Core Insights - Nebius Group N.V. reported a second-quarter 2025 adjusted net loss of $91.5 million, which is 49% wider than the loss of $61.6 million from the previous year [1][8] - The company's revenues increased significantly by 625% year over year, reaching $105.1 million, primarily driven by strong performance in its core AI cloud business and effective execution by the TripleTen team [1][8] Business Overview - Nebius operates an AI cloud platform designed for intensive workloads, supported by in-house developed software and hardware, with R&D hubs located in Europe, North America, and Israel [2] - The company also manages distinct brands, including Avride (focused on autonomous driving technology) and TripleTen (an edtech platform for tech career reskilling) [2] Financial Performance - The adjusted EBITDA loss for the second quarter was $21 million, an improvement from the $58.1 million loss in the same quarter last year [6] - Sales, general, and administrative expenses decreased by 10% year over year to $68.2 million, while total operating costs and expenses rose by 71% to $216.3 million [6] Investment and Equity Interests - Following an investment transaction in Toloka, Nebius no longer holds majority voting power in the company, which is now accounted for as an equity method investment [3] Stock Performance - Following the earnings announcement, Nebius shares increased by 19% in the trading session, and the stock has surged 59.4% over the past six months, outperforming the Zacks Internet - Software and Services industry's growth of 12.4% [5] Outlook and Guidance - Nebius raised its annualized run rate (ARR) revenue guidance to a range of $900 million to $1.1 billion, citing high demand and closed AI compute contracts [8][11] - The company reaffirmed its group revenue guidance of $450 million to $630 million, excluding previously provided revenue guidance for Toloka [12] - Adjusted EBITDA is expected to be slightly positive at the group level by year-end, although a full-year loss is still anticipated [12] Balance Sheet - As of June 30, 2025, Nebius had cash and cash equivalents amounting to $1,679.3 million, an increase from $1,447 million as of March 31, 2025 [10]

Core Insights - Nebius Group N.V. reported a first-quarter 2025 adjusted net loss of $92.5 million, which is 19% wider than the loss of $77.6 million from the previous year [1] - The company's revenues increased significantly by 385% year over year to $55.3 million, primarily driven by growth in its core artificial intelligence (AI) business [1] Business Overview - Nebius operates an AI cloud platform designed for intensive workloads, supported by in-house developed software and hardware, with R&D hubs in Europe, North America, and Israel [2] - The company has distinct brands, including Avride for autonomous driving technology and TripleTen, a leading edtech platform for tech career reskilling [2] Financial Performance - The adjusted EBITDA loss for the first quarter was $62.6 million, an improvement from the $70.9 million loss in the same quarter last year [4] - Sales, general, and administrative expenses rose by 29% year over year to $66.1 million [4] - As of March 31, 2025, the loss from operations was $129.5 million, compared to a loss of $82.9 million in the prior year [4] Balance Sheet and Cash Flow - As of March 31, 2025, Nebius had $1,447 million in cash and cash equivalents, down from $2,449.6 million as of December 31, 2024 [5] Future Outlook - The company is optimistic about its momentum heading into the second quarter of 2025, reaffirming its full-year ARR guidance of $750 million to $1 billion and overall revenue guidance of $500 million to $700 million [6] - Although adjusted EBITDA is expected to remain negative for the full year, Nebius aims to achieve positive adjusted EBITDA in the second half of 2025 [6] - The capital expenditure forecast for 2025 has been raised to approximately $2 billion from the previous estimate of $1.5 billion [7] Market Performance - Nebius currently holds a Zacks Rank 3 (Hold) and its shares have surged 66.6% over the past six months, outperforming the Zacks Internet - Software and Services industry's growth of 26.2% [8]