Shares of CoreWeave, Inc. (CRWV) are soaring 5.80% in pre-market trading on Tuesday, following the release of the company's impressive first-quarter 2025 financial results and a robust outlook for its AI-focused cloud infrastructure business.

CoreWeave, which went public in March, reported a staggering 420% year-over-year revenue growth to $982 million for Q1 2025. The company's adjusted EBITDA margin reached an impressive 62%, highlighting its operational efficiency. Perhaps most notably, CoreWeave announced a substantial $25.9 billion revenue backlog, with over 90% of its revenue coming from prepaid, multi-year infrastructure contracts.

The strong performance and future prospects are driven by CoreWeave's strategic position in the AI infrastructure market. The company operates 33 AI-optimized data centers across the U.S. and Europe, with 420MW of active capacity and 1.6GW of contracted capacity. This purpose-built infrastructure for AI workloads has attracted major clients, including a reported $11.9 billion contract with OpenAI. CoreWeave's unique business model, focusing on long-term, prepaid agreements, provides high visibility into future revenues and allows for efficient capital allocation. With guidance for FY25 revenue between $4.9 billion to $5.1 billion, investors are showing increased confidence in CoreWeave's ability to capitalize on the growing demand for AI compute resources.