NBIS · Nebius Group N.V.

Nebius Group N.V. reported a transformative first quarter of 2026, marked by explosive revenue growth in its core AI cloud business and a significant non-cash gain that propelled the company to a substantial net profit. Total revenues reached $399.0 million, a 684% increase from $50.9 million in the prior-year quarter. This surge was overwhelmingly driven by the Nebius AI cloud segment, which generated $389.7 million in revenue, up from $41.4 million a year ago, reflecting successful capacity scaling and strong pricing and utilization. The company's other segments, Avride and TripleTen, contributed modestly to the top line.

Despite the revenue growth, the company's loss from operations widened to $128.0 million from $120.3 million in Q1 2025. This was primarily due to a sharp increase in depreciation and amortization expenses, which rose to $212.0 million from $49.1 million, as the company continued to invest heavily in GPU-related capital expenditures and data center hardware to support its expanding AI cloud infrastructure. Other operating expenses, including cost of revenues, product development, and sales, general and administrative costs, also increased significantly as the business scaled.

The bottom line was dramatically impacted by a $780.6 million gain from the revaluation of the company's investment in ClickHouse, following a third-party financing round that provided an observable price change. This non-cash item was the primary driver of net income from continuing operations of $621.2 million, a stark contrast to the $104.3 million loss in the same period last year. Excluding this gain and other non-operating items, the company's core AI cloud business showed a significant improvement in its adjusted EBITDA, turning positive to $174.0 million from a loss of $27.4 million.

The company's balance sheet was substantially fortified during the quarter. Cash and cash equivalents soared to $9.3 billion, fueled by $2.0 billion in proceeds from a pre-funded warrant sale to NVIDIA and $4.34 billion from the issuance of convertible notes. This capital raise was complemented by a massive $3.2 billion in customer prepayments, which drove operating cash flow to $2.26 billion. These funds are earmarked to finance the company's ambitious capital expenditure plans, which totaled $2.47 billion in Q1 alone, primarily for GPUs and data center construction, underscoring Nebius's aggressive investment in capturing the growing demand for AI infrastructure.