Ovh Groupe SA
PAR:OVH
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Ovh Groupe SA
PAR:OVH
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Ovh Groupe SA
OVH Groupe SA, better known as OVHcloud, sells cloud infrastructure and related internet hosting services. It rents out servers, storage, networking, and managed services that businesses use to run websites, applications, and data systems without building their own data centers. Its customers range from small online businesses and developers to larger companies and public-sector organizations that need reliable computing power and hosting. The company makes money mainly through recurring subscriptions and usage-based fees for cloud services, plus additional charges for things like backup, security, and support. It also earns from more traditional web hosting and bare-metal server rentals, where customers get dedicated physical machines instead of shared cloud resources. This mix gives it a business model that is tied to long-term customer contracts and day-to-day demand for digital infrastructure. What makes OVHcloud different is that it sits between classic hosting and the big public cloud providers. It has built and runs much of its own hardware and data-center infrastructure, which gives it more control over cost, performance, and product design. That vertical setup is central to its role in the market: it is not just reselling computing power, but supplying the underlying infrastructure that other companies depend on to keep their services online.
OVH Groupe SA, better known as OVHcloud, sells cloud infrastructure and related internet hosting services. It rents out servers, storage, networking, and managed services that businesses use to run websites, applications, and data systems without building their own data centers. Its customers range from small online businesses and developers to larger companies and public-sector organizations that need reliable computing power and hosting.
The company makes money mainly through recurring subscriptions and usage-based fees for cloud services, plus additional charges for things like backup, security, and support. It also earns from more traditional web hosting and bare-metal server rentals, where customers get dedicated physical machines instead of shared cloud resources. This mix gives it a business model that is tied to long-term customer contracts and day-to-day demand for digital infrastructure.
What makes OVHcloud different is that it sits between classic hosting and the big public cloud providers. It has built and runs much of its own hardware and data-center infrastructure, which gives it more control over cost, performance, and product design. That vertical setup is central to its role in the market: it is not just reselling computing power, but supplying the underlying infrastructure that other companies depend on to keep their services online.
Revenue: OVHcloud reported H1 revenue of EUR 555 million, with like-for-like growth of 5.5%, in line with management’s full-year growth outlook.
Profitability: Adjusted EBITDA reached EUR 227 million, with a margin of 40.9%, the highest since the IPO, helped by mix, lower electricity costs, and operating leverage.
CapEx: CapEx was front-loaded to secure memory and disk supply, lifting H1 CapEx to about 43% of revenue and prompting a full-year CapEx guide increase to 33% to 35% of revenue.
Cash Flow: H1 unlevered free cash flow was EUR 32.3 million, and management said FY 2026 levered free cash flow will still be positive despite the extra stock build.
Outlook: Full-year FY 2026 guidance was unchanged for growth at 5% to 7%, with EBITDA margin expected to improve versus FY 2025.
Strategy: Management highlighted three priorities: building a defense vertical, pushing customer acquisition in starters/scalers and mid-sized deals, and launching an AI lab after acquiring Dragon LLM.
Pricing: OVHcloud has started targeted price increases to offset component inflation, but management said it is too early to quantify the impact and kept guidance unchanged.
Product Mix: Public cloud remained the main growth engine, while Web Cloud and hosted private cloud were softer, partly due to Broadcom-related dynamics and customer optimization.
