CoreWeave posts $3.66 billion revenue as some bond yields top 15%

CoreWeave reported third-quarter revenue of $3.66 billion, up 168% from a year earlier, and a net loss of $709 million, compared with $110 million a year earlier. CEO Mike Intrator said the company will not use unsecured debt at current yields after some bonds yielded more than 15%.

Capex was $14.5 billion, and adjusted operating income was $379 million, above management's previous guidance of $200 million to $260 million. Revenue backlog reached $132.5 billion, a company record and up 138% from a year earlier.

For allocators underwriting digital-infrastructure debt, the comparison is between a 7.9% average cost of debt and some bonds yielding above 15%, with repayment tied to customer contracts. CoreWeave said it will fund remaining capex mostly through delayed-draw term loans matched to specific customer contracts, which can cover 70% to 100% of the associated capex. Contract duration and counterparty quality determine whether the debt is self-liquidating.

Intrator said more than 75% of committed capex through 2027 is tied to investment-grade and enterprise customers, with the remainder tied to "the world's leading AI labs and AI native companies." CoreWeave has paid down more than $4 billion in debt from cash flows generated by customer contracts, he said.

CFO Nitin Agrawal said more than half of the revenue backlog is attached to one contract, with customer delivery expected to begin by the end of this year. The company has brought most of a 22.5MW deployment live at atNorth's Copenhagen site, as Private Wealth Daily previously reported.

For facilities funding long-term commitments, the debt is repaid by the time the customer contract ends and the infrastructure is owned free and clear by CoreWeave, Intrator said.