CoreWeave's Interest Expense Hit $640 Million Last Quarter, 2.4 Times What It Was a Year Ago

CoreWeave (CRWV, NASDAQ) reported interest expense of $640 million in Q2 2026, up 140% from $267 million a year earlier, as its debt balance swelled to $35 billion. The AI infrastructure provider managed to cut its weighted average cost of debt by 300 basis points through refinancing, but the cost reduction was overwhelmed by the pace of new borrowing.

The company's Q3 guidance exposes a widening structural gap: interest expenses are projected at $860 million to $940 million against adjusted operating income of just $200 million to $260 million. At the midpoint, CRWV faces roughly $900 million in interest costs while generating only $230 million in adjusted operating income—a nearly fourfold shortfall.

The mismatch signals that CRWV's capital-intensive buildout is running well ahead of cash generation, forcing the company to rely on continued debt markets access or equity infusions to bridge the gap. The 300-basis-point refinancing win demonstrates some debt management skill, but the trajectory shows debt service accelerating faster than operational leverage.