NFON AG (DE:NFN)
XETRA:NFN
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NFON AG
(XETRA:NFN)
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Rating:66Neutral
Price Target:
€4.00
▲(8.11% Upside)
Action:Reiterated
Date:06/18/26
The score is driven primarily by improving profitability and strong recent free cash flow alongside a reasonably resilient balance sheet. This is tempered by the sharp TTM revenue decline, which raises durability risk, and a demanding valuation (high P/E). Technicals are moderately supportive in the near term but still below the 200-day trend.
Positive Factors
Recurring subscription model & partner route-to-market
A subscription-based, per-user pricing model with add-on services creates predictable recurring revenue and higher customer lifetime value. Partner channels (resellers, MSPs) scale distribution and lower direct sales cost, supporting durable revenue visibility and efficient customer acquisition over months.
Negative Factors
Sharp TTM revenue decline
A >50% TTM revenue drop is a structural red flag: it can rapidly erode the recurring revenue base, strain fixed-cost absorption, and make recent margin and cash-flow gains fragile. If persistent, this contraction undermines predictability and long-term reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription model & partner route-to-market
A subscription-based, per-user pricing model with add-on services creates predictable recurring revenue and higher customer lifetime value. Partner channels (resellers, MSPs) scale distribution and lower direct sales cost, supporting durable revenue visibility and efficient customer acquisition over months.
Read all positive factors
NFON AG (NFN) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€53.82M
Dividend YieldN/A
Average Volume (3M)7.87K
Price to Earnings (P/E)39.2
Beta (1Y)0.26
Revenue Growth0.44%
EPS Growth289.32%
CountryDE
Employees420
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.09
Shares Outstanding16,561,125
10 Day Avg. Volume4,681
30 Day Avg. Volume7,872
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.18
Price to Sales (P/S)0.67
P/FCF Ratio7.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.18
Revenue Forecast (FY)€90.57M
NFON AG Business Overview & Revenue Model
Company Description
Headquartered in Munich, Germany, NFON AG was established in 2007 and delivers cloud-based telecommunication solutions to enterprise clients across Germany, Austria, Italy, the United Kingdom, Spain, France, and Portugal. The company's core offeri...
How the Company Makes Money
NFON primarily makes money by selling subscriptions to its cloud communications services. The core revenue stream is recurring monthly/annual fees for access to its hosted PBX and unified communications capabilities, generally priced per user/exte...
NFON AG Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there are significant achievements such as stable profitability, cash flow, and successful product launches, challenges remain with slower revenue growth, a decline in seat base, and increased operational costs. The company's strategic focus on AI and innovation shows promise for future growth.Positive Updates
Stable Profitability and Positive Cash Flow
NFON maintained a positive cash flow and stable profitability with an adjusted EBITDA of EUR 8.7 million, despite the challenging market environment.
Negative Updates
Slower Revenue Growth
Total revenue growth was lower than expected at 2.7%, with a particular slowdown in the core SME business due to market uncertainties and extended decision cycles.
Read all updates
Q3-2025 Updates
Positive
Negative
Stable Profitability and Positive Cash Flow
NFON maintained a positive cash flow and stable profitability with an adjusted EBITDA of EUR 8.7 million, despite the challenging market environment.
Read all positive updates
Company Guidance
In NFON's Third Quarter and 9 Months 2025 Earnings Call, the company's guidance for the full year was slightly adjusted due to a cautious market environment. Total revenue is now expected to grow between 1% and 2.5%, with adjusted EBITDA projected to range between EUR 11.5 million and EUR 12.5 million. The first nine months saw total revenue increase by 2.7% to EUR 66 million, while the adjusted EBITDA was EUR 8.7 million, reflecting a 3.5% decline from the previous year. Despite challenges, NFON remains confident in its strategy, emphasizing innovation and operational efficiency, and aims to leverage AI-driven solutions like Nia FrontDesk to enhance customer value and drive future growth.NFON AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 89.06M | 87.34M | 82.34M | 80.79M | 75.89M |
| Gross Profit | 29.56M | 43.41M | 24.65M | 35.95M | 61.44M |
| EBITDA | 10.75M | 10.71M | 6.98M | -5.26M | -2.13M |
| Net Income | 2.25M | 710.00K | -802.00K | -15.58M | -8.91M |
Balance Sheet | |||||
| Total Assets | 87.88M | 89.78M | 73.91M | 69.42M | 83.51M |
| Cash, Cash Equivalents and Short-Term Investments | 12.90M | 13.72M | 12.28M | 13.61M | 28.06M |
| Total Debt | 20.81M | 14.82M | 9.90M | 5.86M | 5.01M |
| Total Liabilities | 37.83M | 41.44M | 26.75M | 21.62M | 20.28M |
| Stockholders Equity | 50.04M | 48.34M | 47.16M | 47.80M | 63.23M |
Cash Flow | |||||
| Free Cash Flow | 7.88M | 6.42M | 977.00K | -12.41M | -9.65M |
| Operating Cash Flow | 8.41M | 9.41M | 6.84M | -3.87M | -1.76M |
| Investing Cash Flow | -5.96M | -12.90M | -5.87M | -8.45M | -8.48M |
| Financing Cash Flow | -2.48M | 4.16M | -1.94M | -2.08M | 14.82M |
NFON AG Technical Analysis
Positive
3.70
Price Trends
3.33
Positive
3.47
Positive
4.23
Negative
Market Momentum
<0.01
Negative
65.09
Neutral
66.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NFN, the sentiment is Positive. The current price of 3.7 is above the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.33, and below the 200-day MA of 4.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.09 is Neutral, neither overbought nor oversold. The STOCH value of 66.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NFN.
NFON AG Peers Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.