Nebius reported a net loss from continuing operations of $190.4 million, or 68 cents a share, compared with income of $502.5 million a year earlier. The 2025 result included a $597.4 million revaluation gain on equity investments. Depreciation and amortization more than tripled to $259.7 million in the latest period, while share-based compensation rose to $102.5 million.
The company’s Nasdaq-listed shares jumped 17% on Wednesday following the results. The stock has been volatile over the past year, trading between roughly $50 and $300 as investors weighed surging AI-infrastructure demand against the cost and execution risks of bringing new facilities online. Market data showed the company with a market value of about $48 billion before the latest move.
Nebius reaffirmed its 2026 forecasts for revenue of $3 billion to $3.4 billion, year-end annualized run-rate revenue of $7 billion to $9 billion and an adjusted EBITDA margin of about 40%. First-half revenue was $981.3 million, meaning the company would need to produce about $1.01 billion to $1.21 billion of revenue in each of the final two quarters to reach the range.
The company said it closed four large AI cloud contracts during the second quarter with an average total contract value exceeding $1 billion. Those agreements generated annual contract value of $20 million to $25 million per megawatt, compared with a base of about $12 million across its 2026 capacity.
Most of the capacity supporting the deals is scheduled to arrive late this year and will contribute primarily to 2027 revenue, according to founder and Chief Executive Officer Arkady Volozh’s shareholder letter. Named customers included AI developers Reflection and Cohere, while two other large agreements involved a US AI laboratory and a quantitative-trading firm.
Customer prepayments are becoming an important source of financing. About 70% of the quarter’s new deals included upfront payments covering an estimated 50% to 60% of related capital expenditures. Nebius expects to receive more than $9 billion of customer prepayments in 2026 and said it has more than $40 billion of customer commitments.
Those payments helped produce $2.25 billion of operating cash flow during the quarter, despite the GAAP loss. Deferred revenue added about $1.2 billion to quarterly cash flow, while a decline in accounts receivable contributed another $1.19 billion.
Nebius ended June with $8.04 billion in cash and cash equivalents, up from $3.68 billion at the end of 2025. Non-current debt more than doubled to $8.5 billion.
The company also raised equity to help fund the expansion. It sold 12.7 million Class A shares through an at-the-market program at an average price of $223.60, generating about $2.8 billion. In July, it secured a further $775 million through an asset-backed facility priced at the Secured Overnight Financing Rate plus 2.5 percentage points.
Nebius increased its target for contracted power at the end of 2026 to 5 gigawatts from more than 4 gigawatts previously. Contracted power represents sites backed by land and power commitments and is not the same as operational computing capacity. The company expects to begin deploying more than 1 gigawatt of capacity annually in 2027.
It is also introducing a partnership model under which outside investors finance and own data-center assets while Nebius supplies the cloud software, systems design and customers. The structure could reduce the amount of capital Nebius must provide directly, though its growth remains dependent on securing power, procuring advanced chips and completing facilities on schedule.
Nebius was created from the international businesses retained by the former parent of Russian internet company Yandex. The company sold its Russian operations in 2024, adopted the Nebius name and concentrated its resources on AI cloud infrastructure. Its other businesses include autonomous-driving developer Avride and technology-education provider TripleTen, while it retains minority stakes in database company ClickHouse and AI-data provider Toloka. The divestment and restructuring are detailed in its annual filing.
