IONOS Group (IOS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached €446.3 million, up 19.7% year-over-year, with adjusted EBITDA of €131.0 million, a 23.8% increase and a 29.4% margin.

• Customer base grew by 80,000 to 6.40 million, with ARPU up 7.5% year-over-year to €15.85.

• 80% of revenue is subscription-based, providing stability and high recurring revenue.

• AI is integrated into 8 of 10 product lines, with full rollout expected by year-end 2025.

• Net promoter score improved to 34, reflecting customer satisfaction stabilization after 2023 pricing changes.

Financial highlights

• Adjusted EBITDA margin improved to 29.4% from 28.4% in Q1 2024.

• Adjusted gross profit grew 11.1% year-over-year to €282.4 million.

• EBIT increased 31.0% to €97.2 million; adjusted EBT up 44.5% to €83.7 million.

• Free cash flow after leasing was €59 million in Q1 2025.

• Maintenance CAPEX remained low at 3.3% of revenue.

Outlook and guidance

• AdTech segment revenue guidance raised to around €400 million for 2025, reflecting strong Q1 and ongoing product migration.

• Digital Solutions & Cloud segment expected to grow revenue by around 8%, with cloud solutions targeted at 15%-17% growth and ~35% adjusted EBITDA margin.

• Adjusted EBITDA margin for core business expected at 35%, up from 32.9% in 2024; total adjusted EBITDA now guided to €520 million, up from €510 million.

• Brand marketing spend to remain flat at €65-70 million for the year.

• CAPEX for FY 2025 expected at €80-90 million (~5% of revenue).