CoreWeave shares fall more than 3% before the open amid debt concerns
Key Facts
CoreWeave shares fell more than 3% in premarket trading on October 20, 2026, according to Benzinga, amid concerns over debt and borrowing costs. Funding pressures extended to the company's bonds due in 2030, whose yield jumped 500 basis points to nearly 16% over a week, according to a Reuters analysis published on October 16. The stock's decline followed Goldman Sachs' upgrade to buy from neutral on October 19, according to Investing.com. However, analyst Gabriela Borges simultaneously cut her price target on the stock to $106. Her previous price target was $139.
The funding concerns coincided with growth in CoreWeave's revenue, which reached $2,575 million in the second quarter of 2026, according to the company's earnings release. Revenue in the corresponding period of 2025 was about $1,212 million, a comparison reflecting the expansion of its business over the year. The company reported net interest expense of $640 million in the second quarter as it continued to bear the costs of financing its operations. Its quarterly net loss was $626 million, despite the increase in revenue from the corresponding period. On an annual basis, Reuters reported that the company generated revenue of $5.1 billion in 2025, against a net loss of $1.2 billion.
Revenue backlog stood at about $104 billion at the end of the second quarter, according to the company, as it expanded its computing infrastructure. In its earnings release, CoreWeave announced an increase in active power capacity of about 500 megawatts to 1.5 gigawatts. In August, it raised the upper end of its annual capital expenditure forecast to $39 billion, an increase of $4 billion, according to Reuters. During the third quarter, the company also signed short-term customer contracts lasting roughly 3 to 6 months. It said pricing for these contracts was about $40 million per megawatt, calculated by dividing annual revenue by the capacity needed to serve the computing clusters.
As part of financing its expansion, CoreWeave announced on August 10 that it had closed a $2.6 billion delayed-draw term loan facility to support its cloud infrastructure. The facility has a term of about 5 years, according to the company's statement on the financing terms. The customer contracts underpinning the loan have an average duration of about 3 years, shorter than the facility's term. CoreWeave said the loan facility received a Ba2 rating from Moody's. It added that Fitch assigned it a BB+ rating, among the announced ratings for the facility it secured to support the expansion of its artificial intelligence infrastructure.
CoreWeave also tapped the bond market, completing an offering of senior convertible notes with an aggregate principal amount of $4.2 billion on September 22. The notes carry a contractual annual interest rate of 2.875%, according to the company's filing with the U.S. Securities and Exchange Commission. Net proceeds from the offering were $4,137.0 million after deducting initial purchasers' discounts and before estimated offering expenses. The terms allow the company to settle conversions in cash, shares of its Class A common stock or a combination of both. The note offering, alongside the delayed-draw term loan facility, is among the financing instruments the company announced to expand its financial flexibility.
Addressing the financial concerns, Nvidia chief Jensen Huang defended CoreWeave in remarks reported by Reuters on October 15. Huang said "CoreWeave's financial strength is improving every day," expressing confidence in the company's position. He added that he saw no need for Nvidia to provide it with a financial backstop. Under the terms of the convertible notes, cash interest payments begin on April 1, 2027. The notes' contractual maturity is April 1, 2033, unless repurchased, redeemed or converted earlier, according to CoreWeave.