Original-Research: NFON AG (von NuWays AG): BUY

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

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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