NFON (NFN) H2 2025 earnings summary

Executive summary

• Advanced transformation toward an AI-driven platform, focusing on operational discipline, commercial excellence, and the NFON Next 2027 strategy.

• Embedded AI into core products, launched modular pricing, and strengthened the partner ecosystem through the NEXUS program, supporting scalable, solution-based growth.

• Shifted business model toward value over volume, prioritizing higher ARPU, diversified revenue streams, and customer engagement solutions.

• High visibility in the European market with a focus on digital sovereignty and compliance.

Financial highlights

• Revenue increased by 2% year-over-year to €89.1 million; Adjusted EBITDA grew 2.4% to €12.6 million, with a margin of 14.2%.

• Recurring revenue reached €82 million, representing 92.1% of total revenue.

• Blended ARPU increased to €10.01, offsetting a 2.7% decline in seat base to 647,384.

• Gross profit up 2.3% to €76.2 million; gross margin improved to 85.5%.

• Free cash flow reached €4.3 million; cash and equivalents at €12.9 million.

Outlook and guidance

• Expect low- to mid-single-digit revenue growth for 2026 and Adjusted EBITDA above €12 million.

• Midterm ambition is double-digit revenue growth and Adjusted EBITDA margin above 15%, driven by AI monetization and partner scaling.

• Guidance reflects muted SME demand, longer sales cycles, and cautious IT spending, but highlights scaling of AI-enabled use cases and partner-driven growth.