Nebius shares fall despite beating Q3 estimates

Nebius Group N.V. (NASDAQ: NBIS) reported third-quarter results that surpassed analyst expectations, yet the company's shares dropped over 10% in premarket trading. For the quarter ending September 30, the company reported a loss of $0.13 per share, outperforming the consensus estimate of a $0.63 loss. However, revenue grew dramatically by 571% year-over-year to $980.8 million, exceeding the $907.2 million estimate from analysts.

Looking ahead to fiscal year 2027, Nebius anticipates revenue between $12 and $13 billion, which is higher than the consensus estimate of $11.98 billion.

The company also announced that adjusted EBITDA turned profitable for the quarter, amounting to $465.8 million, up from a loss of $5.2 million in the previous year. Adjusted net income improved to $90.9 million, reversing a $100.4 million loss from the prior year. Arkady Volozh, Nebius' founder and CEO, stated in a letter to shareholders that the company is constructing a full-stack platform to empower developers and businesses to control their AI future, from data and model training to production deployment.

Operating expenses rose to $930.4 million, representing 95% of revenue, a decrease from 189% in the same quarter a year ago. The cost of revenues surged by 412% to $219.7 million, but the percentage of revenue declined from 29% to 22%. Capital expenditures increased significantly by 664% to $7.3 billion in the quarter, as Nebius expands its AI cloud infrastructure. As of September 30, the company had $7.4 billion in cash and cash equivalents, up from $3.7 billion at the end of 2025.

For the nine months ending September 30, revenue climbed 549% to $1.96 billion, while adjusted EBITDA reached $831.5 million, compared to a loss of $79.9 million in the same period last year.