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, marking a 14 percent increase compared with the same period a year earlier. Cloud infrastructure services remained the primary growth engine, contributing 8.9 billion rubles or 87 percent of total revenue. The customer base expanded by 14,400 clients over twelve months to reach 44,500, with smaller customers fueling much of the increase through new VDS configurations. Professional services showed the fastest consumption growth at 1.4 times, while financial and IT sectors raised infrastructure spending by 1.3 times. Adjusted EBITDA rose only 3 percent to 5.4 billion rubles, lowering its margin from 59 percent to 53 percent, and net profit stayed nearly flat at 1.9 billion rubles with margin declining from 21 percent to 18 percent. Operating expenses jumped 23 percent to 4.7 billion rubles, driven mainly by payroll costs that accounted for 65 percent of the total. The company invested 6.4 billion rubles in development, including 4.4 billion rubles on server equipment, a 1.8-fold increase, while expanding GPU purchases for AI workloads despite higher component prices, resulting in negative free cash flow of 3.4 billion rubles and a net debt to EBITDA ratio of 2.1.
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