Nebius Posts Increased Net Loss, Revenue Growth Amid Accounting Shift; Secures Major Meta Deal
Nebius, a Netherlands-based cloud computing provider, recently disclosed its financial outcomes for the third quarter, revealing a more substantial net income loss than anticipated, alongside a robust increase in revenue. This financial snapshot was unveiled against the backdrop of an accounting adjustment and the announcement of a monumental collaboration with Meta Platforms, focusing on artificial intelligence compute infrastructure.
During the September quarter, Nebius reported a net income deficit nearing $120 million, a considerable increase from $43.6 million in the previous year. Concurrently, the company's revenue surged by 355%, reaching $146.1 million, excluding the divested AI data operations of Toloka. These figures contrasted with analysts' projections, who had forecast a net income loss of $97 million on revenues of $155 million. A pivotal development was the signing of a five-year contract with Meta Platforms, valued at approximately $3 billion, for the provision of AI compute infrastructure. This agreement follows another significant deal with Microsoft, worth $19 billion. To fuel its expansion, particularly in data center development, Nebius also announced an upcoming equity offering of 25 million Class A shares. The company, which specializes in leasing servers equipped with Nvidia AI accelerators, saw its stock fluctuate before settling with a 6.2% gain to 116.75, continuing a trend of significant growth in 2025. In contrast, its competitor, CoreWeave, experienced a decline after beating its third-quarter forecasts but revising down its full-year revenue and capital expenditure guidance due to vendor-related capacity delays.
While industry analysts hold optimistic views regarding Nebius's potential in the burgeoning AI market, some express concerns over its customer concentration and elevated debt levels. According to IBD Stock Checkup, Nebius holds a Composite Rating of 56 out of 99, reflecting a balanced view of its fundamental and technical performance. The stock's Accumulation/Distribution Rating of E suggests considerable institutional selling pressure. Nebius, like other emerging cloud infrastructure firms, is crucial for developers building AI models and applications, with its data centers specifically designed for intensive AI workloads. Its journey, alongside the broader AI sector, is closely watched by investors.
The evolving landscape of artificial intelligence infrastructure presents both tremendous opportunities and inherent challenges for companies like Nebius. The ability to secure major partnerships and innovate in a rapidly expanding sector underscores a forward-looking vision and commitment to technological advancement. Despite the complexities of financial markets and competitive pressures, the pursuit of progress and strategic collaboration can pave the way for sustainable growth and a positive impact on the technological frontier.