Intershop Communications AG generated total revenues of EUR 33.3 million in the financial year 2025, down from EUR 38.8 million in 2024, according to preliminary figures released by the company. The decline was primarily attributed to reduced service revenues and license and maintenance revenues, while the strategically important cloud business remained stable at previous year levels. Earnings before interest and taxes (EBIT) were EUR -2.8 million, impacted by a complex major project in the service segment that required significant resources, though the project was successfully accepted in early February 2026.
The cloud and subscription segment generated revenues of EUR 20.5 million in 2025, unchanged from the previous year, representing 62% of total revenues compared to 53% in 2024. Incoming cloud orders increased by 9% year-on-year to EUR 21.7 million, driven primarily by new contracts signed in the fourth quarter. Cloud annual recurring revenues (ARR) remained steady at EUR 20.1 million as of the reporting date, while net new ARR before currency effects was EUR 0.6 million, down from EUR 2.7 million in 2024 due to expiring customer contracts. The cloud margin remained stable at 65%.
License and maintenance revenues decreased to EUR 6.4 million from EUR 9.4 million in 2024, reflecting the company's strategic focus on cloud business. Service revenues dropped 29% to EUR 6.3 million, primarily due to the complex major project that required more resources than originally planned. The company noted that its partner-first strategy launched in 2024 began to have an impact, with implementation of new projects increasingly transferred to the partner network.
Gross profit decreased to EUR 14.7 million from EUR 17.7 million in 2024, with the gross margin slipping two percentage points to 44%. Operating expenses decreased slightly by 1% to EUR 17.5 million, while research and development expenses rose 8% to EUR 7.2 million. Sales and marketing expenses declined 15% to EUR 6.3 million, and general administrative expenses decreased 4% to EUR 3.2 million. Other operating expenses included one-time expenses for personnel reduction measures totaling EUR 0.9 million, which are expected to drive efficiency improvements in the medium term.
CEO Markus Dranert stated that 2025 was defined by operational and structural changes, including the successful acceptance of the major project, continued technological advancement of the platform into an agentic B2B commerce solution, implementation of the partner-first strategy, and sustainable reduction of the cost base. The company's total assets amounted to EUR 33.3 million as of December 31, 2025, with the equity ratio rising significantly to 36% from 29% at the end of 2024, mainly due to a capital increase through a rights issue. Cash and cash equivalents stood at EUR 8.8 million, and the company employed 224 people worldwide, down from 261 in 2024.
The Supervisory Board extended CEO Markus Dranert's contract until March 2029, with Chairman Frank Fischer noting the decision focuses on continuity and long-term strategic perspective. For 2026, Intershop expects incoming cloud orders and net new ARR to remain at previous year levels, with slightly lower revenue declines forecast compared to 2025. Thanks to its improved cost base, the company anticipates a balanced operating result. The full consolidated financial statements will be published in mid-March 2026, with all current figures provisional pending completion of the statutory audit. Additional information is available on the company's website at https://www.intershop.de.
