The Amsterdam-based AI infrastructure company, trading on the NASDAQ under the ticker NBIS, posted a 385% year-over-year revenue increase, closing the quarter with $55.3 million in earnings — up from just $11.4 million in the same period last year.
Though the company remains unprofitable, posting a net loss of $113.6 million, the broader numbers suggest that Nebius has found its stride in the fast-evolving AI infrastructure market — and Wall Street appears to agree.
The stock opened at $38.37 and hit an intraday high of $40.00 before retreating slightly to close at $38.12.
Volume surged to more than 4.1 million shares, significantly above its recent average, suggesting institutional interest and growing market confidence in Nebius’s long-term prospects.
“We’re seeing a sharp shift in enterprise demand — compute infrastructure is no longer a back-office utility; it’s becoming the engine of innovation,” said Arkady Volozh, CEO of Nebius Group, in a statement. “And we are here to build that engine.”
Behind the Numbers: ARR Growth Stuns Analysts
The most eye-catching figure wasn’t revenue, but ARR (Annualized Run-Rate Revenue) — a leading indicator of future performance. By the end of Q1, ARR had reached $249 million. One month later, it rose to $310 million.
That level of sequential growth — a 684% increase over the prior year — positions Nebius among the fastest-growing public tech firms globally.
Yet, challenges remain. The company’s adjusted EBITDA loss stood at $62.6 million, a modest improvement from the $70.9 million loss posted in Q1 2024. Adjusted net loss was $92.5 million.
These figures reflect an aggressive growth strategy that emphasizes market share over near-term profitability — a model that has worked in Silicon Valley, but often tests investor patience.
Wall Street’s Take: A Cautious Thumbs Up
Following the earnings release, analysts from several major firms — including Wedbush and Cowen — issued upward revisions on their price targets for NBIS stock.
Their rationale? Nebius is operating in the right market at the right time.
Artificial intelligence has triggered a gold rush for infrastructure, with enterprise clients seeking custom-built compute platforms that can handle increasingly complex model training and data inference workloads.
Nebius has positioned itself as one of the few vertically integrated providers in this space — a key differentiator in a crowded market.
The company has also benefitted from investor pedigree: Bezos Expeditions, the investment arm of Amazon founder Jeff Bezos, is a key backer, offering both capital and credibility.
Looking Ahead: Ambition Meets Execution
For the full year, Nebius projects revenues between $500 million and $700 million — a bold range that reflects both optimism and volatility in the AI sector.
Key to that goal will be continued customer acquisition, geographic expansion, and reducing the burn rate.
The company plans to build new data centers in Europe and Asia-Pacific and will roll out new software-defined networking solutions tailored to AI-heavy clients.
“Scaling responsibly is the next chapter,” said Volozh. “We’ve built the core. Now we industrialize it.”
The Verdict
Nebius Group may still be bleeding red ink, but Q1 2025 marks a significant milestone.
For investors betting on the future of AI infrastructure, Tuesday’s results suggest that Nebius isn’t just riding the wave — it’s helping build the shoreline.
NBIS may not be a household name yet, but on Wall Street, it’s rapidly becoming one to watch.
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