Nebius Group reported a sharp rise in second-quarter revenue as demand for artificial intelligence computing infrastructure continued to expand, although its results also highlighted the heavy capital requirements of building AI cloud capacity.
The Amsterdam-based company said on August 12 that revenue reached $582.3 million in the three months ended June 30, up 454% from $105.1 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) turned positive at $236.2 million, compared with an adjusted EBITDA loss of $21 million in the same period of 2025.
The adjusted EBITDA margin reached approximately 41%, indicating that revenue grew faster than several operating expenses as the company expanded its infrastructure. Nebius, however, recorded a net loss from continuing operations of $190.4 million, compared with net income of $502.5 million a year earlier.
The previous-year net income included investment-related effects and is therefore not directly comparable with the latest quarter. Adjusted net loss narrowed by 64% to $33.2 million from $91.5 million.
For the first six months of 2026, revenue rose 529% to $981.3 million. Adjusted EBITDA reached $365.7 million, reversing a loss of $74.7 million in the first half of 2025, while adjusted net loss narrowed by 24% to $133.5 million.
Infrastructure spending rises sharply
Nebius is investing heavily in data centers, computing systems and related infrastructure to support its AI cloud expansion. Purchases of property, equipment and intangible assets reached $5.66 billion in the second quarter, more than 11 times the $510.6 million spent a year earlier.
Capital expenditure for the first half totaled $8.13 billion, up 671% from $1.05 billion in the same period of 2025. The scale of the investment reflects the cost of securing advanced processors, networking equipment, power capacity and data center facilities as competition intensifies across the AI infrastructure market.
Total operating costs and expenses rose 251% to $758.2 million during the quarter. Depreciation and amortization increased 245% to $259.7 million, reflecting the rapid expansion of Nebius’ infrastructure base.
Product development expenses climbed 346% to $191 million, while sales, general and administrative expenses increased 155% to $173.9 million. Share-based compensation rose nearly sevenfold to $102.5 million, accounting for approximately 14% of total operating costs and expenses.
Despite the increase in absolute spending, several expense categories declined as a percentage of revenue. Cost of revenue fell from 29% to 23%, product development expenses declined from 41% to 33%, and sales, general and administrative costs dropped from 65% to 30%.
The changes suggest that Nebius is beginning to achieve operating leverage as revenue expands. However, depreciation, share-based compensation and infrastructure investment remain significant factors separating its positive adjusted EBITDA from its GAAP net result.
Cash holdings exceed $8 billion
Nebius ended June with $8.04 billion in cash and cash equivalents, up from $3.68 billion at the end of 2025. Net cash generated by continuing operating activities reached $2.25 billion in the second quarter, compared with an outflow of $167.7 million a year earlier.
Operating cash flow for the first half totaled $4.5 billion. This remained below the company’s $8.13 billion in purchases of property, equipment and intangible assets during the period, underscoring the financing demands of its continuing capacity expansion.
Nebius operates a full-stack AI cloud platform spanning computing, data management, model training and production deployment. The group also includes autonomous-vehicle and delivery-robot developer Avride and technology education platform TripleTen, while holding equity interests in companies including ClickHouse and Toloka.
The second-quarter figures show Nebius moving from an early expansion phase toward stronger operating scale. The central question is whether its rapid revenue growth and positive adjusted EBITDA can develop into sustained GAAP profitability while the company continues investing billions of dollars in additional AI infrastructure.
Nebius is listed on Nasdaq under the ticker NBIS.
