IONOS Group (IOS) Q4 2025 earnings summary

Executive summary

• Net new customer additions nearly doubled to 310,000 in 2025, bringing the total customer base to 6.63 million, with further acceleration expected in 2026.

• AI integration is a key growth driver, now embedded across all product lines, contributing 20% of additional revenue in 2025 and expected to reach 50% in 2026 and 80% by 2028.

• The AI Phone Receptionist and the Momentum ecosystem are driving product innovation and customer retention, with high early adoption and satisfaction rates in Germany and the US.

• The company is leveraging proprietary European cloud infrastructure, focusing on GDPR compliance and digital sovereignty, especially for public sector and enterprise clients.

• Achieved strong revenue and profitability growth in FY 2025, with accelerating momentum from AI-driven products and services.

Financial highlights

• 2025 revenue reached EUR 1.317 billion, up 5.5% year-over-year (6.1% in constant currency).

• Adjusted EBITDA grew 18.5% to EUR 485.2 million, with margin expanding to 36.8% (up four percentage points YoY).

• Q4 revenue was EUR 336.7 million, up 3.6% YoY (5.2% in constant currency), with Adjusted EBITDA of EUR 116.8 million and margin of 34.7%.

• Free cash flow after leases was EUR 308 million, up from EUR 296 million in 2024.

• Adjusted EPS increased 50% year-over-year to EUR 1.53.

Outlook and guidance

• 2026 revenue growth guided at approximately 7% (constant currency), with Web Presence & Productivity expected to grow 7%-8% and Cloud Solutions at ~10%.

• Adjusted EBITDA guidance for 2026 is EUR 530 million, with margin expected to expand to 37%-38%.

• Midterm targets reaffirmed: double-digit group revenue growth (10%+), Cloud Solutions at 20% CAGR, and Adjusted EBITDA margin of 40%.

• CapEx for 2026 expected at EUR 75-85 million (~6% of revenue).