Skip to main content

Market Daily

Foxhollow Farm Turns 20: What Two Decades of Real Grass-Fed Beef Actually Looks Like

By: Kate Sarmiento

Costco sells grass-fed beef now. So does Kroger. So does basically every grocery chain that spent the last decade watching “clean eating” turn into a real line item on the balance sheet. It should be a win for anyone who ever worried about where their steak came from. Instead, the label has gotten harder to trust the more popular it’s become, and Foxhollow Farm, a 1,300-acre biodynamic operation in Crestwood, Kentucky, has spent 20 years proving there’s a better way to do it.

Two separate problems have been hiding behind that green “grass-fed” sticker for years.

The first is about geography: an animal born, raised, and slaughtered in Australia or Uruguay could cross the ocean, get repackaged at a U.S. plant, and legally carry a “Product of USA” label, regardless of where it actually lived (Source: The Counter, 2021). Industry estimates put the share of U.S. grass-fed beef that was imported this way at 75 to 80 percent.

The second problem is about verification: USDA never required an independent check on the grass-fed claim itself, so a producer could put the word on a package without a third party ever confirming what the animal actually ate or where it actually grazed (Source: USDA Agricultural Marketing Service, 2016).

Foxhollow Farm turns 20 this year, marking two decades since fourth-generation steward Maggie Keith reintroduced cattle to land her family had stewarded for generations. She’s been talking about knowing your farmer since 2006, years before most people cared to ask. In 2026, the first of those two problems stopped being optional to fix. As of January 1, USDA closed the import loophole: to use “Product of USA” on beef, the animal now has to be born, raised, slaughtered, and processed in this country, full stop (Source: Farm Action, 2026). Twenty years of advocacy just became federal law. Foxhollow didn’t need the memo. It’s been the model the whole time.

Grass-Fed Labeling Grew Up. The Marketing Didn’t.

Grass-fed sounds like a simple promise, but it isn’t one, and hasn’t been for a while. USDA walked away from its own grass-fed marketing standard back in 2016, handing oversight to a different agency and leaving companies to define their own terms and get them approved. Some producers filled that gap with integrity. Others leaned into “grass feedlots,” where cattle spend their finishing months penned up and fed grass pellets instead of grain pellets. It’s a different diet. It isn’t a different picture of what a cow’s life should look like.

None of that shows up on the package. What shows up is a green label, a photo of rolling hills, and a price that’s still higher than the conventional beef sitting next to it. Shoppers pay that premium because they think they’re funding a cleaner system, and a lot of the time they’re funding a longer supply chain with better branding instead.

Foxhollow Farm doesn’t have that problem, because it never built a system that needed the loophole in the first place. The farm holds Regenified Level 5, Demeter Biodynamic, and American Grassfed Association certification at the same time, and it’s raised its cattle on the same Kentucky pasture for the entire twenty years anyone’s been counting. There’s no import record to explain, and no back-label fine print doing work the front label doesn’t. Just one farm, one herd, and twenty years at the same address.

Photo Courtesy: Foxhollow Farm

Consumers Want Food Transparency. The Grass-Fed Beef Market Is Still Catching Up.

The demand for transparency isn’t a niche concern anymore. Sixty-seven percent of consumers say sustainability matters when they’re choosing what food to buy, but only 39 percent think current labels actually tell them anything useful about it (Source: NSF International, 2025). That’s the gap labels like “grass-fed” have been living in for years: real demand on one side, thin verification on the other.

It’s also part of why nose-to-tail eating stopped being a fringe idea. Organ meat and collagen products, once the domain of committed home cooks and old-school butchers, are now one of the fastest-growing categories in functional nutrition. The global collagen supplement market is projected to grow from roughly $2.6 billion in 2025 to nearly $4.75 billion by 2034 (Source: Fortune Business Insights, 2026), and most of that growth is coming from people who want the nutrient density without a mystery ingredient list attached to it. Foxhollow Farm has been moving into that space too, treating the whole animal as the product instead of an afterthought behind the steak counter.

The number underneath all of this isn’t encouraging. The U.S. lost 142,000 farms between 2017 and 2022, a seven percent drop in just five years, according to USDA’s most recent Census of Agriculture (Source: USDA National Agricultural Statistics Service, 2024). Family farms that can’t compete on price against a global supply chain don’t get to sit this one out. They either find a direct-to-consumer model that works, or they disappear. Foxhollow chose the first option about twenty years before most farms realized they’d need to.

Twenty Years of Regenerative Farming Isn’t a Milestone. It’s the Proof.

A lot of farms talk about regenerative agriculture like it’s a five-year experiment still waiting on results. This one ran out of that excuse a while ago. Two decades of biodynamic practice, three overlapping certifications, and land that’s had enough time to actually recover add up to something closer to a working case study than a pitch deck.

The “know your farmer” argument used to sound like something heard at a farmers market table, said with good intentions and not much enforcement behind it. In a year when the federal government finally caught up to what this farm has been doing since 2006, it’s turned into something closer to consumer protection. The label changed. The land didn’t have to.

For anyone looking at what beef looks like when the farm and the label finally agree with each other, Foxhollow Farm ships its 100% grass-fed, grass-finished beef from Crestwood, Kentucky, with no feedlot layover in between. Twenty years in, the farm isn’t asking anyone to trust a sticker. The pasture is open to visitors who want to see it for themselves.

CoreWeave Q2 Revenue Doubles to $2.58 Billion as AI Infrastructure Backlog Surges Past $104 Billion

CoreWeave reported second-quarter 2026 revenue of $2.58 billion on August 11, a 112% increase from a year earlier that beat the $2.56 billion LSEG consensus estimate. The AI cloud infrastructure provider also narrowed its adjusted loss to $1.03 per share against the $1.20 loss Wall Street had expected, while raising full-year revenue guidance to $12.4 billion to $13.2 billion. The results pushed shares up more than 14% in after-hours trading and approximately 20% during the August 12 session, as the quarter’s combination of top-line acceleration, backlog expansion, and new contracts with Meta and Anthropic reinforced the scale of enterprise demand for dedicated AI computing capacity.

Key Takeaways

  • Q2 revenue reached $2.58 billion, up 112% year over year, beating LSEG consensus of $2.56 billion; adjusted EBITDA came in at $1.51 billion with a 59% margin.
  • Revenue backlog hit $104.2 billion at quarter-end, with an additional $25 billion-plus in new Q3 commitments not yet included in that figure.
  • Net loss widened to $626 million from $290 million a year earlier; net interest expense reached $640 million, more than doubling from $267 million in Q2 2025.
  • Full-year 2026 revenue guidance raised to $12.4 billion to $13.2 billion; Q3 revenue guided at $3.45 billion to $3.6 billion, above analyst expectations at the lower end of that range.
  • Capital expenditures hit $9.4 billion in Q2, with full-year capex guidance raised to $35 billion to $39 billion; the company carries $35 billion in total debt.
  • CoreWeave operates 51 active data centers with 1.5 GW of active power and 4.2 GW of contracted power, though only 36% of that contracted base is currently active.

Revenue Growth Outpaced Expectations Across Every Benchmark

CoreWeave’s $2.58 billion quarterly revenue marks the second consecutive quarter in which the company more than doubled its top line year over year. The Q1 2026 report, released in May, showed revenue of $2.1 billion against a $99.4 billion backlog. The progression from $2.1 billion to $2.58 billion in a single quarter reflects both the pace of new data center buildout and the conversion of contracted capacity into recognized revenue as facilities come online.

Adjusted EBITDA of $1.51 billion represented a 59% margin, down from 62% a year earlier, a compression consistent with the cost profile of rapid infrastructure scaling. Adjusted operating income reached $128 million, nearly double the $66 million analysts had projected, and adjusted operating margin improved from 1% in Q1 to 5% in Q2. CEO Michael Intrator described the quarter as “an important inflection point” where scale began translating into operating leverage.

The GAAP picture tells a different story. The $626 million net loss, up from $290 million a year ago, reflects the debt-financing model underpinning CoreWeave’s expansion. Net interest expense of $640 million in Q2 alone, more than double the $267 million recorded in the same period of 2025, now represents a quarterly run rate that exceeds the company’s adjusted operating income by a wide margin. The company raised more than $10 billion in unsecured debt and convertible bonds during the quarter, alongside a $3.1 billion term loan and a separate $1 billion strategic investment from quantitative trading firm Jane Street.

The $104 Billion Backlog and What It Represents

CoreWeave’s revenue backlog of $104.2 billion is the single figure that most directly captures the scale of contracted demand flowing through the company. Of that total, $103.7 billion consists of remaining performance obligations under committed contracts, with the balance representing other estimated future revenue. The company noted that the backlog excludes more than $25 billion in new commitments signed in the third quarter, meaning the actual contracted pipeline is closer to $130 billion.

The duration profile of the backlog is shifting longer. Approximately 21% of remaining performance obligations are expected to be recognized beyond four years, up from 10% a year earlier, reflecting the multi-year structure of contracts with hyperscalers and large enterprise customers.

The anchor contracts are substantial. Meta’s total commitment now stands at approximately $35.2 billion, composed of an initial $14 billion agreement through December 2031 and an additional $21 billion commitment signed during the quarter, extending through December 2032. OpenAI’s total contracted commitments are approximately $22.4 billion, built through a series of deals signed between March and September 2025. Anthropic signed a multi-year agreement in April 2026 to host compute infrastructure for its Claude AI models, with capacity expected to come online later in 2026. Jane Street committed $6 billion in a cloud services agreement, marking one of the largest AI compute deals from the quantitative finance sector.

Customer concentration remains a factor. Microsoft accounted for approximately 67% of CoreWeave’s fiscal year 2025 revenue. The backlog diversification toward Meta, OpenAI, Anthropic, and Jane Street signals a broadening customer base, but the operational risk of contract renegotiation, cancellation, or customers developing internal compute capacity persists.

The Capital Expenditure Machine and Its Financing Structure

CoreWeave’s $9.4 billion in Q2 capital expenditures, up from $6.8 billion in Q1, reflects the physical reality of converting a software-layer cloud business into a hardware-intensive infrastructure operator. The company raised its full-year 2026 capex guidance to $35 billion to $39 billion, up from the $31 billion to $35 billion range set in May. At the midpoint, that represents a 12% increase in expected infrastructure spending while the revenue guidance midpoint rose only 2.4%.

The gap between capex growth and revenue growth is central to the investor debate around CoreWeave. The company is building ahead of demand in a market where contracted backlog provides revenue visibility but delivery timelines are measured in quarters. As of June 30, CoreWeave operated 51 active data centers with 1.5 gigawatts of active power. It added eight data centers during 2026 and expanded contracted power to approximately 3.7 GW. An additional 500 MW was added after quarter-end, bringing total contracted power to 4.2 GW as of August 11. The math is notable: only about 36% of CoreWeave’s contracted power capacity is currently active, meaning the majority of its infrastructure is still under construction or awaiting deployment.

Financing this buildout has pushed total debt to $35 billion. The company has funded expansion through a combination of secured and unsecured debt, convertible bonds, equity, and strategic investments. Approximately $7.5 billion of the debt is secured against GPU collateral, a structure that introduces depreciation risk if the resale value of graphics processing units declines faster than assumed. Analysts have flagged the possibility that loan covenants tied to that collateral could come under pressure as early as 2027.

Competitive Dynamics Are Shifting Around CoreWeave

The quarter’s results arrived against a backdrop of emerging competition in the dedicated AI cloud market. SpaceX, which completed its Nasdaq IPO in June 2026, has begun renting excess computing capacity from its own data centers to Anthropic and Google, entering the market from a different infrastructure base. Meta CEO Mark Zuckerberg has discussed the possibility of launching a cloud business that would rent out surplus AI compute capacity, a move that would place one of CoreWeave’s largest customers in a dual role as potential competitor.

CoreWeave’s management addressed the competitive landscape directly. Chief Financial Officer Nikhil Agrawal said on the earnings call that demand, pricing, and margin are all expanding simultaneously, which the company interprets as evidence that the total addressable market for AI infrastructure is growing faster than any single provider can absorb. The company also disclosed that it completed the first bring-up and validation of Nvidia’s next-generation Vera Rubin NVL72 chip system during the quarter, positioning it as an early deployment partner for Nvidia’s newest hardware architecture.

Guidance and What It Implies for the Second Half

CoreWeave’s Q3 revenue guidance of $3.45 billion to $3.6 billion represents sequential growth of 34% to 40% from Q2, an acceleration that would require a significant ramp in active capacity. The full-year guidance midpoint of $12.8 billion implies second-half revenue of approximately $7.6 billion to $8.0 billion, compared with $4.68 billion in the first half. Achieving that trajectory depends on the pace of data center completions, power availability, and GPU delivery schedules.

The company projected an exit annual recurring revenue rate of $18 billion to $19 billion by December 2026 and guided for $960 million to $1.15 billion in adjusted operating income for the full year. JPMorgan analyst Samik Chatterjee raised the firm’s price target on CoreWeave to $110 from $105 following the results, maintaining a Neutral rating. As of Tuesday’s close, CoreWeave shares had gained 26% year to date, compared with approximately 13% for the S&P 500.

 

Disclaimer: This article is for informational purposes only and does not constitute financial advice, an investment recommendation, or a solicitation to buy or sell securities. Readers should conduct their own research and consult a licensed financial advisor before making investment decisions.

 

FAQs

How much revenue did CoreWeave report in Q2 2026?

CoreWeave reported Q2 2026 revenue of $2.58 billion, a 112% increase from a year earlier, beating the $2.56 billion LSEG consensus estimate. The company raised full-year 2026 revenue guidance to $12.4 billion to $13.2 billion.

What is CoreWeave’s revenue backlog and what does it include?

CoreWeave’s revenue backlog reached $104.2 billion at the end of Q2, composed almost entirely of remaining performance obligations under committed contracts. The figure excludes more than $25 billion in new commitments signed in Q3. Major contributors include Meta (approximately $35.2 billion total), OpenAI (approximately $22.4 billion), Anthropic, and Jane Street ($6 billion).

How much debt does CoreWeave carry?

CoreWeave had $35 billion in total debt on its balance sheet as of June 30, 2026. Net interest expense reached $640 million in Q2, more than double the $267 million recorded a year earlier. The company raised more than $10 billion in unsecured debt and convertible bonds during the quarter alone.

Who are CoreWeave’s main competitors in AI cloud infrastructure?

CoreWeave competes with hyperscale cloud providers including Amazon Web Services, Google Cloud, and Microsoft Azure. Newer entrants include SpaceX, which has begun renting compute capacity from its data centers to Anthropic and Google, and potentially Meta, which has discussed launching an external cloud business. Nebius Group is also expanding in the dedicated AI cloud space.