CoreWeave earnings call: Computing capacity essentially sold out for 2027, profitability expected in the first half of 2028

BlockBeats news, November 11 — CoreWeave management said on its Q3 earnings call that the company will not raise financing through the unsecured debt market at current yield levels, nor does it need to, and will mainly rely on customer prepayments, loans matched to customer contracts, and operating cash flow to support expansion. The company expects its full-year 2027 adjusted net loss to narrow significantly and to achieve positive adjusted net income in the first half of 2028.

On financing, CoreWeave expects to receive about $9 billion in customer prepayments and deposits over the next three months, of which more than $3 billion is related to renewals of existing cloud infrastructure, and the debt associated with this infrastructure has been fully repaid. The company's overall weighted average debt cost is 7.9%, down 250 basis points year-over-year. Management said that of its committed capital expenditures through 2027, more than 75% is related to investment-grade and enterprise customers.

On demand and pricing, CEO Michael Intrator said that compute capacity through 2027 is essentially sold out, and 2028 capacity already brought to market has also been sold, though not all 2028 capacity has been sold. The company raised prices across products by about 25% in July, by another 10% at the end of the third quarter, and prices continued to rise in the fourth quarter. In the third quarter, prices for Ampere and Hopper architecture GPUs rose 30% to 50% quarter-over-quarter, above initial contract prices.

On renewals, contracts for more than 130,000 GPUs will expire in 2027, with another roughly 170,000 in 2028. Management estimates that at current prices, 2027 renewals could contribute nearly $4 billion in incremental annualized revenue without requiring additional capital expenditures, rising to nearly $10 billion after including 2028 renewals. These figures represent renewal opportunities not yet included in the existing revenue backlog, and are not net profit.

According to CoreWeave's official financial report, third-quarter revenue was $3.661 billion, up 168% year-over-year; adjusted operating margin was 10%, and GAAP net loss was $709 million. As of the end of the quarter, revenue backlog was about $132.5 billion. The company raised its full-year revenue guidance to $13 billion to $13.3 billion, with full-year capital expenditures expected to be $37 billion to $39 billion.