Intershop Achieves Positive EBIT in Q1 2026 Through Cost Reductions as Cloud Business Shows Growth

Intershop Communications AG generated revenues of EUR 7.9 million in the first quarter of 2026, a decrease from EUR 9.1 million in the previous year. Despite this anticipated decline, the company achieved a positive EBIT of EUR 0.1 million, primarily due to implemented cost-cutting measures. Operating cash flow improved significantly to EUR 2.9 million, compared to a cash outflow of EUR 0.1 million in the prior year period.

The company's strategically important cloud business showed positive momentum, with revenues increasing by 3% to EUR 5.3 million, now accounting for 67% of total revenues. Incoming cloud orders rose by 8% to EUR 4.2 million. However, annual recurring cloud revenues (ARR) declined by 4% to EUR 19.6 million as of March 31, 2026, with net new ARR at EUR -0.6 million for the quarter, mainly attributed to a lag effect from customer contracts not renewed last year.

Operating expenses fell by 13% to EUR 3.8 million as a result of consistent cost-cutting measures initiated in the previous year. Research and development expenses decreased by 11% to EUR 1.7 million, while selling and marketing expenses dropped 19% to EUR 1.3 million. Total expenses, including cost of revenues and operating expenses, declined by 14% to EUR 7.8 million.

Markus Dränert, CEO of Intershop Communications AG, stated that while the market environment remains challenging, the cost-cutting measures are taking effect and have laid the foundation for the balanced result targeted for the full year. The company's current focus is on its Spring Release 2026 planned for May, featuring AI agents designed to automate business processes and reduce customer costs. The quarterly statement for the first three months of 2026 is available at https://www.intershop.com/en/financial-reports.

Cash and cash equivalents increased by 25% to EUR 10.9 million as of March 31, 2026. The company expects incoming cloud orders and net new ARR for the full year 2026 to remain at the previous year's level, with revenues projected to decline by a slightly smaller percentage than in the previous year. Thanks to the improved cost base, Intershop anticipates a balanced operating result (EBIT) for 2026.