OVHcloud is on track to exceed €1 billion in revenue for its fiscal year 2025, following a strong third quarter marked by 9.3% organic growth. For the first nine months of the fiscal year, the French cloud service provider reported 9.9% organic growth, driven by international demand, expanding public cloud adoption, and rising interest in sovereign cloud solutions.
For the quarter ending May 31, 2025, OVHcloud generated €271.9 million in revenue. This growth was largely attributed to strong performance in its Public Cloud offering and heightened demand from markets in the United States and Asia-Pacific. According to CEO Benjamin Revcolevschi, the company’s strategy of restructuring and repositioning several core offerings – especially in Bare Metal Cloud and Hosted Private Cloud – has both improved client retention and driven new customer acquisition.
Mr. Revcolevschi emphasized that inquiries for sovereign cloud solutions are accelerating, positioning OVHcloud as a key player in the emerging European demand for digital autonomy. He noted that the company is meeting the moment by refining its offerings while maintaining operational discipline and a strong cash-generating model. “We reaffirm all of our annual objectives and remain disciplined in our execution to deliver profitable, resilient growth,” he said.
Within product segments, Private Cloud continues to represent the majority of OVHcloud’s business, accounting for €169.3 million (62.3%) of Q3 revenue – an 8.6% increase year-on-year on a like-for-like basis. The company highlighted a notable 25% increase in new customers in Bare Metal Cloud, which benefited from a restructured entry-level portfolio.
Hosted Private Cloud, however, experienced headwinds due to rising Broadcom/VMware license costs since May 2024. OVHcloud responded by introducing more competitively priced entry-level solutions to regain momentum.
Public Cloud revenue grew 17.2% to €53.6 million in the third quarter, comprising 19.7% of the company’s total. New offerings in AI and data analytics contributed to a 12% increase in customer acquisition compared to the same period last year. Web Cloud and Other revenue reached €49 million (18.0% of Q3 revenue), growing 3.8% year-on-year. OVHcloud also saw progress in the domain name segment and launched initiatives to revitalize its web presence services, which grew 6.8%.
Global Cloud Markets
Geographically, France remains OVHcloud’s largest market, contributing 48% of total revenue and growing 7.2% on a like-for-like basis. Notably, the company secured a private cloud contract for SecNumCloud-compliant solutions with Arquus. In other European markets, which account for 29% of total revenue, growth reached 8.1%, with a major public cloud contract signed with Visma in Norway. The Rest of the World segment, representing 23% of total revenue, posted the highest growth rate at 15.6%, fueled by continued momentum in the Asia-Pacific and North American markets. OVHcloud also secured a regional contract with Evolve Labs.
The company has confirmed its FY2025 guidance, including expected organic revenue growth of 9% to 11%, a targeted adjusted EBITDA margin of around 40%, and over €25 million in unlevered free cash flow – an increase over FY2024. Capital expenditures are forecast to represent 30% to 34% of revenue, with investments split between growth initiatives and recurring infrastructure needs.
In terms of corporate governance, OVHcloud has undergone board changes. Bernard Gault, who served for eight years, has stepped down as Lead Director and Chair of the Appointments, Compensation and Governance Committee. Pierre Barrial, former CEO of biometric security firm IDEMIA, was appointed to succeed him, pending shareholder approval. Christophe Karvelis-Senn, founder of private equity firm CAPZA, has also joined the board as a non-voting director.
European-aligned Cloud Services
The company has also launched two notable cloud solutions. The new Data Platform, a fully self-service Public Cloud PaaS solution, allows businesses to integrate, store, process, and analyze data more easily. Additionally, AI Endpoints – part of OVHcloud’s Public Cloud portfolio – provide immediate API access to more than 40 pre-trained AI models, including LLaMA, Mistral, and Qwen, offering enterprises a way to adopt AI capabilities without needing infrastructure expertise.
Looking ahead, OVHcloud will further expand its European footprint with the opening of its first Italian data center in Milan by the end of 2025. Designed as a “3-AZ Region,” the Milan site will comprise three adjacent data centers offering secure, high-performance public cloud infrastructure aimed at enhancing digital sovereignty for European clients.
With strong financials, new product innovation, and growing demand for European-aligned cloud services, OVHcloud is positioning itself as a credible alternative to hyperscale providers, particularly among enterprises prioritizing compliance, sovereignty, and operational control.
