IONOS Group (IOS) Q2 2026 earnings summary

Executive summary

• Achieved record customer growth in H1 2026, adding 280,000 net new customers to reach 6.91 million, outpacing prior year growth.

• Revenue rose 6.9% year-over-year to €701.1 million, with adjusted EBITDA up 3.5% to €245.2 million (35.0% margin), reflecting higher marketing spend.

• Successfully launched AI Phone Receptionist/Assistant and AI App & Site Builder, expanding AI-driven product ecosystem for SMBs across all markets.

• AI features are now live across all product lines, with AI-driven revenues in Web Presence & Productivity expected to reach 50% in 2026 and 80% by 2028.

• Maintained leading market positions in Europe and expanded in North America.

Financial highlights

• H1 2026 revenue reached €701.1 million, up 6.9% year-over-year (8.2% constant currency); adjusted EBITDA was €245.2 million (35.0% margin), up 3.5% year-over-year.

• Q2 2026 revenue grew 8.1% year-over-year to €352.7 million; adjusted EBITDA margin at 36.0%.

• Free cash flow after leases was €126 million, with strong EBITDA to cash conversion.

• Adjusted EPS from continuing operations increased to €0.84, up 19.6% year-over-year.

• Gross margin improved to 60.5% (from 59.0%); cost of sales ratio decreased to 39.5%.

Outlook and guidance

• Upgraded 2026 currency-adjusted revenue growth guidance to ~8% (from 7%), and revenue excluding intercompany to ~9% (from 8%).

• Web Presence & Productivity growth now expected at ~8%; Cloud Solutions at 10%-15% (previously ~10%).

• Adjusted EBITDA guidance reaffirmed at ~€530 million, margin 37%-38%.

• Midterm targets: double-digit group revenue growth (>10%), high single-digit growth in Web Presence & Productivity, 20% in Cloud Solutions, and 40% adjusted EBITDA margin.

• Management remains optimistic, citing stable subscription-based business and ongoing digitalization trends.