Half Year 2026 IONOS Group SE Earnings Call Transcript
Key Points
- Record customer growth with 100,000 net new customers added in Q2 2026, bringing the total base to 6.91 million.
- Successful launch of AI Phone Receptionist with 15,000 subscriptions and ARPU expanding to EUR70 per month, more than doubling from Q1.
- Revenue growth acceleration in Q2 2026, with 8.1% year-over-year growth and 8.8% on a constant currency basis.
- Cloud Solutions segment delivered impressive 19.5% revenue growth in Q2, with strong demand from SMBs and public sector entities.
- Raised full-year revenue growth guidance to around 8% on a currency-adjusted basis, up from the previous 7% expectation.
- Adjusted EBITDA margin declined to 35% in H1 2026 from 36.1% in the prior year period, due to front-loaded marketing investments.
- Free cash flow after leases decreased to EUR126 million in H1 2026 from EUR168 million in the prior year, impacted by higher CapEx and marketing spend.
- CapEx ratio increased to 7.5% of revenue in H1 2026, up from 3.5% last year, due to early procurement of hardware to mitigate rising prices.
- The AdTech business sale process is facing challenges due to a lack of sustained recovery in the digital advertising market, with low single-digit EBITDA contribution expected.
- Leverage ratio slightly increased to 1.4 times net-debt-to-adjusted EBITDA, primarily due to the share buyback program.
Good morning, and welcome to IONOS analyst investor call for the first-half of 2026. My name is Stephan Gramkow, and I'm heading Investor Relations at IONOS. Let me walk you through today's agenda.
Our CEO, Achim Weiss, will open with the business and strategy update. Patrik Heider, CFO of IONOS, will then cover the financial results, Q2 results and full year outlook as well as the midterm targets. Both will be available for questions after the presentation.
I would now like to hand it over to Achim. The floor is yours.
Thank you, Stephan, and good morning, everyone. Let me give you the headline upfront. The first half of 2026 was a record period for IONOS. Customer growth reached an all-time high. We have successfully launched the AI Phone Receptionist across all markets. With the newly introduced AI App & Site Builder, we are beginning a great Vibe Coding product to small- and medium-sized businesses built on our sovereign
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