CoreWeave’s Stock (CRWV) Drops Despite Revenue Beat and Raise – A Closer Look

CoreWeave's stock (NASDAQ:CRWV) tumbled in after-hours trading, despite the AI infrastructure provider reporting a significant revenue beat for its second quarter of 2025. While revenue soared to $1.21 billion, surpassing analyst expectations of $1.08 billion, larger than expected losses spooked markets, overshadowing the company's impressive growth.

EPS losses of $0.21 were larger than the $0.20 expected, applying some pressure, yet the lockup expiration tomorrow on insider sales is also seen as a potential profit-taking, or selling event, impacting sentiment.

The stock initially reacted positively to the headline revenue number, but the gains were quickly erased as markets digested the full earnings report. CRWV is now trading down double digits (-10.04%), wiping out a portion of its recent gains. Growing concerns about profitability amidst CoreWeave's aggressive expansion strategy, and the expiration of lockup could be weighing on sentiment right here.

Looking at revenue, it is hard not to be bullish, with the Q2 figure a substantial increase from the $395.4 million reported in the same period last year. Adjusted EBITDA also saw a dramatic rise, reaching $753.2 million compared to $249.8 million in Q2 2024.

This growth is directly attributable to the insatiable demand for AI cloud computing services, particularly those leveraging Nvidia GPUs. The company's revenue backlog stood at a robust $30.1 billion as of June 30, 2025, signaling continued strong demand in the future.

However, the company's net loss of $290.5 million, a slight improvement from the $323 million loss in Q2 2024, still remains a considerable figure. Operating expenses surged to $1.19 billion, up from $317.7 million a year earlier. These increased expenses reflect CoreWeave's heavy investments in scaling its infrastructure to meet the rapidly growing demand for AI computing power. The company ended the quarter with approximately 470 MW of active power, and increased total contracted power by approximately 600 MW to 2.2 GW

“Our strong second quarter performance demonstrates continued momentum across every dimension of our business,” said Michael Intrator, CEO of CoreWeave. “We are scaling rapidly as we look to meet the unprecedented demand for AI. Our purpose-built AI cloud platform continues to set new benchmarks for performance and scalability including becoming the first company to offer the complete Blackwell GPU portfolio at scale, making CoreWeave the platform of choice for the world's most advanced AI workloads and AI pioneers.”

Despite the current market reaction, CoreWeave raised its full-year 2025 revenue guidance to a range of $5.15 billion to $5.35 billion, up from the previous forecast of $4.9 billion to $5.1 billion, surpassing the consensus estimate of $5.04 billion.

The company also anticipates Q3 revenue between $1.26 billion and $1.30 billion, slightly above the consensus of $1.25 billion. CoreWeave maintained its adjusted operating income guidance for FY25 in the range of $800M to $830M, indicating a commitment to cost discipline amidst rapid expansion. The company expects to end the year with over 900 megawatts of active power.