-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
CRWV posted Mar-Q revenue of $2,078M (+112% Y/Y), beating the $1,969M consensus, driven by robust AI compute demand and capacity expansion. Operating losses widened to $144M from $27M in the prior year, while net losses doubled to $740M from $315M, primarily due to interest expense surging 103% to $536M. The quarter marked record bookings with revenue backlog reaching $99.4B, including a new $21B Meta commitment and expanded relationships with Anthropic, Cohere, and others, validating CRWV's aggressive infrastructure strategy. No guidance was provided, with details expected on the earnings call. We believe the $2B NVIDIA Corporation (NVDA 212 *****) investment and $8.5B DDTL facility strengthen CRWV's financial position, while surpassing 1 GW of active power demonstrates execution capability. However, we expect continued profitability challenges as adjusted EBITDA margin compressed to 56% from 62% and operating expenses surged 120% to $2,222M, reflecting the capital-intensive nature of this hyper-growth phase.