11/10/2025
q.beyond achieves expected return to profitability in Q3 2025
- Quarterly consolidated net income rises year-on-year by €1.4million to €0.5million, while EBITDA grows by €0.8million to €3.0million
- Full-year outlook for 2025 unchanged: EBITDA still planned to rise to between €12million and €15million and sustainably positive consolidated net income
“Our growing earnings and financial strength despite the weak economic climate demonstrates the success of our far-reaching transformation since spring 2023”, comments q.beyond’s CEO Thies Rixen. The prioritisation of profitability over growth was also proving its worth. In the past quarter, q.beyond additionally benefited unexpectedly from the completion of the external tax audit performed on the 2019 sale of its Plusnet telecommunications subsidiary. The definitive tax assessment notices now available resulted in q.beyond conclusively receiving other operating income of €2.6million.
Almost 70% of revenues are recurring
The resilience of the business model is boosted by a high share of recurring revenues, which stood at 69% in the past quarter. These revenues are based on contracts with average terms of 48 months, for which 95% of customers extend the terms and often the scopes as well. This high level of customer retention stabilises the business at times in which German medium-sized companies are showing a massive reluctance to invest. This factor is holding back new business, particularly in the “Managed Services” segment. In the second segment of “Consulting”, however, revenues and earnings continued to grow in the third quarter of 2025, with gross profit even doubling.
“The increased marketing of our consulting and development expertise, measures to enhance our efficiency, and increasingly also our position as an AI pioneer are paying off”, remarks q.beyond’s CFO Nora Wolters to explain the success in the consulting business. In the spring, the company already presented “Private Enterprise AI”, a local and private generative IT platform that works exclusively with customers’ own data and therefore guarantees full IT sovereignty.
Among other developments, the past quarter witnessed the market launch of “JKIM”, an internally developed AI agent that significantly enhances efficiency in job application processes in terms of speed, costs, availability, and linguistic flexibility.
Nearshoring and offshoring quota approaches 20% mark
JKIM was developed by experts in the Latvian team. q.beyond now has almost 90 employees at its location in Riga. Across all four sites in Latvia, Spain, India, and the USA, the nearshoring and offshoring quota rose to 18% in the past quarter and will, as planned, reach the 20% mark by the end of the year. Here, the two European locations are increasingly developing into “International Hubs” with their own development and sales activities.
Thies Rixen substantiated the extension in these activities: “Internationalisation offers one possibility to counter the persistent weakness in Germany’s growth.” In addition, q.beyond’s CEO will be drawing above all on advancing automation, increasing use of AI, and the expansion in the company’s service leadership in order to achieve an EBITDA margin of at least 10% in the medium term. This margin rose to 7% in the third quarter of 2025.
Outlook: revenues now expected at the lower end of the range of €184million to €190million
For 2025 as a whole, q.beyond continues without amendment to plan for EBITDA to rise to between €12million and €15million, for sustainably positive consolidated net income, and for sustainably positive free cash flow. In view of the continuing weak growth seen in Germany, the company now expects revenues at the lower end of the range of €184million to €190million communicated at the beginning of the year. As was already the case in previous years, project volumes will increase in the final fourth quarter and positively influence q.beyond’s earnings and financial strength.
Key figures at a glance
| € million | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 |
|---|---|---|---|---|
| Revenues | 43.6 | 47.0 | 134.4 | 141.4 |
| - Managed Services | 28.3 | 32.9 | 89.1 | 99.5 |
| - Consulting | 15.3 | 14.1 | 45.3 | 41.9 |
| Gross profit | 7.3 | 7.6 | 25.0 | 23.8 |
| - Managed Services | 5.3 | 6.6 | 18.7 | 20.6 |
| - Consulting | 2.0 | 1.0 | 6.3 | 3.1 |
| EBITDA | 3.0 | 2.2 | 8.1 | 6.4 |
| EBIT | 0.5 | (0.9) | 0.3 | (3.0) |
| Consolidated net income | 0.5 | (0.9) | 0.1 | (2.8) |
| Free cash flow | 1.7 | 1.0 | 3.6 | 2.4 |
| Net liquidity at 30 September | 41.3 | 38.7 | ||
| Equity ratio at 30 September | 68% | 65% | ||
| Employees at 30 September | 1,125 | 1,101 |
Notes:
This Corporate News contains forward-looking statements that are based on current expectations and forecasts on the part of the management with regard to future events. Due to risks or erroneous assumptions, actual results may deviate materially from these forward-looking statements. The complete Quarterly Statement is available at www.qbeyond.de/en/investor-relations.
About q.beyond AG:
q.beyond AG is the key to successful digitalisation. We help our customers find, implement, and operate the best digital solutions for their businesses. Upholding IT sovereignty is our core ambition. Our strong team of 1,100 specialists accompanies SMEs reliably as they tackle their digital transformation. Customers benefit here from our all-round expertise in cloud, applications, AI, and security. With locations across Germany and in Latvia, Spain, India, and the USA, its own certified data centres, and experience built up over more than 25 years, q.beyond is one of Germany’s leading IT service providers.
Contact
q.beyond AG
Arne Thull
Head of Investor Relations/Mergers & Acquisitions
T +49 221 669 8724
invest@qbeyond.de
