OVHcloud Surpasses €1 Billion Revenue Milestone in FY2025

OVHcloud Reports Record Growth in FY2025

OVHcloud has reached an impressive milestone by breaking through the billion-euro revenue mark in its fiscal year 2025. This significant achievement reflects the company's diligent efforts and strategic planning, as all guidance targets for the year were successfully met.

Key Financial Highlights

For FY2025, OVHcloud reported a revenue of €1,084.6 million, marking a 9.3% increase compared to the previous year. The adjusted EBITDA stood at €437.8 million, with a margin of 40.4%, showcasing an impressive rise of 2.0 percentage points. Furthermore, the company recorded a remarkable increase in unlevered free cash flow, doubling to €57.6 million, highlighting the strong financial health and operational efficiency.

Revenue Breakdown

The revenue growth was largely driven by the Corporate segment, which generated over €200 million, while Public Cloud offerings surpassed €100 million. Additionally, OVHcloud established a solid presence in the United States, contributing more than €100 million in revenue. Almost 1,200 customers now generate more than €100,000 in Annual Recurring Revenue (ARR), with an impressive net revenue retention rate of 105% on a like-for-like basis.

Strategic Leadership Changes

In light of its ongoing growth and future ambitions, OVHcloud has appointed Octave Klaba as Chairman and Chief Executive Officer. This strategic move aims to unify the company's vision, strategy, and execution to enhance operational effectiveness and deliver greater value to shareholders. Klaba emphasized the need for increased development rates to stay competitive, particularly in the rapidly expanding cloud and AI markets.

Cost Management and Profitability

OVHcloud's effective management of operational costs led to a significant improvement in profitability, with the operating income (EBIT) reaching €69.4 million, representing a notable margin of 6.4%. The company's disciplined approach to managing general and administrative expenses has been a key factor in maintaining strong financial performance.

Expansion Plans Ahead

The upcoming strategic plan, "Step Ahead", set for presentation in a few months, aims to guide OVHcloud's path for 2026-2030. This plan will focus on supporting customers and enhancing shareholder value through innovative product offerings and improved market positioning.

Outlook for FY2026

Looking ahead, OVHcloud targets organic revenue growth between 5% and 7% for FY2026, alongside an adjusted EBITDA margin exceeding the current fiscal year. The planned capital expenditures are set to represent between 30% and 32% of revenue, with a focus on achieving positive levered free cash flow.

Conclusion

OVHcloud's strong performance in FY2025 is a testament to its strategic initiatives, robust customer base, and commitment to operational excellence. With a clear vision for the future and effective leadership, the company is poised for continued growth in the evolving cloud market.

Frequently Asked Questions

What key milestones did OVHcloud achieve in FY2025?

OVHcloud broke through the billion-euro revenue mark, achieving €1,084.6 million in revenue, with significant contributions from various segments including Corporate and Public Cloud.

Who is the new CEO of OVHcloud?

Octave Klaba has been appointed as the Chairman and Chief Executive Officer of OVHcloud to streamline strategy and execution across the organization.

What was the adjusted EBITDA margin for FY2025?

The adjusted EBITDA margin for FY2025 was 40.4%, reflecting a strong increase from the previous year.

How did OVHcloud improve its profitability?

OVHcloud's improved profitability was due to effective control of operational expenses and increased revenue from its core business segments.

What are OVHcloud's targets for FY2026?

The company aims for organic revenue growth of 5% to 7%, an adjusted EBITDA margin higher than FY2025, and positive levered free cash flow.

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