OVHcloud Hits All FY2026 Targets as Revenue Tops €1.14B and Levered Free Cash Flow Turns Positive

OVHcloud reported full-year fiscal 2026 results on Tuesday, declaring that it met every target set out at the start of the year, with like-for-like revenue growth of 7.2% to €1,145.1 million and an adjusted EBITDA margin of 42%, as the European cloud provider completed a year of disciplined execution and positioned itself for an acceleration in value-creating growth in FY2027.

The results mark a significant milestone for the company, which returned to its fundamentals under Chairman and CEO Octave Klaba and has now delivered on all commitments announced twelve months ago. Growth accelerated steadily through the year, from 6.0% in the first quarter to 10.5% in the fourth, when quarterly revenue surpassed €300 million and monthly revenue crossed the €100 million threshold. The net revenue retention rate remained high at 103% on a like-for-like basis, supported by low churn.

"Twelve months after my return, we have delivered on all of the targets we announced," Klaba said. "FY 2026 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."

Public Cloud was the primary growth engine, generating €255.1 million, up 18.9% like-for-like, and accelerating to 24.3% in the fourth quarter on the back of cross-selling, traction in the 3-AZ regions—particularly the ramp-up of the Paris 3-AZ region—and sustained customer acquisition. Private Cloud contributed €690.4 million, or 60.3% of revenue, up 4.5% like-for-like with momentum strengthening to 7.1% in the final quarter, while Webcloud added €199.7 million, up 3.2%, with domain name sales reaching record daily volumes driven in part by demand linked to AI and vibe coding.

By geography, France accounted for 48% of group revenue with 6.0% like-for-like growth, other European countries contributed 29% with 6.4% growth, and the Rest of the World represented 23% with 10.7% growth, led by Public Cloud expansion in the United States. Adjusted EBITDA rose 9.7% to €480.5 million, with the margin expanding 1.6 points to 42%, as roughly 70% of additional revenue converted into EBITDA. Net income reached €9.4 million, compared with €0.4 million a year earlier, and return on capital employed more than doubled over two years to 7.7%.

Levered free cash flow turned positive for the first time since the company's IPO, even as OVHcloud chose to pre-finance approximately €49.5 million of memory and disk components strictly intended for 2027 use in response to rising component costs. Excluding that anticipated capex, adjusted capex represented 32.6% of revenue, below the targeted 33% to 35% range. The group ended the fiscal year with €255 million in available liquidity, including an undrawn €200 million credit line, net debt of €1,157 million and leverage of 2.7x, down 0.2x, with no significant repayment deadlines before FY2030.

OVHcloud also advanced its AI strategy through three bolt-on acquisitions during the year—Seald, a specialist in end-to-end encryption; Dragon LLM, a designer of specialised AI models for regulated industries; and Gladia, a voice AI specialist—culminating in the unveiling of OVHai Workspace at VivaTech in June 2026. Klaba said the company has redefined its AI strategy and will move into the deployment phase in 2027, with solutions serving several customer profiles to limit investment risk. "Simplifying the customer experience and regionalizing our Public Cloud offerings should allow us to accelerate our growth even further," he added. "The Group has now returned to its fundamentals and is ready to shift into a higher gear."

With 250 MW of connected power capacity, of which 140 MW is in operation, OVHcloud said it has headroom for growth without building new sites, and is exploring scenarios for restructuring its infrastructure to support potential capacity expansions and the ramp-up of its GPU business. The company also reorganized its sales teams around three go-to-market segments—Digital Starters, Digital Scalers and Corporates—which grew 5.4%, 12.4% and 2.6% respectively, and said the new organization will deliver its full impact from 2027. OVHcloud has completed the recruitment of a new Chief Financial Officer, who will take up the position on December 1, 2026.