NFON grows AI revenues as botario deal boosts 2025

NFON reported modest revenue and earnings growth in its 2025 financial year, supported by higher sales of AI-related products and benefits from its acquisition of botario.

Total revenue rose 2.0% to EUR 89.1 million, while adjusted EBITDA increased 2.4% to EUR 12.6 million. EBITDA grew 5.6% to EUR 11.4 million.

Recurring revenue rose 1.1% year on year to EUR 82.0 million and accounted for 92.1% of total revenue, down slightly from 92.9% a year earlier. Non-recurring revenue increased 13.7% to EUR 7.1 million.

The installed base declined over the period. Seats fell 2.7% to 647,384 from 665,449 a year earlier. Blended average revenue per user edged up to EUR 9.91 from EUR 9.89.

The increase in non-recurring revenue reflected project work linked to botario's AI solutions, now integrated into NFON's Intelligent Assistant offering. Selected price adjustments also modestly supported ARPU.

AI focus

Management has positioned AI products as a core part of its product mix and future growth outlook, amid broader competition in cloud telephony and communications software.

Andreas Wesselmann, Chief Executive Officer, commented, "AI-based business communications are becoming the new standard and are reshaping requirements for providers far beyond traditional cloud telephony. At the same time, digital sovereignty and trust in European providers are increasingly becoming decisive selection criteria. Today, customers expect solutions that work simply and deliver measurable added value. This is particularly true for the SME segment, which wants to leverage AI without having to build up in-house expertise.

"In 2025, we further developed our AI portfolio from a promising technology into market-ready, scalable solutions and systematically integrated them across all our product offerings. We are thereby addressing rising demand and unlocking additional growth potentials. Initial successes are reflected in our preliminary financial results."

NFON has grouped its AI products around the NFON Intelligent Assistant, Nia FrontDesk and AI Essentials. It has integrated AI functions into its cloud telephony platform and describes the portfolio as modular and expandable.

The group also highlighted work on conversational AI, including voicebots, and agentic AI for process orchestration and contact centre use. It described this as part of a unified technology foundation to scale its AI business.

Strategy programme

The 2025 results reflect a year of operational and organisational change under the NFON Next 2027 strategy programme. The company prioritised innovation, scaling and operational excellence under a new Management Board structure led by Wesselmann and Chief Financial Officer Alexander Beck.

Operating improvements and cost discipline supported adjusted EBITDA, while the botario acquisition contributed to the revenue increase.

Alongside product development, NFON has continued to build its partner organisation. It works with more than 3,000 partners and serves around 55,000 business customers across Europe, operating as a licensed telecoms company in 15 European countries. It also ran marketing and implementation initiatives through partners, including a partner event at the end of January.

Outlook

For 2026, NFON forecast low- to mid-single-digit revenue growth and adjusted EBITDA above EUR 12 million. It expects growth to pick up despite a challenging market environment.

Growth is expected to be driven by the Intelligent Assistant and Customer Engagement portfolio segments. The company also cited efficiency measures under NFON Next 2027 and planned targeted investments to scale AI-based solutions.

NFON will publish its full audited report for the 2025 financial year in April.