OVHcloud turns cash-flow positive while reserving capacity for AI growth

OVHcloud reported first positive levered free cash flow since its 2021 listing. Cash flow reached €24.7 million in the year ended August 31, versus a €27 million outflow a year earlier; revenue rose 7.2% to €1.15 billion.

CEO Octave Klaba said current-year growth should exceed 10%. Of 250 megawatts of connected capacity, 140 MW is operating and 110 MW is available for new customers without immediate construction.

OVHcloud expects its first AI model in early 2027, using a mixture-of-experts design, after an OVHai Workspace pilot. Net debt was €1.16 billion, or 2.7 times adjusted EBITDA: positive cash flow improves flexibility but does not remove the execution challenge of competing with hyperscalers.

The available-capacity cushion is particularly relevant as European customers seek local alternatives for regulated workloads. It can support near-term sales, but demand still has to materialise and the planned model must prove useful against better-funded competitors.

The capacity cushion matters as European customers seek local alternatives for regulated workloads. It can support near-term sales, but demand must materialise and the planned model must prove useful against better-funded competitors.

Image: OVHcloud.

Sources

• Reuters cash-flow report
• Reuters capacity and AI-model report