IONOS Group (IOS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 5.7% year-over-year (7.6% at constant currency) to €348.4 million, with 180,000 net new customers bringing the total to 6.81 million, and adjusted EBITDA rising 4.8% to €118.2 million (33.9% margin).

• AI-driven products, especially in Web Presence & Productivity and the AI Phone Receptionist, are rapidly increasing revenue share and customer satisfaction, with ARPU of €30 and NPS above 50.

• The integrated AI Knowledge Hub and Momentum ecosystem underpin a modular platform, driving automation, retention, and expansion across multiple markets.

• Adjusted EPS from continuing operations increased 21.2% to €0.40, mainly due to lower financing expenses.

• The AdTech segment (Sedo) is now classified as discontinued, with revenue dropping 97.1% year-over-year.

Financial highlights

• Q1 2026 revenue was €348.4 million, up 5.7% year-over-year; adjusted EBITDA reached €118.2 million (33.9% margin); free cash flow after leases was €95.8 million, up from €59 million last year.

• EBIT increased 11.3% to €87.9 million, and gross margin rose to 60.8% from 59.6%.

• ARPU increased to €16.80, and monthly churn remained stable at 1%.

• Net debt stood at €645 million, with a leverage ratio of 1.3x net debt to adjusted EBITDA.

• Equity increased 8.5% to €324.6 million, with an equity ratio of 19.7%.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue growth of ~7% (constant currency), with Web Presence & Productivity up 7-8% and Cloud Solutions up ~10%.

• Adjusted EBITDA expected at ~€530 million (37-38% margin), targeting 40% margin midterm.

• CapEx for 2026 guided at €75-85 million (approx. 6% of revenue).

• Midterm targets: double-digit group revenue growth, high single-digit for Web Presence & Productivity, 20% for Cloud Solutions.

• Growth to be driven by continued customer acquisition, upselling, cross-selling, and expansion of AI product offerings.