Nebius Group (NBIS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue surged 385% year-over-year to $55.3 million, primarily from the AI infrastructure business, with annualized run rate revenue up 684% to $249 million.

• The group operates as a full-stack AI infrastructure provider, including Nebius (AI infrastructure), Toloka (AI development), TripleTen (edtech), and Avride (autonomous vehicles).

• The company ended Q1 with a $1.4 billion cash balance and continued to invest heavily in global data center capacity, adding new locations in the U.S., Europe, and the Middle East.

• Strategic partnerships were deepened, notably with NVIDIA and Meta, including being a launch partner for new AI platforms and reference architectures.

• Toloka will be deconsolidated from Q2 2025 after a major investment led by Bezos Expeditions, with Nebius retaining a majority economic stake.

Financial highlights

• Q1 2025 revenue: $55.3 million (+385% YoY); ARR: $249 million (+684% YoY).

• April annualized run rate revenue reached $310 million, with strong demand continuing into Q2.

• Cash and cash equivalents declined from $2,449.6 million at year-end 2024 to $1,447.0 million at March 31, 2025.

• 2025 revenue guidance: $500–700 million; core AI segment ARR expected at $750 million–$1 billion by December 2025.

• Capital expenditures for 2025 projected at $2 billion.

Outlook and guidance

• Full-year 2025 ARR guidance reiterated at $750 million–$1 billion; group revenue guidance at $500–$700 million.

• Adjusted EBITDA expected to be negative for the full year, turning positive in the second half of 2025.

• Midterm revenue target is mid-single-digit billions of dollars, with medium-term EBIT margins of 20–30%.

• CapEx guidance for 2025 raised to $2 billion to accelerate infrastructure buildout.

• Guidance to be updated for Toloka deconsolidation in Q2 2025.