CoreWeave, Inc.

Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to the CoreWeave fourth quarter and fiscal year 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star in the number one on your telephone keypad. I would now like to turn the call over to Corweave. Please go ahead.

Thank you. Good afternoon and welcome to Corweave's fourth quarter and fiscal year 2025 earnings conference call. Joining the call today to discuss our results are Mike Entrader, CEO and Nitin Agrawal, CFO. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today's earnings press release and in our annual report on Form 10-K to be filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investors.coreweave.com. A replay of this call will also be available on our Investor Relations website. And now, I'd like to turn the call over to Mike.

Good afternoon, everyone, and thank you for joining us. 2025 was a defining year for CoreWeave. We generated more than $5.1 billion of revenue, up 168% year over year. grew our contracted revenue backlog to 66.8 billion, an increase of 11.2 billion sequentially, and more than 50 billion year over year, reached more than 850 megawatts of active power as of December 31st, and added approximately twice as many new reserved instance customers in Q4 versus any quarter in our history. We delivered these results while quickly resolving the data center delays we discussed last quarter, delivering the impacted deployments ahead of our Q3 earnings call expectations. CoreWeave is the fastest cloud in history to reach $5 billion in annual revenue. We remain in the early stages of the most transformative infrastructure buildout in history. and CoreWeave is at the forefront, building and operating some of the largest purpose-built AI clusters for the world's most demanding workloads. Strip away the complexity, and four fundamentals define where we stand. One, a demand environment that remains relentless, driving rapid adoption from an increasingly diversified set of hyperscalers, AI native, and enterprise customers. Two, expanding opportunities for new margin accretive avenues to monetize CoreWeave Cloud, unlocked by the evolution of our platform beyond GPUs and the recent expansion of a partnership with NVIDIA. Three, a rapidly growing data center footprint underpinned by unmatched execution and a strategic approach to capacity expansion. And four, a disciplined financial model deliberately designed to invest ahead of revenue to fulfill contracted demand backed by 66.8 billion in revenue backlog and providing strong visibility into durable cash flows, attractive returns, and the ability to drive down our cost of capital. We will speak to each of those today. Regarding demand, The signals we are seeing across hyperscalers, AI natives, and enterprise customers are only intensifying as AI workloads get more complex, models scale faster, and adoption continues to proliferate. The breadth of this demand has translated to deepening engineering relationships with our largest customers and material progress on diversification. CoreWeave is supporting the next generation of AI pioneers. As I mentioned in Q4, we added approximately twice as many new reserved instance customers as any prior quarter in our history, including AI native and enterprise companies like Cognition, Cursor, MercadoLibre, MidJourney, and Runway. We also expanded our relationships with some of our largest partners, including both of our existing hyperscale cloud customers. Demand accelerated from each of these customer types while pricing remained stable throughout 2025. Trends that we have seen continue as we have started 2026. In total for the year, we grew the number of customers committed to spending at least $1 million on CoreWeave Cloud by nearly 150%. These are not one-time infrastructure deployments. They represent sophisticated, multi-product opportunities, the early chapters of enduring platform relationships, and a growth engine that compounds as AI becomes more deeply embedded in how these companies operate. We are also seeing significant increase in demand for prior generations of GPU architectures, where supply also remains constrained. Average H100 pricing in Q4 was within 10% of where it started the year, while average A100 pricing increased in 2025. From our customers, we understand the demand for this infrastructure is largely for inference use cases, which are proliferating rapidly. We are signing this infrastructure into new reserved instance contracts ahead of when it becomes available, firmly putting to bed concerns about demand for older generation SKUs. With largely all of our new 2026 capacity allocated, we continue to work diligently to expand our footprint to meet the overwhelming needs of existing and prospective customers for both near and long term. These trends reinforce our conviction in the durability of demand and the longevity of this technology while running on CoreWeave Cloud. In light of the insatiable demand environment and the persistent signals we are seeing from customers, we are accelerating our roadmap with the objective of adding more than five gigawatts of additional data center capacity beyond our already contracted footprint by 2030. Moving on to new avenues to monetize CoreWeave Cloud. Our platform is evolving. as we unlock margin-accretive avenues for growth through new products and services, as well as offering our proprietary cloud stack outside of our data centers to the broader NVIDIA ecosystem. AI natives and enterprise customers are not just consuming our core GPU infrastructure. They're engaging with our unified platform at significantly higher rates across CPU, storage, software, and development tools. The opportunity to add additional value to these customers as their AI workloads mature is substantial and represents meaningful upside over time. This is already showing up across our platform. For example, approximately 80% of CoreWeave Cloud customers paying at least $1 million per year have adopted one or more of our storage products. Additionally, we are seeing strong cross-selling momentum with Weights and Biases as we added hundreds of millions of CoreWeave Cloud TCV from Weights and Biases customers in the second half of the year. We have also accelerated the development of CoreWeave's proprietary cloud stack, reference architecture, and related software solutions, including Sunk and Mission Control, which orchestrate every layer of our purpose-built cloud and increasingly define the CoreWeave customer experience. In January, we announced NVIDIA intends to test and validate our platform. including our software and reference architectures, to work towards including those offerings within NVIDIA's reference architecture for cloud, enterprise, and sovereign customers. Already, we are seeing select customers license Sunk as their default research cluster management platform across their multi-cloud footprint. We expect the broader distribution of our proprietary cloud stack to become a growing source of higher margin revenue over time. The ability to monetize our platform both inside and now beyond our own data centers through third-party licensing agreements substantially expands our addressable market. This represents tangible long-term upside potential that is not reflected in the 2026 guidance as we are providing it today. On to execution. We ended the year with more than 850 megawatts of active power, adding approximately 260 megawatts in the fourth quarter alone across 43 active data centers, up from 32 at the start of the year. We contracted close to two gigawatts of additional power in 2025, ending the year with more than 3.1 gigawatts of contracted capacity, virtually all of which we expect to come online by the end of 2027. Our contracted but not yet active capacity represents latent revenue potential that we will monetize as built and delivered. We will continue to strategically source land, power, and data center shell infrastructure. Particularly looking beyond 2026, we see robust opportunities in the current market for CoreWave to grow our contracted power capacity and will also selectively leverage our expanded collaboration with NVIDIA to accelerate our roadmap further to better meet demand. Operating at this scale and pace is inherently complex. When disruptions surface, we move decisively through disciplined coordination across teams and partners. We quickly cleared the delays discussed in our third quarter earnings call. And in total, we have now delivered more than 50,000 Grace Blackwells to the impacted customer. deploying servers on a rolling basis and delivering them within weeks of receiving access to the requisite data center infrastructure. We are delivering at this breakneck speed across several different sites, handing over tens of thousands of GPUs to different customers simultaneously. We believe CoreWeave is the only cloud platform that can move at this pace while providing the industry-leading performance and reliability that drives customers' trust and allows us to capture additional wallet share. The feedback and the results we are seeing from our closest customers is inspiring. Grace Blackwell running at scale on CoreWeave Cloud is revolutionary. In Q4, we became the first cloud platform to reach NVIDIA's exemplar cloud status for GB200, while remaining SemiAnalysis' sole platinum-ranked AI cloud. We expect to remain at the forefront of execution and innovation across the AI cloud stack as we become one of the first to bring NVIDIA's new Rubin GPU platform to market in the second half of 2026, while expanding our product portfolio to include NVIDIA's Vira CPU and Bluefield storage. The integration of these newer technologies into our proprietary cloud platform will help power new capabilities, including agentic workflows for our customers. The pace of our execution also explains why our capital expenditures for Q4 came in above guidance. Our teams were able to bring infrastructure into service ahead of our expectations, which we view as a high quality acceleration of revenue capacity for 2026. To put our current scale into perspective, according to third-party estimates, CoreWeave today is larger than the 15 largest neoclouds across North America and Europe combined. Bringing more than 260 megawatts online in a single quarter requires simultaneously orchestrating hardware, networking, storage, and purpose-built software across more than 100,000 GPUs and millions of interconnected system components, all in near perfect unison. This is among the most operationally complex undertaking in the technology industry. It is also what CoreWeave does better than anyone. And finally, turning to our financial and business model. In 2026, we expect our CapEx will be at least $30 billion, more than 2x the CapEx in 2025. I want to frame that number in clear terms. This is a reflection of the extraordinary amount of contracted demand in front of us. Our revenue backlog has grown to $66.8 billion, and the vast majority of our intended capital deployment is to directly support this long-dated contracted demand, where we have direct visibility into our long-term margins, underpinned by durable cash flow. The dividends of these investments will compound as you will hear from Nitin as he provides some commentary around our targets for 2027 and beyond in addition to our 2026 guidance. This backlog will continue to be primarily financed with the asset level delayed draw term loans that we introduced to this market. we expect to continue to reduce our weighted average cost of capital along the way, while unlocking broader industry participation in the facilities. There is a diverse and growing demand to participate in Corweave's capital market journey. We have cultivated a phenomenal financing vehicle for our business that enables us to scale at the pace of artificial intelligence. while staying on our targeted path to reach investment grade. Before I turn it over to Nitin, let me leave you with a few final thoughts. We have 66.8 billion of contracted revenue backlog, with every contract for new capacity expected to begin generating revenue by year-end 2026. We are delivering cloud infrastructure and converting it to revenue today. we are building and operating some of the largest purpose-built AI clusters for the world's most demanding workloads at a pace and quality second to none. The demand driving the build-out is relentless, diversified, and growing with customers engaging across our broadening product suite. Our contracted backlog gives us, and you, clear visibility into the trajectory ahead. The expansion of our collaboration with NVIDIA positions CoreWeave's platform as the natural destination for cloud, enterprise, and sovereign customers seeking optimal AI infrastructure performance inside and now beyond our own data centers. Our ability to see into the future of AI innovation and build towards its requirements is unmatched. We will continue to invest and grow this incredible market advantage with discipline and contracted cash flows as we deploy capital strategically to expand capacity, deepen our product suite, and develop the AI cloud that our customers demand. Our priority remains clear. Deliver the most performant, reliable, and efficient AI platform for our customers at global scale. The market is accelerating, and CoreWeave is primed to be both the beneficiary and the enabler of the AI revolution. With that, I'll turn it over to Nitin.