Thoughts on recent earnings
Much of the concern about yesterday‘s earnings are over blown. In the Q4 earnings call, Intrator explicitly stated that much of this year’s capex would occur in Q1 2026, causing margins to temporarily bottom out during that period.
He then continued to explain that throughout this year margins would expand as revenue scales with new capacity coming online. These Capex deployments are lumpy which causes certain quarters to to have higher debt loads. Nothing fundamentally has changed about this business. They have 100 billion in backlog, are ranked as the #1 neocloud by semi analysis and are actively executing on their mission.
None of these data centers are speculative. They only build them if the demand is already there and all the data centers and the debt they’re raising are backed by contracts. The risk on crwv side is not whether or not the data centers will be leased, but whether they can build them. Yes, the execution risk is real. But look at their track record. Look who is consistently coming back to crwv again and again.
They’re continuing to diversify their customer base and continuing to expand their products and capabilities. The future is bright