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Cerebras reports 103% jump in core revenue, hardware sales drop
The company beat its core-revenue guidance of about $194 million, but GAAP hardware revenue fell 23% year over year to $54.1 million as cloud and other services surged.
Cerebras Systems Inc. reported record second-quarter core revenue of $209.9 million, up 103% year over year, topping managements approximately $194 million guidance, according to Yahoo Finance. The company said core revenue is a non-GAAP measure that adds back customer-warrant amortization and excludes data-center pass-through revenue.
On a GAAP basis, revenue increased 74% to $180.1 million, which was below the $194.23 million consensus compiled by LSEG. Cerebras also highlighted a shift in its revenue mix, with cloud and other services revenue roughly quadrupling to $126 million while hardware revenue declined 23% to $54.1 million.
Hardware revenue on a core basis declined from the prior quarter, down 26% from $111.6 million to the current period level, even as core hardware revenue rose 17% year over year to $82.1 million due to the treatment of non-cash customer-warrant amortization. Shares fell 11.9% to $231.01 on August 13 after the report, and the stock dropped as much as 16% in extended trading.
Cerebras said GAAP cloud and other services revenue rose 281% year over year, and it cited a multiyear, $20 billion-plus OpenAI agreement as supporting demand. The company also reported $25.4 billion of remaining performance obligations and raised its 2026 core-revenue forecast to $880 million to $890 million from $855 million to $865 million.