Nebius is held in the US Growth Portfolio.  The company reported June quarter results before the US open on Wednesday 12 August. 

Revenue rose 454 percent year on year to $582.3 million, ahead of the $572.8 million consensus, with the AI cloud business contributing $574.9 million of that. Adjusted EBITDA turned positive at $236.2 million, a 40.6 percent margin, against a $21.0 million loss a year ago. The AI cloud segment alone ran at a 49.7 percent EBITDA margin, up from 24 percent in the December quarter. Adjusted net loss narrowed 64 percent to $33.2 million, or $0.12 a share, well ahead of estimates. The GAAP net loss was $190.4 million.

Annualised run-rate revenue reached $3.0 billion at the end of June, up 56 percent on the $1.9 billion at the end of March. Nebius reaffirmed its $7 to $9 billion end-2026 target and its $3.0 to $3.4 billion revenue guidance without change. The one figure it did raise was contracted power, lifted to 5 gigawatts by end-2026 from more than 4 gigawatts guided in May, a target that has moved up at every quarterly report for a year. Connected power stays at 800 megawatts to 1 gigawatt, with more than 1 gigawatt of deployment planned annually from 2027. 

The contract book is where the quarter turned. Total customer commitments now exceed $40 billion, and Nebius closed four deals in the quarter averaging more than $1 billion in total contract value each, at annual contract values of $20 to $25 million per megawatt. The customers were Reflection, Cohere, an unnamed US AI lab and a quantitative trading firm, the last being the first large financial services win. Quarterly contract value grew about fourfold sequentially, and the expected payback period on new deals shortened to one year and ten months from a historical two to three years. Arkady Volozh said the company closed its largest deals “at prices that represent a step-change in the economics of our business”, and added that Nebius could sell its entire 2027 capacity today but is holding back capacity for higher-value near-term demand. 

Capital intensity remains the constraint. Capital expenditure reached about $5.7 billion in the quarter against $20 to $25 billion guided for the year. Nebius expects more than $9 billion of customer prepayments in 2026, covering 50 to 60 percent of associated capex, and raised $775 million of secured debt in July at SOFR plus 250 basis points. It ended the quarter with $8 billion of cash and $2.3 billion of positive operating cash flow. 

Shares closed around $246, up roughly 27 percent on the day.