CoreWeave's stock drops as losses swell and interest expenses climb

Dow Jones05:55

MW CoreWeave's stock drops as losses swell and interest expenses climb

By Christine Ji

While AI demand remains high, CoreWeave's widening net loss in the fourth quarter is giving investors pause

CoreWeave's revenue backlog quadrupled from the beginning of 2025.

CoreWeave shares faced pressure in after-hours trading on Thursday after the company's fourth-quarter earnings report showed healthy demand and revenue growth but a widening net loss.

CoreWeave's stock (CRWV) was down about 6% after the closing bell. The company's fourth-quarter revenue reached $1.57 billion, growing 110% year over year and exceeding the $1.55 billion FactSet consensus. The company posted a net loss of $452 million, far steeper than the $342 million anticipated by analysts.

"2025 was a defining year for CoreWeave as we became the fastest cloud in history to reach $5 billion in annual revenue," chair and CEO Michael Intrator said in the press release.

Demand for CoreWeave's products is strong. The company's backlog grew to $66.8 billion in the fourth quarter - quadrupling from the beginning of 2025 - and CoreWeave is building aggressively to turn the backlog into revenue. The company added 260 megawatts of active power capacity in the fourth quarter alone, bringing its total to over 850 megawatts. More important for future scaling, CoreWeave has contracted for 3.1 gigawatts of total power, securing access to address a critical artificial-intelligence bottleneck.

But the cost of building the massive data centers required to house Nvidia's (NVDA) high-end chips continues to weigh on the bottom line, especially as CoreWeave takes on debt to fund its expansion. While CoreWeave is growing revenues at a rapid clip, the company's interest expenses are increasing at a similar pace. Net interest expense for the fourth quarter was $388 million, a 160% year-over-year increase. For 2025, net interest expense came out to $1.23 billion, a 240% year-over-year increase.

CoreWeave reported a full-year net loss of $1.17 billion, compared with a loss of $863 million the previous year.

Read: Here's what CoreWeave's earnings need to show for the stock to soar further

-Christine Ji

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February 26, 2026 16:55 ET (21:55 GMT)

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