OVHcloud Posts First Positive Free Cash Flow Since IPO as Growth Accelerates

The French cloud computing provider OVHcloud has reported its positive levered free cash flow since its 2021 stock market listing. This marks a financial milestone for the company as it continues to grow while managing the costs of expanding its cloud infrastructure.

For the year that ended on August 31 2026 OVHcloud generated €24.7 million in positive levered free cash flow. This is an improvement from the negative €27 million recorded in the previous year. Revenue increased by 7.2% on a like-for-like basis to reach €1.145 billion. Adjusted earnings before interest, taxes, depreciation and amortisation or adjusted EBITDA rose by 9.7% to €480.5 million.

The company has also issued an outlook for the next financial year. It is targeting comparable revenue growth above 10% in FY2027. These results show that OVHcloud is making progress in balancing the investments needed to run cloud infrastructure with the need to generate real cash from its business.

A turning point in cash generation

Cloud providers usually need a lot of capital to build and maintain data centres. They must buy servers expand network capacity and keep equipment up to date as customer demand grows. These investments can create pressure on cash flow even when revenue is going up.

OVHcloud’s move into levered free cash flow is therefore a significant moment. It means the company produced cash after covering capital investments and financing costs according to its reported measure. The figure improved by €51.7 million compared to the year’s negative €27 million. While the positive result is small compared to annual revenue it represents a major shift. The company had not achieved levered free cash flow for several years after its listing.

This milestone does not mean OVHcloud no longer needs financing.. Does it guarantee future positive cash flow. The company’s results will still depend on customer demand, operating expenses, equipment prices and the level and timing of capital spending.

Revenue and profitability improve

OVHcloud reported revenue of €1.145 billion for FY2026. This is a 5.6% increase on a basis from €1.085 billion in FY2025. On a like-for-like basis growth was 7.2%. That is the companys measure when comparing underlying performance.

Adjusted EBITDA increased from €437.8 million to €480.5 million. The adjusted EBITDA margin rose from 40.4% to 42%. That improvement shows that operating earnings grew faster than revenue. This is a sign for the company’s efficiency.

Capital expenditure totalled €372.9 million. That was 32.6% of revenue compared with €361.4 million the year. These numbers show how capital-intensive cloud infrastructure remains.. Even as the company invests it is improving its ability to generate cash.

Management said the strong performance came from financial discipline. They pointed to control over inventory and capital spending. They also cited efforts to strengthen the company’s organisation.

Public Cloud remains a growth driver

The Public Cloud segment was one of the strongest areas for OVHcloud. Revenue in this segment rose by 18.9% to €255.1 million for the financial year.

Demand for cloud services continues to create opportunities for providers. Businesses need computing capacity without having to build their own infrastructure. Public Cloud offerings help customers deploy workloads and expand capacity easily.

OVHcloud competes in a market dominated by international providers, especially big US-based hyperscalers. Its advantage lies in European data hosting, data control and services for customers with security, compliance or sovereignty needs.

Growth in Public Cloud does not mean OVHcloud has taken over from the biggest players. Its results show it is growing in areas of the cloud market. At the time it is still managing the cost of running its own infrastructure.

The company also said fourth-quarter revenue grew 10.5% on a like-for-like basis. Public Cloud revenue increased by 20% in the quarter. That gives the company momentum as it moves into its financial year.

FY2027 outlook points to faster growth

OVHcloud expects revenue growth above 10% in FY2027. It is also targeting an adjusted EBITDA margin above 42.5%. It plans to keep generating levered free cash flow.

If achieved these targets would be a step forward. They would combine growth with stronger operating profitability and better cash generation.

The company is also developing its intelligence strategy and related services.. Its financial performance should not be blamed solely on demand for AI. OVHcloud runs a cloud business. It serves customer groups and offers a variety of products.

Its ability to turn customer demand into recurring revenue will be key. At the time it must manage infrastructure spending. That will be essential to meeting its FY2027 goals.

What the results mean for cloud providers

OVHcloud’s results show the financial challenge facing independent cloud infrastructure companies. They must invest enough to stay competitive.. They also need to show that their infrastructure can produce sustainable returns.

Positive free cash flow may improve flexibility. It could reduce the need for financing at every stage of expansion. It could also boost investor confidence, in the company’s discipline.

Still one strong year does not make a trend. Cloud infrastructure stays capital. Higher equipment costs or new investment needs could affect cash flow.

For investors the big questions are whether revenue growth stays above 10% whether margins keep improving and whether free cash flow stays positive as OVHcloud expands.

The FY2026 results give evidence that progress is being made on all three fronts.. The company’s long-term performance will depend on execution. Its next challenge is to keep growing without losing the financial discipline that helped it achieve its first positive levered free cash flow since listing.