Nebius Group N.V. (NBIS) expects a return to positive adjusted EBITDA in the second half of 2025, driven by revenue growth, global expansion, and tech innovation. The company reported a 385% revenue surge in Q1 2025, reaching $55.3 million and anticipates full-year revenues between $500 million and $700 million.

To support growth, NBIS plans a $2 billion capital expenditure in 2025 and is focusing on enhancing AI infrastructure. However, despite positive EBITDA projections for the second half of 2025, full-year adjusted EBITDA is expected to remain negative due to high operational costs and competition.

Nebius competes with CoreWeave, Inc. (CRWV) and Microsoft Corporation (MSFT). CoreWeave reported a 420% revenue growth in Q1 2025, reaching about $981.6 million, with strong demand and partnerships. Microsoft reported a 16% increase in operating income in Q3 fiscal 2025, but expects reduced margins in fiscal 2025 due to high capital investments.

Nebius’ shares have gained 85.4% year-to-date and are trading at 3.83X price/book ratio. The Zacks Consensus Estimate for NBIS’ earnings for 2025 remains unchanged. The company currently carries a Zacks Rank #4 (Sell).

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Read more at Nasdaq: NBIS Eyes Positive EBITDA in H2 2025: What Could Drive Growth?