Cerebras Posts Loss But Lifts Outlook

Cerebras Systems (CBRS) reported quarterly revenue of $180 million, coming in below a consensus expectation of $194 million. The company recorded a net loss of $450.5 million, after having reported a profit of $309.5 million, or $1.91 per share, in the same period a year earlier.

Most of the latest quarterly loss was tied to stock-based compensation costs of $386.6 million. This shift from profit to loss, alongside the revenue shortfall versus expectations, framed a weaker headline financial outcome for the period.

Following the earnings release, Cerebras (CBRS) shares fell about 14% in after-hours trading. The market reaction contrasted with some of the growth indicators the company highlighted elsewhere in its update.

Within Cerebras (CBRS)’ business lines, results showed contrasting trends. Hardware revenue declined 23% year over year to $54.1 million, signaling slower progress in selling systems built around the company’s novel chip design.

By contrast, revenue from the cloud division, which provides AI computing capacity using Cerebras technology, nearly quadrupled to $126 million. This rapid growth in cloud offset some of the weakness in hardware but did not fully close the gap to overall revenue expectations.

Management described AI demand as "through the roof" and said customers are paying up for its specialty inference chips. The mix of falling hardware sales and surging cloud revenue underscores how demand is shifting within the company’s portfolio.

Despite the quarterly loss, Cerebras raised its full-year guidance. The company also reported $25.4 billion in remaining performance obligations, highlighting a sizable backlog of contracted business.

Cerebras said it expects revenue to triple in the next fiscal year, pointing to its backlog and demand trends as key drivers. While specific quarterly targets beyond the current period were not detailed, the revenue outlook marks an aggressive growth plan.

The company projected that its core gross margin will expand to between 38% and 40% in the current quarter. This anticipated margin improvement, alongside strong cloud growth, is positioned as part of the path from the current period of heavy stock-based compensation charges toward more sustainable profitability metrics over time.