Germany's Intershop Q1 EBIT turns positive on cost cutting

Intershop Communications AG

22/04/2026 06:44

Overview

Germany B2B commerce software firm's Q1 revenue fell yr/yr as license and service sales declined

Company posted slightly positive EBIT, aided by cost-cutting measures

Cloud revenue rose 3% and operating cash flow turned positive

Outlook

Intershop expects 2026 incoming cloud orders and net new ARR to stay at prior-year level

Company projects 2026 revenue to decline by a slightly smaller percentage than in prior year

Intershop anticipates a balanced operating result (EBIT) for full-year 2026

Result Drivers

COST CUTTING - Co said positive EBIT and reduced expenses were mainly due to cost-cutting measures begun last yr

CLOUD BUSINESS - Cloud revenue grew 3% and incoming cloud orders rose 8%, but annual recurring cloud revenue declined due to contract expirations

SERVICE REVENUE SHIFT - Service revenues dropped as projects were shifted to partner network, but service margin improved after acceptance of a large-scale project

Company press release: ID:nEQQzHYHa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 7.9 mln
Q1 Gross Margin
49%
Q1 Cash Flow from Operations
EUR 2.9 mln
Q1 EBIT
EUR 100,000
Q1 EBITDA
EUR 900,000


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Intershop Communications AG is €1.85, about 68.9% above its April 21 closing price of €1.10

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)