Nebius Group N.V.

Q2 group revenue was $582 million, up 454% YoY and up 46% sequentially. Nebius AI revenue was $575 million, up 514% YoY, and annualized run-rate revenue ended June at $3 billion, up 598% YoY and up from $1.9 billion at the end of March. Group adjusted EBITDA was $236 million versus a loss of $21 million a year ago and $129.5 million in Q1; adjusted EBITDA margin was 41% versus 32% in Q1. Nebius AI adjusted EBITDA margin was 50%. Operating cash was $2.3 billion in the quarter, cash and cash equivalents ended at $8 billion, and CapEx was approximately $5.7 billion. The company issued 12.7 million Class A shares at a weighted average price of $224 per share, generating about $2.8 billion of gross proceeds, and later announced a $775 million asset-backed debt facility priced at SOFR plus 250 basis points. For 2026, management reaffirmed guidance for annualized run-rate revenue of $7 billion-$9 billion, group revenue of $3 billion-$3.4 billion, adjusted EBITDA margin of approximately 40%, and capital expenditures of $20 billion-$25 billion.

Arkady Volozh framed the quarter as a strong validation of Nebius' strategy: build capacity ahead of demand, use a full-stack multi-tenant platform, and retain flexibility on when, to whom, and on what terms capacity is sold. He emphasized the company's ability to choose between midterm landmark deals, short-duration premium deals, and long-term financing-oriented contracts, saying the market is moving fast and Nebius is positioned to benefit from that speed. His tone was highly optimistic, especially around 2027, when he said demand, pricing, and capacity plans make him "cannot be more excited about the future."

Dado Alonso emphasized that the business is scaling profitably, with Q2 revenue of $582 million, adjusted EBITDA of $236 million, and a 41% margin, alongside operating cash of $2.3 billion and $8 billion of cash on hand. He highlighted funding strength from customer prepayments, saying they will bring in more than $9 billion of upfront funding this year and that roughly 70% of Q2 deals included upfront prepayments. He also pointed to $775 million of asset-backed debt at SOFR plus 250 basis points, more than $40 billion of committed backlog supporting similar financing, and reaffirmed 2026 guidance across all metrics.

Analysts focused on Vineland permitting, the monetization of 2027 capacity, financing strategy, and whether the company should lean more on debt, equity, or convertibles. Management said Vineland is still on track, the building is finished, engineering fit-out is progressing, and the Bloom fuel-cell switch should not materially affect the timeline. On 2027 capacity, Nebius said it could sell out the year today but is deliberately keeping some capacity for higher-priced short-term deals and expects to formalize guidance later this year. On financing, management said it is comfortable with a diversified mix of customer prepayments, asset-backed debt, corporate debt, and equity-linked tools, while prioritizing cost of capital, low dilution, and a strong balance sheet.