CoreWeave Q2 2026 Earnings: Revenue Doubles as Operating Margin Turns Negative

CoreWeave (Nasdaq: CRWV) reported Q2 2026 revenue of $2.575 billion, up about 112% from $1.212 billion a year earlier, while diluted net loss per share widened to $1.14 from $0.60. Adjusted EBITDA doubled to $1.510 billion, but its margin declined, and GAAP operating margin turned negative. Revenue backlog reached approximately $104 billion as demand and infrastructure capacity continued to expand.

Core earnings data

Revenue more than doubled, but total operating expenses increased about 120% to $2.624 billion, slightly faster than the top line. Cost of revenue rose about 181% to $879 million, while technology and infrastructure expense increased about 125% to $1.507 billion, causing operating income to move from a $19 million profit to a $49 million loss.

Adjusted EBITDA increased about 101%, although its margin declined by three percentage points. The large difference between adjusted EBITDA and GAAP operating income partly reflects $1.393 billion of depreciation and amortization, along with other adjustments such as stock-based compensation.

Net interest expense increased to $640 million from $267 million and was the largest item between the operating result and the bottom line. Other income of $125 million provided a partial offset, but CoreWeave still reported a $626 million net loss.

Demand, backlog and infrastructure expansion

Revenue backlog was approximately $104 billion as of June 30, 2026. The figure includes remaining performance obligations and other amounts CoreWeave estimates will become revenue under committed contracts, subject to delivery and service-availability requirements. It excludes more than $25 billion of net new customer commitments added in early Q3.

CoreWeave expanded active power by nearly 500 megawatts during the quarter, reaching 1.5 gigawatts, while total contracted power increased to approximately 3.7 gigawatts. The company also reported new enterprise and AI customer wins, including Bentley Systems, Caterpillar and Grammarly, as well as expanded relationships with customers such as Databricks and Runway ML.

These figures show demand and capacity growing together, but the backlog will need to be supported by timely infrastructure deployment before it can be recognized as revenue.

Rapid capacity expansion raised revenue but increased margin and financing pressure

CoreWeave’s growth continued to require substantial infrastructure investment. Purchases of property and equipment totaled $6.422 billion in Q2, compared with $2.453 billion a year earlier. Although operating cash flow improved to $679 million, it covered only a fraction of this spending; operating cash flow less property and equipment purchases was approximately negative $5.743 billion.

The company funded its expansion through external financing. Q2 financing cash inflow was $10.071 billion, including $13.457 billion of net debt issuance proceeds, partly offset by $3.884 billion of debt repayments. CoreWeave also received $997 million from common stock issued through private placements.

Total recourse and non-recourse debt was approximately $35.1 billion at June 30, up from about $21.4 billion at December 31, 2025. Cash and cash equivalents increased over the same period from $3.127 billion to $5.524 billion. The higher debt balance supported capacity investment and liquidity, but the rise in quarterly interest expense shows its effect on profitability.

Operating cash flow and net income also moved in different directions. The positive cash flow result was supported by $1.393 billion of depreciation and amortization and a $790 million increase in deferred revenue, while accounts receivable and accounts payable-related movements consumed cash during the quarter.

Management’s view

CEO Michael Intrator said the company had reached an inflection point as scale began to translate into operating leverage. Management also described customer demand as accelerating as enterprise adoption broadened and CoreWeave expanded its technology platform.

The results support the scale portion of that assessment through higher revenue and adjusted EBITDA. However, GAAP operating margin, adjusted operating margin and adjusted EBITDA margin all declined year over year, leaving margin conversion an important measure of future operating leverage.

Recent insider transactions

The supplied insider dataset shows 16.1 million shares purchased and 37.4 million shares sold over the last six months, for net sales of approximately 21.3 million shares. The most recent entries with complete transaction details were all sales; the data does not establish the reasons for those transactions.

Risks investors should watch

• Operating margin execution: Cost of revenue and technology and infrastructure expenses grew faster than revenue, pushing GAAP operating margin below zero and reducing adjusted margins.
• Debt and interest burden: Total debt increased substantially from year-end, while quarterly net interest expense reached $640 million and contributed heavily to the net loss.
• Capital requirements: Q2 property and equipment purchases substantially exceeded operating cash flow, leaving the expansion dependent on continued access to financing.
• Backlog conversion: The $104 billion backlog is subject to infrastructure delivery and service availability. Delays in deploying contracted power could affect the timing of future revenue recognition.

Summary

CoreWeave’s Q2 2026 results combined rapid revenue, backlog and capacity growth with weaker operating margins and a wider net loss. Positive operating cash flow provided some support, but infrastructure spending remained far higher and required significant new financing. The main issues to monitor are whether new capacity converts backlog into revenue efficiently, whether operating costs begin growing more slowly than revenue, and how the expanding debt load affects interest expense and bottom-line performance.