Selectel Revenue Exceeds 10 Billion Rubles as Cloud Services Drive Growth Amid Rising Costs
Selectel reported revenue of 10.2 billion rubles for the first half of 2026, a 14 percent increase from the prior year. Cloud infrastructure services continued to dominate, delivering 8.9 billion rubles or 87 percent of total revenue.
The company added 14,400 new customers over twelve months, bringing the total client base to 44,500. Smaller clients provided the main influx, supported by updated VDS configurations, although large enterprises still accounted for 43 percent of revenue.
Professional services recorded the strongest growth, expanding 1.4 times year-over-year. Spending by financial and IT sector clients rose 1.3 times.
Despite the revenue increase, profitability metrics weakened. Adjusted EBITDA grew just 3 percent to 5.4 billion rubles, reducing its margin from 59 percent to 53 percent. Net profit remained essentially unchanged at 1.9 billion rubles, with the margin falling from 21 percent to 18 percent.
Operating expenses rose 23 percent to 4.7 billion rubles, with payroll comprising 65 percent of these costs. The company allocated 6.4 billion rubles to development, of which 4.4 billion rubles went to server hardware, 1.8 times more than a year earlier.
Selectel is increasing GPU acquisitions for AI workloads while facing higher prices for components such as memory. This investment surge produced negative free cash flow of 3.4 billion rubles and lifted the net debt to EBITDA ratio to 2.1, reflecting expanded data-center construction and compute capacity purchases.
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