CoreWeave, Inc. (CRWV), an artificial intelligence cloud infrastructure provider, closed at $60.77 on Wednesday, up $12.04, or roughly 25%, one day after the company reported third-quarter results that beat expectations. The rally followed an update in which management laid out a financing strategy built on cheaper, contract-backed debt rather than unsecured borrowing at elevated yields.

The stock traded between $53.81 and $62.03 during Wednesday's session. Even after the jump, the shares remain well below their 52-week high of $138.25.

Third-quarter revenue rose 168% from a year earlier to $3.66 billion, which was more than $1 billion above the prior quarter's level, according to CEO Michael Intrator. Adjusted operating income jumped 75% to $379 million, and Intrator said the company's adjusted operating margin reached double digits a quarter ahead of plan.

Debt Takes Center Stage

Investors came into the report worried about borrowing costs. With interest rates rising, many questioned how CoreWeave would pay for its buildout. The numbers show why: the company posted a net loss of $709 million for the quarter, while its interest costs hit $846 million.

Intrator told analysts the company will not use the unsecured debt market at current yields, adding that it does not need to. CFO Nitin Agrawal said CoreWeave will instead lean on delayed draw term loans backed by customer contracts, credit facilities that carry better interest rates. The distinction matters for a company carrying this level of debt: unsecured bonds are priced on the issuer's overall credit profile, while loans secured by customer agreements give lenders claims on specific contracted cash flows, an arrangement that generally commands lower yields. Delayed draw structures also let CoreWeave borrow in stages as its data center projects advance, rather than taking on the full amount upfront.

Intrator also told CNBC that he has canceled his planned stock sales and that any future sales will only cover taxes tied to restricted stock units. He said the recent U.S. midterm results will not delay the company's data center plans. About $9 billion in customer prepayments and deposits is expected to arrive over the next three months, which he described as CoreWeave's cheapest source of funding — cash received before services are delivered, carrying no interest obligation.

Higher Guidance and a New Loan

CoreWeave now expects 2026 revenue of $13 billion to $13.3 billion, above the $12.9 billion average estimate from Wall Street analysts. Management also projects adjusted operating income rising about 26% to $1.3 billion, a further step up from this quarter's $379 million.

In March, the company raised $8.5 billion through a loan backed by contracts with Meta Platforms, a deal that included a fixed-rate component carrying interest near 5.9%. According to Bloomberg, CoreWeave plans to raise at least $4 billion through a new investment-grade loan, with Morgan Stanley and Mitsubishi UFJ leading the deal. Early talks point to a yield of 7% to 7.5%, about half the yield on the company's current high-yield bonds.

The loan could reach investors as soon as next week, though the plans are not final, according to Bloomberg. It would be offered in phases and may be backed by chips and customer contracts. The final pricing, collateral structure and timing of the deal are the near-term details to watch as CoreWeave executes the cheaper-funding strategy outlined this week.

On TipRanks, CRWV holds a Moderate Buy rating, based on 21 Buy ratings, seven Holds and three Sells from covering analysts. The average price target among those analysts is $107.96.