Can you quantify the blended cost of capital, how it evolved, and how data center operators assess CoreWeave's credit? Does NVIDIA's credit support impact borrowing costs?

CoreWeave's cost of capital dropped 300 bps in the last 12 months (600 bps over 2 years) and is expected to continue declining due to its maturing business and ETL structures. Data center operators are interested in CoreWeave as a diversified tenant and a pure-play AI infrastructure provider. NVIDIA's involvement, as an investment-grade counterparty, positively impacts the cost associated with data center footprint, though CoreWeave works selectively with NVIDIA on this. “You've seen our cost of capital drop 300 basis points in the last 12 months. You've seen it drop 600 basis points over the last 2 years. We expect that, that will continue.”

How are Blackwell-based models progressing, and will they lead to a huge step forward in capabilities, or a steady evolution, especially with GBT6 or similar models in the next 3-6 months?

Michael Intrator stated that Blackwell systems represent a significant step function in computing power, enabling data scientists to build and scale infrastructure unprecedentedly. He expects a continuation of increasing performance from these models, with step functions in capabilities as more Blackwell clusters come online globally, driven by both training and inference needs. “my expectation is, and certainly every indication from the model companies is that the rate of increasing performance from these models, we're just getting going.”

How does CoreWeave weigh focusing on NVIDIA's reference architecture, powerful for training, against custom ASICs for potentially better inferencing price performance, especially considering NVIDIA's acquisition of Groq?

CoreWeave is client-led, and clients are demanding NVIDIA technology for 'AI infrastructure' (not just training or inference). The company is unable to meet the overwhelming demand for its current NVIDIA-based offerings. While clients might seek other technologies, CoreWeave's focus remains on delivering its highly performant NVIDIA solution, which has consistently outstripped supply for the past three years. “what I know is that we are unable to catch up with the demand signals that are coming in for the product that we deliver.”

CRWV

CoreWeave (CRWV) Q4 FY25 earnings call: guidance and Q&A

Q: Given higher CapEx and faster delivery, why didn't active power and revenue guidance show more upside, aligning with the rapid deployment?

Management explained that much of the deployed capacity came online late in Q4, with monetization expected in 2026. They are providing guidance for 2026 and Q1 for the first time, reflecting the rapid pace of capacity build-out that will continue throughout the year. “As we deploy capacity, a lot of that capacity came online towards the end of the quarter, and you're going to start seeing the monetization of it in 2026.”

Earnings call· Dec 2025 (Q4 FY25)· Information Technology· Feb 26, 2026

Source: earnings call transcript

Executive summary

CoreWeave Q4 FY25 — Record Revenue and Backlog Drive Aggressive Capacity Expansion

CoreWeave delivered a transformative Q4 FY25, marked by record revenue and substantial growth in its contracted revenue backlog, driven by relentless demand for AI infrastructure. The company is aggressively expanding its data center footprint and product offerings, making significant strategic investments to meet customer needs. While this rapid expansion leads to near-term margin compression, management remains confident in long-term profitability and its ability to capitalize on the accelerating AI revolution.

Highlights

Full-year 2025 revenue reached $5.1 billion, up 168% year-over-year.
Contracted revenue backlog grew to $66.8 billion, an increase of $11.2 billion sequentially and over $50 billion year-over-year.
Active power capacity reached 850 megawatts as of December 31, with 260 megawatts added in Q4 alone.
Added approximately twice as many new reserved instance customers in Q4 compared to any prior quarter.
Weighted average contract length increased from roughly 4 years to roughly 5 years.

Concerns

Q4 adjusted operating income was $88 million, lower than the $121 million in Q4 2024, due to faster infrastructure deployment.
Net loss for Q4 was $452 million, compared to a $51 million net loss for Q4 2024.
Interest expense for Q4 was $388 million, significantly up from $149 million in Q4 2024 due to increased debt to support scaling infrastructure.

Guidance & targets

Category	Target	Timeline	Confidence
Additional data center capacity	more than 5 gigawatts high materiality	by 2030 · FY30	High
Full-year 2026 CapEx	at least $30 billion high materiality	Full-year 2026 · FY26	High
Full-year 2026 CapEx	$30 billion to $35 billion high materiality	Full-year 2026 · FY26	High
Active power capacity	more than 1.7 gigawatts high materiality	by year-end 2026 · FY26	High
Full-year 2026 revenue	$12 billion to $13 billion high materiality	Full-year 2026 · FY26	High
Full-year 2026 adjusted operating income	$900 million to $1.1 billion high materiality	Full-year 2026 · FY26	High
Adjusted operating margin progression	low single digits in Q1, expanding in Q2 and Q3, returning to low double-digit levels by Q4 medium materiality	Full-year 2026 · FY26	High
Long-term operating margins	25% to 30% high materiality	Long term	High
Annualized run rate revenue	$17 billion to $19 billion high materiality	exit 2026 · FY26	High
Annualized run rate revenue	more than $30 billion high materiality	exit 2027 · FY27	High
Q1 2026 revenue	$1.9 billion to $2 billion medium materiality	Q1 · FY26	High
Q1 2026 adjusted operating income	$0 to $40 million medium materiality	Q1 · FY26	High
Q1 2026 CapEx deployments	$6 billion to $7 billion medium materiality	Q1 · FY26	High
Q1 2026 interest expense	$510 million to $590 million medium materiality	Q1 · FY26	High

CRWV operating KPIs by quarter

CRWV operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Data centers	33 Today, we benefit from a network of 33 purpose-built AI data centers across the US and Europe, supported by 420 megawatts of active power. Source: earnings call transcript	—	—	43 We ended the year with more than 850 megawatts of active power, adding approximately 260 megawatts in the fourth quarter alone across 43 active data centers, up from 32 at the start of the year. Source: earnings call transcript	<50 We have navigated this complexity across close to 50 data centers, consistently delivering best-in-class dock to live times for customers. Source: earnings call transcript	—	—
Active power	420 MW Today, we benefit from a network of 33 purpose-built AI data centers across the US and Europe, supported by 420 megawatts of active power. Source: earnings call transcript	<470 MW To that end, we ended the quarter with nearly 470 megawatts of active power, and we increased total contracted power approximately 600 megawatts to 2.2 gigawatts. Source: earnings call transcript	~590 MW We expanded our active power footprint by 120 megawatts sequentially to approximately 590 megawatts, while growing our contracted power capacity over 600 megawatts to 2.9 gigawatts. Source: earnings call transcript	—	—	—	—
Total contracted power	~1.6 GW Our total contracted power extends to approximately 1.6 gigawatts, providing us with a durable multiyear runway in power capacity. Source: earnings call transcript	2.2 GW To that end, we ended the quarter with nearly 470 megawatts of active power, and we increased total contracted power approximately 600 megawatts to 2.2 gigawatts. Source: earnings call transcript	2.9 GW We expanded our active power footprint by 120 megawatts sequentially to approximately 590 megawatts, while growing our contracted power capacity over 600 megawatts to 2.9 gigawatts. Source: earnings call transcript	3.1 GW+ We contracted close to 2 gigawatts of additional power in 2025, ending the year with more than 3.1 gigawatts of contracted capacity, virtually all of which we expect to come online by the end of 2027. Source: earnings call transcript	3.5 GW+ Three, we have reached hyperscale with more than 3.5 gigawatts of contracted power, up more than 400 megawatts this quarter alone, with the substantial majority expected to be online by the end of 2027. Source: earnings call transcript	3.7 GW Contracted power grew to 3.7 gigawatts in Q2, and since quarter end, we have added roughly 500 megawatts, bringing contracted power to 4.2 gigawatts as of today. Source: earnings call transcript	—
Incremental contracted power	~300 MW In Q1, we added approximately 300 megawatts of incremental contracted power to our portfolio. Source: earnings call transcript	~600 MW To that end, we ended the quarter with nearly 470 megawatts of active power, and we increased total contracted power approximately 600 megawatts to 2.2 gigawatts. Source: earnings call transcript	—	—	400 MW+ Three, we have reached hyperscale with more than 3.5 gigawatts of contracted power, up more than 400 megawatts this quarter alone, with the substantial majority expected to be online by the end of 2027. Source: earnings call transcript	—	—
Active power	—	—	—	—	1 GW+ We generated approximately $2.1 billion of revenue, up 32% quarter-over-quarter and 112% year-over-year, and surpassed 1 gigawatt of active power. Source: earnings call transcript	1.5 GW We continue to execute on our power strategy, reaching 1.5 gigawatts of active power, adding nearly 500 megawatts, more than any quarter in our history and more than tripling year-over-year. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Contracted revenue backlog $66.8 billion Q4 FY25 end

up $11.2 billion sequentially and more than $50 billion year-over-year

Every contract for new capacity is expected to begin generating revenue by year-end 2026.

Average weighted contract length 5 years Q4 FY25 end

increased from roughly 4 years

Reflects customers committing foundational AI workloads for longer periods.

Product announcements

Product	Type	Timeline
NVIDIA Rubin GPU platform	launch	second half of 2026
NVIDIA Vera CPU and BlueField storage	expansion	Not stated
CoreWeave's proprietary cloud stack (SUNK and Mission Control)	update	Not stated

Deals & partnerships

NVIDIA Expanded commercial relationship and investment $2 billion

Announced in January, this investment supports CoreWeave's growth and strategic alignment with NVIDIA.

Various investors Convertible senior notes offering approximately $2.6 billion

Inaugural offering in Q4 FY25, contributing to strengthening the capital structure.

Various financial institutions Revolving credit facility expansion $2.5 billion

Expanded in Q4 FY25 to support ongoing growth and operations.

Capital programs

Additional data center capacity expansion underway

Benefit:more than 5 gigawatts

Accelerating roadmap to add more than 5 gigawatts of additional data center capacity beyond already contracted footprint.

Contracted capacity build-out underway

Benefit:3.1 gigawatts

Contracted close to 2 gigawatts of additional power in 2025, ending the year with more than 3.1 gigawatts of contracted capacity, virtually all of which is expected to come online by the end of 2027.

Risks & headwinds

Global supply chain complexity and imbalances

Not quantified

Mitigation:Consistently navigated challenges through operational discipline and strategic sourcing.

Near-term margin compression due to rapid infrastructure deployment Q1 2026, then expanding sequentially

Q1 2026 adjusted operating income expected between $0 and $40 million (low single digits margin)

Mitigation:Deliberate investments to meet insatiable demand; margins expected to ramp sequentially and return to low double-digit levels by Q4 2026, with long-term target of 25-30%.

Q&A highlights

Given higher CapEx and faster delivery, why didn't active power and revenue guidance show more upside, aligning with the rapid deployment?

Management explained that much of the deployed capacity came online late in Q4, with monetization expected in 2026. They are providing guidance for 2026 and Q1 for the first time, reflecting the rapid pace of capacity build-out that will continue throughout the year.

“As we deploy capacity, a lot of that capacity came online towards the end of the quarter, and you're going to start seeing the monetization of it in 2026.”

asked by Josh Baer · answered by Nitin Agrawal

3 min read 6 chapters

Detailed narrative

Relentless Demand Environment

CoreWeave continues to experience intensifying demand across hyperscalers, AI natives, and enterprise customers, leading to significant customer diversification. In Q4 FY25, the company added approximately twice as many new reserved instance customers as any prior quarter, including names like Cognition, Cursor, Mercado Libre, Midjourney, and Runway.

The number of customers committed to spending at least $1 million on CoreWeave Cloud grew by nearly 150% in FY25, with average weighted contract length increasing from 4 to 5 years. Demand for both H100 and A100 GPUs remains strong, with H100 pricing stable and A100 pricing increasing in 2025, largely driven by inference use cases.

Expanding Monetization Avenues

The CoreWeave Cloud platform is evolving beyond core GPU infrastructure, unlocking margin-accretive growth through new products and services. Customers are increasingly engaging with CPU, storage, software, and development tools; for example, 80% of CoreWeave Cloud customers paying at least $1 million per year have adopted one or more storage products.

The company also added hundreds of millions of CoreWeave Cloud TCV from Weights & Biases customers in H2 FY25. NVIDIA intends to test and validate CoreWeave's proprietary cloud stack, including SUNK and Mission Control, for potential inclusion in NVIDIA's reference architecture, which is expected to expand CoreWeave's addressable market and become a growing source of higher-margin revenue.

Unmatched Execution & Capacity Expansion

CoreWeave ended FY25 with more than 850 megawatts of active power, adding approximately 260 megawatts in Q4 alone across 43 active data centers, up from 32 at the start of the year. The company contracted close to 2 gigawatts of additional power in 2025, bringing its total contracted capacity to over 3.1 gigawatts, with virtually all expected online by the end of 2027.

CoreWeave successfully cleared data center delays discussed in Q3, delivering over 50,000 Grace Blackwells to an impacted customer, deploying servers on a rolling basis within weeks of infrastructure access.

Disciplined Financial Model & Capital Structure

The company's financial model is designed to invest ahead of revenue, supported by a $66.8 billion contracted revenue backlog, providing strong visibility into durable cash flows. CoreWeave plans to accelerate its roadmap to add over 5 gigawatts of data center capacity by 2030.

This expansion is primarily financed by asset-level delayed draw term loans, with the goal of reducing the weighted average cost of capital and achieving investment-grade status. In 2025, CoreWeave secured over $18 billion in debt and equity from more than 200 investment partners.

Strategic Partnerships & Innovation

CoreWeave achieved NVIDIA's Exemplar Cloud Status for GB200 in Q4 FY25 and is recognized as SemiAnalysis' sole platinum-ranked AI cloud. The company expects to be among the first to bring NVIDIA's new Rubin GPU platform to market in H2 2026, alongside expanding its product portfolio to include NVIDIA's Vera CPU and BlueField storage.

These integrations are anticipated to power new capabilities, including agentic workflows for customers, further solidifying CoreWeave's position at the forefront of AI cloud innovation.

Capital Structure Optimization & Interest Savings

CoreWeave made significant progress in strengthening its capital structure, including raising approximately $2.6 billion via an inaugural convertible senior notes offering and expanding its revolving credit facility to $2.5 billion in Q4. The company's weighted average interest rate declined by 300 basis points in 2025 (600 bps since 2023), resulting in nearly $700 million in annualized interest savings based on Q4 debt balance.

CoreWeave has no debt maturities until 2029, excluding self-amortizing contract-backed debt and OEM vendor financing.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.