Why is there such a large gap between GAAP net loss and adjusted EBITDA?

Adjusted EBITDA adds back depreciation and amortization ($443.5 million), interest expense ($263.8 million), taxes ($46.0 million), stock-based compensation ($184.0 million), and other items, including fair value gains. Depreciation is large because of heavy data center and GPU infrastructure investment, and interest reflects significant debt financing. Investors should weigh these costs, which are real cash or economic costs for an infrastructure-intensive business, rather than relying on adjusted metrics alone.

How much of the $25.9 billion backlog is likely to convert to revenue, and when?

Of the backlog, $14.7 billion is recorded as remaining performance obligations, which is the portion under contracts that the company expects to recognize as revenue. The remaining $11.2 billion represents other committed customer amounts that are recognized only once delivery and service availability requirements are met. Conversion timing depends on how quickly the company brings capacity online, so execution on data center buildout is central to whether backlog turns into revenue.

Is CoreWeave's balance sheet and cash flow sustainable given its growth plans?

Near-term funding relies heavily on external capital. Operating cash flow was $61.2 million in the quarter, far below $1.41 billion of capital expenditures, and total debt was about $8.7 billion. Accounts payable and accrued liabilities related to property and equipment additions rose to about $2.0 billion, and receivables more than doubled. The company had $1.28 billion of unrestricted cash, so continued access to debt markets and collection of receivables will be important.

What drove the increase in net loss, and what was non-recurring?

Net loss increased to $314.6 million from $129.2 million. Major drivers were higher depreciation, a rise in interest expense to $263.8 million, higher income tax expense of $46.0 million, and general and administrative expense of $174.8 million, up from $15.7 million. The filing notes that $177 million of stock-based compensation was recognized upon the liquidity-event vesting condition satisfied at the IPO, which is one-time in nature. Fair value gains of $26.8 million partly offset these costs.

CRWV 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 14, 2025. Cited figures are marked; the original filing is the authoritative source.

CoreWeave (CRWV) reported first-quarter 2025 revenue of $981.6 million^a, up 420% from $188.7 million a year earlier, as demand for its AI cloud infrastructure accelerated.

Revenue backlog reached $25.9 billion^b at March 31, 2025, including $14.7 billion of remaining performance obligations and $11.2 billion of other committed amounts. The largest driver was a strategic deal with OpenAI, which added $11.2 billion to backlog. Adjusted EBITDA was $606.1 million (62% margin), and the company had about 420 MW of active power and roughly 1.6 GW of contracted power at quarter end.

GAAP results were weaker. Operating loss was $27.5 million^c (-3% margin) versus operating income of $16.8 million in the prior-year quarter, and net loss widened to $314.6 million (-32% margin), or $(1.49) per diluted share. The gap between adjusted and GAAP results is large.

Adjusted figures exclude $183.9 million^d of stock-based compensation (including $177 million tied to IPO-triggered vesting), depreciation and amortization of $443.5 million, and interest expense of $263.8 million, up from $40.7 million a year earlier. The balance sheet and cash flow show the cost of this growth. Operating cash flow was only $61.2 million, while capital expenditures were $1.41 billion.

Total debt was about $8.7 billion, accounts receivable more than doubled to $1.06 billion, and accounts payable and accrued liabilities for property and equipment additions reached about $2.0 billion. The company had $1.28 billion of unrestricted cash after $1.42 billion of IPO net proceeds. Investors will likely focus on whether backlog converts to revenue on schedule, how the company funds its build-out, and how quickly GAAP profitability can improve relative to its adjusted metrics.

02—Key points

Key Highlights

Revenue rose 420% year over year to $981.6 million, driven by new customer contracts and capacity additions.
Revenue backlog of $25.9 billion at quarter end, including $14.7 billion of RPO and $11.2 billion of other committed amounts, with the OpenAI deal adding $11.2 billion.
GAAP operating loss of $27.5 million compared with operating income of $16.8 million a year earlier; net loss of $314.6 million, or $(1.49) per diluted share.
Adjusted EBITDA of $606.1 million (62% margin) versus $104.5 million (55%) in Q1 2024, excluding large non-cash and financing-related items.
Interest expense rose to $263.8 million from $40.7 million, a key drag on GAAP earnings as debt has grown to about $8.7 billion.
Capacity expansion: about 420 MW of active power and 1.6 GW contracted at quarter end; operating cash flow was only $61.2 million against $1.41 billion of capital expenditures.
Working capital and liquidity strain: accounts receivable reached $1.06 billion, and cash and cash equivalents were $1.28 billion after $1.42 billion of IPO proceeds.

03—Questions

Frequently Asked Questions

Why is there such a large gap between GAAP net loss and adjusted EBITDA?
Adjusted EBITDA adds back depreciation and amortization ($443.5 million), interest expense ($263.8 million), taxes ($46.0 million), stock-based compensation ($184.0 million), and other items, including fair value gains. Depreciation is large because of heavy data center and GPU infrastructure investment, and interest reflects significant debt financing. Investors should weigh these costs, which are real cash or economic costs for an infrastructure-intensive business, rather than relying on adjusted metrics alone.
How much of the $25.9 billion backlog is likely to convert to revenue, and when?
Of the backlog, $14.7 billion is recorded as remaining performance obligations, which is the portion under contracts that the company expects to recognize as revenue. The remaining $11.2 billion represents other committed customer amounts that are recognized only once delivery and service availability requirements are met. Conversion timing depends on how quickly the company brings capacity online, so execution on data center buildout is central to whether backlog turns into revenue.
Is CoreWeave's balance sheet and cash flow sustainable given its growth plans?
Near-term funding relies heavily on external capital. Operating cash flow was $61.2 million in the quarter, far below $1.41 billion of capital expenditures, and total debt was about $8.7 billion. Accounts payable and accrued liabilities related to property and equipment additions rose to about $2.0 billion, and receivables more than doubled. The company had $1.28 billion of unrestricted cash, so continued access to debt markets and collection of receivables will be important.
What drove the increase in net loss, and what was non-recurring?
Net loss increased to $314.6 million from $129.2 million. Major drivers were higher depreciation, a rise in interest expense to $263.8 million, higher income tax expense of $46.0 million, and general and administrative expense of $174.8 million, up from $15.7 million. The filing notes that $177 million of stock-based compensation was recognized upon the liquidity-event vesting condition satisfied at the IPO, which is one-time in nature. Fair value gains of $26.8 million partly offset these costs.

04—Continue

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