AI infrastructure provider CoreWeave announced its second-quarter financial results for 2025 on Tuesday, August 12, revealing a complex picture of explosive growth paired with significant spending. While the company’s revenue soared past analyst expectations, a wider-than-anticipated loss and shrinking margins prompted a negative reaction from investors, with shares falling approximately 6% in after-hours trading.
For its second quarter as a public company, CoreWeave reported revenue of $1.21 billion, comfortably beating the LSEG consensus estimate of $1.08 billion. According to a report from CNBC, this figure represents a more than 206% increase from the $395.4 million in revenue generated in the same quarter of the previous year, underscoring the voracious demand for its specialized cloud computing services for artificial intelligence.
However, the company’s bottom line told a different story. CoreWeave posted a net loss of $290.5 million for the quarter. This resulted in a loss of $0.60 per share, which missed analyst expectations of a $0.23 to $0.49 loss per share, as reported by TipRanks and 24/7 Wall St. The company’s operating margin also shrank significantly to 2% from 20% a year ago, a decline attributed primarily to $145 million in stock-based compensation costs and heavy capital expenditures related to its rapid expansion.
The surge in revenue is being fueled by major contracts and aggressive infrastructure scaling. CoreWeave highlighted a $4 billion expansion deal with key client and investor OpenAI, which builds upon a previous $11.9 billion agreement. The company is scaling its purpose-built AI infrastructure at a blistering pace, ending the quarter with approximately 470 megawatts (MW) of active power and increasing its total contracted power to 2.2 gigawatts (GW). It also became the first cloud provider to deploy Nvidia’s next-generation GB200 NVL72 systems at scale for customers including Cohere and IBM.
“Our strong second quarter performance demonstrates continued momentum across every dimension of our business,” said Michael Intrator, co-founder and CEO of CoreWeave. “We are scaling rapidly as we look to meet the unprecedented demand for AI.”
To support this growth, CoreWeave has been active in both acquisitions and fundraising. During the quarter, the company completed its $1.4 billion acquisition of Weights and Biases, a startup that provides software for monitoring AI models. It also announced plans for a new 250 MW data center campus in Kenilworth, New Jersey, with the first phase expected to be delivered in 2026. To finance these ambitious projects, the company raised $2 billion in notes due in 2030.
CoreWeave went public via an IPO in March 2025, raising $1.5 billion. The stock has seen a meteoric rise since, closing at $148.75 on Tuesday before the earnings release, giving it a market capitalization of over $72 billion. The post-earnings stock drop suggests that while investors are impressed by the company’s ability to capture revenue in the AI boom, concerns about the high cost of growth and the timeline to profitability are weighing on sentiment. The results present a classic dilemma for investors, balancing today’s losses against the promise of tomorrow’s market dominance.
