"Since Q3 results landed in November, CoreWeave's story has gotten complicated. More than a dozen securities class action lawsuits have been filed, all centered on the same allegation: that CoreWeave misled investors about its ability to meet customer demand and understated its reliance on a single third-party data center supplier. The alleged class period runs from March 28 to December 15, 2025, with a lead plaintiff deadline of March 13, 2026."
"The lawsuits specifically cite delays at the Denton, Texas data center tied to the Core Scientific partnership, which CoreWeave had already acknowledged on the Q3 call. CEO Michael Intrator framed it then as a temporary, isolated issue: 'It's not a challenge for power. There's plenty of power right now... But really where the challenge is is the powered shell.'"
"CoreWeave provided full-year revenue guidance of $5.05 billion to $5.15 billion on the Q3 call, implying Q4 revenue in the range of roughly $1.3 billion to $1.4 billion after the first three quarters totaled approximately $3.56 billion. Adjusted EBITDA margin guidance was 61% for the full year."
CoreWeave, a GPU infrastructure company that went public in March 2025, reports its fourth earnings results as a public company facing significant headwinds. Over a dozen securities class action lawsuits allege the company misled investors regarding its ability to meet customer demand and its dependence on a single third-party data center supplier. The litigation centers on delays at a Denton, Texas data center linked to Core Scientific, which management previously characterized as temporary. Additionally, CoreWeave's Chief Development Officer sold approximately $3.5 million in shares in mid-February under a pre-arranged trading plan. The stock trades around $96 with analyst targets averaging $126. Wall Street expects Q4 revenue between $1.3 billion and $1.4 billion, with full-year guidance implying $5.05 billion to $5.15 billion in revenue and a 61% adjusted EBITDA margin.
#securities-litigation #gpu-infrastructure #earnings-report #data-center-operations #insider-selling
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