Inside CoreWeave's $66.8B Backlog: Why Take-or-Pay Is a Game Changer

Key Highlights

  • CoreWeave's contracted Revenue backlog reached $66.8 billion as of December 31, 2025, up more than 4x during the year.
  • Remaining performance obligations stood at $60.7 billion at year-end 2025, up from $15.1 billion at year-end 2024.
  • Committed contracts accounted for over 98% of 2025 revenue, with weighted-average contract duration of approximately five years.
  • Every contract for new capacity is expected to begin generating revenue by year-end 2026.
  • Key customers include Microsoft (67% of 2025 revenue), OpenAI ($6.5B committed through 2031), and Meta ($14.2B committed through 2031).

 

The single most important number in CoreWeave's Investment thesis is not the current revenue figure. It is the $66.8 billion contracted revenue backlog, which represents future revenue that is already sold and legally committed. Understanding how that backlog works and what risks surround it is essential for any investor evaluating CRWV.

What Is a Take-or-Pay Contract

CoreWeave's primary contract structure is take-or-pay. Under this arrangement, a customer commits to pay for a specified amount of GPU compute capacity over a fixed term, regardless of whether they fully utilize it. This is a fundamentally different risk profile from consumption-based cloud contracts where customers can dial usage up or down freely. Take-or-pay contracts give CoreWeave a high degree of revenue predictability and allow it to finance infrastructure development with asset-backed Debt tied directly to those Cash Flow commitments.

The Backlog Composition

The $66.8 billion backlog as of year-end 2025 grew from approximately $15 billion of remaining performance obligations a year earlier. The jump reflects both the signing of major new contracts during 2025, including agreements with OpenAI ($6.5 billion through 2031) and Meta ($14.2 billion through 2031), and the extension of existing hyperscaler relationships. The average weighted contract length increased from approximately four years to approximately five years during 2025, indicating that customers are gaining confidence in the longevity of the AI infrastructure cycle.

Customer Concentration Risk

The backlog is large but not without concentration risk. Microsoft accounted for approximately 67% of CoreWeave's 2025 revenue. The top two customers represented 77% of 2024 revenue. While the company has made significant progress diversifying its customer base, hyperscaler concentration remains a risk Factor disclosed prominently in the 10-K.

Prepayments and Financing

A distinctive feature of CoreWeave's model is the use of customer prepayments to partially finance infrastructure builds. As of 2025, the weighted-average prepayment across active contracts was 15% to 25% of total contract value. These prepayments reduce CoreWeave's external financing needs on a per-contract basis. As the Capital/">Cost of Capital declines, management has indicated that dependency on prepayments will also decrease.

Why This Matters for Valuation

Investors trying to value CoreWeave on trailing or even forward 12-month revenue metrics will consistently understate the company's economic position. The backlog provides multi-year revenue visibility that is unusual outside of defense contractors and long-cycle industrial companies. The key question for investors is not whether revenue will materialize but at what pace, at what Margin, and with what capital efficiency.

Disclaimer

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in securities involves risk, including possible loss of principal. Past performance is not indicative of future results. Please conduct your own research or consult a licensed Financial Advisor before making investment decisions.