q.beyond AG

Q2 group revenue was EUR 43 million, down from EUR 44.4 million a year ago, a decline of around 3%. Adjusted EBITDA was EUR 2.5 million; reported EBITDA was EUR 1.6 million after a EUR 0.9 million provision for the first stage of the AI transformation. Adjusted consolidated net income was 0, unchanged year over year. Consulting revenue grew 5% to EUR 16 million, with gross profit up from EUR 2.3 million to EUR 4.2 million and gross margin up from 15% to 26%. Managed Services revenue fell to EUR 27 million from EUR 29.2 million, and gross margin before one-off provision fell to 19% from 22%. New orders increased 12% to EUR 20.6 million. Net liquidity was EUR 41 million as of June 30, and free cash flow was minus EUR 1.6 million for the quarter. For the full year, management now expects revenue of around EUR 180 million and EBITDA of EUR 3 million to EUR 7 million, including EUR 6 million of investment costs tied to the transformation.

Thies Rixen framed the quarter as a transition period toward an AI-first model, saying the company is “better with AI” but still facing weak demand from German and European mid-market customers. He said q.beyond is automating more workflows, shifting work to Romania, and turning internal AI gains into a future external offering, with the goal of materially improving profitability in 2027 and beyond. His tone was candid about current disappointments, but confident that the order funnel, AI initiatives, and sector focus will improve results over time.

Nora Wolters emphasized that the consult-to-operate model is working, with higher-margin Consulting growth offsetting weaker Managed Services. She highlighted the financial details: adjusted EBITDA of EUR 2.5 million, adjusted margin unchanged at 6%, net liquidity of EUR 41 million, equity ratio of 70%, and free cash flow of minus EUR 1.6 million mainly as a timing effect. She also said the transformation will require EUR 5 million to EUR 6 million of one-off costs, but should deliver about EUR 7 million in annual personnel cost savings from 2027, with a payback period of less than one year.

Analysts focused on the split between strong Consulting and weak Managed Services, with management saying Consulting benefited from two years of restructuring, SAP-related demand, and one-off license revenue of a lower EUR 1 million, while Managed Services was hurt by longer sales cycles, customer reluctance, and higher churn than budgeted. Questions also covered price increases in Managed Services, where management said the major renewals are largely done but some, including Fressnapf, are still in process. On the buyback, management said it must wait until the statutory window closes on 17 August before acting, but reiterated the intention to repurchase EUR 2.5 million of shares and said current transformation spending will not affect that plan.