CoreWeave (CRWV) reported a 134% revenue surge to $1.36 billion in Q3, beating expectations. Operating income dropped 56% to $51.9 million due to infrastructure costs and delays. Interest expense rose to $311 million as the company plans $12-14 billion in 2025 CapEx. Backlog doubled to $55 billion, but some deployments were delayed to Q4 due to supply-chain issues.

CoreWeave’s rapid growth is fueled by a balance sheet powered by debt, with $14 billion raised year-to-date. The company expects CapEx of $12-14 billion in 2025, with plans to double that in 2026. Despite reduced borrowing costs, CoreWeave remains heavily leveraged, relying on sustained AI demand and access to capital markets for success.

Capacity constraints are emerging for CoreWeave, with supply-chain delays impacting Q4 results. The company added data centers and expanded power capacity but faces challenges. CoreWeave is pursuing self-build projects to gain more control over infrastructure. CEO Intrator emphasized the company’s adaptable infrastructure, which could mitigate risks if AI spending declines.

Read more at Yahoo Finance: 3 Things We Learned from CoreWeave’s Blowout Q3 Earnings