Nebius 2026 Q1 — Separating positive net income from operating losses

01 Revenue and business profitability

Revenue was $0.3990B, the GAAP operating loss $0.1280B and net income $0.6212B. The shareholder letter attributed about $0.781B of noncash non-operating gain to revaluation of the ClickHouse investment. Positive net income does not establish AI cloud operating profitability.

02 Cash flow and investment burden

Continuing-operations OCF was $2.2580B and cash CapEx $2.4729B, yielding analytical continuing-operations FCF of $-0.2149B. 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 $9.2982B and total liabilities $15.0614B. Restricted cash is separate, and liabilities are not all borrowings. Customer prepayments and leases are also financial obligations.

04 Contracts and demand visibility

The company announced securing land and up to 1.2 GW of power for a Pennsylvania site. Secured land and power provide future expansion potential, not immediate revenue-producing active capacity.

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

The shareholder letter describes using customer prepayments to reduce expansion funding needs. Prepayments carry future service obligations and should not be valued as recurring operating earnings.

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.