D.A. Davidson analyst Gil Luria warned that CoreWeave's "equity value will go to zero" if the company is unable to repay its high-cost debt. He noted that CoreWeave borrows at an interest rate of approximately 9%, but its return on investment is only about 1%, and even at the company's own target of 4% to 5%, it is still below the cost of financing. CoreWeave's net interest expense reached $640 million in the second quarter, doubling year-over-year, while its net loss was $626 million during the same period, with interest expense accounting for approximately 25% of current revenue.