Key Highlights
- Q1 revenue reached $399 million, climbing almost eight times from $50.9 million in the prior-year period, topping forecasts.
- The company’s adjusted net loss totaled $100.3 million, significantly better than the $174 million loss Wall Street anticipated.
- Shares of NBIS climbed 12% during premarket hours following the announcement; the stock has gained 114% year-to-date.
- First-quarter capital expenditures surged to $2.5 billion from $544 million last year as infrastructure expansion accelerates.
- The firm recently secured a $27 billion agreement with Meta and announced plans to buy Eigen AI for $643 million.
Nebius Group delivered first-quarter financial results on Wednesday that significantly exceeded Street projections, propelling NBIS shares up 12% before the opening bell.
For the quarter ending March, the company generated $399 million in revenue, a dramatic increase from $50.9 million in the year-ago quarter. This performance surpassed consensus estimates that ranged from approximately $371 million to $375 million across various data sources.
The adjusted net loss stood at $100.3 million for the period. While this represented a wider deficit compared to the $83.6 million loss recorded in the previous year’s corresponding quarter, it substantially outperformed the $174 million shortfall that analysts had projected.
NBIS shares have surged 114% since the beginning of the year. Looking at the trailing twelve-month period through Tuesday’s closing price, the stock has skyrocketed nearly 400%.
In his shareholder letter, CEO Arkady Volozh emphasized the extraordinary customer appetite driving results. “We continue to see unprecedented demand across the market,” he stated. “Compute and cloud needs are vastly exceeding capacity.”
The company functions as a neocloud provider, delivering AI cloud infrastructure that includes Nvidia GPUs, storage solutions, and managed services to developers creating and launching AI applications.
Infrastructure Investment Accelerates
Capital expenditures during the first quarter hit approximately $2.5 billion, a substantial jump from $544 million in the comparable quarter last year. This figure slightly exceeded the analyst consensus of $2.4 billion.
This elevated investment level underscores Nebius’s ambitious strategy to expand its worldwide data center infrastructure. Market watchers anticipate the company will scale capacity to 900 MW before the year concludes.
Such aggressive spending has triggered some analyst caution. Industry observers have highlighted potential margin compression as a notable risk factor, despite the impressive top-line expansion.
Similar concerns have surfaced regarding larger competitor CoreWeave, which has outlined plans for $30 to $35 billion in capital outlays this year while cautioning about near-term margin challenges.
Major Partnership with Meta and Strategic Acquisition
Earlier in the month, Nebius announced its intention to acquire emerging company Eigen AI in a transaction valued at approximately $643 million. This strategic move is designed to bolster its inference capabilities and deepen its footprint across the United States.
Additionally, Nebius inked a substantial long-term computing partnership with Meta valued at up to $27 billion spanning five years. This agreement brings a significant enterprise customer into its client base.
The company has been strategically positioning itself through a dual approach of securing major contracts and pursuing targeted acquisitions.
Wall Street had projected Q1 revenue at $371.4 million according to LSEG data. The actual $399 million figure exceeded that benchmark by approximately 7.5%.
These first-quarter results represent the most tangible evidence to date of how Nebius’s substantial AI infrastructure investments are translating into meaningful revenue generation.
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