Nebius Group’s total debt increased from $1.22 billion to $10.06 billion in the year ending June 2026. This figure excludes an additional $5.75 billion in convertible notes issued in August 2026.
The company reported a record negative free cash flow of $3.41 billion in the second quarter of 2026. Capital expenditures currently outpace operating cash flow.
Analysts highlight a contracted backlog exceeding $40 billion and a strong adjusted EBITDA margin as signs of growth. However, the company is financing its expansion through debt and equity issuance rather than operational earnings. This leverage mirrors the telecom network boom of the late 1990s.