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

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Original-Research: NFON AG - from NuWays AG

22.08.2025 / 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

from: 22.08.2025

Target price: EUR 12.10

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Macro headwinds trigger expected guidance cut; chg.

Yesterday, NFON released its H1 report, with sales growth lagging

expectations but profitability exceeding our estimates.. Still, amid macro

headwinds, management cut the guidance on both, sales growth and adj.

EBITDA. In detail:

Q2 sales advanced 3.9% yoy to EUR 22.1m (eNuW: EUR 22.4m; eCons: EUR 22.3m), which

was entirely driven by subsidiary botario. In fact, botario's sales surged

to EUR 1.1m (EUR 1.9m in H1 with a 42% operating margin), which was due to

project related sales (48% across Q1 & Q2). Overall, this should translate

into ARR of c. EUR 2.4m (eNuW). On the other hand, NFON's legacy business,

cloud PBX, contracted slightly with sales of EUR 21.0m (-1.4% yoy). This

reflects the continued investment reluctance, reduced hardware sales and

lower voice-minute usage, which however was at least in part due to seasonal

effects in connection with bank holidays. Positively, the recurring sales

ratio remained strong with 92.9%, despite a 2pp decline related to the

strong project business of botario.

Despite the slightly slower growth, adj. EBITDA came in ahead of

expectations (eNuW: EUR 2.9m) at EUR 3.1m, implying a 14.0% margin. Main drivers

for this was the improved gross margin (+1.2 pp to 86.1%) that made up for

slightly increased adj. personnel cost (+0.7pp yoy) and other OpEx ratios

(+0.2pp yoy). Reported EBITDA came in at EUR 2.4m (+4.3% yoy), resulting in a

10.8% margin.

Guidance revised. Based on the muted growth momentum, management decided to

revise the FY25 guidance downwards, now targeting sales growth of 3-5% (old:

8-10%; eNuW new: 3.9%) and adj. EBITDA of EUR 12.5-14.0m (old: EUR 13.5-15.5m;

eNuW new: EUR 13.4m). At mid-point, this implies 4.1% growth in H2 and a 16.2%

adj. EBITDA margin, which we regard as reasonable given the historically

stronger H2. Meanwhile, the mid-term outlook (FY27) remained unchanged, as

management continues to target a FY24-'27 sales CAGR of >10% (eNuW: 10.6%)

and an adj. EBITDA margin of >15% (eNuW: 18.4%).

Despite the guidance cut, the investment case remains intact. Growth should

reaccelerate from FY26e onwards, with management already observing signs of

easing sales cycles and a gradual recovery in customer investment activity.

Looking ahead, growth is seen to be strongly supported by the rollout of new

AI-driven features - an area where NFON is clearly ahead of peers such as

Gamma, Placetel, or Starface. Innovations already introduced, including

voicemail transcription, the AI assistant "NIA," CarPlay integration, and

enhanced security functions, not only broaden the product portfolio but also

open meaningful upselling opportunities, supporting ARPU expansion.

Additional features like automated call summaries and action-item

generation, launched in Q3, further underline NFON's technological edge and

its ability to drive scalable, margin-accretive growth.

Consequently, NFON remains a high conviction call as we keep the stock in

our NuWays Alpha List, which is not least due to the attractive valuation of

8.5x EV/adj. EBITDA FY25e (6.2x FY26e).

BUY with an unchanged PT of EUR 12.10 based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=5952c7512fbba6b48f2c569f6a6df823

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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2187412 22.08.2025 CET/CEST

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