CoreWeave (CRWV) fell 7% as the 10-year yield hit 4.7%, punishing its net debt-to-EBITDA of 10.75 and $640M quarterly interest expense. Peers Nebius (NBIS), Cloudflare (NET), and Snowflake (SNOW) shed less than 1% each, while unleveraged WCLD gained 2%, isolating the drop to CoreWeave's debt structure. Despite a $104B backlog and 59% adjusted EBITDA margin, CoreWeave's negative free cash flow demands continuous capital markets access as cost-of-sales rose 180%.
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Shares of CoreWeave (NASDAQ:CRWV) are down 7% Tuesday morning to $98.11, an outlier decline on a day when the broader cloud software basket trades higher. The catalyst is rising Treasury yields rather than any change in AI demand. The 10-year Treasury yield sits at 4.73%, near the top of its 52-week range of 3.95% to 4.75%.
For the most debt-dependent name in AI infrastructure, that repricing hits harder than for any listed peer. Our coverage of David Tepper's disclosed second-quarter positions discussed CoreWeave's capital structure earlier today. CoreWeave finances multi-billion-dollar data center construction with borrowed money, and much of its earnings sit years in the future.
Higher yields raise both the interest cost on that debt and the discount rate applied to those future cash flows. Both dials moved against the stock at once. The Q2 2026 balance sheet spells out the exposure.
Interest expense reached $640 million in the quarter, debt-to-equity sits at 8.94, and net debt to EBITDA is 10.75. Second-quarter revenue doubled to $2.575 billion, backlog stands at $104 billion, and adjusted EBITDA margin is 59%. The net loss came in narrower than analysts had modeled.
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