Key Points
CoreWeave's revenue more than doubled in Q2.
It incurred an operating loss, which was a reversal from a year ago when it was positive.
The company doesn't appear to have a path to profitability.
- 10 stocks we like better than CoreWeave ›
Shares of CoreWeave (NASDAQ: CRWV) have been soaring higher after the company released its latest quarterly numbers. Yesterday, the tech company posted its second-quarter results, which showed tremendous year-over-year growth, as it continues to benefit from the insatiable demand for compute as companies invest heavily in artificial intelligence (AI).
While the growth is certainly encouraging, there's still a massive problem investors can't afford to ignore: a lack of profitability.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
CoreWeave incurred an operating loss in Q2
For the second quarter, which ended June 30, CoreWeave's revenue totaled $2.6 billion, which was more than double the $1.2 billion it recorded in the prior-year period. That's incredible for the business, signifying that demand remains robust and spending on AI doesn't appear to be slowing.
The problem, however, is that even with CoreWeave's business seemingly doing so well, it still can't consistently stay out of the red. A year ago, it reported an operating profit of $19 million. It was modest, but positive nonetheless. This past quarter, the tech company fell back into the red, with CoreWeave incurring an operating loss of $49 million. The big reason: its technology and infrastructure costs also rose significantly, from $670 million a year ago to $1.5 billion this past quarter.
Operating income reflects how profitable the company is after its operating expenses, so this doesn't yet include interest costs of $640 million, which further weighed on its bottom line. Overall, CoreWeave's net loss was $626 million -- up from $290 million a year ago.
If CoreWeave isn't generating an operating profit and isn't showing significant progress, it's hard to make the case that the business has a path to overall profitability.
Investors should demand more than just top-line growth
CoreWeave experienced strong growth last quarter, but that alone doesn't make the business investable. It still hasn't shown that the business model works and can be reliably profitable. Not only are its high interest costs a problem, but so too are its incredibly high operating expenses. And if demand for compute slows down, CoreWeave may post even larger losses.
If it's not able to stay out of the red now, while demand is through the roof, there's little hope that CoreWeave will do better as things inevitably slow down. This is proving to be a highly volatile and speculative stock, and it wasn't long ago that it traded around $60. While it's hot now and above the $100 mark, it could very well give back much of its gains in the future. This is a stock I'd avoid.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 12, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
