After Hours Summary: SNAP +15.3% sharply higher on earnings and partnership with Perplexity; RXST +23.3%, APP +5.4%, IONQ +5.4% higher on earnings; AEVA +8.4% higher on Apollo investment; ACVA -23.1%, DUOL -22.2%, ELF -21.6% under pressure after earnings
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: RXST +23.3%, LZ +20.9%, SKYT +20.7%, PEN +18.9%, FWRD +18.6%, FSLY +15.4%, SNAP +15.3% (also partnership with Perplexity), SITM +12.5%, COHR +11.4%, LNW +11.1%, ARRY +9.4%, TPC +9.1%, MKSI +8.6%, SEZL +8.5%, AEVA +8.4%, WK +8.3%, HCC +7.7%, COTY +7.4%, HRTG +6.6%, SBGI +6.4%, MQ +6.2%, CAI +6.1%, QDEL +6%, CPAY +5.9%, APP +5.4% (also increase share repurchase program by $3.2 bln), IONQ +5.4% (also successfully deployed a citywide quantum network in Geneva, Switzerland), QTWO +5.4%, SPT +5.4%, RDVT +5.4% (also $15 mln increase to share repurchase program), CPRX +5.2%, HL +5.1%, FRSH +4.9% (also expands enterprise service management), EE +4.9%, PCOR +4.8%, SAFE +4.6%, ACAD +4.3%, ENS +4.3%, PR +4%, AWR +4%, KVYO +3.9%, CHYM +3.6%, VET +3.6% (also plans dividend increase), ARM +3.1%, JAZZ +3%, JOBY +2.9%, FIG +2.9%, ECPG +2.9%, LYFT +2.7%, AMCR +2.7%, PRI +2.6%, PTRN +2.5%, HST +2.4%, OR +2.3%, SDGR +2.3%, HLF +2.3%, RAMP +2.2%, MUR +2.1%, OTEX +2%, APA +2%, RYN +2%, ADPT +2%, DLX +2%, STE +1.9%, BGS +1.9%, NFG +1.8%, TALO +1.7%, SLDE +1.7%, ULCC +1.6%, ALL +1.6%, FSK +1.5%, RAL +1.5%, DVN +1.4%, NTR +1.4% (also initiates review of Phosphate business), CXT +1.3%, ALNT +0.9%, BROS +0.8%, ALB +0.7%, INFA +0.5%, OTF +0.4%, XNCR +0.4%, WTS +0.3%, NGVT +0.3%, CW +0.2%, STAA +0.2%, MTW +0.2%, PEB +0.1%, CNMD +0.1% (also modified $150 mln buyback authorization; also suspends dividend), SMA +0.1%, SLF +0.1% (also increases dividend)
Companies trading higher in after hours in reaction to news: AEVA +8.4% (Apollo (APO) to invest $100 mln in convertible notes to AEVA) NXDR +8.2% (appoints new CFO), CBL +3.8% (authorizes new $25 mln share repurchase program), RM +3.3% (CEO to retire, names new CEO), ILMN +2.3% (responds to updates from Chinese Ministry of Commerce), UMAC +2.1% (continues domestic expansion), RYTM +2% (product listing agreements in Canada), MHK +2% (CFO to retire), FTV +1.8% (replenishes share repurchase program), H +1.2% (expanded agreement with Chase (JPM)), CGAU +1.2% (TSX acceptance of normal course issuer bid), ASST +0.7% (upsizing and pricing of initial public offering), RKLB +0.5% (successful launch of Electron mission), NVO +0.2% (new findings from STEP UP phase 3b trial)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: ACVA -23.1%, DUOL -22.2%, ELF -21.6%, AMSC -19.5%, REZI -17.4%, PRCH -17%, AOSL -15.7%, PACB -14.4%, RDW -14.2%, HNST -14.2%, RELY -13.6%, ENVX -13.3%, ACHC -13% (also COO to depart), VAC -12.5%, HUBS -12.4%, FTNT -11.4%, KMPR -10.5%, ROOT -10.2%, PAYC -10%, BMBL -9.6%, GSM -8.8%, RGR -8.3%, ERII -8.1%, TROX -7.8%, GNK -7%, DYN -6.7%, LEU -6.5%, CTRE -6.5%, HPK -6%, RVMD -4.6%, NATL -3.8%, CWAN -3.6%, MGNI -3.5%, FICO -3.4%, CRH -3.3%, SBRA -3%, VIR -2.8%, BTG -2.8%, QCOM -2.6%, QCOM -2.6%, GNW -2.5%, USPH -2.5%, KNTK -2.3%, LOPE -2%, MET -1.9%, ADMA -1.9%, DNTH -1.9%, HOOD -1.7% (also names new CFO), MCK -1.7%, ATO -1.6% (also increases dividend), UHAL -1.6%, RGLD -1.3%, TKO -1.2%, ET -1.2%, EQX -1.2%, PTC -1%, BBSI -1%, TLN -0.9%, MIAX -0.6%, CSGS -0.6%, CF -0.3%, LCID -0.2%, TPL -0.2% (also board approves 3-for-1 split), AMC -0.2%, SDRL -0.1%, RLJ -0.1%
Companies trading lower in after hours in reaction to news: NOVT -6% (commences public offering of $550 mln), VOYG -3.5% (convertible notes offering), CRH -3.3% (continues share buyback program), GH -3.2% (data for Shield screening test), LFMD -2.8% (reschedules earnings release), BNTC -2.7% (public offering of common stock), DSGN -2.3% (to initiate patient dosing of DT-818), FWRG -2.3% (secondary offering of common stock), HALO -1.7% (convertible notes offering), FFBC -1.5% (mixed securities shelf offering), OBDC -1.3% (definitive merger agreement with Blue Owl Capital Corporation II), CCC -1.1% (proposed secondary offering of common stock), PTC -1% (TPG to acquire PTC's Kepware industrial connectivity and ThingWorx Internet of Things businesses), COST -1% (reports Oct comps), UPS -0.2% (does not believe crash will have material impact on financials), APO -0.1% (to invest $100 mln in convertible notes to AEVA), PFE -0.1% (responds to Delaware Chancery Court ruling), BEN -0.1% (reports Oct AUM)
Interparfums beats by $0.12, reports revs in-line; lowers FY25 guidance (91.25 1.67)
- Reports Q3 (Sep) earnings of $2.05 per share, excluding non-recurring items, $0.12 better than the FactSet Consensus of $1.93; revenues rose 1.2% year/year to $429.8 mln vs the $430 mln single analyst estimate.
- Co issues lowered guidance for FY25, sees EPS of $5.12 from $5.25, excluding non-recurring items, vs. $5.20 FactSet Consensus; sees FY25 revs of $1.47 bln from $1.51 bln vs. $1.5 bln FactSet Consensus.
- Mr. Atwood concluded, "Since November 2024, we have maintained our full-year 2025 guidance with confidence in our operational agility and disciplined execution. While our fundamentals remain strong with a healthy innovation pipeline, strong partnerships with global distributors and retailers, and a resilient consumer base, we are updating our 2025 guidance to reflect slower than anticipated growth through September of this year, amid ongoing macroeconomic uncertainty and moderating demand in several international markets outside the United States. We now expect $1.47 billion in sales, up 1% year-over-year, leading to diluted earnings per share of $5.12, flat compared to full-year 2024."
Coty misses by $0.03, reports revs in-line; guides Q2 EPS in-line (3.78 -0.05)
- Reports Q1 (Sep) earnings of $0.12 per share, excluding non-recurring items, $0.03 worse than the FactSet Consensus of $0.15; revenues fell 5.6% year/year to $1.58 bln vs the $1.58 bln FactSet Consensus.
- Co issues in-line guidance for Q2, sees EPS of $0.18-$0.21, excluding non-recurring items, vs. $0.19 FactSet Consensus.
- Consumer demand for beauty continues to be solid, particularly for fragrances across price points and formats. At the same time, broader macroeconomic and tariff uncertainty is fueling cautious retailer ordering and a more promotional competitive environment. Against this backdrop, Coty is launching major innovations, capturing new growth opportunities with a multi-brand push into ultra premium fragrances and fragrance mists, and expanding distribution across fragrances. In parallel, the Company continues to progress on right-sizing retailer inventories to current demand trends to drive alignment between sell-in and sell-out.
- Consistent with its prior outlook, Coty expects a gradual improvement in sales trends over the course of FY26 from the 4Q25 LFL levels, when the Company actively intervened to clean up the baseline of the business. With strong sales delivery in the month of October, particularly in Prestige, Coty expects Q2 LFL sales to be at the more favorable end of prior guidance of a LFL decline of -3% to -5%, with sequential trend improvement in both Prestige and Consumer Beauty. On the reported revenue side, Coty estimates a low-to-mid-single-digit percentage FX benefit in Q2. The Company continues to expect LFL sales to return to growth in 2H26, as sell-in and sell-out reach alignment, and supported by several key launches in Prestige, as well as more favorable comparisons.
- Coty continues to expect a gradual profit trend improvement, with adjusted EBITDA declining by a low-to-mid teens percentage in 2Q26, consistent with its prior guidance. The Company also expects to return to adjusted EBITDA growth in 2H26, targeting $1 billion in adjusted EBITDA in FY26. While this outlook implies very strong year-over-year expansion in 2H26 adjusted EBITDA, this is primarily a function of prior year comparisons, with an implied low-single-digit growth in 2H26 adjusted EBITDA on a 2-year basis.
OpenAI Isn’t Yet Working Toward an IPO, CFO Says
Sarah Friar said the AI giant could reach break-even quickly and would like government backstop on data-center investments
- OpenAI’s CFO stated an IPO is “not on the cards” currently, prioritizing growth and R&D over immediate profitability.
- The company seeks government support to guarantee financing for AI chips, reducing costs and increasing debt capacity.
- OpenAI could achieve profitability quickly by reducing aggressive investments, due to “very healthy” gross margins.
OpenAI Chief Financial Officer Sarah Friar said that an IPO is “not on the cards” for the company in the near term, throwing a dose of cold water on what could become one of the largest public listings in history.
Speaking at The Wall Street Journal’s Tech Live conference, Friar said the AI giant’s conversion to a new structure doesn’t portend an imminent public offering as the company prioritizes growth and R&D over profitability.
“IPO is not on the cards right now,” Friar said. “We are continuing to get the company into a state of constantly stepping up into the scale we are at, so I don’t want to get wrapped around an IPO axle.”
The company has discussed a public listing as soon as 2027, The Wall Street Journal reported.
As OpenAI ramps up its spending on data center capacity to unheard of levels, the company is hoping the federal government will support its efforts by helping to guarantee the financing for chips behind its deals, Friar said. The depreciation rates of AI chips remain uncertain, making it more expensive for companies to raise the debt needed to buy them.
“This is where we’re looking for an ecosystem of banks, private equity, maybe even governmental, the ways governments can come to bear,” she said. Any such guarantee “can really drop the cost of the financing but also increase the loan-to-value, so the amount of debt you can take on top of an equity portion.”
Friar said OpenAI could reach profitability on “very healthy” gross margins in its enterprise and consumer businesses quickly if it weren’t seeking to invest so aggressively.
“I’m not overly focused on a break-even moment today,” she said. “I know if I had to get to break-even, I have a healthy enough margin structure that I could do that by pulling back on investment.”
OpenAI’s Data Center Partner Nears $120 Million Stock Sale For Its Employees
The Takeaway
- Crusoe is developing the largest server facility OpenAI will use in the coming years
- OpenAI’s outsize server spending also boosted the stocks of CoreWeave, Oracle, Google, Microsoft, Amazon, Nvidia and AMD
- Crusoe expects to burn billions of dollars for its cloud business
Crusoe, a startup developing a large data center in Texas for Oracle and OpenAI, is arranging an employee share sale that values the seven-year-old firm at around $13 billion, according to two people with knowledge of the transaction.
The deal involves selling around $120 million worth of employee shares and would value them at a 30% premium to an equity funding round Crusoe announced just weeks ago, these people said. It’s the latest example of a data center–related firm whose revenues and share price have gotten a boost from the relentless demand for servers by a handful of large spenders, including OpenAI.
The tender offer values Crusoe at about five and a half times its projected revenue next year. Crusoe this summer projected it would generate roughly $2.3 billion in revenue next year and about $5 billion in 2027, according to the person with knowledge of its finances. It projected roughly $540 million in 2025 revenue, about double the revenue it generated last year.
The forward revenue multiple is relatively low compared to valuations of AI cloud or application providers, which may reflect Crusoe’s high costs for developing data centers. Investors typically value data center operators on their earnings before interest, tax, depreciation and amortization, but Crusoe is operating at a loss. Its valuation was just $3 billion less than a year ago.
Crusoe also has ambitions of generating tens of billions of dollars of revenue annually from renting out AI cloud servers the way CoreWeave, Google and Microsoft do. Crusoe and CoreWeave both started as cloud providers to cryptocurrency miners.
The employee share sale is expected to be finalized within the next week, one of the people said. It isn’t clear if the firm’s two founders are selling any shares, and the terms could change. In most of these transactions, which are growing in popularity as initial public offerings remain rare, employees are capped at selling between 10% to 20% of their total vested stock.
It isn’t clear how much Crusoe is allowing its more than 1,000 employees to sell, or if former employees can participate in the transaction. A spokesperson for Crusoe did not have a comment.
The Crusoe share sale involves around 1% of the company’s total stock, meaning it’s many times smaller in percentage terms than a tender offer CoreWeave completed in 2023. And CoreWeave’s founders sold nearly $500 million of shares in 2023 and 2024. CoreWeave went public earlier this year and now sports a market capitalization of nearly $60 billion, almost nine times higher than its private valuation during that 2023 tender offer.
Employees at OpenAI, meanwhile, have sold around $10 billion worth of stock to private investors in the past four years.
The OpenAI Effect
Crusoe projected about $47 billion in capital expenditures through 2030 for its cloud business.
OpenAI’s announcement that it planned to spend hundreds of billions of dollars over the next decade to rent cloud servers from CoreWeave, Oracle, Google, Microsoft and Amazon has boosted all their stocks. OpenAI also is developing its own data centers, and the plans for those facilities boosted the stocks of chip suppliers Nvidia and Advanced Micro Devices.
After pivoting from powering bitcoin miners to renting out servers to AI developers, Crusoe in 2024 inked a deal with Oracle to build a data center for OpenAI in Abilene, Texas. OpenAI branded the Abilene site as part of its Stargate data center initiative to spur its AI development. Crusoe is trying to construct a data center in Abilene by 2028 that will be the size of San Francisco International Airport.
Crusoe is both a cloud provider and a data center developer. This year, those two business units are roughly the same size. In the future, Crusoe sees its cloud business contributing the majority of revenue. Crusoe projects that in 2027 it will generate about $1.6 billion in revenue from developing data centers and $3.4 billion in cloud revenue.
Crusoe investors could be in for a bumpy ride. The company expects to burn billions of dollars for its cloud business, according to documents viewed by The Information. It forecasts about $47 billion in capital expenditures through 2030 for its cloud business, which will involve taking on billions of dollars in debt.
Crusoe expects to generate $260 million in cloud revenue this year—up from about $100 million last year—and roughly $1.3 billion next year. It has told investors that owning its own power, manufacturing and data center facilities will help it offer lower cloud server prices than competitors in the future.
Crusoe also generates revenue from its digital infrastructure business, where it develops projects, collects lease payments and receives fees during the construction process. Crusoe expects to generate roughly $230 million in revenue this year from this line of business and about $1 billion next year.