According to CNBC, CoreWeave’s third-quarter results, due after the bell on Tuesday, are expected to face scrutiny over how the company will finance its AI infrastructure buildout. Its stock fell roughly 40% over the past month, while the yield on its 9.75% bond due in 2031 reached 15.5% on Tuesday. The five-year credit default swap spread stood around 1,152 basis points on Tuesday, and the company’s debt-to-equity ratio was 702%, up from almost 291% a year ago.
CoreWeave reported a $104.2 billion revenue backlog in the second quarter and had about $35 billion in debt as of June 30. For the third quarter, it previously guided for revenue of $3.4 billion to $3.6 billion and capital expenditures of $11.5 billion to $13.5 billion. Wells Fargo analyst Michael Turrin said 2027 capital expenditures could reach $66 billion, requiring at least $25 billion more in debt. Investors will be watching for details on financing and spending plans.