Key Takeaways CRWVs Q2 revenues surged 207% to $1.2B, driven by booming AI compute demand.Backlog hit $30.1B after an expanded deal with OpenAI and new deals with other enterprise clients.Heavy capex, $25B debt load, and high interest expenses drove a $291M quarterly net loss.CoreWeave, Inc. (CRWV) stock has declined 33.1% since reporting second-quarter 2025 earnings on Aug. 12. The company reported explosive revenue growth and impressive backlog numbers amid the AI infrastructure boom.Image Source: Zacks I ...

Financial Data and Key Metrics Changes - The company reported revenue of $105.1 million, representing a 625% year-over-year increase and a 106% quarter-over-quarter increase, driven by strong performance in the core business [11] - The annualized run rate revenue guidance was raised from $700 million to a new range of $900 million to $1.1 billion, reflecting strong demand and capacity expansion [4][13] - The company achieved positive adjusted EBITDA in its core AI infrastructure business ahead of expectations [3][21] Business Line Data and Key Metrics Changes - AI cloud infrastructure revenue increased more than nine times year-over-year, driven by high customer demand for corporate GPUs and near-peak utilization of the platform [11] - The company expects to have 220 megawatts of connected power by the end of the year, with 100 megawatts of active power [13][14] Market Data and Key Metrics Changes - The company is expanding its customer base significantly, adding large global technology customers such as Cloudflare, Process, and Shopify, while also maintaining a strong position with AI tech startups [6] - The demand for AI compute is expected to grow stronger, with the company ramping up capacity to support this growth [8] Company Strategy and Development Direction - The company is aggressively increasing data center capacity and expects to secure over one gigawatt of power by 2026 to capture industry growth [5] - The focus is on becoming a leader in AI cloud infrastructure, with significant investments in capacity to meet growing demand [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of the business and the exceptionally high demand for AI compute, indicating a bright future for the company [12][15] - The company is well-positioned to capitalize on the growing AI market, with a strong balance sheet and access to additional capital [7][49] Other Important Information - The company has raised over $4 billion in capital so far and has access to potentially billions more through non-core businesses and equity stakes [7] - The company is maintaining its CapEx guidance of around $2 billion for 2025 [15] Q&A Session Summary Question: What does the overall demand environment look like as we move into the second half of the year? - The demand environment in Q2 was very strong, with peak utilization achieved by the end of the quarter, and larger clusters attracting new large customers [18][19] Question: How should we think about adjusted EBITDA for the core business and the whole group going forward? - The core business reached adjusted EBITDA profitability this quarter, and the group anticipates turning adjusted EBITDA positive by the end of the year, but it will remain negative for the full year [21] Question: Can you provide an update on ARR this quarter? - ARR grew from $249 million in March to $430 million in June, with strong momentum continuing into July [22] Question: How should we think about revenue for next year with the one gigawatt of contracted power? - It is too early to provide 2026 guidance, but the midterm outlook remains strong, with several billion dollars of revenue expected in the coming years [27] Question: How are tariffs impacting your business and margins? - It is early to determine the definitive impact of tariffs, but the market is expected to balance out any short-term fluctuations [30] Question: What is the return on CapEx? - The company expects to break even on the hopper generation in two to three years, with potential to shorten the return on invested capital as higher margin software and services revenue scales [34] Question: Can you walk us through the timeline for the infrastructure build-out for this year? - The company is ramping up capacity with significant projects in New Jersey and Finland, expecting to have 220 megawatts of connected power by the end of the year [36][37] Question: What partnerships do you think are most meaningful? - The company has made strong progress with partnerships, including integrations with Mistral, Base 10, and Skypilot, which enhance the ease of use of its AI cloud [72] Question: How is NVIDIA Leptin impacting your business? - The partnership with NVIDIA has generated a significant pipeline of customers, enhancing the company's position in the AI ecosystem [91] Question: Do you expect to benefit from Europe's ramping up of AI investments? - Yes, the company is well-connected in Europe and expects to be a major AI infrastructure builder in the region [93]

Financial Data and Key Metrics Changes - The company reported revenue of $105.1 million, representing a 625% year-over-year increase and a 106% quarter-over-quarter increase, driven by strong performance in the core business [11] - The annualized run rate revenue guidance was raised from $700 million to a new range of $900 million to $1.1 billion, reflecting strong demand and capacity expansion [4][13] - The company achieved positive adjusted EBITDA in its core AI infrastructure business ahead of expectations [3][20] Business Line Data and Key Metrics Changes - AI cloud infrastructure revenue increased more than nine times year-over-year, driven by strong customer demand for corporate GPUs and near-peak utilization of the platform [11] - The company expects to have 220 megawatts of connected power by the end of the year, with 100 megawatts of active power [13] Market Data and Key Metrics Changes - The company is expanding its customer base significantly, adding large global technology customers such as Cloudflare, Process, and Shopify, while also maintaining a strong position with AI tech startups [6] - The demand for AI compute is expected to remain strong, with the company planning to secure over one gigawatt of power by 2026 to capture industry growth [5][8] Company Strategy and Development Direction - The company is aggressively ramping up data center capacity and enhancing its software cloud platform to support expanding capacity and meet demand [5][6] - The focus is on becoming a leader in AI cloud infrastructure, with significant investments planned to capture growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI compute and the company's ability to scale operations effectively [8][12] - The company anticipates turning adjusted EBITDA positive at the group level by the end of the year, with expectations for continued growth in 2026 and beyond [20][12] Other Important Information - The company has raised over $4 billion in capital and has access to potentially billions more through non-core businesses and equity stakes [7] - The company is maintaining its capital expenditure guidance of around $2 billion for 2025 [15] Q&A Session Summary Question: What does the overall demand environment look like as we move into the second half of the year? - The demand environment in Q2 was very strong, with peak utilization achieved by the end of the quarter, indicating growing opportunities in the market [17][19] Question: How should we think about adjusted EBITDA for the core business and the whole group going forward? - The core business is expected to remain positive throughout the year, while group adjusted EBITDA is anticipated to turn positive by the end of the year but will remain negative for the full year [20] Question: Can you provide an update on ARR for the year? - ARR grew from $249 million in March to $430 million in June, with strong momentum continuing into July [21] Question: How should we think about revenue for next year with the one gigawatt of contracted power? - It is too early to provide 2026 guidance, but the company reaffirms its midterm outlook for several billion dollars in revenue [26] Question: How do tariffs impact your business and margins? - The impact of tariffs is still being assessed, but the company is confident that the market will balance out any short-term fluctuations [28] Question: What is the expected return on CapEx? - The company expects to break even on the hopper generation in roughly two to three years, with potential for a shorter return on invested capital as software and services revenue scales [30][32] Question: What is the timeline for the infrastructure build-out for this year? - The company is ramping up capacity with significant projects in New Jersey and Finland, expecting to have 220 megawatts of connected power by the end of the year [34][35] Question: How do you plan to finance the capacity expansion for this year and next year? - The company has significant cash on hand and will approach additional capital raising opportunistically based on market conditions [45] Question: What partnerships do you think are most meaningful? - The company has made strong progress with partnerships, including integrations with Mistral and Base 10, which extend the ease of use of its AI cloud [66] Question: How is NVIDIA Leptin impacting your business? - The partnership with NVIDIA has generated a significant pipeline of customers, enhancing the company's position in the AI ecosystem [82] Question: Do you expect to benefit from Europe's ramp-up in AI investments? - The company is well-connected in Europe and expects to be a major AI infrastructure builder in the region [84]