Nebius Group's 2025 Q2 Earnings Call: Unpacking Key Contradictions in Revenue Guidance and Capacity Expansion

Midterm revenue and margin guidance, ARR vs. revenue guidance, capacity expansion and ambition are the key contradictions discussed in Nebius Group's latest 2025Q2 earnings call.



Revenue Growth and Capacity Expansion:
- Nebius Group reported revenue of $105.1 million, up 625% year-over-year and 106% quarter-over-quarter.
- Growth was driven by strong demand for AI cloud infrastructure and the expansion of data center capacity.

AI Cloud Infrastructure Revenue:
- The AI cloud infrastructure revenue increased more than 9x year-over-year.
- This growth was attributed to strong customer demand for copper GPUs and near peak utilization of the platform.

EBITDA and Financial Performance:
- Nebius achieved positive adjusted EBITDA in its core AI infrastructure business ahead of expectations.
- The company's strong financial performance was due to disciplined operations and positive contributions from investments in equity securities.

Power and Capacity Expansion:
- Nebius plans to secure 220 megawatts of connected power by the end of the year and expects more than 1 gigawatt by the end of 2026.
- This expansion is aimed at supporting the growing demand for AI compute and capturing industry growth.

Strategic Partnerships:
- Nebius has formed strategic partnerships, including those with NVIDIA, expanding its reach across the AI ecosystem and enhancing its competitive position.
- These partnerships are expected to drive adoption, contribute to revenue growth, and provide strategic access to new user segments.