Intershop Reports 2025 Financial Results with Cloud Stability and Strategic Shifts

Intershop Communications AG generated total revenues of EUR 33.3 million in the financial year 2025, down from EUR 38.8 million in the previous year. While service revenues and license and maintenance revenues saw declines, revenues from the strategically important cloud business remained steady at EUR 20.5 million, matching the previous year's level. The share of cloud revenues in total revenues increased to 62% from 53% in 2024, indicating the company's continued strategic focus on this segment.

Incoming cloud orders rose by 9% year-on-year to EUR 21.7 million, driven primarily by a large number of new contracts signed in the fourth quarter of 2025. Cloud ARR (annual recurring revenues) remained steady at EUR 20.1 million as of the reporting date, unchanged from the prior year. The cloud margin remained stable at 65%, demonstrating the resilience of this business segment despite overall revenue declines. License and maintenance revenues decreased to EUR 6.4 million in the reporting year from EUR 9.4 million in 2024 as a result of the strategic focus on the cloud business.

Earnings before interest and taxes (EBIT) were EUR -2.8 million, down from EUR 0.1 million in 2024, mainly reflecting the impact of a complex major project that required significant resources. Service revenues dropped by 29% to EUR 6.3 million, primarily due to this complex major project that required significantly more resources than originally planned. However, Intershop successfully achieved an important operational milestone with the project's acceptance in early February 2026. Additionally, the partner-first strategy launched in 2024 began to have an impact, as the implementation of new projects was increasingly transferred to the partner network.

Operating expenses and income were down slightly by 1% to EUR 17.5 million, while R&D expenses rose by 8% to EUR 7.2 million. Sales and marketing expenses declined 15% to EUR 6.3 million, and general administrative expenses decreased by 4% to EUR 3.2 million. Other operating expenses rose to EUR 1.3 million and included one-time expenses for personnel reduction measures totaling EUR 0.9 million, which are expected to drive efficiency improvements in the medium term and further stabilize Intershop's cost base. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased from EUR 3.3 million to EUR 0.5 million.

As part of the company's strategic further development, the Supervisory Board extended the contract of CEO Markus Dranert. Originally running through November 2026, the contract now continues until 31 March 2029. Markus Dranert has served as CEO since September 2025, having previously been COO. Frank Fischer, Chairman of the Supervisory Board of Intershop Communications AG, stated that by extending Markus Dranert's contract, the company is deliberately focusing on continuity and a long-term strategic perspective for Intershop.

For the financial year 2026, Intershop expects incoming cloud orders and net new ARR to remain at the previous year's level. In terms of revenues, a slightly lower percentage decline is forecast compared to the previous year. Thanks to its improved cost base, Intershop expects a balanced operating result (EBIT). The full consolidated financial statements will be published in mid-March 2026, with all financials in this press release being provisional pending completion of the statutory audit. Additional information about the company's financial performance and strategic direction can be found at https://www.newmediawire.com where the original release was published.