Interest payments weigh on revenue
CoreWeave posted $2.575 billion in revenue for the second quarter of 2026. This figure doubles revenue from the previous year, when the company earned $1.21 billion. However, interest expenses reached $640 million during the same period. This expense consumed 24.9% of the total revenue. The company also reported a net loss of $626 million for the quarter. This deficit follows a capital expenditure program that reached $23 billion in 2025. Management expects capital expenditures to fall between $35 billion and $39 billion for the full year 2026. While the $99 billion contracted sales backlog provides a foundation for growth, the company must manage a massive $35.1 billion debt load to finance its rapid expansion. This debt includes $31.4 billion in recourse debt and $3.7 billion in non-recourse debt. The company ended the quarter with $11.2 billion in debt and only $1.2 billion in cash. In the first half of the year, property and equipment purchases reached $14.12 billion. Adjusted EBITDA for the second quarter reached $1.51 billion, which covers interest expenses roughly 2.4 times. Third-quarter interest guidance ranges from $860 million to $940 million. The company’s debt grew from $21.4 billion at the end of 2025 to $35.1 billion by June 30, 2026. Management aims to leverage its $99 billion backlog to offset these rising costs.
| Metric | Value |
|---|---|
| Q2 2026 Revenue | $2.575 billion |
| Q2 2026 Interest Expense | $640 million |
| Total Debt (as of June 30) | $35.1 billion |
| 2026 Capex Guidance | $35 billion – $39 billion |
| Contracted Backlog | $103.7 billion |
| 2026 Revenue Guidance | $12.4 billion – $13.2 billion |
Concentration creates monopsony risk
Customer concentration presents a structural risk to the business model. Microsoft accounts for 62% of revenue, according to recent filings. This dependency creates a monopsony risk because the primary customer also competes in the cloud infrastructure space. For much of the previous year, Microsoft accounted for nearly 70% of CoreWeave’s revenue. Meta Platforms committed $21 billion for capacity through 2032, providing a different revenue stream. OpenAI also remains a major client with significant expansion agreements. You should watch for any shift in how these large buyers manage their own internal compute needs. Hyperscalers like Amazon and Alphabet use their existing cash flows to fund AI infrastructure, which gives them a defensive advantage. The rise of efficient, smaller AI models, often called the DeepSeek Effect, suggests that demand for massive GPU clusters might fluctuate. This phenomenon could reduce the need for the specialized hardware CoreWeave rents to its clients. Specialized providers like Nscale now aim for valuations of $35 billion, as they compete for the same pool of AI demand. Nscale reports a contracted pipeline of $103.4 billion, including $44.6 billion with Anthropic and $43.8 billion with Microsoft. Nscale also controls a 10GW power pipeline and nearly 461,000 GPUs, which places direct pressure on the capacity of neocloud players like CoreWeave. This competition intensifies as Nscale’s revenue surged 1,252% to $140.6 million in the first half of 2026, which demonstrates the intense rivalry among neocloud providers.
Backlog visibility versus hardware cycles
The $103.7 billion remaining performance obligation includes $42.5 billion expected within 24 months. This visibility supports the case for long-term revenue. However, Nvidia’s rapid innovation cycle introduces depreciation risks. The Vera Rubin platform might make older clusters less competitive in terms of cost per token. CoreWeave’s revenue growth remains strong, with 2026 revenue guidance sitting between $12.4 billion and $13.2 billion. The company also attempted to acquire Core Scientific for $9 billion to secure power infrastructure, though shareholders rejected the deal. The company faces a $4.2 billion debt maturity in 2026. This requires consistent execution to avoid a liquidity crisis. As CoreWeave attempts to scale its global footprint, the company faces the difficult task of balancing a $35.1 billion debt load against a massive capital expenditure requirement that could reach $39 billion by the end of the year. The company must ensure that its $30 billion backlog from 2025 converts to cash before its interest costs outpace its operating margins. The company’s current interest expense of $640 million for the quarter puts pressure on its ability to fund new capacity. The mismatch between long-term debt and short-term hardware relevance remains a core concern for bondholders. Will the company manage its debt before the next hardware cycle begins?
