Nebius Group N.V. · Q2 2026 call

Most importantly, we could sell today our entire 2027 capacity on these terms if we wanted to. We are not doing this. We see that we can achieve higher value by retaining some capacity to serve shorter- term and immediate client needs.

We are negotiating deals for $40 million-$50 million per megawatt range, and sometimes above, under this model.

We launched our first capacity auction. It was very successful and cleared at the highest price we have seen for the Blackwell generation of chips, 15% above the highest price we ever charged before.

We continue to build our future capacity pipeline through our own and co-located sites, and today raise our year-end contracted power target to 5 GW.

In Q2, we grew group revenue by 454% to $582 million, up 46% from last quarter.

Once again, we sold out of capacity because as fast as we bring capacity online, we can sell it.

Our Nebius AI business generated adjusted EBITDA of $286 million at a margin of 50%. The delta between the group and the Nebius AI business margin reflects our investments in Avride and TripleTen.

In total, customers' prepayments will bring in more than $9 billion of up-front funding this year, directly reducing the capital we need from debt and equity.

We continue to expect annualized run- rate revenue of $7 billion-$9 billion, group revenue of between $3 billion and $3.4 billion, group adjusted EBITDA margin of approximately 40%, and capital expenditures of $20 billion-$25 billion.

We will be raising, or we are raising, actually the contracted power to 5 GW now, by the end of 2026. Almost all of that power will come online over the next three, maybe two, three point five years out of the contracted power, that number that we've mentioned.

Our model was built to build capacity in advance, but not to pre-sell it in advance. That is why we have this available capacity now that can allow us to allocate it to shorter- term and much higher- margin contracts.

The $775 million facility we completed in July, priced as SOFR plus 250 basis points, was backed by deployed DPUs infrastructure and contracted cash flows from an investment-grade customer.

Our current emphasis is taking care of existing customers, followed by new logos, and then terms. Terms in order of priority, including price, then upfront prepayment, then duration.

We have also, at the same time, tactically shortened how far in advance we sell capacity. In effect, selling closer to deployment, which, at the end of the day, has improved the pricing that we can derive while preserving our agility.

The hyperscalers are those who build a lot of this, but even them, they definitely cannot build all of it, and somebody needs to help them to build. That's not us. Somebody needs to build the rest of the market, and that will be us.

Coming back to the question, new players coming to the market don't change the market for us. They actually just, I think, validate the market.

What has changed is that the quality of open models is improving rapidly. At the same time, the industry is moving toward the flexibility and control that we built from the start.

After we announced our asset-light model, we have had dozens of inquiries from potential partners who have significant capacity and enough capital, but do not know how to build and how to sell it.

You should expect the deals we closed in this quarter with more than $20 million per megawatt deals and less than two-year payback period to start coming online from late Q4 and onwards. This can serve as the baseline for pricing early next year, as we could have sold out our planned capacity already today.

You have to commission the data center, build the network, build the clusters, deploy the platform, then onboarding the customers, and then the revenue generation starts. That takes a few months, and depending also on the generation change of the GPUs, probably there is a gap between the connected power and the revenues coming.

We expect to start deploying the Vera Rubin late this year or early next year and continue throughout the full next year.

These customers have specific requirements, like time-boxed large-scale training runs ahead of a model release, or reinforcement learning post-training sprints. In the model world, we hear over and over again, weeks matter, and so does access to reliable, performant AI compute.

The auction result was a price 15% higher than we have ever seen before, and 20% higher than our pipeline for Blackwells.

The terms we secured in Q2 cover approximately 50%-60% of associated CapEx. Going forward, one of our objectives is to increase this coverage even further.