CoreWeave Nebius neocloud unprofitability EBITDA depreciation debt
CoreWeave $CRWV posted a 56% adjusted EBITDA margin, but only 1% adjusted operating margin once depreciation is counted. It ended Q1 2026 with $25.1B debt and a $740M net loss, per Motley Fool. Nebius $NBIS posted negative $1.13B in annual free cash flow.
CoreWeave ($CRWV) reported a 56% adjusted EBITDA margin for the first quarter of 2026, a figure that looks strong on its face. But once depreciation and amortization are factored in, its adjusted operating margin was just 1%, according to the Motley Fool. The company ended the quarter with $25.1 billion in debt and $10.1 billion in operating lease liabilities, and $536 million in net interest expense contributed to a $740 million net loss. Nebius ($NBIS), the other major publicly traded 'neocloud' AI infrastructure provider, separately posted negative $1.13 billion in annual free cash flow. Both companies are spending heavily on data center buildouts to meet AI compute demand. The gap between adjusted EBITDA and real operating margin at both companies shows how debt-funded infrastructure expansion can mask underlying profitability, a dynamic investors are increasingly having to price into neocloud stocks alongside headline revenue growth.