OVHcloud is anticipated to surpass €1 billion in revenue for its fiscal year 2025, driven by global expansion and a rising demand for sovereign cloud solutions. The French cloud service provider reported 9.3% organic growth in the third quarter, reflecting strong international interest, increasing public cloud adoption, and heightened focus on sovereignty.
In the quarter ending on May 31, 2025, OVHcloud generated €271.9 million in revenue, significantly boosted by its Public Cloud services and demand from the United States and Asia-Pacific markets. CEO Benjamin Revcolevschi noted that the company’s strategic restructuring, particularly in Bare Metal Cloud and Hosted Private Cloud, has enhanced client retention and drawn in new customers.
Revcolevschi emphasized the growing inquiries for sovereign cloud solutions, positioning OVHcloud as a prominent player amid the increasing European push for digital autonomy. He reiterated the company’s commitment to its annual objectives while ensuring disciplined execution for sustainable growth.
Breaking down product segments, the Private Cloud remains OVHcloud’s largest segment, accounting for €169.3 million (62.3%) of Q3’s revenue, marking an 8.6% year-on-year growth. The Bare Metal Cloud saw a notable 25% increase in new customers thanks to a restructured entry-level portfolio. However, the Hosted Private Cloud faced challenges due to rising Broadcom/VMware license fees starting May 2024, leading to the introduction of competitively priced entry-level solutions.
The Public Cloud segment grew by 17.2% to €53.6 million, comprising 19.7% of total revenue, with new AI and data analytics offerings bolstering a 12% growth in customer acquisition year-over-year. Additional revenue from Web Cloud and Other services reached €49 million, a 3.8% increase year-on-year. OVHcloud also made strides in its domain name services and revitalized web presence offerings, which experienced a 6.8% growth.
Regionally, France remains OVHcloud’s primary market, accounting for 48% of its total revenue and growing by 7.2%. The company secured a significant private cloud contract for SecNumCloud-compliant solutions with Arquus. In other European markets, which make up 29% of revenue, growth surged by 8.1%. The Rest of the World segment, representing 23% of total revenue, registered the highest growth rate at 15.6%, propelled by ongoing demand in Asia-Pacific and North American markets, including a regional contract with Evolve Labs.
OVHcloud has reaffirmed its FY2025 guidance, anticipating organic revenue growth between 9% to 11%, a targeted adjusted EBITDA margin of about 40%, and over €25 million in unlevered free cash flow, with capital expenditures projected at 30% to 34% of revenue, directed towards growth initiatives and essential infrastructure.
In governance, OVHcloud has made board changes with Bernard Gault stepping down after eight years as Lead Director and Chair of the Appointments, Compensation, and Governance Committee. Pierre Barrial, a former CEO of biometric security firm IDEMIA, is set to assume the position pending shareholder approval, while Christophe Karvelis-Senn, founder of CAPZA, joins the board as a non-voting director.
OVHcloud has also unveiled two new solutions: the Data Platform, a self-service Public Cloud PaaS that enables easier data integration and analysis, and AI Endpoints, which grant instant API access to over 40 pre-trained AI models, facilitating AI adoption for enterprises without deep infrastructure expertise.
Looking forward, OVHcloud plans to extend its European presence with the launch of its first Italian data center in Milan by the end of 2025, intended as a secure, high-performance facility to enhance digital sovereignty for European customers.
With robust financials, innovative product advancements, and a focus on European-aligned cloud services, OVHcloud is establishing itself as a compelling alternative to larger hyperscale providers, particularly for enterprises prioritizing compliance, sovereignty, and operational control.
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