CoreWeave Inc-A(CRWV) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - CoreWeave generated over $5.1 billion in revenue for 2025, representing a 168% year-over-year increase [5] - Q4 revenue was $1.6 billion, up 110% year-over-year [22] - Adjusted EBITDA for Q4 was $898 million, nearly doubling from $486 million in Q4 of 2024, with an adjusted EBITDA margin of 57% [25] - The company reported a net loss of $452 million in Q4 compared to a net loss of $51 million in Q4 of 2024 [25] - Capital expenditures (CapEx) in Q4 totaled $8.2 billion, with full-year CapEx at $14.9 billion, higher than anticipated [26] Business Line Data and Key Metrics Changes - CoreWeave's contracted revenue backlog grew to $66.8 billion, an increase of over 4x year-over-year [23] - The average weighted contract length increased from approximately four years to five years, indicating longer commitments from customers [23] - Approximately 80% of customers paying at least $1 million per year have adopted one or more of CoreWeave's storage products [12] Market Data and Key Metrics Changes - The demand environment remains strong, with significant growth in customer commitments across hyperscalers, AI natives, and enterprise customers [8] - The number of customers committed to spending at least $1 million on CoreWeave Cloud grew by nearly 150% in 2025 [9] - Average pricing for H100 GPUs in Q4 was within 10% of the start of the year, while A100 pricing increased in 2025 [10] Company Strategy and Development Direction - CoreWeave is focused on building and operating large purpose-built AI clusters, positioning itself at the forefront of the AI infrastructure build-out [6] - The company plans to add over 5 GW of additional data center capacity by 2030 to meet insatiable demand [11] - CoreWeave is evolving its platform to unlock new margin-accretive avenues for growth, including offering its proprietary cloud stack to the broader NVIDIA ecosystem [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand and the longevity of AI technology, with a strong visibility into cash flows from contracted demand [19] - The company expects 2026 revenue to be in the range of $12 billion to $13 billion, representing approximately 140% growth year-over-year [32] - Management anticipates adjusted operating income of $900 million to $1.1 billion for 2026, with margins expected to ramp up throughout the year [32] Other Important Information - CoreWeave ended 2025 with over 850 MW of active power across 43 data centers, with plans to exceed 1.7 GW by year-end 2026 [35] - The company raised approximately $2.6 billion through a convertible senior notes offering in Q4, reflecting strong investor demand [28] - CoreWeave's weighted average cost of capital has decreased by 300 basis points over the past year, indicating improved financial health [30] Q&A Session Summary Question: Can you unpack the dynamics of CapEx and revenue guidance? - Management noted that much of the new capacity came online towards the end of the quarter, with monetization expected in 2026 [39] Question: What do enterprise customer contracts look like? - Management indicated that enterprise contracts are similar in structure to hyperscale contracts, tailored to individual business models [41] Question: How has the cost of financing evolved? - Management highlighted a 300 basis point reduction in the cost of capital over the past year, driven by improved business performance and creditworthiness [46] Question: What is the confidence in CapEx growth and margin stability? - Management emphasized that the business model is based on long-term contracts, providing stability in revenue and margins [78]