Why I Can’t Stop Buying Neocloud Leader Nebius Group

Nebius Group (NASDAQ:NBIS) has delivered 681% gains implicit the past year, and the neocloud buildout continues to pull attention. The buildout is real, execution is real, and the accidental appears to dwarf what the marketplace has priced in.

When a institution posts $227.7 cardinal successful Q4 2025 revenue, up 503.6% year-over-year, analysts wage attention. When it exits the twelvemonth with an annualized run-rate of $1.25 cardinal and guides for $7 cardinal to $9 cardinal ARR by extremity of 2026, it warrants a person look. Full-year 2025 gross came successful astatine $529.8 million, up 350.89% year-over-year. The AI unreality conception unsocial generated $214.2 cardinal successful Q4, representing 94% of full radical revenue. CEO Arkady Volozh said it plainly connected the Q4 net call: "Everything we build, we sell."

Adjusted EBITDA strips retired assertive infrastructure depreciation and shows whether the halfway concern is economically viable, a much applicable lens fixed Nebius's dense concern phase. In Q4 2025, radical adjusted EBITDA turned affirmative for the archetypal clip astatine $15 million, compared to a nonaccomplishment of $63.9 cardinal a twelvemonth earlier. The AI unreality conception reached a 24% adjusted EBITDA borderline successful Q4, up from 19% successful Q3. Operating leverage is visible: outgo of gross declined from 60% to 30% of gross year-over-year successful Q4 2025. Management guides for a radical adjusted EBITDA borderline of astir 40% for full-year 2026. That is simply a institution scaling toward profitability astatine an accelerating pace.

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Nebius has locked successful request earlier capableness exists. The institution holds a multi-year woody with Microsoft (NASDAQ:MSFT) valued astatine $17.4 cardinal to $19.4 cardinal and a astir $3 cardinal AI infrastructure statement with Meta Platforms (NASDAQ:META) implicit 5 years. Customers see Cloudflare (NYSE:NET), Shopify (NYSE:SHOP), World Labs, and Cursor. Nebius was the archetypal successful Europe to deploy NVIDIA (NASDAQ:NVDA) HGX B300 Blackwell Ultra and holds NVIDIA Exemplar Status for grooming workloads.

The contracted powerfulness people has been raised to much than 3 gigawatts by extremity of 2026, up from 2.5 gigawatts, with 9 caller information halfway sites crossed the US and EMEA. Volozh described the request environment: "Even earlier we bring capableness online, it is often sold out." The operation of pre-sold capacity, exclusive hardware status, and semipermanent contracts creates durable competitory positioning.