INTERSHOP Communications (ISHA) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 declined 15% year-over-year to EUR 25.2 million, mainly due to weak new customer business and a planned decline in the service segment.

• Cloud segment earnings remained stable at EUR 15.3 million, but new customer momentum was subdued amid a challenging macroeconomic environment.

• A successful capital increase in Q3 2025 raised EUR 4.4 million, expanding strategic flexibility and supporting investments in cloud, AI, and sales activities.

• Cost-cutting measures were intensified, and a key management transition occurred with the CEO stepping down in August 2025.

Financial highlights

• EBIT for the nine-month period was EUR -1.4 million, down from EUR 0.6 million in the prior year.

• EBITDA dropped 64% year-over-year to EUR 1.1 million, with an EBITDA margin of 4% (prior year: 10%).

• Net result was EUR -1.7 million, with earnings per share at EUR -0.12 (prior year: EUR 0.02).

• Gross margin was 46%, down one percentage point from the previous year.

• Cash and cash equivalents stood at EUR 8.2 million at quarter-end.

Outlook and guidance

• Revenue for full-year 2025 is expected to decline by 10% to 15%, with a negative EBIT in the lower single-digit million euro range.

• Incoming cloud orders are projected to decrease slightly, and net new ARR is expected between EUR 1.0 million and EUR 2.0 million.