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Barclays on Software Debt: CoreWeave, WhiteFiber Leverage in Focus — Positive

Posted on by Eben@CANSLIM Research
Eben@CANSLIM Research's avatarEben@CANSLIM Research

Barclays has flagged rising interest rates as a renewed focus for software investors, with CoreWeave (CRWV) and WhiteFiber (WYFI) the only names in its coverage running above 3x net debt/adjusted EBITDA. In a sector note published on 18 September 2026, Barclays’ software team said the picture is “very benign” for most vendors but that AI infrastructure names face a widening gap between capital spending and revenue recognition. CoreWeave’s proposed $3bn convertible notes offering and 35mn-share ATM programme were the week’s most significant financing events.

Key Takeaways

  • Barclays identifies CoreWeave (CRWV) and WhiteFiber (WYFI) as the only software vendors in its coverage with net debt/adjusted EBITDA above 3x, at 6.0x and 14.9x respectively, both driven by AI data-centre build-out.
  • Oracle (ORCL), IBM, Microsoft (MSFT) and CoreWeave carry the largest absolute net debt in the coverage universe, at $97.4bn, $53.8bn, $30.0bn and $29.8bn respectively.
  • CoreWeave announced a proposed $3bn convertible senior notes offering plus a 35mn-share ATM equity offering, implying total financing of roughly $6.4bn before fees at 16 September prices.
  • CoreWeave said it continues to sign short-dated compute contracts of roughly 3-6 months at approximately $40mn per megawatt, which Barclays called “a clear positive”.
  • Total software debt maturities across Barclays’ coverage reach $168.4bn for 2026-2032, with 2027 the heaviest single year at $26.1bn.

What Barclays’ Software Debt Review Found

In a report titled “Raimo’s Roundup: Checking On Software Debt Situation Given Higher Interest Rates”, Barclays analysts Raimo Lenschow, Saket Kalia and Sheldon McMeans argue that increasing interest rates will have implications across the economy including software, but that for most vendors the effect will be “very benign”. The team’s central concern is a narrower cohort: AI infrastructure providers funding large data-centre projects with debt while revenue recognition lags capital expenditure.

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