OVH Groupe (OVH) H1 2026 earnings summary

Executive summary

• H1 FY2026 revenue reached €555.3 million, up 5.5% like-for-like, with adjusted EBITDA at €227.2 million and a record 40.9% margin, driven by Public Cloud and strategic initiatives including a Defence vertical and AI Lab following the Dragon LLM acquisition.

• Front-loaded CapEx of €238.5 million (43% of revenue) secured supply and mitigated component cost inflation amid global supply chain disruptions.

• Major contracts included a strategic agreement with Alchemy, making the company the primary infrastructure provider for global Web3 node operations.

• Unlevered free cash flow was €32.3 million, while levered free cash flow was negative at €-14.2 million after leases and financial charges.

Financial highlights

• Revenue: €555.3 million (+5.5% LFL, +3.6% reported); adjusted EBITDA: €227.2 million (40.9% margin, +0.9 pts YoY); net income: €5.9 million, down from €7.2 million in H1 FY2025.

• CapEx: €238.5 million (43% of revenue), front-loaded to secure supply and contain inflation.

• Gross margin improved to 66.8% (+1.3 pts YoY).

• Net revenue retention rate reached 104%.

Outlook and guidance

• FY2026 guidance: organic revenue growth of 5–7%, adjusted EBITDA margin above FY2025, CapEx at 33–35% of revenue (excluding €50 million locked-in stock for FY2027), and positive levered free cash flow.

• CapEx guidance raised due to component hyperinflation, with front-loading expected to generate €25–35 million in savings.