CoreWeave, Inc. Q2 FY26 Earnings Analysis

- CoreWeave expects to end 2026 with $18 billion to $19 billion of annualized run rate revenue, increasing the low end by $1 billion from prior estimates. - Annualized run rate revenue is projected to grow to over $30 billion by the end of 2027, with more than 75% already contracted. - The company has a nearly $100 billion revenue backlog, with 36% expected recognized in 24 months and 75% within 4 years. - Demand remains strong, with the company largely sold out of its 2026 capacity and growing adoption from diversified enterprise clients. - Active power capacity is rapidly expanding, targeting over 8 gigawatts of active power by 2030. - Sequential margin expansion and revenue growth are expected to inflect between Q2 and Q3 2026, with adjusted operating income margins reaching low double digits by Q4.

- CoreWeave expects sequential expansion in adjusted operating margin through the balance of 2026, returning to low double digits by Q4. - Full-year 2026 guidance is reaffirmed with revenue of $12 billion to $13 billion and adjusted operating income of $900 million to $1.1 billion. - Adjusted operating income margins are expected to inflect positively crossing from Q2 to Q3, with operating income growth outpacing revenue growth in the second half. - Margin dynamics are timing-based due to deployment phases, with contribution margins normalizing by month 3 post-deployment. - Long-term, the business aims for over $30 billion in annualized run rate revenue by end of 2027 with more than 75% contracted. - The company is confident in meeting/exceeding its long-term revenue and margin targets aided by strong backlog and capital structure.

- Q2 CapEx expected between $7 billion and $9 billion; full-year CapEx guidance raised to $31 billion to $35 billion due to increased component pricing. - Significant progress in capital structure: over $20 billion of debt and equity secured year-to-date through multiple transactions, including a $2 billion equity raise linked to NVIDIA partnership. - Financing includes investment-grade rated facilities (e.g., 4th delayed draw term loan with A- rating) and nonrecourse structures to improve capital access and lower costs. - Recent $1 billion strategic investment from Jane Street highlights customer platform value. - Secured all financing needed for existing OpenAI commitments via 5th delayed draw term loan facility. - Continued investment in self-build data centers to gain operational control and expand AI infrastructure capacity. - Strong pipeline for additional infrastructure, securing 2 gigawatts in last 12 months and 400 megawatts in the latest quarter; targeting 8 gigawatts active power by 2030.

- In Q1, CoreWeave raised $2 billion of equity related to its expansion with NVIDIA. - Secured approximately $8.5 billion of investment-grade debt via its fourth delayed draw term loan (DDTL 4.0), priced at an implied rate of less than 6%. - DDTL 4.0 includes an ABS-style draw feature unlocking an additional $1 billion drawable capital upon contract stabilization. - DDTL 4.0 is non-recourse, enabling enhanced capacity and improved pricing without impacting CoreWeave Inc. and its lenders. - Entering Q2, CoreWeave secured over $10 billion of additional debt and equity across several transactions, with offerings upsized due to strong investor interest. - The fifth DDTL facility was priced in public loan markets to finance contracts with OpenAI and Cohere, priced 50 bps inside initial marketing range. - Over $20 billion of debt and equity capital secured year-to-date. - No debt maturities until 2029 except self-amortizing contract debt and OEM vendor financing.

- CoreWeave has about $100 billion in revenue backlog. - This backlog roughly translates to about 2 gigawatts of contracted power. - As of the end of Q2, 3.4 gigawatts of power are already contracted. - This implies approximately 1.4 gigawatts remain to be allocated or sold. - The company uses the term "allocate" rather than "sell," reflecting thoughtful client capacity distribution. - Demand for capacity is extremely high, allowing CoreWeave to be selective about client allocation. - The company has a very robust pipeline for additional capacity, continuously reviewing sites and deals. - CoreWeave expects to continue adding significant new capacity, with 400 megawatts contracted in the recent quarter. - Over the past 12 months, they have secured 2 gigawatts of infrastructure. - CoreWeave is also developing self-built data centers to gain operational control over capacity.