CoreWeave Stock (CRWV) Pops and Drops after Q1 Revenue Beat, EPS Miss
CoreWeave's first earnings report since its IPO showed an incredible surge in revenue, but profit concerns quickly put a dampener on the...
Quick overview
- CoreWeave reported a staggering 420% year-over-year revenue growth, reaching $981.6 million in Q1 2025.
- Despite the impressive revenue figures, the company's stock fell sharply after hours due to concerns over a widening adjusted net loss of $149.6 million.
- CoreWeave's backlog stands at $25.9 billion, indicating strong future earnings potential and ongoing demand for AI infrastructure.
- The company secured significant partnerships with OpenAI and IBM, enhancing its enterprise exposure and growth prospects.
CoreWeave’s first earnings report since its IPO showed an incredible surge in revenue, but profit concerns quickly put a dampener on the jubilation that took place after hours.
CoreWeave Stock Explodes on Q1 Growth, Then Pulls Back Sharply
Following a staggering 420% year-over-year increase in first-quarter revenue, CoreWeave (CRWV) also garnered attention during extended trading. The cloud computing business, which is supported by Nvidia (NVDA) and went public only two months ago, announced $981.6 million in Q1 revenues, its first quarterly results since the IPO.
After a 7% increase during regular trading, the stock first had a robust rally, rising from $67.46 to a high of $74.50 in the after-hours session. But that happiness didn’t last long because CoreWeave’s stock swiftly fell back to $61.95, around 10% below the regular session closing.
CRWV Stock Chart Daily – The IPO Went Live on March 28
The sharp pullback may reflect investor concern over the company’s widening adjusted net loss, which ballooned to $149.6 million, up from $23.6 million a year earlier. Despite this, CEO Michael Intrator emphasized confidence in the company’s long-term growth path. “Demand for our platform is strong and growing,” he said, noting that CoreWeave is working to scale quickly to meet the rising infrastructure needs of AI-driven applications.
CoreWeave Q1 Earnings: Strong Revenue, Deep Losses, Major Backlog Boost
EPS miss:
- CoreWeave reported a loss of $1.49 per share for Q1 2025, falling well short of analyst expectations, which were calling for positive earnings of $0.66 per share.
Revenue beat:
- Quarterly revenue reached $981.6 million, easily surpassing the consensus forecast of $859.8 million—a notable beat fueled by demand in AI infrastructure.
Backlog strength:
- As of March 31, 2025, the company reported a total revenue backlog of $25.9 billion, providing visibility and confidence in future earnings potential.
Remaining performance obligations (RPO):
- Of the backlog, $14.7 billion was classified as RPO, signaling contracted but undelivered services, underscoring strong ongoing demand.
Strategic wins:
- A landmark deal with OpenAI contributed $11.2 billion to the revenue backlog.
- A new partnership with IBM (NYSE: IBM) will supply compute capacity for IBM’s Granite AI models, further bolstering CoreWeave’s enterprise exposure.
Conclusion
CoreWeave’s Q1 earnings showed the immense opportunity and volatility that come with being a high-growth player in the AI infrastructure space. While the company handily beat revenue expectations and secured transformative deals with OpenAI and IBM, its steep quarterly loss spooked investors in after-hours trading. Still, a $25.9 billion backlog offers strong future visibility, suggesting the dip may be more of a reset than a reversal for this Nvidia-backed newcomer.
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