Takeaways by Saasverse AI
- $1.36 Billion Revenue (+134% YoY) | Net Loss $110M (Improved from $360M) | Adjusted EPS -$0.22 (Beats Expectation of -$0.40)
- AI Infrastructure Demand Soars: Signed $6.5B deal with OpenAI and $14.2B agreement with Meta; backlog reaches $55.6B and contracted power capacity grows to 2.9 GW.
- Guidance Cut Dampens Market Sentiment: FY2025 revenue guidance lowered to $5.05-$5.15B (below $5.29B consensus) due to third-party data center construction delays.
CoreWeave, the cutting-edge AI computing infrastructure provider, delivered robust financial results for Q3 2025, significantly outpacing market expectations. Quarterly revenue surged by 134% year-over-year to $1.36 billion, surpassing analysts’ forecasts of $1.29 billion. The company also narrowed its net loss to $110 million, a marked improvement from the $360 million loss reported in the same period last year, with an adjusted EPS of -$0.22, better than the anticipated -$0.40.
The impressive growth was driven by CoreWeave’s strong position in the AI infrastructure sector, underscored by transformative partnerships. The company expanded its collaboration with OpenAI, signing a $6.5 billion deal, and secured a six-year, $14.2 billion contract with Meta, further solidifying its leadership in the space. CoreWeave’s backlog swelled to $55.6 billion, while its contracted power capacity increased from 2.2 GW to 2.9 GW over the past three months, reflecting the surging demand for its AI-optimized data center solutions.
Despite these achievements, the stock faced headwinds as management revised its full-year revenue guidance downward to a range of $5.05 billion to $5.15 billion, falling short of Wall Street's $5.29 billion consensus. CEO Michael Intrator attributed the revision to delays in the construction of a third-party data center, emphasizing that the delays will not affect the company’s order backlog but will shift some revenue recognition beyond 2025.
The market reacted negatively to the guidance cut and operational delays, with CoreWeave's shares slipping in after-hours trading. This highlights the market's sensitivity to execution risks in an industry where long-term growth prospects are tied to flawless delivery on large-scale contracts.
Saasverse Insights
CoreWeave’s Q3 results underscore the immense demand for AI infrastructure, with the company positioned as a key enabler for generative AI applications and large-scale cloud workloads. However, the reliance on third-party data center construction poses a notable operational risk, as evidenced by this quarter’s guidance adjustment. Looking ahead, CoreWeave’s ability to scale its operations and meet its backlog commitments will be crucial, particularly as competition intensifies with players like NVIDIA and Amazon Web Services making aggressive moves in the AI cloud space. While short-term challenges exist, the company’s strategic partnerships and robust backlog suggest strong long-term growth potential.