Cerebras $CBRS fell approximately 15.50% in after hours trading following the release of its Q2 earnings report on August 12, due to a sharp decline in gross profit margin and weaker-than-expected revenue performance.

• The biggest item that annoyed investors was that the gross profit margin was hit at the level of 14%. The company previously predicted the 36-38% band. The reason for this decline is that hardware sales are weak and the company's high costs when building its own artificial intelligence cloud infrastructure.
• GAAP Revenue: 180.1M Est: 194.2M
• Adjusted Core Revenue: $209.9M (Annual growth of 103%)
• AI Cloud Revenue: $126.6M
• Hardware Sales: $54.1M (Deliveries are slow)
• GAAP EPS (Loss Per Share): -2.98 (Expectation: -0.17 )
• Net Total Loss : $450.5 Million
• Next Term Order Obligation : $25.4 Billion (Reflects the total volume of multi-year agreements, especially with OpenAI and AWS)
• 2026 full year revenue forecast revised from previous $855-865 million to $880-890 million
• CEO Andrew Feldman stated that the demand for artificial intelligence chips "skyrops". The company expects to triple its revenues in the next fiscal year.
• Cerebras is currently suffering from a complete growth stage pain. Demand and future turnover expectations are great; however, the company spends so much money to meet this demand that its operational costs have jumped from $89.3 million to $502.8 million. The market punished these high spending and melting profit margins in the short term.
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