CoreWeave, Inc. (CRWV) recently announced its first-quarter results for 2025, showcasing a remarkable surge in revenues to $981.6 million, exceeding the Zacks Consensus Estimate by 15.2% and marking an extraordinary 420% increase year-over-year. Following this impressive earnings release on May 14, CRWV’s stock has soared by over 19%, closing at $80.30. The stock has more than doubled since its debut at $39 on March 28.
Despite this robust performance, investors are left pondering whether to hold onto their positions in CRWV shares or to take profits. Evaluating the latest quarterly results and the long-term outlook may provide clarity.
In Q1, CRWV reported a loss per share of $1.49, which was significantly wider than the loss of 62 cents reported in the same quarter a year prior. This loss included $177 million in stock-based compensation expenses related to performance-based awards that vested with the initial public offering (IPO). Adjusted for these expenses, the net loss reached $149.6 million, compared to $23.6 million a year ago. However, the company’s revenue backlog saw a substantial increase to $259 billion, up 63% year-over-year, indicating strong future revenue prospects.
In addition, management announced a strategic partnership with OpenAI worth approximately $11.9 billion while acquiring several new enterprise clients, including a substantial $4 billion expansion with a leading AI enterprise customer. This expansion is expected to reflect in the revenue backlog starting in the current quarter.
Regarding operating costs, CRWV recorded $1 billion, a significant rise from $171.8 million in the previous year, primarily due to the aforementioned stock-based compensation expenses connected with the IPO. Adjusted operating income, however, saw a dramatic improvement at $162.6 million, reflecting a 550% increase year-over-year, with adjusted operating margins improving to 17% from 13% in the year-ago quarter.
Looking ahead, the rising demand for AI-cloud infrastructure appears promising for CoreWeave. As an AI-focused hyperscaler company, CoreWeave’s cloud platform is designed to efficiently support and accelerate Generative AI workloads, which positions it advantageously against traditional cloud providers whose infrastructures may not be optimized for such needs. Notably, CoreWeave has also introduced next-generation AI object storage designed specifically for training and inference tasks, further solidifying its commitment to delivering scalable AI solutions.
The company’s strong quarterly performance, strategic partnerships, and innovative offerings suggest a promising trajectory, providing a hopeful outlook for existing and prospective investors.