Nebius Group (NBIS) reports 385% revenue growth in Q1 2025, aims for $1 billion ARR

From Yahoo Finance: 2025-05-20 11:54:00

Nebius Group N.V. (NASDAQ: NBIS) reported a 385% year-over-year increase in revenue for Q1 2025, reaching $55.3 million, driven by growth in its core AI infrastructure business. Annualized run-rate revenue for core infrastructure business hit $249 million, a 684% increase from the previous year.

Founder and CEO Arkady Volozh noted continued growth in Q2 with an April 2025 ARR of $310 million. Adjusted EBITDA was negative at a loss of $62.6 million, improving from $70.9 million loss last year. The company aims to achieve $750 million to $1 billion in ARR by year-end.

Nebius Group (NBIS) is expanding globally, adding five locations across Europe, the United States, and the Middle East within three quarters. Analysts like DA Davidson’s Alexander Platt raised the price target on NBIS stock from $35 to $45, citing the company’s regional expansion strategy.

For investors seeking AI stocks, NBIS shows potential, but some may offer higher returns with less risk. Insider Monkey suggests exploring other AI stocks with significant upside potential. Check out their report on the cheapest AI stock for more information.

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