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CoreWeave, Inc. Class A Common Stock stock research

Mar 31, 2025

FY2025 Q1

CoreWeave, Inc. Class A Common Stock (CRWV) Gross Margin — Quarter Ended Mar 31, 2025

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.

  • The relationship between revenue and cost of revenue shows that revenue grew faster than cost of revenue compared to the same quarter last year, supporting margin improvement. However, compared to the prior quarter, cost of revenue grew faster than revenue, leading to a slight margin decline.
  • Compared to the prior quarter, gross margin was lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher, with revenue and gross profit both substantially higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

73.3%

Gross profit

$720.0M

Revenue

$982.0M

Cost of revenue

$262.0M

Quarter-over-quarter change

-2.3 pts

Year-over-year change

+4.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$395.4M$286.5M$108.8M72.5%
Sep 30, 2024$583.9M$440.8M$143.1M75.5%
Dec 31, 2024$747.0M$565.2M$181.8M75.7%
Mar 31, 2025$982.0M$720.0M$262.0M73.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

-2.3 pts

Year-over-year change

Mar 31, 2024

+4.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The relationship between revenue and cost of revenue shows that revenue grew faster than cost of revenue compared to the same quarter last year, supporting margin improvement. However, compared to the prior quarter, cost of revenue grew faster than revenue, leading to a slight margin decline.

Compared to the prior quarter, gross margin was lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher, with revenue and gross profit both substantially higher.

Monitor the trend of cost of revenue relative to revenue, as its faster growth in the current quarter compared to the prior quarter contributed to margin compression.