CoreWeave Reports Quarterly Interest Expense of $640 Million, Up Sharply Year Over Year
Artificial intelligence cloud infrastructure provider CoreWeave reported a second-quarter interest expense of $640 million, more than doubling from the previous year's $267 million. This rapid increase is driven by significant debt accumulation as the company scales its operations; total debt reached approximately $35 billion at June 30, up sharply from around $21 billion in late 2025. Despite a reduction in CoreWeave’s weighted average cost of debt—down nearly 300 basis points over the past year—the overall interest burden has grown due to increased borrowing. The company's CFO noted that these savings amount to about $1.1 billion annually, but they are offset by rising balances and higher new financing costs. The broader bond market remains challenging for high-debt companies like CoreWeave, with 30-year Treasury yields remaining above 5% much of the year. Management expects third-quarter interest expense between $860 million to $940 million, which could further strain profitability as adjusted operating income declined in Q2 despite revenue growth.
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Topics: AI infrastructure debt financing interest expense revenue growth