Nebius (NBIS) Stock: Why Revenue Jumped 547% But Still Missed Estimates

TLDR

• Nebius Group (NBIS) reported Q4 revenue of $227.7 million, missing analyst estimates of $247.5 million despite a 547% year-over-year increase
• The company posted a net loss of $249.6 million in Q4, widening from $122.9 million in the prior-year period
• Full-year 2025 revenue reached $529.8 million, up 479% from 2024, with positive adjusted EBITDA of $15 million in Q4
• Annual Recurring Revenue hit $1.25 billion by year-end, exceeding guidance of $900 million to $1.1 billion
• Nebius announced plans for a 240 MW data center in Béthune, France, and targets 800 MW to 1 GW of connected power by end of 2026

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Nebius Group reported mixed fourth-quarter results Thursday that sent shares down initially in pre-market trading before recovering to trade up 4%. The AI cloud company posted revenue of $227.7 million, falling short of the $247.5 million consensus estimate.

Despite missing expectations, revenue jumped 547% compared to $35.2 million in the same quarter last year. For the full year, Nebius generated $529.8 million in revenue, representing a 479% increase from $91.5 million in 2024.

Nebius Group N.V., NBIS

The company’s net loss widened to $249.6 million in the fourth quarter from $122.9 million in the year-ago period. Adjusted net loss also expanded to $173 million compared to $69 million in the prior-year quarter.

Operating expenses climbed 169% year-over-year to $462.2 million in the quarter. Depreciation and amortization expenses surged 443% to $180.7 million.

Capital expenditures grew substantially as Nebius invests in infrastructure. The company spent $2.06 billion on property and equipment purchases in the quarter, up 392% from $417.5 million in the same period last year.

One bright spot was adjusted EBITDA, which turned positive at $15 million for the quarter. This compared to a loss of $63.9 million in the fourth quarter of 2024.

Strong Growth in Key Metrics

Annual Recurring Revenue reached $1.25 billion by year-end, beating the company’s guidance range of $900 million to $1.1 billion. CEO Arkady Volozh said the company diversified its customer base by adding several large startup and enterprise clients during 2025.

Nebius ended the year with about 170 megawatts of active power, exceeding its target of 100 MW. The company remains on track to reach 800 MW to 1 GW of connected power by the end of 2026.

The company expects to have more than 3 gigawatts of contracted power by year-end. This expansion supports Volozh’s projection that Nebius will achieve ARR of $7 billion to $9 billion by the end of 2026.

European Data Center Expansion

Nebius announced plans for a new 240 MW data center in Béthune, France. The facility will be one of Europe’s largest data centers when completed.

The company’s cash position remained healthy with $3.68 billion in cash and cash equivalents as of December 31, 2025. This represents an increase from $2.43 billion at the end of 2024.

Last month, Nebius joined competitors Supermicro and CoreWeave in announcing they will offer Nvidia’s new Vera Rubin NVL72 computing platform. The company is positioning itself to handle demanding AI workloads as the market continues to expand.

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