NFON AG achieves solid Q3 results within a challenging market environment

• Consolidated revenue up 2.7% to EUR 66.0 million
• Recurring revenue up 1.9% to EUR 61.8 million, accounting for 93.6% of total revenue
• Non-recurring revenue posts significant growth of 15.3% to EUR 4.2 million
• Adjusted EBITDA down 3.5% to EUR 8.7 million
• Management Board confirms continued pursuit of NFON Next 2027 vision with focus on scaling, profitability and technological differentiation
• FY 2025 guidance adjusted

Munich, 20 November 2025 – NFON AG, a leading European provider of integrated business communications with a focus on AI-based applications, has today published its results for the third quarter of 2025. The company performed solidly in a market environment that remained subdued, reflecting cautious investment, particularly in the SME segment. Consolidated revenue was up by 2.7% to EUR 66.0 million (9M 2024: EUR 64.3 million). Growth was once again driven by the project business of botario GmbH, which was acquired in the previous year and which made a significant contribution to non-recurring revenue.

Andreas Wesselmann, CEO of NFON AG, comments: “During the third quarter we pushed ahead consistently with our strategic initiatives and thereby set the course for sustainable growth. The successful introduction of several new AI solutions emphasises our rapid rate of innovation as well as our implementation capabilities. We reported continued revenue growth within a challenging market environment. Our focus remains clear: we’re realising targeted investments in innovations that add real value to our customers’ everyday operations – and at the same time we’re enhancing our own efficiency by increasingly deploying AI technologies across various areas of our company.”

Solid operating result and stable profitability

Recurring revenue grew by 1.9% to EUR 61.8 million (9M 2024: EUR 60.6 million) and accounted for 93.6% of total revenue. This revenue derives mainly from fixed monthly licence fees per seat or platform services as well as fixed and volume-based usage fees for voice minutes and SIP trunk services. The number of installed seats was down by 2.6% to 648,211 (9M 2024: 665,730), reflecting market conditions, while blended ARPU remained stable at EUR 9.92 (+0.4%). Non-recurring revenue grew at a faster rate of 15.3% to reach EUR 4.2 million (9M 2024: EUR 3.7 million), driven by a positive trend in revenue generated with projects that incorporate AI solutions. Overall, this presents a solid but still cautious picture of revenue: the core cloud telephony business provides a stable foundation, but remains characterised by a market that overall exhibits a restrained propensity to invest, while project revenue reflects the first tangible drivers of additional growth.

Adjusted EBITDA amounted to EUR 8.7 million (9M 2024: EUR 9.1 million), 3.5% below the previous year’s level. This decrease reflected planned investments in staff and operational structures as part of ongoing AI initiatives and product developments. Operating cash flow amounted to EUR 4.9 million (9M 2024: EUR 5.1 million). NFON held cash and cash equivalents of EUR 11.4 million as of 30 September 2025 (31 December 2024: EUR 13.0 million) and thereby commands a solid financial foundation to implement the next steps in its strategy programme.

Alexander Beck, CFO of NFON AG, comments as follows on the company’s current business performance: “Our task is to manage NFON on a sustainable basis, with clear priorities, financial discipline and the ambition to continuously improve. This isn’t a sprint. Rather, it’s a process, and one which we’re organising with conviction and consistency. The crucial thing is to set the right course early on in order to combine growth, efficiency and financial stability over the long term.”

Strategic progress and expansion of the AI portfolio

The Management Board team, with its new members Andreas Wesselmann (CEO) and Alexander Beck (CFO), is pressing ahead with the implementation of the NFON Next 2027 vision as planned. The focus is on innovation, scaling and operational excellence. NFON launched several new AI solutions in the reporting period. The NFON Intelligent Assistant (Nia) forms the foundation in this context. Based on this solution, Nia FrontDesk offers solutions for reception and service areas that support administrative tasks. Moreover, AI Essentials such as voicemail transcription, intelligent search functions, call summaries and automatically generated instructions can be activated directly within the platform. NFON has also specifically expanded existing solutions – such as the Contact Centre – to include AI components. For dialogue-based automation scenarios, NFON relies on botario, the conversational AI platform, which is deployed successfully within the healthcare sector, for example. These advances strengthen NFON’s market position as one of Europe’s leading providers of integrated, AI-based business communications.

Persistently challenging market environment leads to guidance adjustment

In the light of further business trends, the Management Board has adjusted its guidance as of the third quarter. Consolidated revenue growth of between 1.0% and 2.5% is now expected for the full 2025 year (previously: between 3% and 5%). The guidance for adjusted EBITDA has now been specified at a range between EUR 11.5 million and EUR 12.5 million (previous guidance: between EUR 12.5 million and EUR 14.0 million).

The reasons for the adjustment mainly correspond to the factors already outlined in the first half of the year: a generally restrained investment dynamic within the market, an intense competitive environment and the delayed realisation of individual growth drivers.

The complete quarterly statement for the third quarter of 2025 can be downloaded from the Investor Relations area of the NFON AG website.

Overview of Q3 2025 results¹:

¹  Rounding differences may arise in the tables.

² Based on average number of seats per month in the periods under consideration.


Investor Relations contact
NFON AG
Friederike Thyssen
Vice President Investor Relations & Sustainability
+49 89 45300-449
ir-info@nfon.com

Media contact
NFON AG
Thorsten Wehner
Vice President Public Relations
+49 89 45300-121
thorsten.wehner@nfon.com


About NFON AG

NFON is a leading European provider of integrated business communications with a focus on AI-based applications. The company, which is listed in the Prime Standard segment of the Frankfurt Stock Exchange, has nine branch operations and works together with over 3,000 partners. Every day, NFON supports around 55,000 business customers in Europe with intuitive communication solutions that make their businesses more efficient and flexible. NFON is active as a licensed telecoms company in 15 European countries.

As a long-term partner for small and medium-sized businesses, NFON combines technological innovation with user-friendly and efficient business communication solutions. With both AI-based technologies and operational excellence, NFON enables companies to harness the full potential that artificial intelligence offers – for optimised processes, more precise customer interactions and new growth opportunities.

With its core product, the smart cloud communications platform, NFON offers hassle-free voice calls, simple video conferencing and seamless integration of CRM and collaboration tools for small and medium-sized companies. All of NFON’s cloud services are operated in certified data centres in Germany, with 100% of their energy needs covered by renewable sources.

http://www.nfon.com/


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