CoreWeave, Inc. Class A Common Stock (CRWV) | The Buildout — AI Infrastructure
The Verdict
CoreWeave is a purpose-built AI cloud platform that sells reserved-instance, long-term contracts for NVIDIA GPU-accelerated compute across multiple GPU generations, wrapped with storage, CPU, networking, and software. It converts power, data-center shells, and GPUs into contract-backed AI cloud capacity for large-scale model training and inference. In the AI infrastructure buildout, CoreWeave is the scalability layer that turns contracted power into commissioned AI compute, with NVIDIA's reference-architecture qualification as a signal of its integration role.
| Market Cap | — |
| Revenue (TTM) | $6.2B |
| Revenue Growth | +129.9% |
| EBITDA Margin (TTM) | 48.1% |
| Net Debt | $32.1B |
| Earnings Beats | 1 of 5 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- $99.4B contracted revenue backlog, up ~50% QoQ and ~4x YoY, after >$40B of new commitments in Q1.
- Management said non-investment-grade AI-native and foundation-lab commitments are less than 30% of backlog, implying >70% from stronger-credit counterparties.
- 10 customers committed to at least $1B each; financial services backlog approaching $10B and physical AI backlog >$1B.
- NVIDIA has qualified CoreWeave's software as a reference architecture; all GPUs currently used are NVIDIA GPUs.
- >3.5 GW contracted power, >1 GW active, target >1.7 GW active by end-2026.
What We’re Watching
- Q2 actuals on August 11, 2026 against revenue of $2.45B-$2.6B and adjusted operating income of $30M-$90M.
- Back-half ramp: Q1 adjusted operating income was $21M versus full-year guide of $900M-$1.1B; sequential expansion is guided but not yet shown.
- Capacity timing language shifted from 'by year-end 2026' to 'through 2026 and 2027'.
- Top two customers were 65% of Q1 2026 revenue; Microsoft was 67% of FY2025 revenue.
The thesis is strengthening on demand and financing but still unproven on margins. Record bookings, customer diversification, and the first investment-grade HPC-backed facility support the structural case. The open question is whether the guided back-half adjusted operating income ramp arrives on schedule.
Earnings
Q1 FY2026 revenue was $2,078M, up 112% YoY and 32% QoQ. Gross margin calculated from filing figures was 65.5%, down from 73.3% a year earlier. Adjusted EBITDA was $1,157M at a 56% margin; adjusted operating income was $21M, the quarter management called the trough.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.1B | $1.6B | $982M | +111.7% |
| Gross margin | 65.5% | 67.6% | 73.3% | -780bps |
| EBITDA | $1.0B | $731M | $416M | +141.1% |
| EPS | $-1.40 | $-1.04 | $-0.78 | +80.5% |
| Contracted revenue backlog | $99.4B | n/a | n/a | Up ~50% QoQ; ~4x YoY |
| Adjusted operating income | $21M | n/a | $163M | vs $163M in Q1 2025; management called it the trough |
We added more backlog in a single quarter than most AI cloud platforms have in their history.— Mike Intrator, CEO, May 7, 2026
Management tone: Management was confident and execution-focused on the Q1 2026 call, and direct in Q&A. The CFO gave quantitative explanations for the margin trough and sold-out 2026 capacity; the CEO described capacity allocation as 'probably accurate' and named labor, memory, storage, and infrastructure bring-up as additional limiting factors.
Management Guidance
Management reaffirmed FY2026 revenue of $12B–$13B and adjusted operating income of $900M–$1,100M, raised the FY2026 CapEx low end to $31B–$35B on component pricing, and raised the exit-2026 run-rate revenue low end to $18B–$19B. Q2 2026 guidance was initiated at revenue of $2.45B–$2.6B, adjusted operating income of $30M–$90M, interest expense of $650M–$730M, and CapEx of $7B–$9B. The CFO expects sequential adjusted operating margin expansion through the year, returning to low double digits by Q4.
Trajectory
Quarter-over-quarter revenue growth was +23.6%, +12.5%, +15.2%, and +32.2% over the last four quarters; the computed revenue-trajectory signal is decelerating. Gross margin calculated from filings fell from 73.3% in Q1 FY2025 to 65.5% in Q1 FY2026 as rent, utilities, and depreciation rose while fit-out deployments ran at negative contribution margins. Gross and operating margins are compressing, while EBITDA margin is stable.
The Model
The model projects FY+1 revenue of $13,100M with EBITDA of $6,799M at a 51.9% margin, and FY+2 revenue of $27,000M with EBITDA of $15,120M at a 56.0% margin. The near-term projection is anchored by the contracted backlog and sold-out 2026 capacity; the second-year projection is driven by the substantial majority of >3.5 GW contracted power expected online by end-2027.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $5.1B | $13.1B | $27.0B |
| YoY Growth | — | +155.3% | +106.1% |
| EBITDA | $2.4B | $6.8B | $15.1B |
| EBITDA Margin | 46.9% | 51.9% | 56.0% |
Projections are the median of 5 independent model runs.
Management reaffirmed FY2026 revenue of $12B–$13B and adjusted operating income of $900M–$1,100M, raised the FY2026 CapEx low end to $31B–$35B on component pricing, and raised the exit-2026 run-rate revenue low end to $18B–$19B. Q2 2026 guidance was initiated at revenue of $2.45B–$2.6B, adjusted operating income of $30M–$90M, interest expense of $650M–$730M, and CapEx of $7B–$9B. The CFO expects sequential adjusted operating margin expansion through the year, returning to low double digits by Q4.
What Could Go Right — and Wrong
- Backlog conversion follows the filing's RPO schedule: 36% of $98.8B recognized over the next 24 months and 75% over the next four years.
- Adjusted operating margin returns to low double digits by Q4 2026, which would confirm the Q1 $21M trough was timing-based.
- Substantial majority of >3.5 GW contracted power comes online by end-2027, supporting exit-2027 ARR >$30B.
- Flex Reservation and Spot pricing launched in Q1 2026 and were immediately oversubscribed.
- First self-build data center and CoreWeave Omni gain commercial traction.
- Microsoft was 67% of FY2025 revenue and the top two customers were 65% of Q1 2026 revenue; a pullback would cascade.
- The back-half ramp stalls: full-year adjusted operating income of $900M-$1.1B depends on a sharp acceleration from Q1's $21M.
- Component inflation stops passing through; FY2026 CapEx low end already raised to $31B.
- Capacity timing slips further after language broadened to 'through 2026 and 2027'.
- Capital markets tighten or debt costs stay layered; Q2 interest expense guided to $650M-$730M.
Looking Ahead
The next 12 months turn on executing a back-half margin ramp and converting contracted power into active capacity. Management targets sequential adjusted operating margin expansion through the year, reaching low double digits by Q4 2026, and >1.7 GW active power by end-2026. Further milestones include the first self-build data center later in 2026, each ancillary product line exceeding $100M ARR by end-2026, and progress toward the >$30B exit-2027 ARR target.
- Aug 11, 2026Q2 2026 results — Tests revenue of $2.45B-$2.6B and adjusted operating income of $30M-$90M.
- Q3 2026Q2-to-Q3 margin inflection — Management expects revenue and margin growth to inflect crossing Q2 to Q3.
- Q4 2026Low double-digit adjusted operating margin — CFO expects sequential expansion returning to low double digits by Q4.
- Year-end 2026Active power and ARR targets — Targets >1.7 GW active power and $18B-$19B exit run-rate revenue; ancillary ARR >$100M each.
- Later 2026First self-build data center online — Successful commissioning would validate owned capacity model.
- End 2027Contracted power and ARR conversion — Substantial majority of >3.5 GW online; exit-2027 ARR >$30B, >75% contracted.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $1.9B | $5.1B | $6.2B | +167.9% |
| Gross Margin | 73.0% | 72.0% | 69.4% | 102bps |
| EBITDA | $1.2B | $2.4B | $4.7B | +102.8% |
| EBITDA Margin | 62.0% | 46.9% | 48.1% | 1,507bps |
| Net Income | −$863M | −$1.2B | −$1.6B | -35.2% |
| Free Cash Flow | −$6.0B | −$7.3B | −$19.1B | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)69.4%
- EBITDA Margin (TTM)48.1%
- Net Margin (TTM)-25.6%
- ROIC-0.3%
- FCF Conversion-354.4%
- SBC / Revenue7.2%
The Company
CoreWeave is a purpose-built AI cloud platform that sells reserved-instance, long-term contracts for NVIDIA GPU-accelerated compute across disclosed GPU generations including A100, H100, H200, L40S, Blackwell/GB200, and initial Vera Rubin deals. The platform covers large-scale model training, inference, data movement, continuous iteration, and agentic workflows, delivered through Infrastructure Services, Managed Software Services, and Application Software Services. The company has one reportable segment and is effectively 100% AI-exposed.
CoreWeave operates across ~50 data centers in the United States, Europe, and Canada across six countries, with headquarters in Livingston, New Jersey. It sources all GPUs from NVIDIA, wraps compute with storage, CPU, networking, and software, and is bringing CoreWeave Omni to market to deploy its full stack in customer-owned data centers. Revenue is contract-heavy: 98% of Q1 2026 revenue came from customer commitments.
Business Segments
Competitive Landscape
The supplied material does not name individual competitors. It describes hyperscalers and alternative neoclouds as substitute capacity if CoreWeave failed to deliver, and hyperscaler custom silicon as a stated medium-term risk.
Supply Chain
CoreWeave converts power, data-center shells, NVIDIA GPUs, networking, and software into reserved AI cloud capacity. Some colocation and utility counterparties disclose CoreWeave by name, while several web-mapped leads remain unverified.
More on CRWV: Earnings recap