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TeamViewer AG (DE:TMV)
XETRA:TMV
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TeamViewer AG
(XETRA:TMV)
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Rating:61Neutral
Price Target:
€5.50
▲(25.00% Upside)
Action:ReiteratedDate:02/18/26
The score is driven by strong profitability and cash generation, partly offset by elevated leverage risk. Technically, the stock is in a clear downtrend, while valuation looks attractive on a low P/E. The latest earnings call was mixed, with strong margins and deleveraging plans but muted near-term growth guidance and integration/SMB headwinds.
Positive Factors
Strong cash generation
Consistently high free cash flow and a ~61% cash conversion rate show earnings translate into durable internal funding. This supports R&D, deleveraging and buy-and-build options, reducing dependency on external capital and giving flexibility through multi-year execution cycles.
Enterprise ARR momentum
A rising enterprise mix and double-digit Enterprise ARR growth improve revenue quality and customer stickiness. Larger, multi-year contracts raise predictability and NRR potential, supporting sustainable top-line resilience even if SMB demand softens in the medium term.
Platform & AI adoption
Early adoption of TeamViewer ONE and AI features increases product differentiation and creates cross-sell opportunities. Platform consolidation plus AI-driven features can raise customer switching costs and per-customer monetization over time, supporting durable margin and ARR expansion.
Negative Factors
Elevated leverage
A capital structure with high debt and thin equity reduces financial flexibility and raises refinancing and covenant risk if growth stalls. Elevated leverage increases interest sensitivity and limits strategic optionality, making multi-quarter execution and M&A funding more constrained.
SMB ARR weakness and churn
Weakness in SMB—a price-sensitive, high-churn segment—reduces recurring low-touch revenue and complicates growth smoothing. Paused monetization and higher logo churn imply slower recovery and require sustained go-to-market investment to restore cohort economics over multiple quarters.
1E integration and near-term churn
Acquisition execution issues (lost talent, operational disruption) depress near-term contribution and raise integration risk. Persistent integration drag can delay revenue synergies, increase costs, and amplify leverage strain while management reallocates resources to stabilize the combined business.
TeamViewer AG (TMV) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€690.34M
Dividend YieldN/A
Average Volume (3M)869.10K
Price to Earnings (P/E)8.0
Beta (1Y)0.60
Revenue Growth11.14%
EPS Growth0.92%
CountryDE
Employees1,891
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.31
Shares Outstanding163,500,000
10 Day Avg. Volume620,922
30 Day Avg. Volume869,104
Financial Highlights & Ratios
PEG Ratio-3.09
Price to Book (P/B)5.76
Price to Sales (P/S)1.27
P/FCF Ratio4.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€8.40Price Target Upside90.91% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.04
Revenue Forecast (FY)€776.03M
TeamViewer AG Business Overview & Revenue Model
Company DescriptionTeamViewer AG, together with its subsidiaries, develops and distributes remote connectivity solutions worldwide. The company offers TeamViewer, a remote access, remote control, and remote support solution that works with every desktop and mobile platform; TeamViewer Tensor, an enterprise remote connectivity cloud platform enabling organizations to deploy a large-scale IT management framework to access, support, and control any device or machine from anywhere at anytime; TeamViewer Assist AR, a remote support solution with augmented reality; and TeamViewer IoT, which enables to instantly access, control, and manage connected products from anywhere. It also provides TeamViewer Frontline, an augmented reality productivity solution platform; TeamViewer Engage, a next-gen digital customer engagement platform for online sales, digital customer service, and video consultations; TeamViewer Remote Management that manages, monitors, tracks, patches, and protects computers, devices, and software from a single platform; TeamViewer Servicecamp, a solution for service desk management and remote connectivity; TeamViewer Remote Access, a secure and stable remote access to remote PCs, smartphones, servers, payment terminals and IoT devices; and TeamViewer Meeting, a meeting function that offers video conferencing and VoIP calls, instant chat, screen sharing across devices and platforms. The company was formerly known as Regit Beteiligungs-GmbH and changed its name to TeamViewer AG in September 2019. TeamViewer AG was founded in 2005 and is headquartered in Göppingen, Germany.
How the Company Makes MoneyTeamViewer generates revenue primarily through subscription-based licensing for its software products. The company offers tiered pricing plans that cater to different user needs, including individual users, small businesses, and large enterprises. Key revenue streams include direct sales of licenses, recurring revenue from subscriptions, and additional income from service contracts and add-on features. TeamViewer also benefits from strategic partnerships with hardware manufacturers and software providers, enhancing its distribution channels and expanding its user base. The company invests in marketing and customer support to retain existing clients and attract new ones, contributing to its overall earnings.
TeamViewer AG Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging financial and operational strengths—above-industry adjusted EBITDA margins (44.3%), solid cash generation (EUR ~208m, 61% cash conversion), enterprise momentum (Enterprise ARR +11%, major strategic wins), and early traction for TeamViewer ONE and AI features—balanced against meaningful near-term challenges: SMB weakness (SMB ARR -1%), integration issues and churn from the 1E acquisition, elevated net debt and interest costs, and a conservative FY2026 revenue guide (0%–3% ccy) with Q1 softness. Management has outlined clear remediation actions (SMB revitalization, sales reorganization, product focus, and deleveraging) and midterm targets to reaccelerate growth, resulting in a balanced outlook that is neither strongly optimistic nor outright negative.Q4-2025 Updates
Positive Updates
Full-Year Revenue and ARR Growth
Pro forma revenue for FY2025 reached approximately EUR 768 million, representing +5% year-over-year in constant currency. Annual Recurring Revenue (ARR) grew +2% year-over-year in constant currency to EUR 760 million.
Strong Profitability and EBITDA Expansion
Pro forma adjusted EBITDA rose ~+8% year-over-year to around EUR 340 million, delivering an industry-leading adjusted EBITDA margin of 44.3% for FY2025 (an improvement of +2 percentage points versus 2024). Q4 adjusted EBITDA margin was approximately 45%.
Earnings and Cash Generation
Pro forma adjusted basic EPS increased +17% year-over-year to EUR 1.23. Adjusted levered free cash flow for 2025 amounted to ~EUR 208 million, representing a cash conversion of about 61%.
Enterprise Momentum and High-Value Wins
Enterprise ARR grew +11% year-over-year in constant currency to EUR 241 million and now contributes >30% of the business. TeamViewer stand-alone Enterprise showed very strong performance (notably a reported +90% ARR increase in a stand-alone Enterprise metric for the quarter). Q4 included multiple large strategic wins (including the largest Frontline deal in company history spanning >350 warehouses) and new-logo contract wins.
TeamViewer ONE and AI Traction
Strong early traction for TeamViewer ONE (unified digital workplace platform) with notable Q4 deals and continued adoption after the December product update. AI adoption progressing: over 13,000 customers opted into the AI Session Insights feature (as of early February) and the feature summarized >600,000 TeamViewer sessions.
Regional Growth Across All Regions
Revenue grew in constant currency across all regions in 2025: EMEA +6% to EUR 402 million, Americas +3% to EUR 292 million, and APAC +4% to EUR 73 million—EMEA contributed slightly above 50% of revenue.
Improved Leverage and Refinancing Progress
Net leverage ratio improved to 2.6x (from 2.8x in Q3 2025). Management reiterated a deleveraging target of around 2.3x net leverage by year-end 2026 and executed partial refinancing (EUR 30m of bridge loan via private placement) to strengthen financing.
Operational Investments and Efficiency Gains
Investments in R&D (+7% year-over-year) and sales enablement were maintained while marketing costs were optimized (marketing costs decreased -15% year-over-year and represented 13% of revenue vs 16% in 2024), driving improved sales & marketing efficiency.
Negative Updates
SMB Slowdown and ARR Contraction
SMB revenue showed weak dynamics: full-year SMB revenue grew only +2% in constant currency, while SMB ARR declined -1% year-over-year to EUR 519 million. Management paused short-term monetization (free-to-paid campaigns and certain price increases) to revitalize the noncommercial and price-sensitive SMB ecosystem, which contributed to softer SMB KPIs and increased logo churn in the short term.
1E Integration and Performance Issues
The acquired 1E business performed below expectations in 2025 due to slower integration, temporary loss of key talent and operational disruptions. Management flagged known one-off churn effects in Q1 2026 from 1E of roughly EUR 8 million and noted softer 1E revenue contribution in the near term.
Guidance and Near-Term Top-Line Moderation
FY2026 guidance calls for modest revenue growth of 0% to +3% in constant currency, with Q1 expected to be soft due to known 1E churn effects. FX headwinds (using 31 Dec 2025 spot rates) reduce Q1 2026 growth by ~3.1 percentage points and full-year 2026 growth by ~2.8 percentage points.
Net Debt and Increased Interest Costs
Year-end cash and cash equivalents were approximately EUR 42 million with net debt at EUR 901 million. Total interest expense rose to ~EUR 40 million in 2025 (an increase of ~EUR 22 million year-over-year), largely reflecting financing of the 1E transaction.
SMB Churn and Customer Mix Challenges
While value churn remained broadly stable, logo churn increased in SMB (loss of lower-value, occasional users). The lower SMB value ranges were down mid-single digits, and churn effects mean SMB KPIs are expected to remain soft through H1 2026.
Revenue Lag vs ARR and Timing Risk
Management emphasized ARR growth as a leading indicator but noted revenue is a lagging KPI, so revenue reacceleration may trail ARR upticks (TeamViewer expects ARR uplift in 2027 with revenue reacceleration more gradually thereafter). Midterm reacceleration target is mid- to high-single-digit growth but timing is multi-year (expected improvement from 2027 onward).
Integration-Related Execution Headwinds
Management acknowledged PMI/integration glitches after the 1E acquisition that temporarily slowed momentum, impacted product delivery and pipeline conversion, and required organizational adjustments and new sales/customer success setups.
Higher Sales Costs and Near-Term Investment Load
Sales expenses increased +8% year-over-year as the company expanded sales headcount and invested in sales technology stacks; these investments, while strategic, contribute to a higher cost base in the near term.
Company Guidance
TeamViewer guided FY2026 to constant‑currency revenue growth of 0–3%, an adjusted EBITDA margin of around 43% and a year‑end net leverage target of ~2.3x (continuing deleveraging from 2.6x at year‑end 2025); management cautioned Q1 will be soft due to known one‑off 1E churn of roughly EUR 8m and said FX (Dec‑31 spot rates) lowers Q1 growth by ~3.1 percentage points and full‑year growth by ~2.8pp. They expect adjusted levered free cash flow broadly stable versus FY25 (FY25 FLCF ≈ EUR 208m, cash conversion ~61%) with guidance for FY26 roughly EUR 190–210m, modest interest expense relief (~EUR 5m) and a temporary tax timing benefit (~EUR 10m), will continue to invest in R&D/AI and go‑to‑market, and target a mid‑term reacceleration to mid‑ to high‑single‑digit revenue growth while restoring Enterprise NRR above 100% and maintaining industry‑leading margins.TeamViewer AG Financial Statement Overview
Summary
Strong profitability and cash generation (very high gross margins and solid free cash flow), but balance sheet risk is a major offset due to high leverage and thin equity, reducing financial flexibility.Income Statement
Revenue has grown steadily from 2021–2024 (mid-to-high single digit to low double digit growth), with 2025 showing only modest growth. Profitability is a clear strength: gross margins remain very high (about 86%–88% in 2021–2024) and operating profitability improved from 2021 to 2024. The main weakness is that net income has not grown consistently (down in 2023 vs. 2020, and slightly down again in 2025 vs. 2024), suggesting below-the-line costs or non-operating items are limiting earnings momentum.72
Positive
Balance Sheet
Leverage is the key concern. Debt is high relative to equity across the period, with debt-to-equity elevated in 2022–2024 and equity remaining thin. 2025 shows a sharp step-up in total debt alongside higher assets, which increases financial risk and reduces balance sheet flexibility. While the business is profitable, the capital structure looks aggressive, leaving less cushion if growth slows or cash generation weakens.34
Negative
Cash Flow
Cash generation is strong and generally consistent. Free cash flow is substantial each year and closely tracks net income (roughly near 1x in 2022–2024), indicating earnings quality is solid and cash conversion is healthy. The main weakness is volatility in free cash flow growth (notably negative in 2021 and again in 2025), which suggests periodic swings in cash generation even though absolute cash flow remains robust.78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 746.77M | 671.42M | 626.69M | 565.87M | 501.10M |
| Gross Profit | 645.57M | 590.59M | 544.95M | 484.58M | 430.15M |
| EBITDA | 294.05M | 248.12M | 219.68M | 191.14M | 168.34M |
| Net Income | 118.25M | 123.08M | 114.02M | 67.60M | 50.05M |
Balance Sheet | |||||
| Total Assets | 1.68B | 1.07B | 1.11B | 1.17B | 1.55B |
| Cash, Cash Equivalents and Short-Term Investments | 52.37M | 55.27M | 82.25M | 168.03M | 550.53M |
| Total Debt | 942.97M | 444.63M | 529.42M | 632.64M | 877.47M |
| Total Liabilities | 1.51B | 969.86M | 1.03B | 1.06B | 1.23B |
| Stockholders Equity | 164.88M | 100.48M | 83.66M | 115.28M | 320.09M |
Cash Flow | |||||
| Free Cash Flow | 193.40M | 243.81M | 224.26M | 195.50M | 178.74M |
| Operating Cash Flow | 199.16M | 249.18M | 229.87M | 204.34M | 193.97M |
| Investing Cash Flow | -691.31M | -12.82M | -29.56M | -10.82M | -38.92M |
| Financing Cash Flow | 480.40M | -254.39M | -287.39M | -609.80M | 301.10M |
TeamViewer AG Technical Analysis
Negative
4.40
Price Trends
5.15
Negative
5.48
Negative
7.25
Negative
Market Momentum
-0.18
Negative
37.65
Neutral
14.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:TMV, the sentiment is Negative. The current price of 4.4 is below the 20-day moving average (MA) of 4.56, below the 50-day MA of 5.15, and below the 200-day MA of 7.25, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 14.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:TMV.
TeamViewer AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €1.26B | 37.95 | 74.27% | 1.88% | 10.61% | 12.46% | |
67 Neutral | €175.14B | 33.16 | 16.82% | 1.13% | 9.70% | 161.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | €690.34M | 8.03 | 113.84% | ― | 11.14% | 0.92% | |
59 Neutral | €8.00B | 49.36 | 24.84% | 0.59% | 25.17% | 19.52% | |
58 Neutral | €705.34M | -4.16 | -26.06% | ― | 9.19% | -37.73% | |
58 Neutral | €582.39M | 23.55 | 38.38% | 4.15% | -33.50% | -6.00% |
* Technology Sector Average
DE:TMV
TeamViewer AG
4.40
-8.20
-65.10%
DE:AOF
ATOSS Software
79.10
-49.00
-38.25%
DE:NEM
Nemetschek
69.30
-43.68
-38.66%
DE:PSAN
PSI AG fuer Produkte und Systeme der Informationstechnologie
45.00
17.30
62.45%
DE:SAP
SAP SE
153.82
-99.24
-39.22%
DE:MUM
Mensch und Maschine Software SE
34.60
-14.10
-28.95%
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.