IONOS Group (IOS) Q2 2026 earnings summary

Executive summary

• Achieved record customer growth in H1 2026, adding 280,000 net new customers to reach 6.91 million, outpacing prior year growth.

• Revenue and adjusted EBITDA grew strongly, with AI-driven product launches (AI Phone Receptionist, AI App & Site Builder) expanding the platform and driving innovation, especially among SMBs.

• Maintained leading market positions in Europe and expanded in North America.

• The AdTech segment was classified as discontinued and held for sale, with core focus now on Web Presence & Productivity and Cloud Solutions.

• Marketing expenses were more concentrated in H1, impacting EBITDA margin.

Financial highlights

• H1 2026 revenue reached €701.1 million, up 6.9% year-over-year (8.2% constant currency); adjusted EBITDA was €245.2 million (35.0% margin), up 3.5% year-over-year.

• Q2 2026 revenue grew 8.1% year-over-year to €352.7 million; adjusted EBITDA margin at 36.0%.

• Adjusted EPS from continuing operations increased to €0.84, up 21.7% year-over-year.

• Free cash flow after leases was €126 million in H1; cash and cash equivalents at €50.4 million.

• Gross margin improved to 60.5% (from 59.0%); cost of sales ratio decreased to 39.5%.

Outlook and guidance

• Currency-adjusted revenue growth guidance for FY 2026 raised to ~8% (from 7%), or ~9% excluding intercompany revenue; Cloud Solutions expected to grow 10–15%.

• Adjusted EBITDA guidance reaffirmed at ~€530 million, with margin projected at 37–38%.

• Midterm targets: ~10% group revenue growth, ~20% Cloud Solutions growth, and ~40% adjusted EBITDA margin.

• Management remains optimistic, citing stable subscription-based business and ongoing digitalization trends.