CoreWeave Inc., a company backed by Nvidia and focused on AI infrastructure, reported its second-quarter fiscal 2025 earnings with revenue reaching $1.21 billion, representing a 207% year-over-year increase and surpassing the consensus estimate of $1.08 billion. Despite the strong revenue growth driven by robust demand from AI developers and strategic contracts, including a $4 billion expansion deal with OpenAI and a new hyperscaler customer, the company posted a wider net loss of $290.5 million compared to expectations. Adjusted earnings per share were a loss of $0.60, missing the estimated loss of $0.23 per share. Operating income was $19.2 million, below the estimated $43.8 million, while adjusted EBITDA was $753.2 million with a margin of 62%. CoreWeave's revenue backlog increased to $30.1 billion from $25.9 billion, with expectations to recognize approximately 50% of this backlog over the next 24 months and 90% over 48 months. Capital expenditures totaled $2.9 billion in the quarter, up over $1 billion quarter-over-quarter, as the company continues to expand its AI data center capacity, with active power capacity rising to 0.47 gigawatts and contracted power at 2.2 gigawatts. The company expects to exit 2025 with nearly 0.9 gigawatts of active power. CoreWeave raised its full-year 2025 revenue guidance to a range of $5.15 billion to $5.35 billion while maintaining adjusted operating income guidance between $800 million and $830 million. Despite the strong top-line performance, shares fell sharply—dropping as much as 17% after hours—due to the wider-than-expected losses and concerns about profitability amid rapid scaling and increased borrowing costs. The stock was further pressured by the expiration of a lock-up period releasing approximately 305 million Class A shares into the market. Analysts remain divided, with JPMorgan reiterating an overweight rating and raising the price target to $135 per share, citing solid fundamental drivers, while others like DA Davidson and Goldman Sachs express concerns over deteriorating profitability and high capital expenditures. CoreWeave CEO Michael Intrator highlighted the company's momentum and scaling efforts to meet unprecedented AI demand but acknowledged the challenges in balancing growth with profitability.