CoreWeave announced on September 17 that it has secured new customer agreements at elevated pricing levels since June 30. The company’s third-quarter contracts, which typically run between three and six months, are generating approximately $40 million in annualized revenue per megawatt of capacity. This pricing structure demonstrates significant customer demand for the company’s AI infrastructure services.
The strength in customer demand is reflected in CoreWeave’s expanding backlog and contracted capacity. The revenue backlog reached approximately $104 billion as of June 30, supplemented by over $25 billion in additional commitments secured early in the third quarter. Contracted power capacity grew to about 4.2 gigawatts by the August 11 earnings call from approximately 3.7 gigawatts on June 30. The customer roster has also broadened, with enterprises including Caterpillar and Bentley Systems joining artificial intelligence research organizations as clients. Second-quarter revenue reached $2,575 million, more than doubling from $1,212 million in the prior year.
However, elevated pricing has not yet translated into profitability. Operating income declined to a loss of $49 million in the second quarter from a $19 million profit in the prior year. Adjusted operating margin compressed to 5% from 16%, indicating that cost growth is outpacing revenue expansion. Net interest expense doubled to $640 million, contributing to a widened net loss of $626 million compared to $290 million in the prior year. The company raised more than $10 billion through convertible and unsecured debt issuances in the second quarter to fund capacity expansion.
The path from contracted backlog to realized revenue involves execution risks. Active power stood at 1.5 gigawatts against 3.7 gigawatts of contracted capacity as of June 30, requiring substantial capital investment to complete. Additionally, the short-duration nature of customer contracts means pricing must be renegotiated regularly. Institutional investor interest has grown, with hedge fund ownership rising to 71 funds from 63 in the prior quarter, though 17.84% of the float remained sold short, indicating persistent skepticism about the company’s financial trajectory.
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