Lead: CoreWeave reported third-quarter results after the market close showing a materially smaller loss and revenue that exceeded Wall Street expectations, driven by robust demand for AI compute. The company posted a loss of $0.22 per share versus a $1.82 loss a year earlier while revenue climbed 133% to $1.365 billion. Analysts had modeled a $0.40 loss and $1.286 billion in revenue. Shares slipped in extended trading as investors weighed the size of the beat and a sharply expanded revenue backlog.
Key Takeaways
- CoreWeave reported Q3 revenue of $1.365 billion, a 133% year-over-year increase versus $1.286 billion consensus estimated by Wall Street.
- Earnings per share were a loss of $0.22 in the September quarter, narrower than the prior-year loss of $1.82 and ahead of the $0.40 loss forecast.
- Remaining performance obligations (RPO) rose to $55.6 billion, up 85% from $30.0 billion the prior quarter, a measure of contracted but unrecognized revenue.
- Shares fell more than 5% to $99.74 in after-hours trading; the stock had gained roughly 160% year-to-date in 2025 and peaked at $187 on June 20.
- Nvidia holds a 7% stake and is a strategic partner; CoreWeave rents Nvidia-accelerated servers primarily to AI model builders and app developers.
- CoreWeave plans to provide forward guidance on its upcoming earnings call with analysts; investors are focused on RPO conversion timing and margin trajectory.
- Customer concentration remains a concern: Microsoft is CoreWeave’s largest customer, followed by Meta Platforms.
- The company completed an IPO in March that raised $1.5 billion and recently walked away from a proposed all-stock acquisition of Core Scientific.
Background
CoreWeave operates custom-built data centers that lease servers populated with Nvidia AI accelerators to customers training and deploying large-scale machine-learning models. The company pivoted from cryptocurrency mining (it was founded in 2017) into cloud infrastructure focused on AI workloads, a shift that underpins the rapid revenue expansion in 2024–2025. Nvidia’s 7% equity stake and strategic partnership give CoreWeave preferential access to accelerators that are in severe industry-wide shortage, a structural advantage for high-throughput AI compute customers.
The metric investors are watching closely is remaining performance obligations (RPO), which totaled $55.6 billion in the quarter. RPO captures contracted revenue that the company has not yet recognized because cloud providers recognize sales as services are delivered. For fast-growing cloud firms, tall RPO can signal strong forward demand but also creates sensitivity to delivery timing and churn.
Main Event
CoreWeave released third-quarter results after the market close: revenue of $1.365 billion and an adjusted loss per share of $0.22. Those figures outperformed consensus revenue of $1.286 billion and an expected $0.40 per-share loss. Management highlighted continued customer demand for GPU-accelerated capacity, which lifted bookings and expanded the revenue backlog.
The company reported RPO of $55.6 billion, an 85% increase from $30.0 billion the quarter before. Management explained that this backlog represents contracted future revenue tied to multi-quarter capacity commitments, and that revenue will be recognized as compute capacity is delivered over time. CoreWeave said it will discuss near-term guidance and capacity plans on its upcoming call with analysts.
Market reaction was mixed. Although results beat consensus on both top- and bottom-line metrics, the stock declined more than 5% in extended trading to $99.74, reflecting investor caution about how quickly the large RPO can be converted into recognized revenue and concerns over customer and balance-sheet concentration. Shares have been volatile this year—up about 160% in 2025 and peaking at $187 on June 20.
Analysis & Implications
At face value, a 133% revenue increase and a much smaller loss year-over-year are strong indicators that CoreWeave is scaling: revenue growth at this pace reflects outsized demand for Nvidia-accelerated compute from AI model builders and application teams. However, revenue growth driven by multi-quarter contracts (RPO) is not identical to immediate revenue realization; the pace of deployment and service delivery will determine how much of the backlog converts into recognized sales each quarter.
The large RPO base creates both optionality and risk. If CoreWeave can deliver capacity rapidly, future quarters could show continued top-line momentum and improving operating leverage. Conversely, any delays in equipment delivery, site builds, or customer onboarding would slow revenue recognition and could compress margins. Investors should watch management’s cadence on capacity deployment and customer retention rates closely on the guidance call.
Nvidia’s stake and partnership help secure access to accelerators that are fundamental to CoreWeave’s product. That strategic link is a competitive filter—smaller rivals face tougher procurement dynamics—but it also concentrates strategic dependence on Nvidia’s product roadmap and supply decisions. Separately, customer concentration (Microsoft, Meta) presents downside if one or more large clients shift their sourcing or insource more capacity.
Comparison & Data
| Metric | Q3 2025 | Q3 2024 | Consensus (est.) |
|---|---|---|---|
| Revenue | $1.365B | ~$0.589B | $1.286B |
| EPS (loss) | -$0.22 | -$1.82 | -$0.40 |
| RPO | $55.6B | $30.0B (prior quarter) | — |
The table shows the scale of year-over-year revenue expansion and the divergence between actual results and consensus EPS. The RPO jump (85% quarter-over-quarter) is especially notable: it implies substantial contracted future revenue but raises questions about the schedule for capacity rollout. Analysts will compare RPO-to-revenue conversion in coming quarters to assess sustainability.
Reactions & Quotes
Market and industry reactions ranged from cautious optimism about demand to concern about concentration and execution. Below are concise excerpts from official figures and market data to frame those responses.
“Remaining performance obligations were $55.6 billion.”
CoreWeave earnings release
“CoreWeave stock has a Composite Rating of 60 out of a best-possible 99.”
Investor’s Business Daily (analysis)
“The IPO in March raised $1.5 billion.”
Company filings / public disclosures
Unconfirmed
- Whether the large RPO will convert into recognized revenue at the same quarterly pace projected by Wall Street—management has not provided a detailed conversion schedule.
- Precise guidance figures for upcoming quarters are not yet publicly available; management said it will provide guidance on the analyst call but has not published specific targets.
- The extent to which CoreWeave can retain or expand business with its largest customers (Microsoft, Meta) over multiple years remains uncertain and subject to renegotiation or strategic shifts.
Bottom Line
CoreWeave’s Q3 results show rapidly accelerating revenue and a dramatically larger revenue backlog, reflecting strong market demand for Nvidia-accelerated AI compute. The company outperformed consensus on both revenue and on a narrowed loss per share, a combination that validates product-market fit in AI infrastructure.
Nevertheless, the central questions for investors are execution and timing: how quickly CoreWeave can convert its $55.6 billion RPO into recognized revenue, manage concentration with a few very large customers, and scale capacity without margin erosion. The upcoming earnings call will be essential for granular guidance on capacity rollout, RPO conversion expectations, and margin trajectory.