Nebius Q2 2026 earnings: Revenue rises 454% as adjusted EBITDA turns positive

Nebius Group N.V. (NASDAQ: NBIS) reported Q2 2026 revenue of $582.3 million, up 454% from $105.1 million, while GAAP diluted EPS from continuing operations swung to a loss of $0.68 from earnings of $2.05. Adjusted EBITDA turned positive, but rising depreciation, share-based compensation and interest expense contributed to a GAAP net loss.

Core earnings results

For the quarter ended June 30, 2026, Nebius generated adjusted EBITDA of $236.2 million, compared with a $21.0 million loss a year earlier. Adjusted EBITDA margin was approximately 40.6%, reflecting revenue growth that substantially exceeded the increases in cost of revenue and administrative expenses.

GAAP results were less favorable. The operating loss widened in absolute terms, and net income from continuing operations reversed to a $190.4 million loss. Adjusted net loss, however, narrowed 64% to $33.2 million.

The continuing-operations comparison excludes Toloka, whose prior-period results were reclassified as discontinued operations after Nebius ceased to hold majority voting power in the business.

Revenue scale improved adjusted economics, but GAAP costs remained heavy

Revenue grew faster than several major operating cost categories. Cost of revenue increased 344% to $133.6 million, but declined to 23% of revenue from 29%. Product development expense rose 346% to $191.0 million, while falling to 33% of revenue from 41%. Sales, general and administrative expense increased 155% to $173.9 million, reducing its revenue ratio to 30% from 65%.

These changes helped adjusted EBITDA turn positive. However, total operating costs and expenses reached $758.2 million, still above quarterly revenue. Depreciation and amortization increased to $259.7 million as Nebius expanded its infrastructure, while share-based compensation rose to $102.5 million. Consequently, the operating loss widened, although the operating margin improved to approximately negative 30.2% from negative 105.8%.

The GAAP net income comparison was also affected by non-operating items. Q2 2025 included a $597.4 million gain from revaluing equity investments, while Q2 2026 had no comparable gain. Interest expense also increased to $119.1 million from $4.8 million. These factors help explain why adjusted results improved while GAAP net income moved from a profit to a loss.

Cash flow and balance sheet

Operating cash flow from continuing operations reached $2.25 billion despite the quarterly net loss. The cash flow statement attributed approximately $1.19 billion of inflow to changes in accounts receivable and another $1.20 billion to deferred revenue. Depreciation and share-based compensation also provided substantial noncash add-backs.

Capital investment remained much larger than operating cash generation. Nebius spent $5.66 billion on property, equipment and intangible assets during the quarter. On a simple operating-cash-flow-minus-capital-purchases basis, the resulting cash shortfall was approximately $3.41 billion.

Financing activities provided $2.86 billion during Q2, primarily through $2.85 billion of proceeds from the sale of treasury shares. Cash and restricted cash nevertheless decreased by $528.8 million during the quarter to $9.10 billion, including $8.04 billion of cash and cash equivalents.

The balance sheet reflects the scale of the infrastructure expansion. Property and equipment increased to $13.05 billion at June 30 from $5.55 billion at the end of 2025. Non-current debt rose to $8.50 billion from $4.10 billion, while total current and non-current deferred revenue increased to approximately $5.98 billion from $1.58 billion.

Recent insider transactions

The supplied Yahoo Finance data shows 507,793 shares categorized as insider purchases across two transactions during the latest six-month period, compared with 813,951 shares sold across 22 transactions. That produced net insider sales of 306,158 shares, while total insider holdings were reported at 9.46 million shares.

The latest reported transactions were predominantly sales, with one stock award among the ten supplied entries. These records describe the transactions but do not establish the insiders’ reasons for trading.

The supplied dataset contains two identical entries for John Boynton on June 15; both are retained as reported.

Risks investors should monitor

• Capital intensity: Quarterly capital purchases exceeded operating cash flow by approximately $3.41 billion. Sustaining this pace could require additional debt, equity financing or internally generated cash.
• Dependence on working-capital inflows: Much of Q2 operating cash flow came from changes in accounts receivable and deferred revenue rather than GAAP earnings. The timing and direction of these balances can vary between periods.
• GAAP cost burden: Depreciation, share-based compensation and interest expense all increased substantially. Revenue must continue scaling to absorb these costs and move operating and net results toward profitability.
• Infrastructure execution: Nebius identified access to data-center sites, power, equipment and supply-chain resources as risks to bringing capacity online on time and at an acceptable cost.

Summary

Nebius’s Q2 2026 results showed rapid revenue growth and a clear improvement in adjusted operating economics, including positive adjusted EBITDA and a narrower adjusted net loss. GAAP profitability remained constrained by depreciation, share-based compensation, interest expense and the absence of the prior-year investment revaluation gain. The main issues to monitor are whether revenue can keep scaling against the expanding cost base and whether operating cash flow can support the company’s unusually high infrastructure spending.