Nebius Group (NBIS) Q4 2025 earnings summary

Executive summary

• Achieved robust growth in 2025, exceeding financial and capacity targets, with strong demand for AI cloud services and a rapidly expanding customer base across startups and enterprises.

• Revenues surged 547% year-over-year in Q4 2025 to $227.7M and 479% for the full year to $529.8M, reflecting rapid business expansion.

• Sold out of capacity in Q3 and Q4 2025, and Q1 2026 is also fully sold out, reflecting persistent supply-demand imbalance.

• Announced nine new data centers globally and raised 2026 contracted power forecast to over 3 GW, with 800 MW to 1 GW available by year-end.

• Successfully delivered all Meta contract capacity and on track to fulfill Microsoft commitments through 2026.

Financial highlights

• Q4 2025 group revenue reached $228 million, up 547% year-over-year and 56% sequentially.

• Core AI cloud business revenue grew 830% year-over-year and 63% quarter-over-quarter.

• Annualized run rate revenue (ARR) at $1.2 billion at year-end, exceeding guidance.

• Group adjusted EBITDA turned positive in Q4, with core AI cloud adjusted EBITDA margin expanding from 19% in Q3 to 24% in Q4.

• Ended 2025 with $3.7 billion in cash and cash equivalents; generated $834 million in Q4 operating cash flow, mainly from upfront long-term contract payments.

Outlook and guidance

• 2026 revenue guidance: $3 billion–$3.4 billion; ARR target: $7 billion–$9 billion by year-end.

• Group adjusted EBITDA margin expected to reach ~40% in 2026.

• EBIT to remain negative in 2026 due to ongoing capacity expansion and R&D investments, with a medium-term EBIT margin target of 20%–30%.

• CapEx planned at $16 billion–$20 billion for 2026, with about 60% already funded.