Key Highlights
- First-quarter revenue reached $399 million, representing an almost 8x increase from $50.9 million in the prior-year period, surpassing consensus forecasts.
- The adjusted net loss of $100.3 million significantly outperformed analyst expectations of a $174 million shortfall.
- Shares of NBIS climbed 12% in premarket hours following the earnings release; the stock has gained 114% in 2025.
- The company deployed $2.5 billion in capital expenditures during Q1, a sharp increase from $544 million in the year-ago quarter, supporting data center expansion efforts.
- Recent strategic moves include a $27 billion partnership with Meta and the $643 million acquisition of Eigen AI announced this month.
Nebius Group delivered first-quarter financial results on Wednesday that substantially exceeded Wall Street’s projections, propelling NBIS stock up 12% during premarket hours.
The company recorded revenue of $399 million for the quarter ending in March, representing a dramatic leap from the $50.9 million posted in the same quarter last year. This figure topped analyst consensus estimates ranging between $371 million and $375 million across various sources.
On the bottom line, Nebius reported an adjusted net loss of $100.3 million. While this represents a wider deficit compared to the $83.6 million loss from the prior-year quarter, it came in substantially better than the $174 million loss Wall Street had anticipated.
Shares of NBIS have surged 114% year-to-date. Looking at the trailing twelve-month period through Tuesday’s closing bell, the stock has rocketed nearly 400%.
In his shareholder letter, CEO Arkady Volozh highlighted the explosive customer demand driving results. “We continue to see unprecedented demand across the market,” he stated. “Compute and cloud needs are vastly exceeding capacity.”
Nebius functions as what’s known as a neocloud provider, delivering AI cloud infrastructure that includes Nvidia GPUs, storage solutions, and managed platforms for developers creating and launching AI applications.
Investment in Infrastructure Accelerates
Capital expenditures during the first quarter totaled approximately $2.5 billion, a substantial jump from the $544 million invested in the comparable quarter one year ago. This outlay slightly exceeded the $2.4 billion analysts had projected.
The elevated spending level underscores 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.
However, this aggressive investment trajectory has sparked some concern. Industry observers have highlighted potential margin compression as a risk factor, despite the company’s impressive top-line expansion.
These worries mirror issues raised regarding larger competitor CoreWeave, which has outlined plans for $30 billion to $35 billion in capital investments this year while cautioning about near-term profitability headwinds.
Major Meta Partnership and Eigen AI Buyout
Earlier in May, Nebius announced plans to acquire emerging company Eigen AI in a transaction valued at approximately $643 million. The strategic acquisition aims to bolster its inference capabilities and deepen its market penetration 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 partnership establishes a significant enterprise customer as a cornerstone of its revenue base.
The company has been strategically positioning itself through a dual approach of securing major contracts while simultaneously pursuing targeted acquisitions.
According to LSEG data, analysts had projected Q1 revenue at $371.4 million. The actual $399 million result exceeded expectations by approximately 7.5%.
These first-quarter figures represent Nebius’s most compelling evidence to date of the revenue-generating potential from its AI infrastructure investments.
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