Cerebras Systems Inc. (CBRS)

Price$212.27Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe valuation still assumes extraordinary growth long before durable profits and cash generation are proven.

The market value is about $44 billion, while management guides to roughly $885 million of core 2026 revenue. After subtracting the supplied June net cash of about $5.8 billion, the implied business value is roughly $38 billion, or about 43 times guided revenue. Even if 2027 revenue more than triples as management plans, that would still be around 14 times sales before allowing for additional cash spending. That demanding math supports an Overvalued verdict despite the company's exceptional growth.

Big pictureRevenue is growing rapidly, but expansion currently consumes heavy investment and produces uneven reported profits.

Revenue rose from $290 million in 2024 to $510 million in 2025, then reached $373.5 million in the first half of 2026. Yet operating results remain fragile: second-quarter operating loss was $477 million, partly distorted by $377 million of stock compensation. Cash economics are also demanding. Operating cash flow minus capital spending, a simple measure of free cash flow, was about negative $477 million in the second quarter and roughly negative $596 million for the first half.

Business strengthCloud demand and a huge cash cushion provide real strengths, but margins remain sensitive to scaling costs.

The strongest bull evidence is substantial. Second-quarter cloud and other services revenue reached $126 million, up 281% year over year, while management reported $25.4 billion of remaining contracted obligations and more than 600 megawatts of data-center capacity live or contracted through 2027. The balance sheet also carries about $5.8 billion of supplied net cash. However, second-quarter reported gross margin fell to 14%, versus a 41% adjusted core margin, showing how capacity, compensation and other scaling costs can overwhelm revenue growth.

What could change the storyFaster conversion of major contracts into profitable cash flow could justify more of today's valuation.

The key upside test is whether OpenAI and other cloud customers turn the company's $25.4 billion contracted backlog into revenue without requiring proportionally larger capital spending. Management expects more than triple 2027 revenue, which would materially reduce today's sales multiple if achieved. The bear case strengthens if growth stays near current levels, rented computing capacity keeps pressuring margins, or capital expenditures remain several hundred million dollars per quarter. Dilution also matters: the May offering issued 34.5 million new shares, raising $6.38 billion but expanding the equity base.

AI: News

Mixed second-quarter resultsFast cloud growth and higher guidance were overshadowed by a revenue miss and continued scaling costs.

On August 12, Cerebras reported $180.1 million of reported revenue, up 74% from a year earlier, while core revenue reached $209.9 million. Cloud revenue rose 281%, and management raised full-year core revenue guidance to $880 million-$890 million. Reuters reported that shares fell about 16% after hours as reported revenue missed expectations and investors focused on profitable scaling. The reaction is consistent with concern that very high expectations leave little room for operational setbacks.

OpenAI Ultrafast launchOpenAI began using Cerebras for a premium fast-response service, strengthening evidence of real customer demand.

On August 13, Cerebras announced that its hardware powers OpenAI's GPT-5.6 Sol Ultrafast mode, initially offered in limited preview. Cerebras said the service can produce up to 750 output tokens per second and run as much as 14 times faster than standard processing. The announcement supports the bull case that Cerebras has differentiated technology attractive to a major customer. Shares later rallied sharply, although news reports also cited analyst commentary, so the move cannot be attributed solely to this announcement.

CS-4 accelerator unveiledA faster new system strengthens the technology case, but investors still want proof of profitable commercial scaling.

Cerebras introduced CS-4 on August 18, claiming up to twice the speed of CS-3, as much as 30 times faster inference than GPU-based alternatives, and up to ten times more throughput per watt than its predecessor. Those claims could improve customer economics if reproduced at scale. The stock nevertheless fell 12.7% that session after a strong prior-day rally. Contemporary reporting described profit-taking and valuation concerns, making the precise contribution of the product announcement uncertain.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$510.0M	$290.3M	$78.7M	$24.6M
Gross profit	$199.1M	$122.7M	$26.4M	$2.9M
Gross margin	39.03%	42.29%	33.47%	11.74%
Research & development	$243.3M	$158.2M	$140.1M	$155.4M
Operating expenses	$344.9M	$224.2M	$160.3M	$181.7M
Operating income	−$145.9M	−$101.4M	−$133.9M	−$178.8M
Operating margin	−28.60%	−34.95%	−170.09%	−726.35%
EBITDA	−$111.4M	−$89.9M	−$123.4M	−$166.9M
EBITDA margin	−21.85%	−30.97%	−156.65%	−677.85%
Net income	$237.8M	−$481.6M	−$127.2M	−$177.7M
Net profit margin	46.63%	−165.93%	−161.48%	−721.88%
Basic EPSper basic share	$0.48	-$2.68	-$0.70	-$0.98
Diluted EPSper diluted share	$0.42	-$2.68	-$0.70	-$0.98

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Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)129$18.61M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4	Mallick DhirajChief Operating Officer	SellClass A Common Stock	800	$181.62	$145.3K	0
Jun 26, 2026Form 4	Mallick DhirajChief Operating Officer	SellClass A Common Stock	1.2K	$180.50	$216.6K	800
Jun 26, 2026Form 4	Mallick DhirajChief Operating Officer	SellClass A Common Stock	1.1K	$179.67	$197.6K	2.0K
Jun 26, 2026Form 4	Mallick DhirajChief Operating Officer	SellClass A Common Stock	200	$178.12	$35.6K	3.1K
Jun 26, 2026Form 4	Mallick DhirajChief Operating Officer	SellClass A Common Stock	200	$177.23	$35.4K	3.3K

Review ownership filings at SEC.gov ↗

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Cerebras Systems Inc. (CBRS)

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