Positive Outlook for NFON AG with Strategic Growth Initiatives

NFON AG has shown promising results in Q1’25, with sales increasing by 4% year-over-year to €22.1 million. A significant 94% of these earnings are from recurring revenue, showcasing a solid income base. Botario, acquired at the end of Q3’24, was a major contributor to this growth. Its sales rose by 52% to €0.8 million, accounting for the majority of Q1 growth.

The average revenue per user (ARPU) surpassed €10 for the first time since the pandemic, driven by a focus on premium solutions. Despite a slightly reduced EBITDA, strategic investments in AI and personnel are expected to enhance future performance.

NFON confirmed its guidance for 2025, anticipating 8-10% sales growth. The company aims to expand in AI-supported communication services, reinforcing its position as a potential key player in the industry. NuWays AG maintains its buy recommendation with a target price of €12.30.