How does coreweave, inc. make money?

coreweave, inc. generates $5.1B in annual revenue (annual revenue · their business grew +167.9% last year).

What is CRWV's XVARY composite score?

coreweave, inc. (CRWV) has an XVARY composite score of 30/100, rated weak. This combines growth, value, risk, and momentum factors.

CRWV — coreweave, inc. stock analysis

Start here if you're new

what it is

It rents AI computing power, storage, and networking from 33 data centers so customers can run large models fast.

how it gets paid

Last year Coreweave made $5.1B in revenue. Compute was the main engine at $4.0B, or 78% of sales.

why it's growing
Revenue grew 167.9% last year. The real number is the $25.9B backlog because it equals about 5.1 times trailing revenue and tells you demand is not the immediate problem.

what just happened

CoreWeave posted $3.6B in quarterly revenue and reported EPS of -$0.56 versus a -$0.66 estimate.

At a glance

C++ balance sheet — some cracks in the foundation

8.5% return on capital — nothing to write home about

-$0.30 fy2026 eps est

$32B fy2028 rev est

0.9% operating margin

xvary composite: 30/100 — weak

What they do

It rents AI computing power, storage, and networking from 33 data centers so customers can run large models fast.

Backlog → signed future sales → so what: CoreWeave already has $25.9B of demand lined up against $5.1B of trailing revenue. It also runs 33 data centers using 420 megawatts, which means you are not buying a slide deck. You are buying scarce AI capacity that is painful for customers to move once workloads are live.

software large-cap cloud-infrastructure ai-demand data-centers

How they make money

$5.1B annual revenue · their business grew +167.9% last year

Compute

$4.0B

Storage

$0.5B

Networking

$0.3B

Managed software services

$0.2B

Cluster health management

$0.1B

The products that matter

gpu cloud infrastructure

CoreWeave Cloud

$4.9B · 96% of revenue

it is the business. this segment produced $4.9B of last year's $5.1B revenue and grew 168%.

96% of revenue

storage and networking support

Storage & Networking

$0.2B · 4% of revenue

this is only about $0.2B of revenue, but it helps turn rented compute into a usable cloud stack instead of a pile of chips.

4% of revenue

long-term capacity commitments

Committed Capacity Contracts

$66.8B backlog

it is not revenue yet, but the $66.8B backlog is the entire reason investors tolerate today's losses and debt load.

backlog matters

Key numbers

-$0.30

fy2026 eps est

$32B

fy2028 rev est

n/a

trailing p/e

n/a

dividend yield

Financial health

C++

strength

balance sheet grade C++ — below average — limited financial resources
risk rank 4 — safer than 20% of stocks
long-term debt $10.3B (20% of capital)
net profit margin 6.3% — keeps 6 cents of every dollar in revenue
return on equity 13% — $0.13 profit for every $1 investors have put in

C++ — below average. watch for debt servicing and cash burn.

Total return vs. market

Return history isn't available for CRWV right now.

same standard. no invented return math.

source: institutional data · return history unavailable

What just happened

beat estimates

CoreWeave posted $3.6B in quarterly revenue and reported EPS of -$0.56 versus a -$0.66 estimate.

Revenue grew 161% vs. prior year in the latest quarter, and annual revenue reached $5.1B, up 167.9%. The quiet part is margin: operating margin is still -0.9%, so scale is arriving before clean profitability.

$1.3B

revenue

-$0.56

eps

15.15%

eps surprise

the number that mattered

The real number is the $25.9B backlog because it equals about 5.1 times trailing revenue and tells you demand is not the immediate problem.

coreweave shares have fallen in price by more than a third in the past three months.

the shares are very volatile and more than tripled in price shortly after the initial public offering at the end of march.
lately, concerns over funding and debt levels have been pressuring the shares.

one of its largest customers, openai has seen investors question its funding roadmap, given the extremely high capital requirements to build out artificial intelligence infrastructure. with a high concentration of customers, concerns over spending by any of them can pressure the stock.
in just the past three months, coreweave has added almost $3 billion of debt to its balance sheet.

interest costs soared from $267 million in the june quarter to $310 million in the september period.
annual interest costs of $1.2 billion are more than 20% of our target revenues for 2025.
furthermore, the path to profitability is opaque.

source: company earnings report, 2026

What could go wrong

the #1 risk is AI infrastructure demand getting repriced against a $1.2B annual interest bill.

∘

med

financing squeeze

Operating margin fell from 20% to 2% while annual interest costs reached roughly $1.2B. The company can grow fast and still make the equity less attractive if debt costs keep eating the economics.

If margins stay near 2%, a lot of the $5.1B revenue base gets spoken for before shareholders see much benefit.

∘

med

customer concentration and backlog execution

The $66.8B backlog is the bull case in numeric form, but it is tied to a relatively small group of very large AI customers. If one major buyer pauses or renegotiates, backlog stops feeling like a fortress.

This risk reaches straight into future revenue visibility, not just next quarter noise.

∘

med

legal and post-ipo credibility risk

A securities fraud class action has a March 13, 2026 lead-plaintiff deadline tied to the stock's drop after the Q4 2025 report. The legal outcome is unclear, but the reputational drag is real.

Even without a major payout, legal noise can keep pressure on a stock already struggling to hold investor trust.

A business with $66.8B in backlog can still disappoint if the cost of carrying that growth stays this high.

source: institutional data · regulatory filings · risk analysis

Pay attention to

margin

operating margin vs. interest expense

The core question is whether margin can recover from 2% while quarterly interest stops climbing after the jump from $267M to $310M.

calendar

q1 2026 earnings report

Expected in May 2026. Watch the backlog, the loss line, and whether management sounds more disciplined on financing.

customer risk

backlog quality, not just backlog size

A $66.8B backlog sounds bulletproof until one large customer slows spending. Any concentration update matters more than generic growth language.

stock trend

post-ipo volatility

The stock has already traded between $34 and $187. That kind of range means sentiment can overpower fundamentals for stretches.

Analyst rankings

revenue view

$32B

Analysts expect the business to scale from $5.1B to $32B in three years. in human-speak, they are underwriting a near-perfect AI demand curve.

earnings view

-$0.30

The street still expects losses this year. Translation: rapid growth is not the same thing as an economically settled business.

target range

$95–$160

The midpoint is $128 versus a current price near $85. The upside exists on paper, but the spread is wide because the financing debate is still open.

source: institutional data

Institutional activity

institutions have been net buying for 3 consecutive quarters — 537 buyers vs. 119 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.

source: institutional data · 1q2025-3q2025

source: institutional data

Price targets

3-5 year target range

$95 $160

$85 current price

$128 target midpoint · +50% from current · 3-5yr high: $160 (+90% · 17% ann'l return)

source: institutional data · analyst targets

The deep dive

CRWV

xvary deep dive

crwv

the full analysis is in the works.

what you'll get

dcf valuation model

bull / base / bear scenarios

competitive moat breakdown

quarterly earnings tracker

operating model projections

risk matrix with kill criteria

original price target + conviction

updated with every earnings

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