Nebius Group (NBIS) Q2 FY26 earnings call: guidance and Q&A

Can you provide an update on the Vineland, New Jersey data center site, especially given the public hearing adjourning without a vote, and how this impacts ramp plans?

The project is on track with delivery, and the public hearing is part of the normal process. The switch to Bloom for power enhances the project and is not expected to significantly impact the timeline. The building construction is complete, and engineering fit-out is progressing well.

“we're confident that the layout complies with all the applicable local, state and federal laws and regulations. And we're optimistic that once the public has been heard, this will move quickly to approval.”

asked by Ryan Lountzis · answered by Tom Blackwell

Characterize the deal processes for the recently announced landmark deals and why customers chose Nebius.

The 4 landmark deals were competitive wins, driven by Nebius's scale, performance, reliability, and long-term partnership approach. Customers, some with existing hyperscaler relationships, sought next-generation capacity and platform. Responsiveness, transparency, white-glove support, and ability to meet current and future expansion needs were key differentiators.

“Our scale, performance and reliability were the differentiators. Also, each customer sees us as a long-term partner that they can grow with.”

asked by Unnamed Analyst · answered by Marc Boroditsky

Given the sentiment around gigawatt-scale data center build-out, what gives Nebius confidence in its capacity ramp, especially for deals tied to late 2026 and 2027 capacity?

Nebius has made significant progress, exceeding 2026 projections for contracted power and raising the target to 5 GW. This is achieved through regional expansion, a mix of grid and behind-the-meter power, and partnerships like Bloom. The cloud contracts offer flexibility in delivery within regions, reducing dependency on single locations. The company prioritizes over-provisioning and building capacity in advance.

“over-provisioning the [ size], over-provisioning the capacity is our highest priority for today, and they believe that will be the case for tomorrow as well.”

asked by Alex Duval · answered by Andrey Korolenko

Given volatile debt markets and higher all-in costs, is Nebius still comfortable leaning on debt, or should greater use of equity (ATM/convertibles) be expected?

Nebius's approach is to match financing instruments with assets, focusing on cost of capital, minimizing dilution, and maintaining a strong balance sheet. Primary sources are customer prepayments and operating cash flow. Asset-backed financing, like the recent $775 million facility, is a key strategy, leveraging $40 billion in committed backlog. The company also has flexibility with minimal corporate-level debt and options for equity/equity-linked financing.

“Our first sources of capital remain customer prepayments and operating cash flow. We expect more than $9 billion of upfront customer prepayments in 2026.”

asked by Arseniy Matovic · answered by Dado Alonso

How does Nebius think about allocating 2027 capacity between short-dated and longer-dated deals, and is there a specific ACV per megawatt threshold for longer-dated deals?

Nebius optimizes across customer type, price, payment structure, duration, and deal sizes, rather than a single metric. Current emphasis is on existing customers, then new logos, with terms prioritizing price, upfront prepayment, and duration. The company has tactically shortened its selling window to improve pricing and deliberately allocates a portion of capacity for short-term, high-value needs where it sees the highest combined realized value.

“We're deliberately allocating a portion of capacity for short-term and immediate needs because that is where we currently see the highest potential for combined realized value.”

asked by Tyler Radke · answered by Marc Boroditsky

xAI selling compute at premium prices – what does this say about market pricing for AI capacity, and what does it mean for Nebius?

The market is growing massively, from hundreds of billions to potentially trillions per year. While hyperscalers will grow, there's a significant opening for independent players like Nebius. New entrants like xAI validate the market and its growth, but don't change Nebius's strategy to build gigawatt capacity per year to serve the rest of the market that hyperscalers cannot fully address.

“The whole AI cloud market is growing massively, from hundreds of billions of dollars per year to probably a trillion, some people say more. And there's no doubt that the main existing players will continue to grow with the market, right? But there's also, definitely, there is an opening for the new entrants for the independent players like us.”

asked by James Kisner · answered by Arkady Volozh

Can you provide early color on the asset-light offering, customer engagement, and its economics compared to the core business?

The asset-light model allows Nebius to grow globally without heavy capital investment, partnering with entities that have capacity and capital but lack the platform and market access. It's in early stages but shows great potential, as many inquiries have been received. This model delivers high-margin revenue and requires minimum balance sheet capital, leveraging Nebius's tech platform and market access.

“The model is still in very early stage. But we are very much encouraged by early signs and think that it has a great potential.”

asked by Rob Oliver · answered by Arkady Volozh

How should investors frame 2027 across capacity, pricing, and revenue, given Nebius could sell its entire 2027 capacity today, and when will a formal outlook be provided?

The Q2 deals ($20M+/MW, <2-year payback) serve as a baseline for early 2027 pricing, but Nebius is choosing not to sell out capacity now, reflecting confidence in future pricing dynamics. Significantly more capacity will be deployed in 2027 than in 2026. The combination of capacity and pricing dynamics makes Nebius excited for 2027, with formal guidance to be provided later this year. Asset-light models and high-value services are expected to contribute increasing, higher-margin revenue.

“The dynamics we expect across both capacity and pricing make us extremely excited about 2027, although we will provide a formal guidance later this year.”

asked by Ryan Lountzis · answered by Dado Alonso