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CoreWeave reported its Q3 earnings on November 10. During the earnings call, Mike Intrator, CEO and co-founder of CoreWeave, said: “We continue to scale aggressively, even as the industry remains capacity-constrained. We expanded our active power footprint by 120 MW sequentially to approximately 590 MW, while growing our contracted power capacity over 600 MW to 2.9 GW.” CoreWeave CFO Nitin Agrawal described the company’s debt status during the earnings call. “Year to date, CoreWeave has successfully secured $14 billion in debt and equity transactions to support our execution on our rapidly growing backlog and efficient scaling for long-term growth. Other than payments related to OEM vendor financing and self-amortizing debt through committed contract payments, we have no debt maturities until 2028.” Here are the CoreWeave Q3 earnings highlights: Revenue of $1.36 billion compared to $583.9 million in Q3 2024 Operating income margin of 4% compared to 20% in Q3 2024 Net loss of $110.1 million, compared to net loss of $359.8 million in Q3 2024 Diluted net loss per share $0.22 Adjusted EBITDA of $838.1 million compared to $378.8 million in Q3 2024 The company lowered its 2025 revenue guidance by $150 million to be in the range of $5.05 billion to $5.15 billion. This decreased outlook panicked investors, and the stock is trading 15% lower near $90 at the time of writing. Bank of America lowers CoreWeave stock price target Following the release of the earnings, Bank of America analysts Brad Sills and Madeline Brooks updated their opinions on CoreWave (CRWV) stock. Analysts noted that the company decreased its fiscal year 2025 outlook, stating that the delta was driven by a supply constraint that they believe can be resolved by Q1. They said Coreweave’s decrease of fiscal year 2025 capital expenditure guidance by 40% (from $21.5 billion to $13 billion) and trimming of revenue guidance by -3% to $5.1 billion, implies a -9% reduction to Q4 expectations. The revisions were caused by powered shell construction delays that occurred in a single datacenter (of 41). The nature of this delay suggests it is an isolated incident. Analysts said demand remains strong and is reflected by backlog growth of 200% YoY to $55 billion, underpinned by diversified commitments from large companies. In a research note shared with TheStreet, Sills reiterated a neutral rating and lowered the price target for CRWV stock from $168 to $140, based on 24 multiple his estimate for earnings before interest and taxes for calendar year 2027. Analysts noted downside risks for CoreWeave: Low free float and high price volatility Customer concentration risk Supplier concentration risk Currently competing with Microsoft Azure, Google GCP, and Amazon AWS, which are at a much bigger scale and have a higher capacity for capital expenditures. Upside risks: Revenue upside and consistent beat and raise at Q1 2025 level (upside at 15%) Quality and sizable contract with hyperscalers and more AI-native customers New customer additions among non-AI enterprises and SMBs to reduce customer concentration risk CoreWeave’s recent activity CrowdStrike (CRWD) and CoreWeave entered into a global partnership. The collaboration combines CoreWeave’s AI Cloud with the CrowdStrike Falcon cybersecurity platform to protect the systems where AI is trained and deployed. CoreWeave announced “CoreWeave Federal,” which will focus on delivering secure, compliant, high-performance AI cloud services to U.S. government agencies and the Defense Industrial Base. More AI Stocks: Cathie Wood sells $21.4 million of surging AI stocks As Palantir rolls on, rivals are worth a second look Palantir quietly makes massive AI war play The company recently launched AI Object Storage, a fully managed object storage service built from the ground up for AI workloads. Powered by CoreWeave’s Local Object Transport Accelerator (LOTA) technology, CoreWeave AI Object Storage makes a single dataset instantly accessible, anywhere in the world, without any egress charges or request/transaction fees restricting how or where it’s used. CoreWeave entered into a definitive agreement to acquire Marimo, the creator of the open-source marimo notebook, an AI-native, reactive development environment for Python, purpose-built for AI and data workloads. By integrating Marimo’s technology into the CoreWeave Cloud, Marimo’s cloud-hosted notebook will offer unified developer experience that spans the entire AI lifecycle: training, inference, data movement, and continuous iteration.
