NFON (NFN) Q3 2025 earnings summary

Executive summary

• New CEO and CFO appointed in October 2025, emphasizing continuity and acceleration of the AI-driven NFON Next 2027 strategy, with a focus on operational excellence and innovation.

• Company recognized as an innovative European provider of AI-powered business communication, receiving awards for Manufacturer of the Year and IT Woman of the Year.

• Launch of NIA Front Desk, an AI assistant, marked the fastest-growing product adoption in recent years and received strong market interest.

• Acquisition and integration of botario GmbH contributed to non-recurring revenue growth and increased personnel.

• Seat base declined by 2.6% to approximately 648,000, reflecting challenging market conditions and investment reluctance.

Financial highlights

• Total revenue for the first nine months of 2025 increased by 2.7% year-over-year to €66.0 million.

• Recurring revenues rose 1.9% to €61.8 million, representing 93.6% of total revenues.

• Non-recurring revenues grew 15.3% to €4.2 million, mainly from project implementation and service revenues.

• Adjusted EBITDA was €8.7 million, down 3.5% from the prior year, reflecting planned investments in personnel and infrastructure.

• Gross profit increased by 4.3% to €56.9 million, with a material cost ratio improvement to 13.8%.

• Operating cash flow was €4.9 million, slightly down from €5.1 million a year ago.

• Cash and cash equivalents at period end totaled €11.4 million.

• Net income for the period was €1.4 million, up 3.0% year-over-year.

Outlook and guidance

• Full-year 2025 guidance adjusted: total revenue growth expected between 1–2.5%, adjusted EBITDA forecast at €11.5–12.5 million.

• Midterm ambition for 2027 remains unchanged, targeting double-digit revenue growth and adjusted EBITDA margin above 15%.

• Management expects investment normalization and improved commercial momentum in 2026, with details to be provided in early 2026.