We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nebius' Q2 Loss Widens Y/Y, Revenues Rise on AI Demand, Stock Up
Read MoreHide Full Article
Key Takeaways
NBIS reported a Q2 adjusted net loss of $91.5M, widening 49% year over year despite strong revenue growth.
Revenue jumped 625% to $105.1M, fueled by core AI cloud strength and TripleTen's execution.
Nebius raised ARR revenue guidance to $900M-$1.1B, citing high demand and closed AI compute contracts.
Nebius Group N.V. (NBIS - Free Report) reported second-quarter 2025 adjusted net loss of $91.5 million, 49% wider than a loss of $61.6 million incurred a year ago.
The company’s revenues surged 625% year over year to $105.1 million. The increase in sales was primarily driven by strong performance in the company’s core business and excellent execution by the TripleTen team.
With R&D hubs across Europe, North America and Israel, Nebius’ core business is an AI cloud platform designed for intensive workloads, powered by in-house developed software and hardware. Nebius provides AI builders with the compute power, storage, managed services and tools required to build, fine-tune and deploy their models. The Group also operates businesses under distinct brands, including Avride (autonomous driving technology) and TripleTen (a leading U.S.-based edtech platform for tech career reskilling).
The Group also holds equity interests in other companies, including ClickHouse and Toloka.
In the second quarter, following the completion of the investment transaction in Toloka—an AI development platform—Nebius ceased to hold majority voting power in the company. As a result, Toloka is no longer included in Nebius’ consolidated financial statements and is now accounted for as an equity method investment. Toloka’s results from prior periods have been reclassified as discontinued operations.
As of June 30, 2025, there were outstanding employee stock options to purchase up to 7.5 million additional shares, with a weighted average exercise price of $87.83 per share, along with unvested restricted share units (RSUs) covering approximately 6.7 million shares.
Following the earnings announcement, shares of the company jumped 19% in the trading session yesterday. Shares of the company have surged 59.4% in the past six months compared with the Zacks Internet - Software and Services industry's growth of 12.4%.
Image Source: Zacks Investment Research
Other Details
NBIS reported an adjusted EBITDA loss of $21 million for the second quarter, narrower than the $58.1 million loss in the prior-year quarter. The company achieved positive EBITDA in its core AI infrastructure business earlier than previously projected.
Sales, general and administrative expenses decreased 10% year over year to $68.2 million.
Total operating costs and expenses increased 71% to $216.3 million
As of June 30, 2025, NBIS’ net income from operations was $502.5 million against a loss of $116.9 million in the year-ago period.
Balance Sheet and Cash Flow
As of June 30, 2025, NBIS had $1,679.3 million of cash and cash equivalents compared with $1,447 million as of March 31, 2025.
Outlook
Nebius continues to see strong momentum in its business, with demand for AI compute remaining exceptionally high. The company updated its full-year outlook. It raised its guidance for annualized run rate (ARR) revenue from the previous range of $750 million to $1 billion to a new range of $900 million to $1.1 billion. This increase is based on closed contracts for both existing and upcoming capacity, along with anticipated sales for the remainder of 2025. For core business revenue, the company is maintaining its guidance of $400 million to $600 million.
For group revenue, the company has reaffirmed its previous guidance of $450 million to $630 million. This excludes the 2025 revenue guidance of $50 million to $70 million previously provided for Toloka.
Nebius Group N.V. Price, Consensus and EPS Surprise
Adjusted EBITDA, as previously stated, is expected to be slightly positive at the group level by year-end, though the company still anticipates a full-year loss. NBIS maintained its capital expenditure guidance of approximately $2 billion for 2025.
Tyler Technologies, Inc. (TYL - Free Report) reported better-than-expected second-quarter 2025 results. The company reported second-quarter non-GAAP earnings of $2.91 per share, which beat the Zacks Consensus Estimate by 4.7% and increased 21.3% year over year.
Tyler Technologies’ second-quarter revenues increased 10.2% year over year to $596.1 million. The top line topped the Zacks Consensus Estimate of $586.2 million by 1.7%.
Shares of TYL increased 4.3% in the past year.
Red Violet, Inc. (RDVT - Free Report) came out with quarterly earnings of 28 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 28 cents per share a year ago.
Red Violet posted revenues of $21.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $19.1 million.
Shares of RDVT have gained 58.1% in the past year.
RingCentral (RNG - Free Report) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of 91 cents per share a year ago.
RingCentral posted revenues of $620.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $592.91 million.
Shares of RNG lost 9.2%in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nebius' Q2 Loss Widens Y/Y, Revenues Rise on AI Demand, Stock Up
Key Takeaways
Nebius Group N.V. (NBIS - Free Report) reported second-quarter 2025 adjusted net loss of $91.5 million, 49% wider than a loss of $61.6 million incurred a year ago.
The company’s revenues surged 625% year over year to $105.1 million. The increase in sales was primarily driven by strong performance in the company’s core business and excellent execution by the TripleTen team.
With R&D hubs across Europe, North America and Israel, Nebius’ core business is an AI cloud platform designed for intensive workloads, powered by in-house developed software and hardware. Nebius provides AI builders with the compute power, storage, managed services and tools required to build, fine-tune and deploy their models. The Group also operates businesses under distinct brands, including Avride (autonomous driving technology) and TripleTen (a leading U.S.-based edtech platform for tech career reskilling).
The Group also holds equity interests in other companies, including ClickHouse and Toloka.
In the second quarter, following the completion of the investment transaction in Toloka—an AI development platform—Nebius ceased to hold majority voting power in the company. As a result, Toloka is no longer included in Nebius’ consolidated financial statements and is now accounted for as an equity method investment. Toloka’s results from prior periods have been reclassified as discontinued operations.
As of June 30, 2025, there were outstanding employee stock options to purchase up to 7.5 million additional shares, with a weighted average exercise price of $87.83 per share, along with unvested restricted share units (RSUs) covering approximately 6.7 million shares.
Following the earnings announcement, shares of the company jumped 19% in the trading session yesterday. Shares of the company have surged 59.4% in the past six months compared with the Zacks Internet - Software and Services industry's growth of 12.4%.
Image Source: Zacks Investment Research
Other Details
NBIS reported an adjusted EBITDA loss of $21 million for the second quarter, narrower than the $58.1 million loss in the prior-year quarter. The company achieved positive EBITDA in its core AI infrastructure business earlier than previously projected.
Sales, general and administrative expenses decreased 10% year over year to $68.2 million.
Total operating costs and expenses increased 71% to $216.3 million
As of June 30, 2025, NBIS’ net income from operations was $502.5 million against a loss of $116.9 million in the year-ago period.
Balance Sheet and Cash Flow
As of June 30, 2025, NBIS had $1,679.3 million of cash and cash equivalents compared with $1,447 million as of March 31, 2025.
Outlook
Nebius continues to see strong momentum in its business, with demand for AI compute remaining exceptionally high. The company updated its full-year outlook. It raised its guidance for annualized run rate (ARR) revenue from the previous range of $750 million to $1 billion to a new range of $900 million to $1.1 billion. This increase is based on closed contracts for both existing and upcoming capacity, along with anticipated sales for the remainder of 2025. For core business revenue, the company is maintaining its guidance of $400 million to $600 million.
For group revenue, the company has reaffirmed its previous guidance of $450 million to $630 million. This excludes the 2025 revenue guidance of $50 million to $70 million previously provided for Toloka.
Nebius Group N.V. Price, Consensus and EPS Surprise
Nebius Group N.V. price-consensus-eps-surprise-chart | Nebius Group N.V. Quote
Adjusted EBITDA, as previously stated, is expected to be slightly positive at the group level by year-end, though the company still anticipates a full-year loss. NBIS maintained its capital expenditure guidance of approximately $2 billion for 2025.
NBIS’s Zacks Rank
Nebius currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Other Companies
Tyler Technologies, Inc. (TYL - Free Report) reported better-than-expected second-quarter 2025 results. The company reported second-quarter non-GAAP earnings of $2.91 per share, which beat the Zacks Consensus Estimate by 4.7% and increased 21.3% year over year.
Tyler Technologies’ second-quarter revenues increased 10.2% year over year to $596.1 million. The top line topped the Zacks Consensus Estimate of $586.2 million by 1.7%.
Shares of TYL increased 4.3% in the past year.
Red Violet, Inc. (RDVT - Free Report) came out with quarterly earnings of 28 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 28 cents per share a year ago.
Red Violet posted revenues of $21.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $19.1 million.
Shares of RDVT have gained 58.1% in the past year.
RingCentral (RNG - Free Report) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of 91 cents per share a year ago.
RingCentral posted revenues of $620.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $592.91 million.
Shares of RNG lost 9.2%in the past year.