Executive Summary

Q3 delivered record revenue of $1.36B, above S&P Global consensus, with significant backlog acceleration to $55.6B; GAAP diluted EPS was ($0.22). Strength was driven by broad AI demand and large-scale contracts (Meta, OpenAI), while net loss narrowed materially year over year .
A temporary “powered shell” delay at a third-party data center prompted a guidance reset: 2025 revenue cut to $5.05–$5.15B, adjusted operating income to $690–$720M, CapEx to $12–$14B, and year-end active power to >850 MW (from >900 MW); management emphasized preserved contract value via customer schedule extension .
Estimates context: Revenue and Primary EPS were above S&P Global consensus for Q3, while EBITDA (as defined by S&P Global) was below; company-reported Adjusted EBITDA was $838M (61% margin) . S&P Global: Revenue $1.28B*, Primary EPS ($0.36), EBITDA $808M vs actuals Revenue $1.36B*, Primary EPS ($0.08), EBITDA $682M (company Adjusted EBITDA $838M) .
Strategic catalysts: deepening partnerships (NVIDIA, Meta, OpenAI), first-to-market deployments (GB300 NVL72, RTX PRO 6000), accelerating software/storage monetization (AI Object Storage, serverless RL) and balance sheet flexibility (revolver upsized to $2.5B) supporting 2026 CapEx “well in excess of double” 2025 .

What Went Well and What Went Wrong

What Went Well
- Revenue beat and backlog surge: Q3 revenue $1.3647B (up 134% y/y) and revenue backlog $55.6B (+$25B q/q) reflect robust demand and multi-year visibility .
- Customer diversification and quality: No single customer >~35% of backlog (down from ~50% last quarter and ~85% at start of year); >60% of backlog tied to investment-grade customers .
- Technology and product leadership: First to deploy NVIDIA GB300 NVL72 and to GA RTX PRO 6000 Blackwell server GPUs; AI storage crossed $100M ARR; MLPerf leadership and SemiAnalysis Platinum ClusterMAX reaffirm advantages .
What Went Wrong
- Powered shell delays: A third-party data center delay is pushing some deployments, impacting Q4 cadence and necessitating 2025 guidance cuts despite preserved contract value via adjusted delivery schedules .
- Rising interest expense from scaling: Q3 interest expense rose to $311M vs $104M y/y on higher debt supporting infrastructure growth, partly offset by lower spreads .
- Non-GAAP margin mixed: Adjusted EBITDA margin dipped to 61% (vs 62% in Q2; 65% y/y), reflecting timing of large-scale deployments ahead of revenue ramps .

Financial Results

Performance vs prior periods (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($MM)	$583.9	$1,212.8	$1,364.7
GAAP Diluted EPS ($)	($1.82)	($0.60)	($0.22)
Operating Income ($MM)	$117.1	$19.2	$51.9
Operating Margin (%)	20%	2%	4%
Net Loss ($MM)	($359.8)	($290.5)	($110.1)
Net Loss Margin (%)	(62%)	(24%)	(8%)
Adjusted Operating Income ($MM)	$124.7	$199.8	$217.2
Adjusted Operating Margin (%)	21%	16%	16%
Adjusted EBITDA ($MM)	$378.8	$753.2	$838.1
Adjusted EBITDA Margin (%)	65%	62%	61%
Interest Expense, net ($MM)	($104.4)	($267.0)	($310.6)

Estimates comparison (S&P Global; Q3 2025)

Metric	S&P Global Consensus	Reported
Revenue ($MM)	$1,283.5*	$1,364.7*
Primary EPS ($)	($0.36)*	($0.08)*
EBITDA ($MM)	$808.3*	$682.3*

Values retrieved from S&P Global.*

KPIs and balance sheet scaling (oldest → newest)

KPI	Q1 2025	Q2 2025	Q3 2025
Revenue Backlog ($B)	$25.9	$30.1	$55.6
Active Power (MW)	~420	~470	~590
Contracted Power (GW)	~1.6	~2.2	~2.9
Cash & Cash Equivalents ($MM)	$1,276.5	$1,152.9	$1,894.4
Restricted Cash Current ($MM)	$624.3	$560.2	$596.8
Restricted Cash Non-Current ($MM)	$617.1	$340.5	$477.5
Marketable Securities ($MM)	—	—	$47.4

No segment reporting disclosed in the 8-K; mix commentary provided qualitatively on the call .

Guidance Changes

Metric	Period	Previous Guidance (Q2 call)	Current Guidance (Q3 call)	Change
Revenue ($B)	FY 2025	$5.15–$5.35	$5.05–$5.15	Lowered
Adjusted Operating Income ($MM)	FY 2025	$800–$830	$690–$720	Lowered
CapEx ($B)	FY 2025	$20–$23	$12–$14	Lowered
Active Power (MW)	YE 2025	>900	>850	Lowered
Interest Expense ($B)	FY 2025	—	$1.21–$1.25	New disclosure
CapEx outlook	FY 2026	—	“Well in excess of double” 2025	New disclosure

Management attributed the cuts to temporary powered shell delays at a third-party provider; the affected customer extended schedules to preserve total contract value .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Supply chain / powered shell	Structurally supply-constrained; massive deployments and back-half CapEx ramp	Specific powered shell delay at a third-party provider; customer extended delivery, preserving contract value	Short-term headwind; long-term intact
AI/tech leadership	MLPerf Inference v5.0; GB200/HGX B200 at scale	First to deploy GB300 NVL72; GA RTX PRO 6000; MLPerf leadership reiterated	Leadership widening
Customer concentration	Backlog $25.9B → $30.1B; hyperscaler expansions	Backlog $55.6B; no customer >~35%; >60% investment-grade	Diversification improving
Product & storage	AI Object Storage GA; W&B integration roadmap	Zero Egress Migration (0EM); storage eclipsed $100M ARR	Expanding monetization
Financing / cost of capital	IPO proceeds; revolver to $1.5B	$1.75B senior notes; DDTL 3.0 at SOFR+400; revolver to $2.5B (maturity extended)	Cost of capital down; flexibility up
Strategic M&A	Proposed Core Scientific verticalization	Terminated acquisition; maintaining 590 MW leased, continuing collaboration	Pivot to mixed self-build + partners

Management Commentary

CEO: “We delivered an exceptional third quarter… almost doubling our revenue backlog to more than $55 billion” and “first to deploy NVIDIA GB300 NVL72 systems” underscoring leadership and demand breadth .
CEO on diversification: “Nine of our ten largest customers have now executed multiple agreements with us” and broadening into public sector with CoreWeave Federal and NASA JPL .
CFO: “Adjusted operating income was better than expected due to higher revenue, lower costs due to timing of data center deliveries from our third-party partners, and improved fleet efficiencies” .
CFO on 2025 guide: “We now expect 2025 revenue $5.05–$5.15B; adjusted operating income $690–$720M; CapEx $12–$14B; YE active power >850 MW” with Q4 margin headwinds from timing of large deployments .

Q&A Highlights

Powered shell issues and impact scope: Management framed the delay as isolated to a single provider; diversified data center portfolio (32 sites) mitigates risk; backlog economics preserved via customer schedule extension .
Overcapacity concerns: Infrastructure is fungible across customers/workloads; software stack (Mission Control, W&B integrations) enhances utilization; demand remains structurally supply-constrained .
NVIDIA contract structure: Interruptible/resellable capacity underwritten by NVIDIA enhances reach to smaller AI labs while managing utilization; most resold capacity excluded from RPO but included in backlog .
2026 outlook and funding: 2026 CapEx “well in excess of double” 2025; multiple financing avenues (notes, DDTLs, leasing if cost-effective); spreads declining as capital providers gain confidence .
Self-build vs partners: Self-build augments third-party model to embed deeper into supply chains and de-risk deliveries; not replacing partners .

Estimates Context

Q3 2025: Revenue above S&P Global consensus ($1.365B* vs $1.283B*), Primary EPS above consensus (($0.08)* vs ($0.36)), while S&P-defined EBITDA came in below consensus ($682M vs $808M*). Company-reported Adjusted EBITDA was $838M (61% margin) . Values retrieved from S&P Global.*
Forward setup: Company guided FY25 revenue to $5.05–$5.15B (down from $5.15–$5.35B) largely due to powered shell delays shifting deployments; with YTD revenue of $3.559B through Q3, the updated range implies a Q4 run-rate broadly consistent with S&P Global’s Q4 revenue consensus of $1.567B* . Values retrieved from S&P Global.*
Estimate revisions: We expect Street models to trim FY25 revenue and adjusted operating income and reflect lower CapEx/YE MW while maintaining multi-year growth trajectories on the back of $55.6B backlog and 2.9 GW contracted power .

Key Takeaways for Investors

Demand durability outweighs near-term deployment friction: Backlog of $55.6B and 2.9 GW contracted power underpin multi-year growth despite a temporary Q4/Q1 shift from a third-party powered shell delay .
Quality and diversification improving: No customer >~35% of backlog; >60% investment-grade exposure reduces concentration/credit risk and supports financing access at improving spreads .
Technology moat expanding: First-to-market GB300 NVL72/RTX PRO 6000, MLPerf leadership, and integrated software/storage (W&B, AI Object Storage, 0EM) enhance performance, stickiness, and monetization .
Capital structure flexibility: Revolver upsized to $2.5B and lower-spread DDTLs support the ramp; no major maturities until 2028 enhances execution runway .
2025 reset, 2026 acceleration: FY25 revenue/adjusted OI reduced, but CapEx is expected to more than double in 2026 as deployments scale, setting up re-acceleration post catch-up .
Trading lens: Near-term narrative hinges on deployment timing/margin trough into Q4 vs. visibility from backlog and first-to-market hardware/software advantages; watch Q4 ramp pace and powered-shell normalization commentary next quarter .

All citations:

Q3 2025 8-K and press release:
Q3 2025 earnings call:
Q2 2025 8-K and call:
Q1 2025 8-K and call excerpts:
Other press releases: Zero Egress Migration (Nov 13): ; Revolver expansion (Nov 12): ; GB300 NVL72 (Jul 3): ; RTX PRO 6000 GA (Jul 9):