Key Highlights

● Revenue was $582.3 million, up 454% from $105.1 million.

● Capital spending reached $5.66 billion against $510.6 million a year earlier.

● Adjusted EBITDA was $236.2 million, versus a loss of $21.0 million.

● Cash and equivalents rose to $8.042 billion from $3.678 billion at year end.

Rapid growth funded by new capital

Nebius Group N.V. (NASDAQ:NBIS) reported second-quarter 2026 results on 12 August 2026, showing revenue of $582.3 million, up 454% from $105.1 million a year earlier. During the quarter the company spent $5.66 billion on property, equipment and intangibles, far above the $510.6 million of a year earlier. Convertible notes, a treasury share sale and pre-funded warrants provided much of the financing.

Business and sector

Nebius, headquartered in Amsterdam, builds and operates cloud infrastructure for artificial intelligence, offering access to graphics-processing-unit clusters and related software to developers, start-ups and larger enterprises. It competes with hyperscale cloud providers and with other specialist AI infrastructure companies, in a sector where demand for computing capacity has outpaced supply.

Founder and chief executive Arkady Volozh presented the quarter's results alongside a shareholder letter and webcast. The business model requires large upfront investment in data centres and chips, followed by revenue as capacity is delivered and customers consume it, which makes timing of capacity and financing central to performance. Such companies are usually judged on utilisation, contract length and the cost of capital rather than on near-term profit alone.

Latest reported results

For the three months ended 30 June 2026, adjusted EBITDA was $236.2 million, compared with a loss of $21.0 million a year earlier. The net loss from continuing operations was $190.4 million, whereas the prior-year quarter showed net income of $502.5 million that included a $597.4 million gain from revaluing equity securities. Interest expense rose to $119.1 million from $4.8 million. The adjusted net loss was $33.2 million.

Operating cash flow from continuing operations was $2.246 billion, compared with an outflow of about $168 million. For the six months, revenue was $981.3 million, up 529%, and capital expenditure reached $8.13 billion. Operating cash flow less capital expenditure was therefore negative by roughly $3.4 billion in the quarter, a figure calculated from reported amounts.

Financial performance and industry context

Cash and cash equivalents were $8.042 billion at 30 June 2026, up from $3.678 billion at the end of 2025, with a further $1.056 billion restricted. Total debt was about $8.55 billion. In the first half, Nebius raised $4.34 billion from convertible notes, $2.85 billion from a treasury share sale and $2.0 billion from pre-funded warrants. Interest expense can be expected to remain a significant item while borrowings stay elevated.

Deferred revenue, current and non-current combined, rose to about $5.98 billion from $1.58 billion at the end of 2025. Deferred revenue is cash or billings received before services are delivered, so it is not yet recognised as revenue. Goodwill of $605.6 million also appeared on the balance sheet. The release did not provide forward guidance, contracted power or named customer contracts.

Risks and uncertainties

Nebius carries execution risk in building data centres on schedule, securing power, chips and skilled staff, and in converting large investments into revenue. Rising debt and interest costs add financial risk, while equity and convertible issuance can dilute existing shareholders. Heavy capital commitments also materially reduce financial flexibility if market conditions change abruptly.

Customer concentration, technology change in AI chips, competition from hyperscalers and specialists, and possible shifts in AI investment sentiment could all affect demand and pricing. Export controls and supply-chain constraints on advanced processors are further uncertainties.

Capacity, financing and conversion

The next scheduled event is the third-quarter 2026 report. Readers may follow revenue growth against rising capital expenditure, interest costs, the pace at which deferred revenue converts into recognised revenue, adjusted EBITDA margins, further financing, and any disclosures on contracted capacity and customers that the company chooses to provide.