On November 11, Nebius, a cloud computing service provider specializing in AI infrastructure, released its third-quarter financial results before market open. The report revealed disappointing figures that fell short of Wall Street expectations, triggering a sharp decline in its stock price.

For Q3 ending September, Nebius posted a net loss of nearly $120 million, significantly widening from the $43.6 million loss in the same period last year and exceeding analysts' forecast of $97 million.

Excluding contributions from its divested AI data subsidiary Toloka, Nebius reported revenue growth of 355% year-over-year to $146.1 million. Despite the rapid expansion, this figure still missed the consensus estimate of $155 million, which the company attributed to an accounting adjustment. Following the earnings release, Nebius shares dropped over 7% to close at $102.18.

Alongside its earnings, Nebius announced significant business developments, including a five-year, approximately $3 billion agreement to supply AI computing infrastructure to Meta Platforms, Inc. Notably, reports indicate Nebius recently inked another major partnership with Microsoft valued at up to $19 billion.

To support expansion, Nebius plans to issue 25 million Class A common shares to fund data center construction.

As a company leasing Nvidia AI chip servers to AI model developers, Nebius operates in a high-growth sector. However, analysts highlight potential risks including customer concentration and substantial debt.

Prior to the earnings release, Nebius shares had surged 264% year-to-date in 2025, making them vulnerable to volatility on any earnings miss. Competitor CoreWeave's recent stock plunge after cutting revenue guidance underscores the intense competition and challenges in the AI infrastructure space.