Business · NEWS EXPLAINER
OVHcloud turns cash-flow positive and targets 10%+ growth in 2027
The European cloud group reported €24.7 million of levered free cash flow, 7.2% like-for-like revenue growth and a faster-growth target for fiscal 2027.
OVHcloud reported its first positive levered free cash flow since its 2021 listing, reaching €24.7 million in fiscal 2026 after a €27.0 million outflow a year earlier. Revenue reached €1.145 billion, up 7.2% like for like.
The result matters because the company says it covered heavy investment from operations while still accelerating public-cloud sales. Its fiscal 2027 targets call for more than 10% like-for-like revenue growth, an adjusted EBITDA margin above 42.5% and continued positive levered free cash flow.
Cash generation crossed an important threshold
Levered free cash flow turned positive at €24.7 million from a €27.0 million outflow. OVHcloud says this is the first positive result since its 2021 IPO, showing that operating cash generation and dedicated financing covered its investment, lease and interest burden under the company’s definition.
Revenue growth accelerated through the year
Fiscal 2026 revenue was €1.145 billion, up 7.2% like for like and 5.6% on a reported basis. Quarterly like-for-like growth accelerated from 6.0% in the first quarter to 10.5% in the fourth quarter, when quarterly revenue passed €300 million.
Public Cloud and larger digital customers led growth
Public Cloud revenue rose 18.9% like for like to €255.1 million and represented 22.3% of group revenue. Digital Scalers, customers spending more than €2,000 a month under the company’s reporting definition, grew 12.4% to €359.1 million and represented 31% of sales.
Margins improved, but debt still deserves attention
Adjusted EBITDA rose 9.7% to €480.5 million and the margin improved to 42.0% from 40.4%. Net debt was €1.157 billion, or 2.7 times adjusted EBITDA. OVHcloud reported €255 million of available liquidity and no significant repayment before fiscal 2030.
The 2027 outlook raises the execution bar
For fiscal 2027, OVHcloud targets like-for-like revenue growth above 10%, an adjusted EBITDA margin above 42.5%, positive levered free cash flow, return on capital employed above 9% and leverage below 2.7 times. These are company targets rather than guaranteed outcomes; execution will depend on demand, component costs, pricing and disciplined investment.
