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Original-Research: NFON AG - from NuWays AG

27.02.2026 / 09:00 CET/CEST
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Classification of NuWays AG to NFON AG

Company Name: NFON AG
ISIN: DE000A0N4N52

Reason for the research: Update
Recommendation: BUY
Target price: EUR 8.7
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald

Solid Q4 caps of difficult FY25; Chg.

Topic: Yesterday, NFON released a solid set of preliminary FY25 figures,
slightly overshooting the latest guidance on the bottom-line. Moreover,
management provided an outlook for FY26. In detail:

Implied Q4p sales were largely flat (+0.2% yoy) at EUR 23.1m, thus ahead of
the EUR 22.2m eNuW. The slight growth was mainly supported by the contribution
of botario and initial AI project sales, while the core cloud PBX business
remained impacted by subdued seat development (-2.7% yoy to 647k). The
latter is largely due to still prolonged sales cycles and persisting
headwinds causing temporarily increased churn. Positively, FY blended ARPU
came in at EUR 9.91 (FY24: EUR 9.89), indicating the gradually improving mix.
Recurring sales in Q4 slightly declined by 1.2% to EUR 20.2m (eNuW: EUR 20.7m),
hence accounting for 87.6% of Q4 sales (92.1% of FY sales), underpinning
revenue visibility into FY26e.

Q4p adj. EBITDA came in at EUR 3.1m (eNuW: EUR 2.9m; EUR 2.9m reported), matching
the Q4'24 figure. The implied margin was 13.4% (+0.2pp yoy). Thanks to this,
the FY25p EBITDA of EUR 12.6m (+2.4% yoy) slightly exceeded management's
recent outlook of EUR 11.5-12.5m and is reflecting ongoing efficiency gains
despite the tough ITC macro environment.

For FY26, management provided a new outlook, targeting sales growth in the
low to mid single-digit percentage range and adj. EBITDA of > EUR 12m (eNuW
new: EUR 12.3m). We regard this as reasonable given the continued market
uncertainty, while the improved mix thanks to recently launched AI features
should drive ARPU and hence sales growth (eNuW: +5.3% yoy).

Despite the rather muted FY25 operating performance, we appreciate the
tangible process of the company, positioning NFON as a European AI-enabled
communications provider with solutions like Nia. This should move the
company beyond pure cloud telephony towards higher value use cases, overall
enhancing the product offering and allowing for sizeable up-selling
potential.

Overall, the preliminary figures confirm that NFON remains operationally
stable and strategically on track, even if a material growth reacceleration
is still pending. Given a valuation of 6.2x FY26e EV/adj. EBITDA, the
risk/reward profile remains attractive.

Reiterate BUY with a new PT of EUR 8.70 (old: EUR 11.10) based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=49f4d7e339708b2f922aa6479f0b8296
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Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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2282604 27.02.2026 CET/CEST

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