CoreWeave's Interest Expense Hit $640 Million Last Quarter, 2.4 Times What It Was a Year Ago
Yahoo Finance ·
Shares of artificial intelligence (AI) cloud infrastructure provider CoreWeave ( CRWV -3.58% ) trade around $82 as of this writing, down about 47% from their 52-week high. But the business keeps growing at an extraordinary pace. Second-quarter revenue rose 112% year over year to about $2.6 billion, and the company's revenue backlog reached about $104 billion (a figure that excludes more than $25 billion of new commitments added early in the third quarter). The cost of financing that growth is climbing even faster. CoreWeave's interest expense was $640 million in the second quarter -- 2.4 times the $267 million it recorded a year earlier. And the bond market isn't helping. The 30-year Treasury yield has closed above 5% on 55 days since the start of January, the most closes above that mark in any year since 2006. To be fair, CoreWeave doesn't borrow at 30-year maturities, and its debt doesn't price anywhere near Treasury yields. But in a bond market like that, I think borrowed money could stay expensive for a while. And CoreWeave needs a lot more of it.
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