Nebius revenue soars 454% as AI capacity demand outstrips supply

Nebius Group reported Q2 revenue of $582.3 million, up 454 percent year over year, as AI compute demand continues to outstrip available capacity.

"We could sell today our entire 2027 capacity on these terms if we wanted to," Chief Executive Officer Arkady Volozh said. "We are not doing this."

The Dutch AI infrastructure provider posted adjusted EBITDA of $236.2 million, swinging from a $21 million loss a year earlier, at a 41 percent margin. Nebius AI, now 98 percent of group revenue, delivered $575 million, up 514 percent, at a 50 percent adjusted EBITDA margin. Annualized run-rate revenue reached $3 billion, up 598 percent.

Metric	Actual	Consensus	Beat/Miss
Revenue	$582.3M	$584.2M	-$1.9M
Adjusted EPS	-$0.12	-$0.69	+$0.57
Adjusted EBITDA	$236.2M	—	—

Shares surged 28.58 percent to $248.46 on the day. The company reaffirmed full-year guidance of $7-9 billion ARR, $3-3.4 billion revenue and roughly 40 percent adjusted EBITDA margin, backed by a $40 billion contracted backlog.

The quarter was defined by four landmark mid-term contracts averaging over $1 billion each, with customers including Reflection, Cohere, a scale U.S. Neolabs and a large quant trading firm. The deals carried prepayments covering 50-60 percent of associated capital expenditure and established a new baseline yield of $20-25 million per megawatt.

Volozh said Nebius is deliberately holding back premium capacity for shorter-duration deals now pricing at $40-50 million per megawatt, more than double the rate of its core longer-term agreements. The company also ran its first capacity auction, which cleared 15 percent above its highest-ever Blackwell pricing. New entrants such as xAI, he said, validate a market growing from hundreds of billions toward $1 trillion, with hyperscalers unable to build all required infrastructure.

On the funding side, CFO Dado said customer prepayments are expected to exceed $9 billion in 2026, with operating cash flow of $2.25 billion in Q2 alone. Nebius closed a $775 million asset-backed debt facility priced at SOFR plus 250 basis points and raised $2.8 billion through its at-the-market program, selling 12.7 million shares at an average $224.

GAAP results remained under pressure. The company posted a net loss of $190.4 million, reversing a $502.5 million profit a year earlier that included a $597.4 million gain from revaluing equity investments. Depreciation and amortization rose 245 percent to $259.7 million, while share-based compensation jumped 597 percent to $102.5 million. Capital expenditure reached $5.66 billion, exceeding operating cash flow by roughly $3.4 billion.

Nebius raised its year-end contracted power target to 5 gigawatts and expects 800 megawatts to 1 gigawatt of connected power by December. A new asset-light partnership model, under which partners finance and build facilities while Nebius provides the platform and customer demand, has drawn dozens of inquiries.

The guidance reaffirmation shows management expects AI demand to keep accelerating, with pricing power firmly in Nebius's favor. Investors will watch the deployment of 2027 capacity and the ramp of the asset-light model for updated margin guidance later this year.

This article is for informational purposes only and does not constitute investment advice.