INTERSHOP Communications (ISHA) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year with economic uncertainty impacting investment decisions, leading to revenue decline to €33.3 million and a net loss of €3.2 million, though Q4 showed improvement with eight new cloud customers and 15 total for the year.

• Cloud revenues remained flat at €20.5 million due to delayed client investments, while service business was negatively impacted by a major project, which was completed by year-end.

• Successful capital increase raised €4.4 million, improving equity ratio from 29% to 36% and increasing shareholders' equity to €12.0 million.

• Cost reduction measures, including a 14% staff reduction, were implemented to restore profitability.

• Expanded AI capabilities and a sharpened focus on agentic B2B commerce, with new AI-driven features and a brand refresh planned.

Financial highlights

• Order entry increased by 9% year-over-year to €21.7 million, with Q4 contributing €10.7 million.

• Total revenue declined 14% year-over-year to €33.3 million, with software and cloud revenues at €26.9 million and service revenues at €6.3 million.

• EBIT was negative at €-2.8 million, including €0.9 million in one-time personnel costs; net loss widened to €3.2 million.

• Cloud margin remained stable at 65%; gross margin for 2025 was 44.3%.

• Net New ARR declined to €577,000 due to expiring contracts and increased churn, which rose to 9.5%.

Outlook and guidance

• 2026 guidance expects cloud order entry and Net New ARR to remain at prior-year levels, with continued churn impact.

• Revenue projected to decline by about 10%, a smaller drop than the 14% seen in 2025.

• EBIT is targeted to be breakeven in 2026, with positive results targeted for 2027.

• Upside potential seen mainly in converting existing customers to cloud solutions.