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Nebius' Q3 Loss Widens Y/Y, Revenues Rise on AI Demand, Stock Down
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Key Takeaways
Nebius posted a $100.4M adjusted net loss in Q3, widening 153% year over year.
Revenue surged 355% to $146.1M, fueled by robust AI cloud platform performance.
The company announced a $3B AI infrastructure agreement with Meta over five years.
Nebius Group N.V. (NBIS - Free Report) reported third-quarter 2025 adjusted net loss of $100.4 million, 153% wider than a loss of $39.7 million incurred a year ago. The company’s revenues surged 355% year over year to $146.1 million. The increase in sales was primarily driven by strong performance in the company’s core business.
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).
Nebius Group N.V. Price, Consensus and EPS Surprise
The Group also holds equity interests in other companies, including ClickHouse and Toloka.
In the second quarter of 2025, 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.
Nebius also announced a new agreement with Meta to deliver AI infrastructure valued at approximately $3 billion over the next five years.
In addition, the company plans to establish an at-the-market (ATM) equity program for up to $25 million and intends to file a prospectus supplement for this program on Nov. 12, 2025. Nebius will evaluate the program periodically in line with its evolving capital requirements.
Widening losses and a tighter group revenue outlook weighed on investor sentiment. Following the earnings announcement, shares of the company decreased around 7% in the trading session yesterday. Shares of the company have surged 192% in the past six months compared with the Zacks Internet - Software and Services industry's growth of 18.9%.
Image Source: Zacks Investment Research
Other Details
NBIS reported an adjusted EBITDA loss of $5.2 million for the third quarter, narrower than the $45.9 million loss in the prior-year quarter.
Sales, general and administrative expenses increased 87% year over year to $89.5 million.
Total operating costs and expenses increased 145% to $276.3 million
As of Sept. 30, 2025, NBIS’ net loss from operations was $119.6 million compared with a loss of $43.6 million in the year-ago period.
Balance Sheet and Cash Flow
As of Sept. 30, 2025, NBIS had $4,794.8 million of cash and cash equivalents compared with $1,679.3 million as of June 30, 2025.
Outlook
Nebius has revised its full-year group revenue outlook to a range of $500 million to $550 million from the previous guidance of $450 million to $630 million. The company expects to land in the middle rather than the upper end, primarily relating to the timing of capacity coming online. Despite this, its momentum and long-term trajectory remain very strong. Annual run-rate (ARR) revenue continues to expand, underscoring the resilience and scalability of its business model and providing a solid indicator of future growth potential.
Nebius is on track to achieve its ARR guidance of $900 million to $1.1 billion by the end of 2025, setting the foundation for substantial growth in 2026 and beyond. The company’s mega-deals with Microsoft and Meta are expected to begin contributing late in the quarter, with the majority of related revenue ramping up throughout 2026.
The company continues to expect adjusted EBITDA to turn slightly positive at the group level by year-end 2025, though it will remain negative for the full year. In terms of capital expenditures, Nebius has raised its 2025 guidance from approximately $2 billion to around $5 billion.
Tyler Technologies, Inc. (TYL - Free Report) reported better-than-expected third-quarter 2025 results. It came out with quarterly earnings of $2.97 per share, beating the Zacks Consensus Estimate of $2.88 by 3.12%. This compares with earnings of $2.52 per share a year ago.
The company posted revenues of $595.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.19%. This compares with year-ago revenues of $543.34 million.
RingCentral (RNG - Free Report) reported third-quarter 2025 non-GAAP earnings of $1.13 per share, surpassing the Zacks Consensus Estimate by 4.63% and increasing 18.9% year over year.
Total revenues of $638.7 million beat the consensus mark by 0.29% and increased 4.9% year over year. A robust product portfolio and strong subscription revenues drove the upside.
Red Violet, Inc. (RDVT - Free Report) came out with quarterly earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents. This compares to earnings of 22 cents per share a year ago.
Red Violet posted revenues of $23.08 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.29%. This compares to year-ago revenues of $19.06 million. The company has topped consensus revenue estimates four times over the last four quarters.
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Nebius' Q3 Loss Widens Y/Y, Revenues Rise on AI Demand, Stock Down
Key Takeaways
Nebius Group N.V. (NBIS - Free Report) reported third-quarter 2025 adjusted net loss of $100.4 million, 153% wider than a loss of $39.7 million incurred a year ago.
The company’s revenues surged 355% year over year to $146.1 million. The increase in sales was primarily driven by strong performance in the company’s core business.
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).
Nebius Group N.V. Price, Consensus and EPS Surprise
Nebius Group N.V. price-consensus-eps-surprise-chart | Nebius Group N.V. Quote
The Group also holds equity interests in other companies, including ClickHouse and Toloka.
In the second quarter of 2025, 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.
Nebius also announced a new agreement with Meta to deliver AI infrastructure valued at approximately $3 billion over the next five years.
In addition, the company plans to establish an at-the-market (ATM) equity program for up to $25 million and intends to file a prospectus supplement for this program on Nov. 12, 2025. Nebius will evaluate the program periodically in line with its evolving capital requirements.
Widening losses and a tighter group revenue outlook weighed on investor sentiment. Following the earnings announcement, shares of the company decreased around 7% in the trading session yesterday. Shares of the company have surged 192% in the past six months compared with the Zacks Internet - Software and Services industry's growth of 18.9%.
Image Source: Zacks Investment Research
Other Details
NBIS reported an adjusted EBITDA loss of $5.2 million for the third quarter, narrower than the $45.9 million loss in the prior-year quarter.
Sales, general and administrative expenses increased 87% year over year to $89.5 million.
Total operating costs and expenses increased 145% to $276.3 million
As of Sept. 30, 2025, NBIS’ net loss from operations was $119.6 million compared with a loss of $43.6 million in the year-ago period.
Balance Sheet and Cash Flow
As of Sept. 30, 2025, NBIS had $4,794.8 million of cash and cash equivalents compared with $1,679.3 million as of June 30, 2025.
Outlook
Nebius has revised its full-year group revenue outlook to a range of $500 million to $550 million from the previous guidance of $450 million to $630 million. The company expects to land in the middle rather than the upper end, primarily relating to the timing of capacity coming online. Despite this, its momentum and long-term trajectory remain very strong. Annual run-rate (ARR) revenue continues to expand, underscoring the resilience and scalability of its business model and providing a solid indicator of future growth potential.
Nebius is on track to achieve its ARR guidance of $900 million to $1.1 billion by the end of 2025, setting the foundation for substantial growth in 2026 and beyond. The company’s mega-deals with Microsoft and Meta are expected to begin contributing late in the quarter, with the majority of related revenue ramping up throughout 2026.
The company continues to expect adjusted EBITDA to turn slightly positive at the group level by year-end 2025, though it will remain negative for the full year. In terms of capital expenditures, Nebius has raised its 2025 guidance from approximately $2 billion to around $5 billion.
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 third-quarter 2025 results. It came out with quarterly earnings of $2.97 per share, beating the Zacks Consensus Estimate of $2.88 by 3.12%. This compares with earnings of $2.52 per share a year ago.
The company posted revenues of $595.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.19%. This compares with year-ago revenues of $543.34 million.
RingCentral (RNG - Free Report) reported third-quarter 2025 non-GAAP earnings of $1.13 per share, surpassing the Zacks Consensus Estimate by 4.63% and increasing 18.9% year over year.
Total revenues of $638.7 million beat the consensus mark by 0.29% and increased 4.9% year over year. A robust product portfolio and strong subscription revenues drove the upside.
Red Violet, Inc. (RDVT - Free Report) came out with quarterly earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents. This compares to earnings of 22 cents per share a year ago.
Red Violet posted revenues of $23.08 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.29%. This compares to year-ago revenues of $19.06 million. The company has topped consensus revenue estimates four times over the last four quarters.