PARIS: European cloud computing services provider OVHcloud reported on Tuesday full-year revenue that broke through the symbolic one-billion-euro barrier, with its core profit margin exceeding 40%, and announced the appointment of its founder Octave Klaba as Chairman and Chief Executive Officer.
The French company said the governance change was made to “align vision, strategy, and execution” as it navigates a rapidly evolving cloud and artificial intelligence (AI) market. Klaba succeeds Benjamin Revcolevschi, whose term has ended.
For the fiscal year ended Aug. 31, 2025, revenue rose 9.3% on a like-for-like basis to 1.08 billion euros ($1.17 billion), up from 993.1 million euros a year earlier.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 14.8% to 437.8 million euros, yielding a margin of 40.4%, a 2.0-point improvement from the previous year.
The company also swung back to a net profit of 0.4 million euros, compared to a net loss of 10.3 million euros in fiscal 2024.
“Over the past 5 years, among other things, we have successfully built up the Corporate segment, where we now generate over 200 million euros in revenue,” Klaba said in a statement.
He highlighted that the company had also developed 40 Public Cloud products, now generating over 100 million euros, and established a strong presence in the United States, also surpassing the 100-million-euro revenue mark there.
The company’s unlevered free cash flow more than doubled to 57.6 million euros, a key indicator of improved financial health. However, net debt increased to 1.10 billion euros from 667 million euros a year earlier, which the company said was in line with its debt policy.
GROWTH DRIVERS AND REGIONAL PERFORMANCE
Growth was buoyed by all product segments. The flagship Private Cloud unit, which represents 62% of total revenue, saw sales rise 8.8% like-for-like to 671.6 million euros. The faster-growing Public Cloud segment, which includes IaaS and PaaS, surged 17.5% to 219.2 million euros.
Geographically, revenue in its home market of France, which accounts for 48% of the total, grew 7.3%. The Rest of the World region, boosted by strong momentum in the United States, was the standout performer with 14.3% growth.
The company is focusing on rolling out its Public Cloud products in a more resilient “3-AZ Region” configuration, with deployments underway in Paris and planned for Milan in early 2026.
OUTLOOK AND STRATEGIC SHIFT
Looking ahead, OVHcloud provided fiscal 2026 guidance targeting organic revenue growth between 5% and 7%, an Adjusted EBITDA margin above the 40.4% achieved in 2025, and capital expenditure representing 30% to 32% of revenue. A key goal is to achieve positive levered free cash flow.
The leadership change and the achievement of its 2021-2025 strategic plan milestones set the stage for the next phase. Klaba stated he would present a new “Step Ahead” strategic plan for 2026-2030 in the coming months, aiming to “guide our teams and support our customers, while generating value for our shareholders” in a competitive and fast-moving market.
($1 = 0.9249 euros)