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Cloud provider Nebius Group's 2025 revenue grew 479% year-over-year to $529.8 million versus $91.5 million a year earlier. At the same time, the company's annualized recurring revenue (ARR) exceeded $1 billion at the end of the year, according to a letter from founder and CEO Arkady Volozh to shareholders.
Nebius shares plunged more than 7% in the premarket on Feb. 12 after the report was released, but then recovered those losses and are trading up 4% about an hour before the U.S. market opens.
What else Nebius reported on in the report
- The company's fourth-quarter 2025 revenue rose 547% year-over-year to $227.7 million, but the figure was below the consensus forecast of $242.8 million, SeekingAlpha writes.
- The adjusted net loss for the quarter grew to $173 mln compared to $69 mln a year earlier. At the same time, the company turned around the financial result for its core business: instead of a loss of $352 mln in 2024, Nebius recorded a net profit of $29 mln in 2025.
- Annualized recurring revenue (ARR) at the end of last year was $1.25 billion, exceeding the company's most recent guidance in the $900 million-$1.1 billion range.
- Adjusted EBITDA in 2025 - earnings before interest, taxes, depreciation and amortization - improved, with the loss narrowing to $64.9 million from $226.3 million a year earlier.
- Operating cash flow for the core operating business (excluding divested and spun-off assets) totaled $401.9 million at year-end, while the company recorded negative cash flow in 2024.
- Year-end cash rose about 51% to $3.68 billion, and total assets more than tripled to $12.45 billion.
"We enter 2026 with strong momentum, high operational confidence and a scalable platform designed for the world's most demanding AI workloads," said Arkady Volozh, founder and CEO of Nebius Group, in a letter to shareholders. - We expect to end the year with ARR in the range of $7 billion to $9 billion. To do so, we will focus on four key areas: disciplined capacity expansion, meeting customer commitments, developing the AI Cloud platform, and strategic capital raising."
Company plans
In addition, on February 12, it became known that Nebius plans to build a new data center with a capacity of 240 MW in Bethune (France), near Lille. Upon completion, the facility will be one of the largest in Europe, reported Reuters citing a company statement. The project involves the redevelopment of a former Bridgestone tire plant. Capacity will be commissioned in phases: the first capacity is scheduled to come online by the end of summer 2026, and about half of the site should be operational by the end of the year, Nebius communications director Tom Blackwell said.
What are the analysts saying?
Of the 13 analysts covering the company's stock, the majority - ten - recommend buying it, MarketWatch data show. Two are neutral and only one advises selling.
The news is supplemented.
This article was AI-translated and verified by a human editor
