Nebius Group N.V.

Q1 group revenue was $399 million, up 684% year over year and up 75% from Q4. Nebius AI business revenue was $390 million, up 841% year over year and up 82% sequentially, and represented 98% of group revenue. Group adjusted EBITDA was $130 million versus a loss of $54 million a year ago; adjusted EBITDA margin was 32%. Nebius AI adjusted EBITDA margin was 45%, up from 24% in Q4. Net income was $621 million, helped by a noncash valuation adjustment tied to ClickHouse’s recent funding round. Operating cash flow was $2.3 billion versus an operating cash outflow of $198 million in Q1 last year, and cash and cash equivalents ended at $9.3 billion. Full-year 2026 guidance was reiterated for annualized run rate revenue of $7 billion-$9 billion, group revenue of $3 billion-$3.4 billion, and group adjusted EBITDA margin of around 40%. Capex guidance was raised to $20 billion-$25 billion for 2026, with management saying Q2 margins should dip, return to Q1 levels in Q3, and move higher in Q4.

Arkady Volozh framed the quarter as evidence that Nebius is building an AI-native hyperscaler across four pillars: capacity, product, customers, and capital. He emphasized rapid power contracting growth to more than 3.5 gigawatts and the new Pennsylvania site, while arguing that the company’s full-stack offering, acquisitions, and NVIDIA partnership make it uniquely positioned to win. His tone was highly confident and expansive, repeatedly stressing that demand is strong and that everything they build is sold.

Dado Alonso highlighted sharp revenue acceleration, margin expansion, and balance-sheet strengthening. He pointed to $399 million in group revenue, $130 million of adjusted EBITDA, 32% group adjusted EBITDA margin, $2.3 billion of operating cash flow, and $9.3 billion of cash at quarter-end, and he noted that the $621 million net income included a noncash ClickHouse valuation gain. He said the higher capex plan reflects 2027 visibility and customer commitments, not cost pressure, and explained that Q2 margins should be lower because investments land before the associated capacity comes online.

Analysts focused on GPU pricing, capex inflation, capacity timing, the Meta deal, customer concentration, and financing. Management said GPU pricing is rising across old and new generations, contract durations and average deal sizes are extending, and prepayments are increasing; they also said the $27 billion Meta agreement includes a $12 billion dedicated commitment plus $15 billion of discretionary capacity that could be sold to Meta or other customers. On financing, Dado said more than 90% of the prior capex range is already secured and that additional funding could come from asset-backed financing, corporate debt, and the ATM program, while capacity updates pointed to a back-end-loaded 2026 with major ramps in Q3 and Q4 and further expansion in 2027.