Q2 Results of q.beyond AG Show Positive Trends Despite Economic Weakness

Q.beyond AG’s Q2 sales rose by 1.8% year-on-year to €47.3 million, mostly driven by the Managed Services segment, which saw a 6.1% revenue increase to €33.7 million. However, the Consulting segment experienced a decline of 7.6% to €13.5 million due to ongoing economic challenges and a focus on optimizing the consulting portfolio.

The company reported a strong order intake of €54.2 million, a 36% increase from the previous year, which indicates potential for future growth. Recurring revenue accounted for 75% of total sales, which should provide investors with confidence.

Despite a weaker overall gross margin, Q2 EBITDA increased by 113% to €2.2 million. This improvement was driven by substantial reductions in sales, marketing, and general administrative expenses following the implementation of the One q.beyond strategy.

Management confirmed the full-year guidance, expecting sales between €192-198 million and EBITDA between €8-10 million. Efficiency gains and scale effects in the Managed Services segment are anticipated to support these targets.

The stock remains a BUY, with a target price of €1.10 based on the discounted cash flow method.