Key Highlights

  • Revenue backlog was about $104 billion at June 30, excluding over $25 billion of commitments added in early third quarter.
  • Active power rose by nearly 500 MW to 1.5 GW, and contracted power reached about 4.2 GW by August 11.
  • Convertible notes of $4.2 billion carry a 2.875% rate, and a new equity program covers up to 35 million shares.
  • Net interest expense rose to $640 million in the quarter, and two customers accounted for 62% of second quarter revenue.

CoreWeave (NASDAQ:CRWV) shares were trading near their 52-week low at USD 61.42 on October 19, 2026, up 0.04%. The AI cloud provider reported second quarter 2026 revenue of $2.575 billion, more than double the prior-year quarter, and a GAAP net loss of $626 million. In September it added $4.2 billion of convertible debt, and six reputed brokers have updated their views since the August 11 results.

Brokerage context

Goldman Sachs upgraded the stock to Buy on October 19 and cut its target to $106 from $139, saying financing concerns looked overdone. Mizuho kept a Neutral rating on October 15 and lowered its target to $88 from $115. Bank of America maintained Buy with a $140 target on October 15, and Jefferies reiterated Buy with a $150 target on October 14. JPMorgan upgraded to Overweight on September 24 and raised its target to $125 from $120, citing compute pricing and demand. Truist lifted its target to $165 from $155 on August 24, keeping a Buy rating.

Second quarter results and backlog

CoreWeave reported revenue of $2.575 billion for the quarter ended June 30, 2026, against $1.212 billion a year earlier. It posted a GAAP operating loss of $49 million, compared with operating income of $19 million, and a net loss of $626 million, or $1.14 per diluted share, versus $290 million, or $0.60. Net interest expense rose to $640 million from $267 million. On a non-GAAP basis, adjusted EBITDA was $1.51 billion, a 59% margin, and adjusted operating income was $128 million, a 5% margin against 16% a year earlier.

Revenue backlog stood at about $104.2 billion, including $103.7 billion of remaining performance obligations. The quarterly report expects 41% of those obligations to be recognized within 24 months, 39% in months 25 to 48 and the remainder through month 78. Backlog excludes more than $25 billion of net new commitments added in early third quarter. Customer A accounted for 36% of quarterly revenue and Customer B for 26%.

Capacity, financing and balance sheet

Active power grew by nearly 500 megawatts to 1.5 gigawatts in the quarter. Contracted power was about 3.7 gigawatts at June 30 and about 4.2 gigawatts by August 11. Capital expenditures, as the company defines them, were $9.4 billion in the quarter.

At June 30, CoreWeave held $5.5 billion of cash and cash equivalents against about $31.4 billion of recourse debt and $3.7 billion of non-recourse debt. Operating cash flow was $3.66 billion for the six months, while $14.1 billion went to property and equipment.

On September 22, the company closed an offering of $4.2 billion of 2.875% convertible senior notes due 2033, including a $500 million option exercised in full. Net proceeds were $4,137.0 million before expenses, the initial conversion price is about $97.85 per share, and a related capped call cost about $566.2 million. Conversion could involve up to about 52.6 million Class A shares. A separate equity distribution agreement dated September 17 allows sales of up to 35 million shares, including through collared forward sales, for general corporate purposes.

Disclosures and outlook

The June 30 quarterly report states that disclosure controls were not effective, citing material weaknesses in internal control over financial reporting that continued to exist at quarter end. Management said it is making progress toward remediation. The filing also notes commitments of up to $1.7 billion to fund two data center joint ventures, expected to be satisfied during 2026.

CoreWeave said it would give forward-looking guidance on its August 11 earnings call and webcast rather than in the release. The company expects to agree that no shares will be sold under the equity program until at least 30 days after the notes purchase agreement.