Key Takeaways
- CoreWeave reports after the close on November 10, and its 9.625% notes due 2032 now yield more than 16%.
- Most of its borrowing is secured against GPUs and contracts, which costs far less, but interest still tops operating profit through 2027.
- IREN is funding growth with customer prepayments, and Applied Digital borrowed at 7% to build for CoreWeave.
CoreWeave (CRWV) reports third-quarter results after the close on Tuesday, November 10, its first chance to talk funding since the bond market turned on it. Rival IREN (IREN) has already shown one way around expensive debt, while landlord Applied Digital (APLD) and last year’s biggest customer, Microsoft (MSFT), have a lot riding on what CoreWeave says.
CoreWeave sold unsecured notes with a 9.75% coupon in April and a 9.625% coupon in June. By November 6, those 2032 notes yielded more than 16%.
Steve Eisman, of The Big Short fame, rounded that to a move from 9% to 15% on the November 2 episode of The Real Eisman Playbook, then gave his verdict: “you ain’t building no data center with 15% debt.”
Bloomberg Intelligence’s Robert Schiffman disagreed on the November 4 Bloomberg Tech podcast: “I think CoreWeave can finance itself because, again, this is more a working capital issue than a demand issue.”
Wall Street Still Expects the Revenue
Analysts expect revenue to more than double from $5.13 billion in 2025 to $12.9 billion this year, then reach $43.7 billion in 2028:
The bond selloff shouldn’t move those numbers. A smaller capex plan would. The bigger risk is Microsoft, about 67% of 2025 revenue, which Bloomberg’s Brody Ford said is “prioritizing their first party in-house builds over these neocloud companies.” Microsoft’s own demand is fine: Azure grew 48% last quarter. CoreWeave’s largest customer was 36% of June-quarter revenue, down from 71% a year earlier.
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CoreWeave’s Interest Bill Already Beats Its Profit
Quarterly capex climbed from $1.22 billion in the September 2024 quarter to $7.70 billion in March 2026:
Total debt, including leases, rose from $6.28 billion in September 2024 to $51.6 billion in June 2026:
CoreWeave guided third-quarter interest to $860-940 million against adjusted operating income of $200-260 million, and analysts expect 2027 interest of $5.3 billion to exceed EBIT of $4.1 billion.
The Cheaper Money Comes With Contracts
The 16% is the unsecured price, and unsecured notes and convertibles were only $16.6 billion of $35.6 billion in borrowings. In March, CoreWeave closed an $8.5 billion investment-grade loan secured by GPUs and a customer contract, with its fixed tranche at about 5.9%.
IREN went further: a customer on a new five-year contract will prepay 90% of the GPU capex, and $9 billion of its remaining $15 billion fiscal 2027 capex is covered. “We own the land, the power and the data centers under all of it, which gives us more ways to fund growth,” Co-CEO Daniel Roberts said. CoreWeave leases much of its space, so it has less to borrow against, which makes prepayments on its new deals matter more. Applied Digital’s $1.59 billion of 7% senior secured notes, priced in June to help fund another building at Polaris Forge 1, the campus where CoreWeave leases space, show how cheaply that secured project could borrow before the selloff. They do not establish its borrowing cost today.
What CoreWeave Has to Show on Tuesday
- The $35-39 billion 2026 capex guide held, with the funding named.
- Interest inside the $860-940 million guide.
- Backlog above June’s $104 billion, plus any word on Microsoft.
CoreWeave’s earlier secured financings suggest it may be able to fund the plan at rates below its unsecured bond yields, but Tuesday’s update needs to establish the remaining funding and its terms. The bill lands on shareholders: with interest above operating profit through 2027, lenders get paid first. If CoreWeave needs another unsecured bond, its coupon will show quickly what growth really costs.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
