1&1 (1U1) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 increased by 1.8% to EUR 4.136 billion, with the acquisition of 1&1 Versatel contributing from December 2025.

• EBITDA for 2025 was EUR 537.5 million, down 9.0% due to higher roaming costs and litigation provisions; net profit declined to EUR 165.7 million.

• Customer contracts totaled 16.32 million, with 12.5 million in mobile and 3.84 million in broadband; broadband saw a net loss of 110,000 customers, while mobile grew by 40,000.

• The company operates the first fully virtualized Open RAN network in Europe, reaching 27% of German households by end-2025.

• Dividend proposal of EUR 0.05 per voting share for 2025.

Financial highlights

• Service revenue for 2025 was EUR 3.336 billion, up from EUR 3.303 billion in 2024, with EUR 29.8 million contributed by 1&1 Versatel.

• Gross profit declined by 10.4% to EUR 934.3 million, mainly due to increased wholesale costs for national roaming.

• Operating profit (EBIT) dropped to EUR 208.2 million, down 32.7% year-over-year.

• Free cash flow improved significantly to EUR 195.1 million from EUR 20.8 million in 2024.

• Net cash inflow from operating activities was EUR 604.3 million, up from EUR 311.4 million.

Outlook and guidance

• Service revenue for 2026 is expected to remain stable at around EUR 3.66 billion.

• EBITDA is projected to rise to approximately EUR 800 million in 2026, with annual growth of EUR 100 million targeted for 2027 and 2028.

• Cash CapEx is guided at EUR 500–550 million per year through 2028, mainly for mobile network expansion and antenna site development.

• The company aims to reach 35% household coverage by end-2026 and 50% by 2030.

• Segment structure to change in 2026, with new reporting segments: “Consumer & Small Business” and “Enterprises & Networks.”