Nebius Group NV (NASDAQ:NBIS) reported its fourth quarter and full-year 2025 financial results, delivering a quarter of staggering revenue growth but a mixed performance against Wall Street expectations. The company, which operates as an AI cloud infrastructure provider, continues to invest heavily in scaling its operations, a dynamic clearly reflected in both its income statement and balance sheet.
Quarterly Performance vs. Estimates
The headline figures for Q4 2025 reveal a company in a rapid, capital-intensive growth phase. Revenue soared to $227.7 million, a 547% increase compared to the $35.2 million reported in Q4 2024. However, this top-line result fell short of analyst estimates, which had projected revenue of approximately $250.9 million.
On the bottom line, the company reported a net loss from continuing operations of $249.6 million for the quarter. Its adjusted net loss, a non-GAAP metric favored by management that excludes items like stock-based compensation and certain one-off expenses, came in at $173.0 million. This translated to an adjusted loss per share of -$0.69, which notably outperformed the consensus analyst estimate for a Non-GAAP EPS loss of -$1.16.
The key takeaways from the quarter versus expectations are:
- Revenue: $227.7M reported vs. ~$250.9M estimated (Miss)
- Adjusted EPS: -$0.69 reported vs. -$1.16 estimated (Beat)
Market Reaction
In pre-market trading following the earnings release, NBIS shares were down approximately 3.1%. This initial reaction suggests investor focus may be leaning toward the revenue miss and the scale of the company's ongoing net losses, despite the better-than-feared performance on the per-share loss figure. The stock has faced pressure over the past month, declining about 16%, indicating a cautious market sentiment leading into the earnings report.
Full-Year 2025 and Operational Highlights
The full-year results underscore the transformative scale of Nebius's expansion. Revenue for 2025 reached $529.8 million, up 479% from $91.5 million in 2024. The company's adjusted EBITDA loss narrowed significantly to $64.9 million from $226.3 million the prior year, showing improving operational leverage as revenue scales.
A deep dive into the financials reveals the massive capital investment behind this growth:
- Capital Expenditures: The company invested $4.07 billion in property and equipment purchases for the full year, a more than 400% increase. In Q4 alone, capex was $2.06 billion.
- Balance Sheet Expansion: Total assets ballooned to $12.45 billion from $3.55 billion at the end of 2024, driven by a jump in property and equipment (including GPU clusters) to $5.57 billion and a large increase in operating lease assets.
- Financing the Build-Out: To fund this expansion, the company took on substantial debt, with non-current debt rising to $4.1 billion. Despite significant cash burn from investing activities, the company ended the year with a strong cash position of $3.68 billion.
- Deferred Revenue Growth: A positive sign for future revenue visibility is the surge in deferred revenue, which sits at over $1.5 billion combined between current and non-current liabilities, indicating strong customer prepayments for cloud services.
Looking Ahead
The press release did not provide formal financial guidance for the coming quarters or full year 2026. This absence of a company outlook places greater weight on existing analyst projections. Currently, analysts are modeling sales of approximately $3.18 billion for the full year 2026, which would represent another year of explosive growth. For the upcoming first quarter of 2026, the sales estimate stands at about $349.5 million. Investors will be keenly listening to management's commentary on the earnings webcast for any color on the trajectory to meet or exceed these estimates.
Conclusion
Nebius's Q4 report paints a picture of a company executing a high-stakes, capital-heavy growth strategy in the competitive AI infrastructure arena. While it missed revenue estimates for the quarter, it managed its per-share loss more effectively than analysts anticipated. The market's tepid initial reaction reflects the complex balancing act the company faces: demonstrating a path to profitability while justifying its enormous investments to capture a share of the booming AI cloud market. The coming quarters will be critical in showing whether this aggressive scaling translates into sustainable market leadership and improved financial metrics.
For a detailed breakdown of future quarterly estimates and historical earnings performance, you can review more data on the Nebius earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Investing involves risk, including the potential loss of principal.
