INTERSHOP Communications (ISHA) Q1 2025 earnings summary

Executive summary

• Achieved a moderately positive operating result (EBIT) of EUR 0.1 million in Q1 2025, up from EUR 6 thousand year-over-year.

• Cloud revenues grew 5% to EUR 5.2 million, now 56% of total revenue.

• Gross margin increased by three percentage points to 48%, driven by service business stabilization.

• Total costs fell compared to all quarters of the previous year due to strict cost management and process optimizations.

• Incoming cloud orders and net new ARR were below expectations, reflecting a challenging market environment.

Financial highlights

• Revenue declined 4% year-over-year to EUR 9.1 million.

• Cloud and Subscription revenue rose 5% to EUR 5.2 million; Service revenue fell 18% to EUR 2.2 million.

• Gross profit increased 5% to EUR 4.4 million; gross margin improved to 48%.

• EBITDA increased 7% to EUR 0.8 million; EBITDA margin rose to 9%.

• Net result improved to EUR -0.1 million from EUR -0.1 million year-over-year; EPS at EUR 0.00.

Outlook and guidance

• Forecasts a slight year-over-year increase in incoming cloud orders and net new ARR for 2025.

• Expects a 5% to 10% decline in revenue due to the partner-first strategy and lower service revenues.

• Anticipates a moderately positive EBIT for the full year.