Nebius Q4 2025 Results Show AI Growth
Nebius Q4 2025 results showed AI-cloud growth lifted ARR to $1.25 billion while a $2.06 billion capex surge widened the loss and weighed on traders.
KEY TAKEAWAYS
- AI-cloud sales lifted group revenue to $228 million and ARR to $1.3 billion.
- Quarterly capex surged to $2.1 billion and widened the net loss to $250 million.
- Nebius reaffirmed YE2026 ARR of $7.0 billion-$9.0 billion and targets 40.0% adjusted EBITDA margin.
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On Feb. 12, 2026, Nebius Group (NBIS) reported Q4 2025 results showing strong AI-cloud demand that boosted annualized recurring revenue (ARR) but widened the quarterly loss as capital spending accelerated, the company said.
Quarter Results and Margins
Nebius reported Q4 group revenue of $227.7 million, up 547% year-over-year and 56% sequentially. The company posted a net loss of $249.6 million but delivered positive group adjusted EBITDA, a proxy for operating profit, of $15.0 million. The core AI-cloud segment generated $214.2 million in revenue, about 94% of the total, with adjusted EBITDA of $51.8 million at a 24.0% margin. The AI cloud business reached peak utilization, contributing to a year-end ARR of $1.25 billion, exceeding prior guidance. These results reflect Nebius’s rapid shift toward AI cloud services, which now drive most sales and produce positive segment margins despite the overall quarterly loss.
Capital Spending, Capacity, Guidance, and Acquisition
Capital expenditures surged to $2.06 billion in Q4 as Nebius acquired AI processors and expanded data centers, up from $417.5 million a year earlier. The company held $3.7 billion in cash and equivalents at year-end 2025 and generated $834 million in operating cash flow during the quarter, partly funded by customer prepayments. Infrastructure capacity grew sharply, with 170 megawatts of active power at year-end, more than 2 gigawatts contracted, and a target to connect 1 gigawatt in 2026. Management said capacity was sold out into early 2026.
Nebius reaffirmed its year-end 2026 ARR target of $7 billion to $9 billion, with more than half contracted. It projected 2026 revenue between $3.0 billion and $3.4 billion and a group adjusted EBITDA margin of 40%. The company expects an operating loss in 2026 due to continued capital intensity and deployment of energy processing units (EPUs) but targets medium-term EBIT margins of 20.0% to 30.0%. The early-2026 commercial pipeline exceeds $4 billion and includes longer deals with roughly 50% higher average selling prices. Nebius plans vertical expansion into healthcare and finance.
On Feb. 10, Nebius announced it would acquire Tavily, a developer platform specializing in agentic search with more than 700,000 developers and 3 million monthly software development kit downloads. The Tavily team will join Nebius, and the brand will be retained. Roman Chernin, chief business officer, said, "Tavily is solving a critical part of this stack with agentic search." The acquisition complements Nebius’s capacity build by extending product and developer reach to accelerate AI cloud adoption as the company scales. The deal is expected to close in the coming weeks under customary conditions.
