NFON (NFN) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 declined by 3.8% year-over-year to EUR 42.5 million, mainly due to weaker Business Telephony, challenging macroeconomic conditions, and cautious customer investment.

• Recurring revenue fell 3.0% to EUR 40.0 million, with Intelligent Assistant and Customer Engagement segments showing strong growth but not enough to offset core declines.

• Adjusted EBITDA dropped 22.9% to EUR 4.4 million, with margin at 10.4% (down from 12.9%).

• Strategic transformation focused on AI integration, portfolio simplification, and a scalable platform business, including legal integration of botario and new partner programs.

• Full-year 2026 guidance was revised downward due to slower opportunity conversion and persistent market headwinds.

Financial highlights

• Group revenues for H1 2026 were EUR 42.5 million, recurring revenues EUR 40.0 million (94.1% of total), and non-recurring revenues EUR 2.5 million.

• Adjusted EBITDA was EUR 4.4 million; adjusted EBITDA margin declined to 10.4%.

• Gross profit declined 4.2% to EUR 36.4 million; gross margin stable at 85.6%.

• Seat base declined 4.2% to 629,869; blended ARPU stable at EUR 9.98.

• Free cash flow was EUR 0.8 million, slightly up year-on-year.

Outlook and guidance

• Full-year 2026 revenue guidance revised to EUR 84.5–86.0 million, down from previous low to mid single-digit growth expectations.

• Adjusted EBITDA guidance lowered to EUR 9.5–10.5 million, down from above EUR 12 million.

• Strategic focus remains on recurring revenue growth, AI-driven solutions, and partner enablement.