OVHcloud posts its first positive free cash-flow since its public listing
For the first time since its listing on the stock exchange, OVHcloud generated a positive levered free cash-flow of €24.7 million for fiscal year 2026 ended August 31, compared to −€27.0 million a year earlier. Published on October 20, 2026, these accounts also show an acceleration in activity over successive quarters. This momentum underpins a growth target exceeding that set for the previous fiscal year.
The Roubaix-based hosting provider posted a net profit of €9.4 million, against €0.4 million in fiscal year 2025. This announcement comes after a 7.5% decline in the share price over one week, recorded the day before this announcement. "Twelve months after my return, we have achieved all announced objectives," declared Octave Klaba, Chief Executive Officer.
Revenue driven by fourth quarter growth of +10.5%
Revenue reached €1,145.1 million, up 7.2% on a like-for-like basis and 5.6% on a reported basis. This pace exceeds the group's target of 5 to 7%. Growth accelerated over the course of the fiscal year: +6.0% in the first quarter, +5.1% in the second, +6.9% in the third and +10.5% in the fourth, on a like-for-like basis.
In this final quarter, revenue reached €300.4 million, and monthly revenue exceeded the €100 million threshold at the end of the fiscal year. Public Cloud (22.3% of sales) is the main driver: €255.1 million, up 18.9% over the fiscal year and 24.3% in the fourth quarter, on a like-for-like basis. The group notably cites the ramp-up of its 3-AZ region in Paris.
Private Cloud, which accounts for 60.3% of the total, grew 4.5% over the fiscal year, then 7.1% in the fourth quarter. Webcloud showed +3.2% over the fiscal year and +6.0% in the final quarter. By geographic area, Rest of World recorded the strongest growth (+10.7%), ahead of Europe excluding France (+6.4%) and France (+6.0%). The net revenue retention rate stands at 103%.
Adjusted EBITDA margin up 1.6 points, net debt at €1,157 million
Adjusted EBITDA grew 9.7% to €480.5 million, representing a margin of 42.0% against 40.4% in fiscal year 2025. The gross margin increased from 65.4% to 67.3%. Operating profit stands at €77.8 million, representing a margin of 6.8% against 6.4%, despite depreciation and amortization charges increasing by €23.9 million to €378.3 million, linked to the commissioning of new capacity.
Financial result, at −€57.2 million, improved by €7.8 million, notably thanks to foreign exchange gains. Return on employed capital reached 7.7%, compared to 7.1% in fiscal year 2025 and 3.3% in fiscal year 2024. Facing rising component prices, the group implemented targeted price adjustments.
The positive levered free cash-flow of €24.7 million is calculated after accounting for €49.5 million in anticipated investments for 2027, relating to memory and disk components. Excluding this anticipation, capex represents 32.6% of revenue, below the 33 to 35% target range.
Net financial debt excluding lease liabilities increased from €1,103 million to €1,157 million over one year. Debt leverage declined by 0.2 times to 2.7 times, according to a modified definition that now includes lease liabilities. The group has €255 million in liquidity, including an undrawn credit line of €200 million, with no significant repayment obligations before fiscal year 2030.
2027 target: organic growth exceeding 10%
For fiscal year 2027, OVHcloud targets organic growth exceeding 10%, an adjusted EBITDA margin exceeding 42.5% and a positive levered free cash-flow. The group also sets a return on employed capital exceeding 9% and a debt leverage below 2.7 times. It relies on 250 MW of connected electrical capacity, of which 140 MW is operational, enabling it to grow without building new sites.
In the fields of artificial intelligence and cybersecurity, the group completed three acquisitions during the fiscal year: Seald, Dragon LLM and Gladia. Its strategy in this area will be detailed at an "AI Summit" on November 19, 2026. A new Chief Financial Officer will take office on December 1, 2026.
Since the close, OVHcloud obtained in September 2026 the SecNumCloud qualification for SNC Cloud Platform, its third qualified offering. That same month, the group and CGI announced a contract worth several million euros over 30 months with the European Space Agency. The next milestone is set for January 7, 2027, with the publication of revenue for the first quarter of fiscal year 2027, with a target for annual organic growth exceeding 10%.
