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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NBIS

NBIS fundamentals

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