Nebius Group (NASDAQ: NBIS), a global AI infrastructure company headquartered in Amsterdam, continues to position itself as a fast-growing contender in the AI cloud industry. The recently published Q1 2025 financial report marks a turning point: a dramatic revenue surge and aggressive expansion, coupled with deeper operating losses and ongoing investments in R&D and infrastructure. The quarter also saw major positive news—an investment in Toloka by Bezos Expeditions—reflecting rising market interest.

Revenue Growth – Entering a New Scale
Group revenues hit $55.3 million, representing a 385% jump from just $11.4 million in Q1 2024. The main growth driver was the core AI cloud business, which attracted new international customers and established Nebius as one of the fastest-growing AI infrastructure providers. Subsidiaries Toloka (AI data platform), TripleTen (edtech), and Avride (autonomous vehicles) also contributed to revenue expansion.

Losses – Investing Heavily in a Tech Future
Despite rapid top-line growth, Nebius closed the quarter with a net loss of $113.6 million—41% deeper than the $80.5 million loss last year. Operating loss totaled $129.5 million. Key drivers were accelerated development costs, a 29% rise in sales and marketing expenses ($66.1 million), and a sharp increase in depreciation ($49.2 million, up 453%)—all reflecting the rapid build-out of data centers and infrastructure.

Adjusted EBITDA and Net Loss – Signs of Future Profitability
Adjusted EBITDA was negative $62.6 million, a slight improvement over the $70.9 million EBITDA loss in Q1 2024. Adjusted net loss narrowed to $92.5 million, indicating that revenue growth is gradually offsetting some investment outlays. Management emphasizes potential for profitability improvement as scale increases.

Balance Sheet and Financial Health
As of March 31, 2025:

Cash and equivalents: $1.45 billion (down from $2.45 billion at end-2024, due to ongoing investments)

Total assets: $3.44 billion

Shareholders’ equity: $3.16 billion

Total liabilities: $275 million
These figures reflect strong financial balance, investment flexibility, and low leverage.

Share Structure and Incentives
At quarter-end, Nebius had 238.1 million shares outstanding, of which 202.4 million were Class A shares. The company has outstanding employee stock options for 1.2 million shares at a $40 average strike price, as well as 7.4 million in RSUs and other incentive plans, mostly for subsidiary staff.

Strategic Deals – Toloka and Bezos Expeditions
In a major move, Nebius secured a strategic investment in Toloka from Bezos Expeditions and Shopify’s CTO. This funding is expected to fuel Toloka’s development and global expansion. Following the deal, Nebius will no longer consolidate Toloka’s results, but will report it as an equity-method investment.

Business Segments – AI Cloud, Autonomous Vehicles, Edtech

Nebius Cloud: Proprietary cloud platform for developing, running, and optimizing large-scale AI models, providing compute, storage, and managed services globally.

Avride: Develops autonomous driving technology for vehicles and delivery robots, leveraging deep expertise in commercial fleet operations.

TripleTen: A leading US-based edtech player helping re-skill workers for tech careers, showing strong growth and global market entry.

Challenges and Opportunities Ahead
Nebius is at a strategic crossroads: global demand for AI infrastructure is soaring, and the market is ready for long-term investment. However, the company faces intense competition from giants like AWS, Google Cloud, and Microsoft Azure, requiring a careful balance between aggressive growth and disciplined cost control. Continued investment in R&D, customer acquisition, and partnerships (such as Toloka) will be critical to achieving profitability in the coming years.