Key Highlights
- First-quarter revenue reached $399 million for Nebius, representing an almost eightfold jump from $50.9 million in the prior-year period, exceeding forecasts.
- The company’s adjusted net loss totaled $100.3 million, significantly better than the $174 million loss Wall Street had anticipated.
- Shares of NBIS surged 12% during premarket hours following the earnings release; the stock has gained 114% in 2025.
- The firm invested $2.5 billion in capital expenditures during Q1, a substantial increase from $544 million in the same quarter last year, supporting data center expansion.
- Recent strategic moves include a $27 billion partnership with Meta and the announced acquisition of Eigen AI for $643 million.
Nebius Group delivered first-quarter financial results on Wednesday that significantly exceeded Wall Street’s projections, propelling NBIS stock up 12% during premarket hours.
The company generated $399 million in revenue during the quarter ending in March, a dramatic increase from the $50.9 million recorded in the comparable period last year. This performance surpassed analyst consensus estimates ranging from approximately $371 million to $375 million.
Nebius reported an adjusted net loss of $100.3 million for the period. While this represents a wider loss compared to the $83.6 million deficit from a year ago, it came in substantially better than the $174 million shortfall Wall Street analysts had forecast.
Shares of NBIS have now appreciated 114% year-to-date. Looking at the trailing twelve-month period through Tuesday’s closing price, the stock has skyrocketed nearly 400%.
In his shareholder letter, CEO Arkady Volozh highlighted the extraordinary customer demand driving results. “We continue to see unprecedented demand across the market,” Volozh stated. “Compute and cloud needs are vastly exceeding capacity.”
The company functions as a neocloud provider, delivering AI cloud infrastructure that includes Nvidia GPU access, storage solutions, and managed services for developers creating and launching AI applications.
Significant Capital Investment Ramp-Up
Capital expenditures during the first quarter totaled approximately $2.5 billion, representing a substantial jump from the $544 million spent in the year-ago quarter. This figure slightly exceeded the $2.4 billion analysts had projected.
The substantial capital deployment reflects Nebius’s ambitious strategy to rapidly scale its worldwide data center infrastructure. Market analysts anticipate the company will expand capacity to 900 MW before the end of the year.
This aggressive spending trajectory has prompted some analyst caution. Margin compression remains a primary concern among observers, despite the company’s impressive revenue growth trajectory.
Similar concerns have emerged around larger competitor CoreWeave, which has outlined plans for $30 billion to $35 billion in capital spending throughout this year while cautioning about near-term margin challenges.
Major Meta Partnership and Strategic Acquisition
Earlier in May, Nebius announced plans to acquire emerging company Eigen AI for approximately $643 million. This strategic move is designed to enhance its inference capabilities and broaden its footprint across the United States.
Additionally, Nebius secured a substantial long-term computing agreement with Meta valued at up to $27 billion spanning five years. This arrangement establishes a significant anchor relationship within its customer base.
The company has been strategically positioning itself through a dual approach of securing major contracts and pursuing targeted acquisitions.
Wall Street analysts had projected Q1 revenue at $371.4 million according to LSEG data. The actual $399 million figure exceeded that consensus by approximately 7.5%.
These first-quarter results represent the strongest evidence to date of Nebius’s ability to convert its AI infrastructure investments into meaningful revenue generation.
