CRWV earnings analysis
What we found in CRWV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CoreWeave delivered exceptional top-line growth, with second-quarter revenue of $2.575 billion, up 112% year over year and approximately 24% sequentially. However, gross margin fell 8.3 percentage points year over year, operating results swung from a $19 million profit to a $49 million loss, and the company remains dependent on substantial external financing: six-month capex was $14.1 billion versus $3.663 billion of operating cash flow, while total indebtedness reached $35.6 billion. Liquidity improved materially and customer concentration decreased from the prior year, but unresolved internal-control weaknesses, power and data-center constraints, customer concentration, and debt-funded capital intensity support a bearish overall filing sentiment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated
- Revenue was $2.575 billion, up $495 million, or approximately 24%, from $2.08 billion in 2026 Q1 and up $1.363 billion, or 112%, from $1.212 billion in 2025 Q2. Management attributed the growth to higher demand from existing and new contracts and an expanded data-center footprint; approximately 93% of the increase came from existing customers.
- Sequential margin stabilization
- Gross margin was 65.9%, up from 65.5% in the prior quarter but down from 74% in 2025 Q2. Cost of revenue increased 181% year over year to $879 million, including approximately $335 million of higher rent expense and $87 million of higher utilities and power spend.
- Operating loss narrowed sequentially
- Operating loss improved to $49 million from $143 million in 2026 Q1, but results deteriorated from a $19 million operating profit in 2025 Q2. Operating margin was negative 1.9%, versus negative 6.9% in the prior quarter and positive 1.6% a year earlier.
- Liquidity expanded materially
- Liquidity increased to $15.553 billion at June 30, 2026 from $6.862 billion at December 31, 2025, including $5.524 billion of cash and cash equivalents and $10.014 billion of availability under existing facilities.
- Operating cash flow turned positive
- Operating cash flow was $3.663 billion for the six months ended June 30, 2026, versus negative $190 million in the prior-year period. However, cash paid for property and equipment was $14.1 billion, producing approximately negative $10.4 billion of six-month free cash flow on an operating-cash-flow less capex basis.
- Customer concentration broadened
- Customer concentration improved year over year: the top three customers represented approximately 36%, 26%, and 10% of quarterly revenue in 2026 Q2, compared with the top customer representing approximately 71% in 2025 Q2. Meta committed to pay up to approximately $21.0 billion through December 2032, while OpenAI committed up to approximately $6.5 billion through May 2031.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Debt service exceeds operating cash flow
- Total indebtedness was $35.6 billion at June 30, 2026, while cash flows dedicated to debt service were approximately $6.2 billion for the six months, consisting of $5.2 billion of principal payments and $982 million of interest payments. This compares with $3.663 billion of six-month operating cash flow and leaves limited internally generated cash after debt service.
- Capital spending remains highly elevated
- Capital intensity remains extreme: cash paid for property and equipment was $14.1 billion in the first six months of 2026 versus $3.9 billion in the prior-year period, and management expects investment in technology, infrastructure, and data-center-related expenses to increase relative to 2025.
- Material weaknesses remain unresolved
- The company’s disclosure controls were not effective as of June 30, 2026, and previously identified material weaknesses in IT general controls, segregation of duties, and qualified finance and accounting personnel continued to exist. Management states remediation testing is expected to continue for the remainder of 2026.
- Data-center permitting and power risk
- A new quantified regulatory exposure is the July 2026 New York moratorium on data-center development using 50 megawatts or more of power. The company warns that such restrictions could increase costs and limit construction, expansion, or operation of data centers.
- Large-customer dependence persists
- Customer concentration remains material despite improvement: the top three customers contributed approximately 36%, 26%, and 10% of quarterly revenue, and the company expects concentration among a limited number of customers to continue. OpenAI and Meta commitments are approximately $6.5 billion and $21.0 billion, respectively, increasing exposure to large counterparties.
- Securities litigation adds exposure
- The company disclosed a purported securities class action filed in January 2026 and a consolidated stockholder derivative action. It warns that these proceedings could result in substantial costs, damages, settlement costs, fines, or penalties, although no quantified potential loss was provided.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 65.9%
- Operating margin
- -1.9%
What they said about what is next.
The 10-Q provides no numeric revenue or EPS guidance and does not state a change versus prior outlook. Management expects capital investments to increase relative to 2025 and expects future investments to require significant debt and/or equity financing, but provides no quantitative outlook.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- CoreWeave's Q1 2026 report shows a remarkable revenue surge of 112% year-over-year, totaling $2.078 billion, ahead of estimates, but the company continues to incur significant losses, reporting a net loss of $740…
- 10-K · March 2, 2026
- CoreWeave reports continued hypergrowth in 2025 with revenue of $5.1 billion (from $1.9B in 2024 and $229M in 2023) and a massive increase in remaining performance obligations to $60.7 billion (from $15.1B in 2024). The…
- 10-Q · August 13, 2025
- CoreWeave reported Q2 (three months ended June 30, 2025) revenue of $1,212,788 (in thousands) and GAAP net loss per share of $(0.60). Gross margin remained high at 74.2% and the company turned operating income positive…
- 10-Q · May 15, 2025
- CoreWeave reported strong top-line growth with revenue of $981,632,000 for the quarter (up from $188,684,000 a year ago) and maintained a ~73.3% gross margin, but profitability deteriorated as interest expense and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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