In an industry often dominated by American hyperscalers, French-based OVHcloud continues to prove that European innovation and strategic autonomy have a powerful voice in the global cloud market. The company’s recently published financial results for the first half of fiscal year 2025 paint a picture of strong, sustainable growth and forward-looking strategy—an encouraging sign not just for investors, but also for businesses seeking a sovereign cloud partner.
Financial momentum powered by public and private cloud
OVHcloud reported revenue of €536 million for the six months ending February 28, 2025, marking a year-over-year increase of more than 10 percent. While many companies might be satisfied with top-line growth alone, OVHcloud went further. Profitability surged, with an adjusted EBITDA of €214.6 million—representing a solid 40 percent margin. Even more impressively, the company swung from a loss of €17.2 million in the first half of 2024 to a positive net income of €7.2 million. This wasn’t just growth; it was a full-on financial turnaround.
Public cloud leading the charge
At the heart of this performance is the company’s Public Cloud division, which continues to accelerate thanks to the rising demand for artificial intelligence infrastructure, the expansion of Local Zones into 23 cities, and attractive long-term offers like the Savings Plan. Public Cloud revenue rose by 17.4 percent in just six months, a clear signal that OVHcloud is gaining traction beyond its home market.
But OVHcloud is not merely riding the AI wave. The Private Cloud segment—which includes the ever-reliable Bare Metal servers and VMware-based Hosted Private Cloud—also experienced strong growth, particularly in Asia-Pacific and the United States. This is especially notable given the recent shifts in VMware’s licensing model, which OVHcloud has deftly adapted to with a new pricing structure.
Renewed strength in web hosting and domain services
Even the Web Cloud and domain services business, often considered a mature and slower-growth segment, showed signs of renewed momentum. Revenue here climbed by 2.9 percent, driven in part by the rollout of multi-year domain registration commitments in new regions—proof that even established offerings can evolve.
Growth across borders: France, Europe, and the World
Geographically, OVHcloud’s growth is both broad and deep. France remains its largest market, contributing nearly half of total revenue. However, the rest of Europe is catching up quickly, with countries in Central Europe leading the charge. A notable contract with Commerzbank Group in Germany is emblematic of how OVHcloud’s sovereign and secure cloud offering is resonating with financial institutions. Meanwhile, the company’s global footprint continues to expand, with particularly strong results in the U.S. and Asia-Pacific, where growth hit 15.4 percent.
Profitability and cash flow on the rise
Operational efficiency was another highlight of the report. Despite increased investment in infrastructure—capital expenditure reached €192.9 million—free cash flow more than doubled to €36.8 million. This is thanks to improved working capital management and a disciplined approach to cost control, even as the company pushes forward with strategic investments.
Strategic financing and sovereign cloud solutions
A key part of OVHcloud’s long-term confidence stems from its recent success in refinancing its debt. The company issued €500 million in senior unsecured bonds and secured a €450 million EU Taxonomy-aligned green loan—the first of its kind by a European cloud provider. With total available liquidity exceeding €307 million and debt maturity pushed out to 2030, OVHcloud has secured the financial runway it needs to keep innovating well into the next decade.
Recent product and compliance milestones further underscore the company’s momentum. The launch of the Bare Metal Pod, a private cloud platform qualified under France’s SecNumCloud cybersecurity certification, caters directly to clients with the highest security and sovereignty demands. A partnership with DEEP in Luxembourg to deliver an on-premise cloud platform adds another feather in the company’s cap, showing its ability to deliver tailored solutions in regulated environments. Meanwhile, the introduction of 3-AZ Object Storage in the Paris region enhances resilience for customers in sectors like banking, healthcare, and government.
Sustainability, strategy, and the road ahead
Sustainability remains a core part of the OVHcloud identity. The company recently improved its score in S&P Global’s Corporate Sustainability Assessment by 10 points, placing it in the top 16 percent of the industry. It’s a rare blend of high performance and high principle—a combination that many modern tech buyers are increasingly prioritizing.
Looking ahead, OVHcloud is reaffirming its guidance for the full year: organic revenue growth between 9 and 11 percent, adjusted EBITDA margins around 40 percent, and unlevered free cash flow exceeding €25 million. These aren’t just numbers—they’re proof points of a company that knows exactly where it’s going.
As more European businesses seek digital independence and robust alternatives to non-European cloud giants, OVHcloud stands ready—not just as a competitor, but as a leader in its own right. And if the first half of 2025 is any indication, this may just be the beginning.
