Nebius Group N.V. Q3 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q3 revenue reached $146 million, up 355% year over year and 39% sequentially, driven entirely by sold-out capacity.
  • Core infrastructure business grew 400% year over year and 40% quarter over quarter, representing ~90% of total revenue.
  • Adjusted EBITDA margin for the core infrastructure segment expanded to ~19%, up from last quarter (Q2 2025).
  • Annualized run rate revenue (ARR) for the core business rose to $551 million, compared with $371 million in June (Q2 2025).

Major Announcements & Strategic Highlights

  • New Meta deal: $3 billion over five years. Demand exceeded Nebius’s available capacity.
  • Microsoft deal (announced in September): $17.4–$19.4 billion long‑term contract. Revenue impact begins late Q4 2025 with full ramp in 2026–2027.
  • Capacity expansion plan raised significantly:
    • Previously communicated target: 1 gigawatt contracted capacity.
    • New target: 2.5 gigawatts by 2026.
    • Connected power (fully built data centers): 800 MW–1 GW by end of 2026.
  • New enterprise-ready cloud platform (Ether 3.0) and new inference platform (Token Factory) launched to expand enterprise market reach.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Neil Doshi: Thank you, and welcome to Nebius Group's Third Quarter 2025 Earnings Conference Call. I'm Neil Doshi, Vice President of Investor Relations. Joining me today are Arkady Volozh, Founder and CEO, and our broader management team. Our remarks today will include forward-looking statements, which are based on assumptions as of today. Actual results may differ materially as a result of various factors, including those set forth in today's earnings press release and in our report on Form 20-F filed with the SEC. We undertake no obligation to update any forward-looking statements. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release, shareholder letter, and accompanying investor presentation are available on our website at nebius.com/investorhub. And now I'd like to turn the call over to Arkady. Arkady Volozh: Thanks, Neil, and thank you, everyone, for joining the call today. I'd like to share my thoughts about the demand environment, our capacity plans, and what we're doing in our product. First, about the demand. Q3 demand was very strong. We sold out all of our available capacity. We continue to see a consistent trend: we bring capacity online, we sell all of it. With the new generation of NVIDIA Blackwells coming online, more customers are interested in purchasing capacity in advance and securing it for a longer period o

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional