CoreWeave Reports 420% Revenue Growth to $981.6 Million, Net Loss Widens to $314.6 Million

CoreWeave, Inc. reported significant financial performance in its latest quarterly filing, with revenues reaching $981.6 million for the three months ended March 31, 2025, a substantial increase of 420% compared to $188.7 million in the same period last year. The company attributed this growth primarily to increased demand from both existing and new customer contracts, with approximately 90% of the revenue increase stemming from existing customers. However, the company also reported a net loss of $314.6 million, widening from a loss of $129.2 million in the prior year, largely due to increased operating expenses and interest costs.

Operating expenses surged to $1 billion, up from $171.8 million a year earlier, driven by higher costs associated with data center operations, technology infrastructure, and general administrative expenses. Notably, technology and infrastructure expenses alone rose by 504% to $561.4 million, reflecting significant investments in the company’s cloud infrastructure and personnel. The company also recognized $178 million in stock-based compensation expenses related to its initial public offering (IPO) and the vesting of restricted stock units.

In March 2025, CoreWeave completed its IPO, issuing 36.6 million shares of Class A common stock at $40 per share, generating net proceeds of approximately $1.4 billion. This capital influx is expected to support the company's growth strategy, including the acquisition of Weights & Biases, Inc., an AI developer platform, for approximately $1.4 billion in cash and stock, which closed in May 2025. The IPO also led to the conversion of all outstanding shares of redeemable convertible preferred stock into common stock, significantly altering the company’s equity structure.

Operationally, CoreWeave has seen a marked increase in customer engagement, with a notable contract signed with OpenAI, which could yield up to $11.9 billion through October 2030. As of March 31, 2025, the company reported $14.7 billion in unsatisfied performance obligations, indicating strong future revenue potential. The company’s total assets increased to $21.9 billion, up from $17.8 billion at the end of 2024, bolstered by cash and cash equivalents of $1.3 billion.

Looking ahead, CoreWeave anticipates continued growth driven by its cloud services and infrastructure investments, although it acknowledges the challenges posed by rising operational costs and interest expenses. The company plans to leverage its recent capital raise to enhance its market position and expand its service offerings, particularly in the rapidly evolving AI sector. However, it also cautions that achieving profitability will depend on effectively managing its growth and operational efficiencies in a competitive landscape.