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$CRWV Financial Report:
Revenue: $1.36 billion, diluted net loss per share: -$0.22
Signed a multi-year collaboration agreement worth up to approximately $14.2 billion with Meta to support next-generation workloads, including significant expansion options.
Collaboration with OpenAI further expanded, with new contracts totaling approximately $6.5 billion, bringing the total collaboration commitment amount to about $22.4 billion.
According to the 8-K filing released today, $CRWV expanded its RPO (Remaining Performance Obligations) by over $21 billion last quarter. Interestingly, the company only added about $660 million in deferred revenue, meaning that cash received in advance accounted for only about 3%. In previous contracts, cash received in advance typically accounted for about 30% of RPO — this is undoubtedly a very significant change.
Considering that $CRWV's business model relies on customer prepayments to finance infrastructure expansion (as clearly stated in its public disclosures), and the company had to fill a funding gap by increasing net debt by $2.6 billion last quarter, this discrepancy is actually a quite serious warning sign:
One possibility is that the company artificially inflated the total contract amount to secure more financing, while the actual demand from customers is far below the disclosed figures;
Another possibility is that the customers behind these large orders are unable to pay the normal proportion of prepayments, which is severely inconsistent with the order scale.
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