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, driving higher customer acquisition, ARPU, and operational efficiency.

• Web Presence & Productivity remains the core segment, with strong demand for AI-powered services and a focus on increasing ARPU and retention.

• Cloud Solutions segment is expanding, driven by sovereign European infrastructure, public sector contracts, and digital sovereignty trends.

• 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% YoY (6.1% in constant currency).

• Adjusted EBITDA rose 18.5% to EUR 485.2 million, with margin expanding to 36.8% (up 4 percentage points YoY).

• Q4 revenue was EUR 336.7 million (+3.6% YoY), with Adjusted EBITDA at EUR 116.8 million (+11.9% YoY).

• 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 ~7% constant currency, with Web Presence & Productivity expected to grow 7%-8% and Cloud Solutions ~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 >20% CAGR, and Adjusted EBITDA margin of 40%.

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