French cloud provider OVHcloud reported €24.7 million in FY2026 levered free cash flow, adjusted for €49.5 million of FY2027 capital spending pre-financed in FY2026, its first positive annual result since its IPO.
The figure compares with a €27 million outflow a year earlier. OVHcloud brought forward purchases of memory and disk components as their prices rose, securing supplies for the coming fiscal year.
Revenue reached €1.145 billion in the year ended Aug. 31, up 7.2% like for like and 5.6% as reported. The like-for-like increase exceeded the company’s 5% to 7% target. Adjusted EBITDA rose 9.7% as reported to €480.5 million, and its margin widened 1.6 percentage points to 42%. Net income increased to €9.4 million from €400,000.
Public Cloud revenue grew 18.9% like for like to €255.1 million, with fourth-quarter growth reaching 24.3% on the same basis. Revenue from Digital Scalers, a customer segment accounting for 31% of company sales, rose 12.4% like for like to €359.1 million.
Excluding the advance component purchases, adjusted capital expenditure was 32.6% of revenue, below OVHcloud’s 33% to 35% target range. The company said it made measured price adjustments in response to rising component costs, applying the increase to all recent and newly ordered servers.
“FY 2026 was a year of discipline,” Chairman and CEO Octave Klaba said. Klaba cited controls on stock, investment and operating expenses.
Its FY2027 guidance calls for like-for-like revenue growth exceeding 10%, an adjusted EBITDA margin above 42.5% and positive levered free cash flow. At Aug. 31, net debt excluding lease liabilities was €1.157 billion, up from €1.103 billion a year earlier. Its reported leverage ratio of 2.7 times includes lease liabilities under the company’s revised definition.
Reuters reported that OVHcloud shares rose more than 10% Tuesday. The company’s next scheduled financial update is its first-quarter FY2027 revenue announcement on Jan. 7, 2027.
