CoreWeave Q2 revenue hits $1.2B, shares fall on margin fears

AI infrastructure firm CoreWeave posted Q2 revenue of about $1.2 billion, nearly triple year-on-year.

Despite the surge, the company reported a $290 million net loss due to rising interest costs and infrastructure spending.

Adjusted net loss widened to around $131 million, while adjusted operating income reached $200 million.

Operating margins shrank to 2% from 20% a year ago, reflecting higher operating expenses and stock-based compensation.

Revenue backlog grew to about $30 billion, representing multi-year commitments awaiting delivery of compute capacity.

CEO Michael Intrator said the company is “scaling rapidly” to meet unprecedented AI demand.

Shares dropped over 10% to $133.3 in after-hours trading, according to Nasdaq data.

Investor unease was fuelled by concerns over thin margins and heavy fixed costs in a capital-intensive business.

Critics warned that CoreWeave’s advantage from early access to NVIDIA GPUs is eroding as competitors catch up.

Pastel Network’s Jeffrey Emanuel said current GPU depreciation assumptions may understate losses.

Some analysts cautioned that slowing AI budgets or client consolidation could strain cash flow.

Resistance is mounting to CoreWeave’s $9 billion all-stock takeover of Core Scientific, with major shareholder Two Seas Capital opposing the deal.

CoreWeave did not provide immediate comment on the concerns raised.