Nebius 2025 Q3 — Investment ahead of the capacity ramp

01 Revenue and business profitability

Group revenue of $0.1461B grew 355% year over year. The core AI cloud generated positive adjusted EBITDA, but investment in Avride and TripleTen left group adjusted EBITDA at -$0.0052B. Group profitability differs from core-business profitability.

02 Cash flow and investment burden

Continuing-operations OCF was $-0.0806B and cash CapEx $0.9555B, yielding analytical continuing-operations FCF of $-1.0361B. These are standalone-quarter figures. Discontinued-operation cash flows and external financing are excluded.

Negative FCF means investment requires external funding or existing cash. Contract growth does not automatically eliminate this funding need.

03 Cash and liabilities

Quarter-end cash and cash equivalents were $4.7948B and total liabilities $5.2914B. Restricted cash is separate, and liabilities are not all borrowings. Customer prepayments and leases are also financial obligations.

04 Contracts and demand visibility

The shareholder letter described the Microsoft agreement at $17.4–19.4B and announced an approximately $3B five-year Meta agreement. The Meta announcement was a post-quarter update and is not treated as September-end RPO.

The RPO series contains only verified disclosures. ARR or individual multiyear deal values are not used to fill missing RPO observations.

05 Management outlook and execution conditions

Management targeted year-end 2026 ARR of $7–9B, over 2.5 GW of contracted power and 800 MW–1 GW of connected power. ARR annualizes the last month’s AI cloud revenue; it is not recognized annual revenue.

06 Investment assessment and follow-up

The key is the pace at which contracted power goes live and capacity converts into revenue and cash. Customer prepayments may reduce near-term funding needs, but future service costs and additional investment obligations remain. Growth alone does not establish investment returns.

Quarterly results · CY-aligned view

CY denotes the calendar quarter with the greatest overlap with the fiscal period. If the first period has no start date, 89 days before its end is used only for calendar mapping. Financial values are not recalculated into calendar quarters. Incomplete years show totals of included quarters; cash, liabilities, borrowings and net cash use the last period-end balance. QoQ and YoY show absolute changes; margin changes are percentage points. Dashes indicate missing evidence or incomparable periods or definitions. Total liabilities never substitute for borrowings.

Definitions and evidence coverage

OCF, cash CapEx and calculated FCF cover continuing operations. CapEx is gross cash purchases before asset-sale proceeds and is not directly comparable with other companies’ total-group cash flows and net cash CapEx. A dash means unavailable or undisclosed, not zero. Total liabilities are accounting liabilities, not interest-bearing debt.

Not compared with the former Yandex group. Later disclosures reflecting Toloka’s discontinued-operations classification are used. Unverified RPO is missing, not zero.