - Following the results, shares declined approximately 7% in after-market trading, although CRWV's shares have gained 164% over the past year, significantly outperforming the 11.9% rise of its Internet Software industry [8]