Q2 2026 Nebius Group NV Earnings Call Transcript
Key Points
- Revenue surged 454% year-over-year to $582 million, with Nebius AI growing 514% and ARR reaching $3 billion.
- Adjusted EBITDA turned positive at $236 million with a 41% margin, up from a loss a year ago and 32% in Q1.
- Closed four landmark deals averaging over $1 billion each, with yields of $20-$25 million per megawatt and prepayments covering 50-60% of CapEx.
- Launched a successful capacity auction clearing at 15% above the highest price ever charged for Blackwell chips, signaling strong market pricing.
- Introduced an asset-light partnership model that unlocks new capacity with minimal balance sheet capital, attracting dozens of partner inquiries.
- Raised year-end contracted power target to 5 gigawatts, positioning Nebius to build over 1 gigawatt of new capacity annually by 2027.
- Secured $775 million asset-backed debt facility at a mid-single-digit rate, backed by $40 billion in contracted backlog, diversifying funding sources.
- Q2 revenue growth was driven by capacity added in Q1, but most 2026 capacity comes online in H2, so near-term revenue impact is limited.
- The Vineland, New Jersey data center site faced a public hearing adjournment without a vote, creating potential delays despite management confidence.
- Capital expenditures remain heavy at $5.7 billion in Q2, with full-year guidance of $20-$25 billion, requiring significant external funding.
- The company relies heavily on customer prepayments (70% of deals) and ATM equity issuance, which could dilute shareholders if used extensively.
- Asset-light model and new initiatives like Token Factory are still early stage, with uncertain contribution to revenue and margins.
- The company's ability to scale capacity in 2027 depends on successful execution of complex build-outs and regulatory approvals, which carry execution risks.
Welcome to Nebius Group's Q2 2026 earnings conference call. (Operator Instructions)
I will now hand over to Gili Naftalovich, Head of Investor Relations, to start the call.
Hi, everyone, and welcome to Nebius' second-quarter 2026 earnings conference call. Joining us on the call today, we have our CEO, Arkady; our CFO, Dado, and the broader Nebius management team.
Before we get started, I'll quickly cover the Safe Harbor. Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Form 20-F for a list of our risk factors.
We undertake no obligation to update any forward-looking statements. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP
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