Nebius
NBIS · NasdaqDepreciation alone outweighs the 68.6% gross margin
Depreciation ran at 78.9% of revenue against a 68.6% gross margin: the fleet's wear costs more than renting it earns after running costs.
FY2025, the fiscal year to Dec 31, 2025 · 20-F filed Apr 30, 2026
- Operating margin
- -115.5%
- Net income
- $82.5M
- Free cash flow
- -$3.7B
Where Nebius's money goes
- 01
Depreciation alone outweighs the 68.6% gross margin
Depreciation ran at 78.9% of revenue against a 68.6% gross margin: the fleet's wear costs more than renting it earns after running costs.
Why it matters
Cost of revenues was $166.2M, 31.4% of revenue, down from 47.8% the year before, which leaves a 68.6% gross margin. That line excludes the equipment itself. Depreciation and amortization, reported separately, was $417.9M, 78.9% of revenue, against 84.3% a year earlier. The filing ties the increase to server and network equipment and infrastructure systems.1
AnalysisRevenue grew 479.0% and depreciation 442.0%, nearly in step, because the asset base grew with sales. A new fleet still filling with customers depreciates in full from installation, so depreciation running above the gross margin is expected early. The test is whether revenue on installed GPUs pulls ahead of the next waves of equipment.
AnalysisDepreciation rests on the useful lives the company assigns to its infrastructure, an estimate the filing names as a risk. A shorter assumed life would raise this line and a longer one would lower it, without changing the cash already spent.
- 02
Operating cash funded 9.5% of equipment spending
Capital expenditure of $4,066.0M was 767.5% of revenue, and operating cash flow of $384.8M covered 9.5% of it, so outside money funds the build.
Why it matters
Capital expenditure was $4,066.0M, against $807.5M in FY2024, and free cash flow was -$3,681.2M, a free cash flow margin of -694.8%. Operating cash flow was $384.8M, positive despite the $611.7M loss from operations; the filing credits advances from strategic customers.1
Debt has started to carry the build. Interest expense was $61.5M against none the year before, 11.6% of revenue, while interest income fell to $31.8M from $63.6M as cash went into equipment. The company says it must keep raising equity and debt and expects to pursue secured financing such as asset-backed structures.1
AnalysisAt this scale the business is a financing exercise as much as an operating one: what the equipment earns over its life has to cover both its cost and the interest on the money that bought it.
- 03
Net profit came from the ClickHouse stake, not GPUs
A $598.9M revaluation gain, mostly ClickHouse, offset 97.9% of the $611.7M operating loss and turned the group to $82.5M of net income.
Why it matters
The gain from revaluation of investments in equity securities was $598.9M, which the filing ties almost entirely to ClickHouse and to prices set by third-party investment in it. Other income added $80.6M. Pre-tax income was $13.8M and net income from continuing operations $9.8M.1
Discontinued operations added $72.7M, against a loss of $289.4M the year before, mainly a gain on deconsolidating Toloka. That is 88.1% of the $82.5M net income. Diluted earnings per share were $0.33, against -$2.28.1
AnalysisNeither the revaluation nor the deconsolidation gain comes from renting compute, and neither recurs on a schedule. The loss from operations, which widened to $611.7M from $399.6M, is the better guide to the core business.
- 04
The cost base shifted from people to machines
Depreciation rose to 36.6% of operating costs from 15.7%, while sales and administrative costs grew 48.8% against revenue growth of 479.0%.
Why it matters
Total operating costs and expenses were $1,141.5M, up 132.4%. Within them, depreciation and amortization was $417.9M, 36.6% of the total, against $77.1M and 15.7% in FY2024. Sales, general and administrative costs rose 48.8% to $380.1M and product development 54.4% to $177.3M.1
Those overheads fell sharply as a share of revenue: sales, general and administrative to 71.7%, down 207.5 points, and product development to 33.5%, down 92.0 points. The loss from operations still widened to $611.7M from $399.6M, an operating margin of -115.5%.1
AnalysisStaff-driven costs are spreading over a larger revenue base, the leverage a cloud model promises. Equipment costs are not yet doing so: they scale with capacity installed, so the path to an operating profit runs through filling the fleet rather than further overhead savings.
Sources
- 1.Nebius 20-F for the period to 2025-12-31 (the filing), Apr 30, 2026, read Nov 2, 2026
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Growth, profit and margin
Revenue went from $622.2M in FY2011 to $529.8M in FY2025, the operating margin from 35.1% to -115.5%, over 14 years.
- Revenue$529.8M
- Operating income-$611.7M
- Operating margin-115.5%
- Period
- FY2025
- Revenue
- $529.8M
- Operating income
- -$611.7M
- Operating margin
- -115.5%
- Net income
- $82.5M
- Free cash flow
- -$3.7B
Does the profit turn into cash?
FY2025: free cash flow of -$3.7B against net income of $82.5M.
- Operating cash flow$384.8M
- Capital expenditure$4.1B
- Free cash flow-$3.7B
- Net income$82.5M
Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.
Financial data and sources
How the revenue mix has shifted
Each breakdown the filing reports, as shares of revenue, for every period it restates.
INFORMATION ABOUT SEGMENTS & GEOGRAPHIC AREAS - Segment's Revenue, Adjusted EBITDA, Expense (Details). The filing restates this breakdown for 3 periods.
Click a member to isolate it across the years shown.
The figures
Margins, cash and growth for the period, each with what it was computed from.
Where revenue comes from
Every breakdown the filing reports for the period, with each item's share.
Segments
| Nebius | $480.3M | 90.7% |
| TripleTen | $54.1M | 10.2% |
| Avride | $1.3M | 0.2% |
These items do not sum to total revenue; the filing states them beside it. Source20-F, us-gaap:Revenues, as reported in the 20-F filed 2026-04-30
ConsolidationItems
| Operating Segments | $535.7M | 101.1% |
| Eliminations | -$5.9M | -1.1% |
Source20-F, us-gaap:Revenues, as reported in the 20-F filed 2026-04-30
What it costs
The cost lines beneath operating income, each as a share of revenue, then the operating result.
Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.
| Cost line | FY2025 | Of revenue | Source |
|---|---|---|---|
| Total operating costs and expenses | $1.1B | 215.5% | Source20-F, us-gaap:CostsAndExpenses, as reported in the 20-F filed 2026-04-30 |
| Loss from operations | -$611.7M | -115.5% | Source20-F, us-gaap:OperatingIncomeLoss, as reported in the 20-F filed 2026-04-30 |
The statements, as filed
The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.
Income statement26 lines, as presented in the 20-F
Cash flow statement60 lines, as presented in the 20-F
Balance sheet33 lines, as presented in the 20-F
About this data
- Source
- Nebius 20-F, accession 0001104659-26-052948, filed Apr 30, 2026, read on Nov 2, 2026.
- History
- From the SEC's XBRL company facts, the value from the latest filing that stated each period.
- Reading
- Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
- Version
- methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
What holds Nebius's model up, and what could bend it
Competitive edge
Hyperscaler contracts turn a speculative build into a contracted one
Multi-year agreements with Microsoft and Meta, which the filing calls multi-billion dollar, give the build-out visible revenue to finance against and customer advances to fund it.
The detail
Late in the year Nebius signed long-term committed contracts with two hyperscalers, Microsoft and Meta, which the filing describes as multi-year, multi-billion dollar agreements with attractive economics and financing terms. Most earlier customer engagements were relatively short-term. Advances from strategic customers helped keep operating cash flow positive at $384.8M.1
AnalysisContracted revenue lowers the risk of building ahead of demand and supports lending against the equipment. The protection holds only if the contracts run roughly as long as the depreciation schedule assumes the GPUs will last.
Retained stakes in spun-off businesses act as a funding reserve
Stakes kept in ClickHouse and Toloka produced a $598.9M revaluation gain and $72.7M from discontinued operations, assets that could help fund the core cloud.
The detail
The group holds a significant minority stake in ClickHouse, the database company it spun off, and deconsolidated Toloka during the year, recording $72.7M of net income from discontinued operations. The $598.9M revaluation gain rests on prices from third-party investment in ClickHouse.1
AnalysisA stake that outside investors keep revaluing is a source of capital that need not come from issuing new Nebius shares. Its value depends on private funding rounds, so it can fall as well as rise, and it is not cash until sold or borrowed against.
What to watch
The build-out depends on raising more capital
With free cash flow at -$3,681.2M and interest expense new at $61.5M, the company says it must keep raising equity and debt, which can dilute shareholders.
The detail
The filing describes the core business as capital-intensive and not yet profitable. It expects to pursue secured financing such as asset-backed structures, and notes that future share sales and the conversion of its convertible notes could dilute existing shareholders. Interest expense was $61.5M against none in FY2024.1
Older GPUs may lose price before they are paid off
With depreciation at 78.9% of revenue, the filing's warnings on pricing pressure for older chips and on estimating useful lives bear directly on profit.
The detail
The filing names pricing pressure on older GPU generations as newer ones arrive, and the need to estimate the useful lives of its infrastructure correctly. It relies on NVIDIA for its GPUs and on a small number of suppliers for key hardware.1
AnalysisShort-term, on-demand capacity is most exposed to repricing, since its rate resets as the market moves. If prices for a chip generation fall faster than its depreciation schedule assumes, the gap shows up as lower margins or a shorter assumed life.
Delivering contracts larger than any it has run before
The filing calls capacity for hyperscaler customers critical, ties it to sites, power and NVIDIA supply, and cites limited experience with long-term contracts this large.
The detail
The company says its growth depends on expanding its data center footprint and finding sites and reliable power on acceptable terms, and that it has limited experience delivering long-term contracts of the size it signed this year. Larger, better-funded rivals compete for the same customers, from CoreWeave, Crusoe and Lambda to AWS, Google Cloud, Azure and Oracle.1
It has identified two material weaknesses in internal control, over fixed assets and TripleTen revenue. Class B shares carry ten votes each, and a trust whose beneficiaries include the founder's family holds a majority of voting power, making Nebius a controlled company.1
AnalysisA weakness over fixed assets carries more weight in a year when capital expenditure reached $4,066.0M, since those assets drive the depreciation line that decides operating profit.
Sources
- 1.Nebius 20-F for the period to 2025-12-31 (the filing), Apr 30, 2026, read Nov 2, 2026
Nebius, further in
Member research, then your own questions on ChatGPT.
What could change the outlook
What Nebius's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.
- What the GPU fleet has to earn to cover its own cost
How depreciation, utilization and contract length decide whether the build-out pays, and which lines in the next filings show it first.
- How the build-out is financed, and what it costs
What the mix of debt, convertible notes, customer advances and retained stakes means for interest costs and dilution as spending continues.
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Have a question about Nebius?
Explore its profit drivers, competitive edge, risks, or your own investment and business questions with CXProWealth on ChatGPT.
- What happens to Nebius's operating loss if depreciation keeps growing almost as fast as revenue?
- How much of Nebius's net income this year came from the ClickHouse revaluation rather than its AI cloud?
- How do the Microsoft and Meta contracts change the risk of Nebius building GPU capacity ahead of demand?
Business Lens describes Nebius from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.