OVHcloud reported its first positive levered free cash flow since becoming a public company, marking an important financial milestone as the European cloud provider prepares to accelerate growth in 2027.
Revenue for the fiscal year ended August 31 reached €1.145 billion, an increase of 7.2% on a like-for-like basis.
Adjusted EBITDA increased 9.7% to €480.5 million, lifting the margin to 42% from 40.4% a year earlier.
Levered free cash flow reached positive €24.7 million, reversing a €27 million outflow in the previous fiscal year.
Capital expenditure totaled approximately €372.9 million, equivalent to 32.6% of revenue.
OVHcloud said fourth-quarter like-for-like revenue growth accelerated to 10.5%, while public-cloud revenue grew 20% during the quarter.
For fiscal 2027, the company is targeting organic revenue growth above 10% and an adjusted EBITDA margin above 42.5%.
The numbers matter because cloud infrastructure providers face the same capital-allocation question confronting much of the AI industry: how quickly expensive computing infrastructure can translate into sustainable cash generation.
OVHcloud is positioning itself as a European alternative to the much larger U.S. hyperscale cloud providers while increasing its exposure to artificial-intelligence workloads.
Management says it has reworked its AI strategy and intends to move into a deployment phase during 2027.
The next measure of progress will be whether faster revenue growth can coexist with positive cash generation as investment in public cloud and AI infrastructure continues.
Crossing into positive levered free cash flow gives OVHcloud a stronger financial starting point for that expansion than it had during the earlier years following its 2021 IPO.
