Germany's NFON Q1 revenue falls 2% on subdued market demand

nfon AG

21/05/2026 06:13

Overview

Germany AI business communications provider's Q1 revenue declined 2% yr/yr amid subdued market investment

Adjusted EBITDA for Q1 fell 32% yr/yr due to planned investments in AI and product development

Company confirmed FY 2026 guidance and expects low to mid single-digit revenue growth

Outlook

NFON expects 2026 revenue growth in the low to mid single-digit percentage range

Company sees 2026 adjusted EBITDA slightly above EUR 12 mln

NFON plans further targeted investments in scaling AI-based solutions

Result Drivers

SUBDUED MARKET DEMAND - Co said revenue and recurring revenue declined due to subdued willingness to invest in parts of the market and delays in realising growth effects

AI AND PRODUCT INVESTMENTS - Adjusted EBITDA fell due to planned investments in artificial intelligence and product development

SHIFT TO PREMIUM AND AI SOLUTIONS - Slight ARPU growth driven by pricing adjustments and higher-value solutions, especially in Premium and AI-based applications

Company press release: ID:nEQ80vCxFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 21.60 mln
Q1 Adjusted EBITDA
EUR 1.80 mln
Q1 Recurring Revenue
EUR 20.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the integrated telecommunications services peer group is "buy"

Wall Street's median 12-month price target for Nfon AG is €8.65, about 171.2% above its May 20 closing price of €3.19

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 29 three months ago

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.)