CoreWeave, Inc.CRWV
CoreWeave, Inc. Leases Disclosure
Leases
The Company enters into leases as a lessee for data centers, office buildings, storage spaces, and technology equipment. In accounting for these arrangements, the Company applied judgment in performing the lease classification tests related to transfer of ownership, bargain purchase option, lease term assessment, estimated fair value, and the specialized nature of the underlying asset.
Leases for offices generally have an initial term of to ten years, often with multi-year renewal periods. Data center leases generally have an initial term from to fifteen years, some of which include options to extend the leases for up to ten years. The Company's equipment leases generally have an initial term of two years and include the option to purchase the asset. Additionally, the Company's land lease contains a purchase option at the end of the lease term that it is reasonably certain to exercise. As such, the purchase option is included in the measurement of the finance lease liability. Certain lease agreements include variable costs, which generally relate to costs associated with Common Area Maintenance, utilities reimbursed to the landlord, and physical security expenses. These variable costs are not included in operating or finance lease cost and are expensed as incurred.
The components of total lease cost related to leases for the periods presented were as follows (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost: | |||||||||||||||||
| Operating lease cost | $ | 825 | $ | 289 | $ | 41 | |||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of ROU assets | $ | 34 | $ | 18 | $ | 3 | |||||||||||
| Interest on lease liabilities | 20 | 9 | 1 | ||||||||||||||
| Total finance lease cost | $ | 54 | $ | 27 | $ | 4 | |||||||||||
| Variable lease cost | $ | 252 | $ | 55 | $ | 16 | |||||||||||
| Total lease cost | $ | 1,131 | $ | 371 | $ | 61 | |||||||||||
Supplemental consolidated balance sheet information related to leases were as follows (in millions):
| December 31, 2025 | December 31, 2024 | ||||||||||
Operating leases: | |||||||||||
Operating lease ROU assets | $ | 8,231 | $ | 2,590 | |||||||
Operating lease liabilities, current | $ | 427 | $ | 213 | |||||||
Operating lease liabilities, non-current | 7,768 | 2,389 | |||||||||
Total operating lease liabilities | $ | 8,195 | $ | 2,602 | |||||||
Finance leases: | |||||||||||
Property and equipment | $ | 500 | $ | 158 | |||||||
Less: amortization | (56) | (24) | |||||||||
Property and equipment, net | $ | 444 | $ | 134 | |||||||
Finance lease liabilities, current | $ | 38 | $ | 58 | |||||||
Finance lease liabilities, non-current | 216 | 34 | |||||||||
Total finance lease liabilities | $ | 254 | $ | 92 | |||||||
Supplemental consolidated cash flow and other information related to leases for the years ended December 31, 2025, 2024, and 2023 were as follows (in millions):
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows used in operating leases | $ | 729 | $ | 253 | $ | 30 | |||||||||||
| Operating cash flows used in finance leases | 6 | 9 | 1 | ||||||||||||||
| Financing cash flows used in finance leases | 58 | 54 | 8 | ||||||||||||||
Information relating to the lease term and discount rate for the years ended December 31, 2025, 2024, and 2023 were as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Weighted-average remaining lease term (in years): | |||||||||||||||||
| Operating leases | 11 | 9 | 8 | ||||||||||||||
| Finance leases | 5 | 2 | 1 | ||||||||||||||
| Weighted-average discount rate: | |||||||||||||||||
| Operating leases | 10 | % | 12 | % | 12 | % | |||||||||||
| Finance leases | 10 | % | 11 | % | 11 | % | |||||||||||
The future lease payments included in the measurement of the Company's operating lease liabilities and finance lease liabilities as of December 31, 2025, were as follows (in millions):
| Future Payments | ||||||||||||||
| Years Ending December 31, | Operating Leases | Finance Leases | ||||||||||||
| 2026 | $ | 1,183 | $ | 53 | ||||||||||
| 2027 | 1,231 | 223 | ||||||||||||
| 2028 | 1,314 | — | ||||||||||||
| 2029 | 1,274 | — | ||||||||||||
| 2030 | 1,157 | — | ||||||||||||
| Thereafter | 7,459 | — | ||||||||||||
| Total undiscounted lease payments | 13,618 | 276 | ||||||||||||
| Less: imputed interest | (5,423) | (22) | ||||||||||||
| Present value of lease liabilities | $ | 8,195 | $ | 254 | ||||||||||
The Company incurred interest expense on its finance leases of $20 million for the year ended December 31, 2025. The interest expense incurred on the Company's finance leases was not material for the years ended December 31 2024 and 2023.
During the year ended December 31, 2025, the Company modified certain agreements resulting in the termination of the related escrow agreements. Additionally, in April 2025, the Company entered into a finance lease for data center infrastructure assets with DCSP (as defined in Note 10—Debt). Refer to Note 10—Debt for additional information.
Leases Not Yet Commenced
As of December 31, 2025, the Company executed additional lease agreements, primarily for data centers and office buildings, that had not yet commenced. The aggregate amount of estimated future undiscounted lease payments associated with such leases is $38.5 billion. These leases will commence between 2026 and 2029 with estimated lease terms of to seventeen years. Not included in the preceding amounts are the following lease arrangements, which include significant uncertainties regarding the amount of future lease payments.
As of December 31, 2025, the Company entered into a lease agreement for various buildings located at a single site intended to be used as a data center. The agreement provides access to 393 MW of electrical power, which is expected to be delivered in phases in 2026 and 2027. The Company will make contractual rent payments based on construction costs incurred by the lessor, subject to a contractual maximum. The total contractual rent payments range from $13.5 billion to $14.4 billion over the sixteen year term of this lease.
Additionally, the Company has lease agreements where the lease payments are based on a portion of the construction costs incurred by the lessor, including during the construction period. The payments during the construction period are variable and subject to contingencies, which are expected to be resolved at or near the lease commencement date. As of December 31, 2025, these lease agreements provide access to 378 MW of electrical power, which is expected to be delivered in phases between 2026 and 2028.
In connection with certain data center lease arrangements, the Company has contractual obligations to procure and install equipment at the leased premises. These obligations represent commitments for lessee-owned assets that are separate from the Company's lease obligations. As of December 31, 2025, the Company estimates that it will incur between $1.1 billion and $1.7 billion to fulfill these commitments, with expenditures expected to be incurred in phases through 2027.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.