NFON advances its strategic transformation in a challenging environment

NFON advances its strategic transformation in a challenging environment

• Consolidated revenue of EUR 42.5 million in H1 2026 (H1 2025: EUR 44.2 million)
• Recurring revenue of EUR 40.0 million, accounting for 94.1% of consolidated revenue
• Strong positive trend in recurring revenue from Intelligent Assistant and Customer Engagement
• Adjusted EBITDA of EUR 4.4 million (H1 2025: EUR 5.7 million)
• Product portfolio, partner and sales structures systematically further developed
• FY 2026 guidance updated

Munich, 20 August 2026 – NFON AG, a leading European provider of integrated business communications with a focus on AI-based applications, has today published its financial report for the first half of 2026. Consolidated revenue was down by 3.8% to EUR 42.5 million in the first half of 2026 (H1 2025: EUR 44.2 million).

Business performance in the first half of 2026 was especially influenced by the challenging market environment and the resultant cautious approach to investment among many business customers. This was compounded by longer decision-making cycles, particularly for larger customer projects, as well as weaker performance in the Business Telephony area. Among other factors, the latter reflected a decrease in the number of seats in connection with the streamlining and simplification of the product and solution portfolio. Through these measures, NFON is reducing the product and system complexity that has evolved over time and is laying the foundations for simpler and more scalable structures as well as additional cross-selling and upselling potential. From a regional perspective, performance in the Business Telephony area was adversely affected in particular by the United Kingdom. At the same time, recurring revenue in the strategic solution areas of Intelligent Assistant and Customer Engagement recorded strong growth. However, given their currently smaller revenue base, these growth contributions were not yet sufficient to fully offset the decrease in Business Telephony. Adjusted EBITDA amounted to EUR 4.4 million (H1 2025: EUR 5.7 million).

Andreas Wesselmann, Chief Executive Officer of NFON AG, notes: “Business performance in the first half of the year fell short of our expectations. However, the dynamics in our market extend far beyond current operational developments: AI is fundamentally redefining business communications. The positive trend in our recurring revenue in Intelligent Assistant and Customer Engagement shows that our strategic direction is targeting the right growth areas. We are consistently translating this trend into productive use, measurable customer benefits and additional recurring revenue. In doing so, we are actively helping to shape the next generation of business communications and systematically strengthening our position as a European provider of AI-based communication solutions.”

High share of recurring revenue and stable blended ARPU

NFON has a robust business model. The share of recurring revenue rose to 94.1% of consolidated revenue in the first half of 2026 (H1 2025: 93.4 per cent).

Blended average revenue per user (blended ARPU) remained largely stable year-on-year at EUR 9.98. This trend was driven especially by price adjustments implemented in previous periods and the higher proportion of solutions offering greater added value.

The Group-wide seat base stood at 629,869 seats as at 30 June 2026. Despite the decrease, NFON was able to slightly increase average recurring revenue per seat. This underscores the growing importance of higher-value communication and AI solutions for value creation within the business model.

Strategic transformation systematically continued

Despite subdued business performance, NFON systematically continued to implement its NFON Next 2027 corporate strategy in the first half of the year.

Key measures included the introduction of the modular licensing model and the European NEXUS partner programme, the further integration of botario’s AI capabilities into the product platform, the expansion of proprietary core AI technologies, and the further development of the go-to-market model with a stronger focus on customer use cases and larger business customers. In the United Kingdom, NFON also responded to weaker business performance by realigning its sales structures.

The Management Board remains fully committed to the company’s strategic direction. The positive trend in recurring revenue in the Intelligent Assistant and Customer Engagement areas underscores the growing commercial relevance of these solution areas. By continuing to develop its AI portfolio, technology platform, and sales and marketing structures, NFON is systematically driving the further commercial development of these growth areas.

FY 2026 guidance updated

Given the business performance in the first half of the year and the updated assessment of the further course of the year, NFON is adjusting its forecast for the financial year 2026.

NFON now expects revenue of between EUR 84.5 million and EUR 86.0 million for the financial year 2026. Previously, revenue growth in the low to mid single-digit percentage range had been anticipated. NFON now expects adjusted EBITDA to amount to between EUR 9.5 million and EUR 10.5 million. To date, adjusted EBITDA of over EUR 12 million had been expected.

The updated forecast takes into account in particular the weaker performance in Business Telephony and the longer decision-making and implementation cycles for larger customer projects. Based on current estimates, the positive contributions from Intelligent Assistant and Customer Engagement will not yet be sufficient in the current financial year to fully offset these effects.

The full report for the first half of 2026 is available for download from the Investor Relations area of the NFON AG website.

Overview of results for the first half of 2026¹: 

¹  Rounding differences may arise in the tables.
² Based on average number of seats per month in the periods under consideration. Previous year’s figure adjusted.

Investor Relations contact
NFON AG
Friederike Thyssen
Vice President Corporate Affairs & Investor Relations
+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 AG is Europe’s trusted partner for AI-based business communications. Founded in 2007 and headquartered in Munich, NFON enables companies to transform their communications using secure, scalable and AI-based technologies.

Its integrated portfolio combines solutions in Business Telephony, Intelligent Assistant and Customer Engagement to help companies manage conversations, automate workflows and enhance the customer experience. By integrating AI into core communication processes, NFON enables smarter, data-driven interactions for organisations of all sizes.

With its own subsidiaries in key European markets – including Germany, Austria, the United Kingdom, Italy, Spain, France, Poland, Portugal and Kosovo – NFON develops and operates its solutions in Europe, ensuring the highest standards of data protection, security and full GDPR compliance.

Driven by its mission to rethink business communications and to inspire and connect people to grow sustainably together, NFON is shaping the future of secure, intelligent business communications “made in Europe”.

Further information can be found at https://corporate.nfon.com/en/.

For Germany: https://corporate.nfon.com/de/.

Disclaimer 

This notification is provided for information purposes only and constitutes neither an offer to sell nor an invitation to buy or subscribe for the company’s securities. The securities discussed in this notification are not and will not be registered under the US Securities Act of 1933 as amended (“US Securities Act”) and are only permitted to be sold or offered for purchase in the United States of America after prior registration or on the basis of an exemption under the US Securities Act. No public offer of the securities discussed in this notification will be made in the United States of America and the information contained in this notification does not constitute an offer to buy securities. This notification is not intended for direct or indirect distribution, publication or dissemination to or within the United States of America, Australia, Canada, Japan or other countries in which the distribution of this notification is unlawful, or to US persons.