OVHcloud eyes faster 2027 growth as it posts first positive cash flow since IPO

Oct 20 — French cloud operator OVHcloud reported its first positive levered free ​cash flow since its 2021 listing and forecast accelerating revenue growth for the year through August 2027, lifting its shares more than 10% ‌on Tuesday.

The milestone means OVHcloud, Europe's biggest hyperscaler seeking to challenge the likes of Microsoft ⁠Azure, Google Cloud and Amazon's ​AWS, now covers its heavy capital ⁠spending from its own operations after five years of losses on ‌cash generation.

OVHcloud's shares have ‌more than doubled in value since the start of 2026.

The ⁠company's revenue grew 7.2% to €1.15 billion ($1.29 ⁠billion) in the fiscal year that closed on August 31. It expects to exceed 10% growth in the current year, along with continued positive cash flow generation.

Acceleration in fourth-quarter growth was led by the Digital Scalers segment, CEO Octave Klaba told Reuters, following the reorganisation of the company's ‌offering since his return a year ago.

Digital ​Scalers, which serves clients spending more than €2,000 a month, posted comparable revenue growth of 12.4% to €359.1 million and made up 31% of the company's sales. Public cloud revenue rose 18.9% to €255.1 million.

Klaba said the year had been one of discipline and OVHcloud had "returned to its fundamentals".

Levered free cash flow reached €24.7 million, against an outflow of €27.0 million ​a year ago. Adjusted earnings before interest, taxes, depreciation and amortisation rose 9.7% ‌to €480.5 million, resulting ‌in ⁠a margin of 42.0%. For fiscal 2027, it aims to raise the margin to above 42.5%.

Net debt stood at €1.16 billion, or 2.7 times its adjusted EBITDA, compared with 2.9x at the end of the previous fiscal year. ‌The company has €255 million ​in available liquidity and no significant debt ‌repayment due before fiscal ⁠2030, it ​said.

($1 = 0.8904 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Christian Schmollinger and ​Milla Nissi-Prussak)

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