TLDR
- Nebius (NBIS) Q4 revenue hit $227.7M, up 547% YoY but below $247.5M analyst estimates
- Net loss widened to $249.6M from $122.9M year-over-year as operating costs surged
- Annual Recurring Revenue reached $1.25B, crushing guidance of $900M-$1.1B
- Company plans 240 MW French data center and targets 3 GW contracted power by year-end
- Cash position strengthened to $3.68B as capex spending hit $2.06B in the quarter
Nebius stock showed volatility Thursday after the AI cloud provider delivered fourth-quarter results that beat growth expectations but missed revenue targets. Shares initially dropped 1.25% in pre-market trading before recovering to gain 4%.
The company reported Q4 revenue of $227.7 million, falling short of the $247.5 million consensus estimate. However, the figure represented a 547% surge from $35.2 million in the prior-year quarter.
Full-year 2025 revenue reached $529.8 million, marking a 479% jump from $91.5 million in 2024. This explosive growth came as the company scaled its AI infrastructure operations rapidly.
The net loss widened to $249.6 million in Q4 from $122.9 million a year earlier. Adjusted net loss expanded to $173 million compared to $69 million in the prior-year period.
Operating expenses climbed 169% year-over-year to $462.2 million. Depreciation and amortization costs surged 443% to $180.7 million as the company invested heavily in infrastructure.
Revenue Metrics Show Strength
Annual Recurring Revenue hit $1.25 billion by year-end, exceeding the company’s $900 million to $1.1 billion guidance range. CEO Arkady Volozh highlighted the addition of multiple large startup and enterprise customers during 2025.
Adjusted EBITDA turned positive at $15 million for the quarter. This compared favorably to a $63.9 million loss in Q4 2024.
The company ended 2025 with approximately 170 megawatts of active power, surpassing its 100 MW target. Nebius remains on track to reach 800 MW to 1 GW of connected power by the end of 2026.
Capital expenditures reached $2.06 billion in the quarter, up 392% from $417.5 million year-over-year. The spending reflects the company’s aggressive infrastructure buildout strategy.
Expansion Plans Take Shape
Nebius unveiled plans for a 240 MW data center in Béthune, France. The facility will rank among Europe’s largest data centers when operational.
The company expects to secure more than 3 gigawatts of contracted power by year-end. This capacity supports management’s ambitious ARR target of $7 billion to $9 billion by the end of 2026.
Cash and cash equivalents stood at $3.68 billion as of December 31, 2025. This represented an increase from $2.43 billion at the end of 2024.
Strategic Focus Areas
Volozh outlined four key priorities for 2026: scaling capacity with discipline, executing on customer commitments, advancing the AI Cloud platform, and raising capital strategically.
The company recently announced it will offer Nvidia’s new Vera Rubin NVL72 computing platform. Competitors Supermicro and CoreWeave made similar announcements.
Nebius ended the year with about 170 MW of active power versus its target of 100 MW. The company is positioning itself to handle demanding AI workloads as market demand continues expanding.
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