CoreWeave reports third-quarter results after market close Tuesday as investors scrutinize how the data center company will finance its artificial intelligence infrastructure buildout.
The company's stock has fallen roughly 40% over the past month. Its 9.75% bond due in 2031 yields 15.5% as of Tuesday, after jumping to 16.7% on Thursday. Credit default swap spreads stood around 1,152 basis points on Tuesday, up from 1,278 basis points on Thursday, signaling distressed credit risk levels.
CoreWeave's debt-to-equity ratio reached 702%, up from 291% a year ago. The company holds about $35 billion in debt as of June 30 and reported a $104.2 billion revenue backlog in the second quarter.
For the third quarter, CoreWeave guided for revenue between $3.4 billion and $3.6 billion, capital expenditures between $11.5 billion and $13.5 billion, and expects 1.85 gigawatts in active power by year-end. The company anticipates $35 billion to $39 billion in full-year capex.
Wells Fargo analyst Michael Turrin said remaining capex needs should be covered by undrawn debt, August/September debt issuances, and $12 billion in cash holdings. However, 2027 capex could reach $66 billion based on expected capacity additions, requiring at least $25 billion more in debt, Turrin noted.
CoreWeave owes roughly $15 billion in principal payments through 2028. CEO Michael Intrator posted on LinkedIn that the company does not anticipate political changes will impact existing customer commitments or backlog.
Investors need the company to detail financing plans and timelines to build confidence. CreditSights analyst Jordan Chalfin said CoreWeave could ease concerns by showing capacity scaling plans through 2027 and demonstrating remaining performance obligation growth.
Analysts maintain an average overweight rating with a $126 price target. CoreWeave stock has declined more than 73% from its June 2025 peak above $183.