Nebius Group is making waves in the AI infrastructure market. On Tuesday morning, the company released its first-quarter results, revealing a staggering 385% jump in revenue—a sign that its cloud-based AI infrastructure solutions are gaining real traction across industries.
The company posted $55.3 million in revenue for Q1 2025, up sharply from the same quarter last year. This surge was powered primarily by Nebius’ core AI infrastructure business, which the company says is showing continued strength heading into the second quarter.
AI Growth Lifts Revenue, But Losses Still a Factor
While revenue soared, Nebius still reported an adjusted net loss of $92.5 million for the quarter, compared to $77.6 million in Q1 2024. The company noted that many of its losses stem from ongoing investments in technology development and geographic expansion.
Yet CEO Arkady Volozh struck an optimistic tone.
“We’ve entered 2025 with significant momentum,” said Volozh in a statement. “Our annualized run-rate revenue hit $249 million by the end of Q1—a year-over-year increase of over 680%. That momentum carried through April, where we reached $310 million ARR, and we’ve maintained a strong pace into May.”
Volozh added that with stable costs and lower capital expenses than many competitors, Nebius sees a clear path toward building a “high-growth, high-margin business.”
Major Expansion and Strategic Investments
Nebius has been rapidly scaling its presence. In less than a year, the company has grown from one to five active operational sites, and more are reportedly in the works. It also owns and operates Avride and TripleTen, and holds equity in fast-rising tech startups ClickHouse and Toloka.
Further boosting its profile, Nebius secured a strategic investment from Bezos Expeditions, with additional backing from a Shopify executive—a move seen as a strong vote of confidence from major tech insiders.
Nebius ended the quarter with $1.45 billion in cash and cash equivalents, giving it ample runway to support aggressive growth in the coming quarters.
Full-Year Guidance: Revenue, Profitability in Sight
The company reaffirmed its full-year 2025 revenue guidance of $500 million to $700 million, and expects to turn positive on adjusted EBITDA in the second half of the year. For context, Nebius reported a $62.6 million EBITDA loss in Q1.
That outlook, paired with rapid expansion and robust ARR growth, puts Nebius in a strong position as the demand for scalable AI infrastructure intensifies worldwide.
Investor Reaction and Market Sentiment
Nebius Group stock (NBIS) rose 3.57% to $38.91 on Tuesday following the earnings release. While profitability remains a longer-term goal, the company’s ability to scale revenue so dramatically in just one year is grabbing investor attention.
Nebius executives hosted an earnings call Tuesday morning to break down the results and discuss plans for upcoming site expansions and customer acquisitions.