Letter to shareholders,
employees and customers
FY2026 Annual Results
FY2027 Outlook
Dear shareholders, employees and customers,
One year ago, in October 2025, I took back the helm of OVH Group with three objectives: to deliver on our performance commitments, to drive growth in Cloud and Artificial Intelligence, and to create sustainable value for our customers, employees and shareholders.
To achieve this, the “Step Ahead” strategic plan relies on our famous “secret sauce”: executing today while preparing for tomorrow, collaborating with our customers and partners to anticipate their needs, and deploying short, progressive and disciplined investment cycles.
Our strength? It’s the ecosystem we have brought together around OVH Group over the past 27 years. 3,200 employees who share the same values: trust, teamwork, passion, disruption and responsibility. Over one million customers and partners who rely on us 24/7. Financial partners who support our ambitions and have trusted us for years.
One year later, we are ready to accelerate.
Solid key industrial assets
You can’t download a datacenter in one click. It takes years to build the critical infrastructure for Cloud and AI. Since our beginning, we have established the entire industrial value chain, from building datacenters to designing servers. This technological independence allows us to move faster and better control our costs. We own the vast majority of our datacenters, and a significant portion of their electrical capacity remains available. This strategic asset will support our next phase of growth.
Our network is rarely mentioned, and that’s a good sign: it works! Over twenty years ago, we chose to invest in our own Internet network. Now global, it connects all our datacenters to each other and to the rest of the world. Over the past fifteen years, its annual cost has remained stable while its share of our revenue has steadily decreased. Any global Cloud and AI player needs a network of this scale. Ours has already largely paid for itself.
Our supply chain and our two server production sites are also strategic assets. We can adapt to customer demand within a few days. This is the result of the reorganisation I initiated in FY2025. Since then, we have been managing our component inventory more closely to limit tied-up cash. Liquid cooling has become essential for GPUs. Drawing on twenty years of watercooling expertise, we are now adapting this technology at lower cost to new generations of GPUs, just as we do every quarter for our standard servers.
An expanded software and commercial offering
We are also a software business, with a well-known economic model: fixed costs and high margins. In five years, we have developed more than 80 Public Cloud products. Growth is accelerating, confirming increasingly rapid commercial adoption and the strategic relevance of creating additional products. We are now working on integrating these 80 products with one another and on regionalising our Public Cloud offering. The aim is to capture demand in Europe, North America and Asia-Pacific to further accelerate our growth.
Bare Metal remains the essential building block of the Cloud: it attracts new customers and meets the needs of the largest ones. The price increase on our latest-generation servers generates additional cash flow that offsets the rising cost of RAM and disks, so that we can continue to fulfil our customers’ orders. At the same time, we have secured service continuity for our customers on VMware services through a multi-year contract, and we are working on the next steps.
For customers with the highest sovereignty and security requirements, our third offering, “SNC Cloud Platform,” is available and is SecNumCloud certified. We have also started delivering “On-Prem Cloud Platform” to our customers’ datacenters. Altogether, our customers have access to the broadest portfolio of offerings among European players.
We operate our three go-to-market models, Digital Starters, Digital Scalers and Corporate, in sixteen countries. The reorganisation of our teams carried out in FY2026 will take full effect in FY2027. In parallel, we will overhaul customer support: it will be better segmented and assisted by Artificial Intelligence to improve its quality and response times. Finally, we will clarify the value proposition of each of our brands: Kimsufi, SoYouStart, Gladia, OVH, OVHcloud and OVHai.
A simplified organisation
Our operating model rests on two pillars. On the one hand, standardised processes that ensure consistent quality at scale. On the other hand, small multidisciplinary teams, augmented by Artificial Intelligence, working on new projects. All our projects are monitored weekly, or even daily, if necessary. Each new initiative combines three perspectives, marketing, finance and engineering, with the aim of reaching €1M in monthly revenue as quickly as possible.
None of these transformations has been easy. They required our teams to question themselves a great deal, and I want to thank them for it. Today, we have a very clear execution framework that works. It enables us to identify the best growth drivers and act on them quickly.
Artificial Intelligence, for our customers and for ourselves
For our customers, Artificial Intelligence is broadening access to technology. Our vision, shared at the OVHcloud Summit 2025, is that all software, including SaaS, will become services orchestrated by Artificial Intelligence. That is why we are building “OVHai Workspace,” an enterprise AI platform that will enable our customers to create and orchestrate AI agents to assist them in their daily work.
In parallel, for the first time, some of our new products will be designed not for humans, but for AI agents. These agents will be able to use our Cloud resources autonomously to carry out the most complex tasks, those that take days or even weeks. The foundations for these services are already in place, in the form of Token as a Service, large-scale inference orchestration, and GPU hosting.
All these services are first deployed and used internally: our support needs AI voice services; our human resources, legal, finance and sales functions need AI tools; and so do our technical and cybersecurity teams. True to our “eat your own dog food” doctrine, every service we develop for our customers is first used by OVH Group itself.
Part of our future growth will come from these new AI services. They will enable our customers to increase productivity and develop new uses by making better use of their data. We are making these investments in a measured and gradual way, with each phase first aiming to demonstrate value creation. Our AI offering targets different customer profiles, allowing us to diversify the risks associated with these investments.
Growth and capital allocation
I founded OVH without capital and financed its development through its own cash flow and bank debt until 2016. Ten years later, I am particularly pleased to see OVH Group return to its fundamentals, with Free Cash Flow positive again. I would also like to highlight that return on capital employed has improved over the last three fiscal years. We will continue with the same investment-cycle logic to grow revenue and therefore EBITDA. This will allow us to finance the next investment cycle without raising equity, while keeping a comfortable leverage ratio below 3x EBITDA.
OVH Groupe’s self-financing capacity (CAF in French) is dedicated to three purposes: investment in profitable growth, debt reduction and shareholder remuneration. I would like us to continue discussing regularly within the Board of Directors how our CAF is allocated.
A new phase of growth
AI is accelerating demand across all types of customers, tech and non-tech alike. Yet in Europe, few players have the ambition to play a major role across the entire value chain. And for good reason: it requires years of investment in human capital, infrastructure and products, as well as a sufficiently large, varied and geographically diversified customer base.
We have laid these foundations over 27 years, and today we have the means to respond quickly to all Cloud and AI use cases. Our ambition is based on what we have built and the strengths we have consolidated. I am convinced that this new phase of growth will change the perception and image of OVH Group in Europe and around the world.
A long-term vision
OVH Group is on a long-term trajectory, true to the European values that have underpinned our model from the start. Our successive strategic plans, development phases and projects all serve one and the same mission: giving our customers the freedom to create, innovate and keep control of their data. A mission summed up by our signature: Innovation for Freedom.
To our shareholders: thank you for your trust since our IPO in 2021 and for your support over the years. We are entering a new phase of development, and we aim to ensure that you benefit fully from it.
To our teams: thank you for your daily energy! I am particularly proud of the team we have become. The road ahead is wide open, and it’s time to take it. It will be amazing!
To our customers: thank you for your trust and especially for your feedback, which constantly pushes us to do better, faster and cheaper. We want to be your partner for all your Cloud and AI projects.
Warm regards,
Octave Klaba
Founder, Chairman and CEO