NFON (NFN) Q1 2026 earnings summary

Executive summary

• Q1 2026 began with a challenging market environment marked by macroeconomic uncertainty, cautious customer spending, and slower decision-making processes.

• The company accelerated its transformation into an AI-first organization, focusing on AI-driven growth, digital sovereignty, and the integration of AI-powered solutions across its portfolio.

• Launched a proprietary text-to-speech AI model/service, enhancing technological independence and expanding the product portfolio.

• Partner enablement initiatives expanded through Hackathon Roadshow events across Germany.

• Net result turned negative at EUR -0.5 million, compared to EUR 0.3 million in Q1 2025.

Financial highlights

• Total revenue declined by 2.3% year-on-year to EUR 21.6 million in Q1 2026.

• Adjusted EBITDA dropped 31.5% to EUR 1.8 million, with margin at 8.3% (Q1 2025: 11.8%).

• Recurring revenues accounted for 93.8% of total revenues at EUR 20.2 million, down 2.5% year-on-year; non-recurring revenue stable at EUR 1.3 million.

• Gross profit declined 3.2% to EUR 18.4 million; gross margin impacted by higher material cost ratio (14.8%).

• Cash and cash equivalents stood at EUR 12.9 million at quarter-end, supporting ongoing operations and investments.

Outlook and guidance

• Full-year 2026 outlook confirmed: total revenue growth expected in the low to mid-single digit percentage range and adjusted EBITDA slightly above EUR 12 million.

• Revenue growth is expected to turn positive from Q3 2026, accelerating in Q4 as AI monetization and commercial initiatives gain traction.

• Mid-term (2027) targets: double-digit revenue growth and adjusted EBITDA margin above 15%.

• Growth targets from the 2025 consolidated financial statements are confirmed.

• Continued focus on disciplined execution and expansion of AI-driven growth areas.