As the software company prepares to release its full-year 2025 results this coming Wednesday, the market is bracing for more than routine financial figures. A profound strategic pivot toward lucrative enterprise clients is creating significant drag on its traditional business serving smaller companies. Concurrently, a costly acquisition is facing integration challenges, and an imminent demotion to a lower-tier stock index is forcing additional institutional selling.
Operational Hurdles and Index Pressure
The stock’s chart tells a clear story of these operational headwinds. Over the past twelve months, the equity has shed nearly 65 percent of its value. On Monday, it touched a precise 52-week low of €4.48. This selling pressure is being exacerbated by the upcoming move from the MDAX to the SDAX, which will compel index-tracking funds to rebalance their portfolios by offloading shares.
The difficult integration of 1E, a British software firm acquired in 2024 for $720 million, adds substantial weight. The process is progressing much slower than anticipated, hampered by operational disruptions and the loss of key personnel. For the first quarter of 2026, the company anticipates a one-time revenue loss of approximately €8 million related to this acquisition.
A Tale of Two Business Segments
The company’s strategic overhaul reveals a stark divergence in performance. Within the Enterprise segment—the designated new growth engine—currency-adjusted annual recurring revenue (ARR) grew by 11 percent to €241 million. The core business in this division surged by 19 percent, fueled by a record deal closure in the United States.
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Conversely, the foundation is showing cracks. Revenue in the classic small and medium-sized business (SMB) segment declined slightly. The churn rate is particularly concerning, climbing to 16.4 percent in the fourth quarter. Management expects this weakness, attributed to a revised pricing structure, to persist at least until mid-2026.
New Products and Cautious Guidance
In response to market skepticism, management is pushing concrete product innovations. These include expanded interfaces for Microsoft Intune and a new partnership with industrial software provider Cybus for augmented-reality applications in factories, aimed at bolstering the technical foundation of the enterprise strategy.
Despite these initiatives, near-term financial prospects remain subdued. For 2026, guidance calls for only zero to three percent currency-adjusted revenue growth, alongside an adjusted EBITDA margin of around 43 percent. The capital market’s fundamental assessment will likely hinge on three key upcoming events:
- 18 March 2026: Publication of the 2025 Annual Financial Report
- 06 May 2026: Release of Q1 2026 Results
- 02 June 2026: Annual General Meeting
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