OVHcloud posts first positive cash flow after record year

OVHcloud reported full-year revenue of €1,145.1 million for FY2026 and generated positive levered free cash flow for the first time since its stock market listing.

Revenue rose 7.2% on a like-for-like basis, above the company's 5% to 7% target range. Adjusted EBITDA reached €480.5 million, with the margin widening to 42%. Net income was €9.4 million, up from €0.4 million a year earlier.

Growth accelerated through the year, with fourth-quarter revenue up 10.5% on a like-for-like basis. Quarterly revenue exceeded €300 million in the period, and monthly revenue rose above €100 million by the end of the financial year.

Public Cloud remained the fastest-growing product line, with revenue up 18.9% to €255.1 million. Private Cloud generated €690.4 million and Webcloud delivered €199.7 million.

OVHcloud attributed the performance to changes in its customer organisation, tighter control of inventory and capital spending, and continued demand for sovereign cloud services. Customer acquisition was also strong across domain names, VPS and bare metal services.

Octave Klaba, Chairman and Chief Executive Officer of OVHcloud, said the business had met all the goals set after his return to lead the group.

"Twelve months after my return, we have delivered on all of the targets we announced. Fourth-quarter revenue grew 10.5% on a like-for-like basis, and monthly revenue surpassed the €100 million milestone by the end of the fiscal year. FY2026 was a year of discipline. We managed our inventory and capex very closely while keeping operating costs under control. Customer acquisition and sales volumes were very strong across domain names, VPS and Bare Metal. Public Cloud revenue grew 20% in the fourth quarter. In response to rising RAM and storage prices, we made measured adjustments to our pricing. Our new sales organization, put in place during the year, will deliver its full impact from 2027. We have redefined our AI strategy, and in 2027 we are moving into the deployment phase. In AI, our customers do not all have the same needs: our solutions serve several customer profiles, which limits the risk on our investments. We will continue to become more efficient. Simplifying the customer experience and regionalizing our Public Cloud offerings should allow us to accelerate our growth even further. The Group has now returned to its fundamentals and is ready to shift into a higher gear," Klaba said.

Segment trends

OVHcloud has reorganised its sales teams around three customer groups: Digital Starters, Digital Scalers and Corporates. Digital Starters, which accounted for 49% of group revenue, grew 5.4% to €563.9 million. Digital Scalers rose 12.4% to €359.1 million, while Corporates increased 2.6% to €221.7 million.

Digital Starters benefited from an increase in customer numbers, while growth in Digital Scalers came from a vertical market strategy and additional sales to existing clients. In Corporates, momentum improved in the second half as customers adopted its 3-AZ offering and increased spending.

France remained the largest market, accounting for 48% of revenue, with like-for-like growth of 6.0%. Other European countries contributed 29% of revenue and grew 6.4%, while the rest of the world, representing 23% of revenue, rose 10.7%.

Pricing and investment

OVHcloud made targeted price increases in response to higher component costs, applying them to recent and newly ordered servers. It also secured the supplies needed to support growth and managed inventory closely to limit cash tied up.

The group has 250 MW of connected power capacity, with 140 MW already in operation, giving it room to expand without building new sites. It is also examining infrastructure options as it considers possible capacity increases and growth in its GPU business.

Part of the year's capital spending included about €49.5 million of memory and disk components intended for use in FY2027. Excluding that anticipated spending, adjusted capex represented 32.6% of revenue, below the company's 33% to 35% target range.

Balance sheet

Consolidated net debt excluding lease liabilities stood at €1,157 million at the end of August, up from €1,103 million a year earlier. Debt leverage was 2.7x, down 0.2x. Nearly all debt was hedged, with an average interest rate of 4.4% and no significant repayment deadlines before FY2030.

Available liquidity totalled €255 million, including an undrawn credit line of €200 million. Return on capital employed improved to 7.7%, from 7.1% in FY2025 and 3.3% in FY2024.

Alongside the financial results, OVHcloud said it plans to launch OVHai, its first AI model, in 2027. The company has already made three acquisitions in the area this year - Seald, Dragon LLM and Gladia - and has introduced OVHai Workspace, an AI platform for businesses.

The group also completed the recruitment of a new Chief Financial Officer, who is due to take up the role in December. Its shares have more than doubled in value since the start of 2026.