CoreWeave and Nebius Group Report Surge in GPU Demand
CoreWeave and Nebius Group reported massive Q2 revenue growth and full GPU capacity utilization, though they employ contrasting funding strategies for expansion.
GPU cloud providers CoreWeave and Nebius Group reported Q2 2026 financial results showing total exhaustion of available GPU capacity due to high demand. CoreWeave reported revenue of $2.58 billion, representing a 112.3% year-over-year increase, and maintains a backlog of approximately $104 billion. Nitin Agrawal noted that the second quarter marked the period in which the company saw margins inflect.
Despite the revenue growth, CoreWeave relies heavily on debt to fund its expansion, reporting a debt-to-equity ratio of 8.94 and negative free cash flow of $5.74 billion. This leaves the company exposed to credit market volatility and rising interest expenses.
Nebius Group reported revenue of $582.3 million, a 454% increase, with an adjusted EBITDA margin of 41%. The company utilizes a different financial model, funding growth through operating cash flow and customer prepayments, with expectations to exceed $9 billion in prepayments this year. While avoiding the debt risks facing CoreWeave, Nebius Group faces risks from customer concentration, as three clients generated a significant portion of its Q2 revenue.
