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- **$3B Meta Deal & $17B Microsoft Deal**: Mega contracts highlight Nebius' position as a critical AI infrastructure provider, with 2026 revenue ramp-up.
- **Capacity Expansion**: 2.5GW contracted power target by 2026, enabling $7-9B ARR. Q3 revenue grew 355% YoY to $146M.
- **Product Innovation**: Launch of enterprise-grade Ether platform and open-source Nebius factory expands into $20B+ inference market.
- **CapEx Surge**: $5B 2025 spend to secure land, power, and GPUs, with 80% allocated to GPU deployment based on demand.
- **2026 Outlook**: 5x+ revenue growth potential, with >50% of ARR already contracted. Enterprise and inference segments driving diversification beyond foundational models.

**【CEO Summary Section】**
- **Q3 Demand Surge**: Sold out all available capacity, with new NVIDIA Blackwell generation driving advanced bookings. Signed a $3 billion 5-year deal with Meta and a $17.4-19.4 billion deal with Microsoft, both constrained by current capacity limits.
- **Capacity Expansion Ambitions**: Target 2.5 gigawatts of contracted power by end-2026 (up from 1GW previously) and 800MW-1GW of connected capacity. New data centers in Israel, U.K., New Jersey, and Finland are presold.
- **Product Innovation**: Launched Ether (enterprise AI cloud platform) and Nebius factory (open-source inference platform), expanding into enterprise and inference markets.
- **Revenue Outlook**: Annualized run rate (ARR) target of $7-9 billion by end-2026, with >50% of this ARR already contracted.

**【CFO Financial Commentary】**
- **Q3 Financial Highlights**: 
  - Total revenue: $146 million (355% YoY growth)
  - Core infrastructure revenue: $132 million (400% YoY growth)
  - Adjusted EBITDA margin: 19% (up from prior quarter)
  - Annualized run rate (ARR): $551 million
- **CapEx Acceleration**: Raised 2025 CapEx guidance to ~$5 billion (from $2 billion) to secure infrastructure for growth.
- **2025 Guidance**: Full-year revenue $500-550 million (midpoint pacing), with ARR guidance of $900-1.1 billion by year-end.
- **Mega Deals Timing**: Microsoft and Meta deals will begin contributing revenue in 2026, with full run rate in 2027.

**【Q&A Key Highlights】**
- **Meta Deal Details**: $3 billion deal size limited by available capacity; if more capacity existed, deal could have been larger. Meta chose Nebius for its enterprise-grade platform and ability to scale.
- **Capacity Constraints**: Sold out every new cluster brought online. 2026 pipeline includes $4 billion in unsold demand due to capacity limits.
- **ARR Growth Drivers**: Core business growth + mega deals. 2026 ARR target of $7-9 billion includes $4 billion from existing contracts.
- **GPU Deployment**: 6-12 week lead time from power connection to GPU deployment, with flexibility to scale based on demand.
- **Enterprise Strategy**: Launching compliance-certified platforms (e.g., Ether) and hiring enterprise sales teams to target verticals like healthcare, media, and robotics.
- **GPU Supply Chain**: Expect continued supply constraints in 2026, with Nebius as one of the first to deploy NVIDIA Blackwell GPUs.


Nebius Group N.V.(NBIS)-20251111-2025 Q3 Earnings call transcript

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