CoreWeave released its Q2 2025 results, which drew mixed reactions from investors: high revenue against ongoing losses.
Revenue Growth vs. Profitability Challenges
CoreWeave reported $1.21 billion in revenue, up 206% year-over-year. This growth confirms the company's success in attracting clients like OpenAI and Microsoft. However, despite these impressive figures, the company posted a net loss of $290 million and a reduction in operating margin from 20% to 2%.
Scaling Issues and Capital Expenditures
CEO Michael Intrator described the results as 'rapid scaling.' He noted that infrastructure issues, such as power supply shortages, create hurdles for growth. Capital expenditures reached a record $2.9 billion for Q2, highlighting the capital-intensive nature of the business model.
Controversy Over Core Scientific Deal
The proposed acquisition of Core Scientific for $9 billion faced backlash from major shareholder Two Seas Capital, who called the deal 'inadequate' and noted the risks for Core Scientific shareholders, especially with the lock-up period expiring soon.
CoreWeave's Q2 results reveal a mixed reality: rapidly growing demand amid tight margins and financial challenges. With a substantial $30 billion revenue backlog, concerns regarding cost increases and disputes over the acquisition seem to be the main questions moving forward.
