NFON shareholders back AI strategy at annual meeting

NFON shareholders approved all resolutions at the company's annual general meeting, with 88.33% of share capital represented.

The meeting focused on the software group's 2025 financial year, when it reported higher revenue, improved profitability and further progress on its NFON Next 2027 strategy. Management said the business was continuing its shift towards AI-based communications products as companies seek more automation and closer integration between communications and business processes.

Chief Executive Officer Andreas Wesselmann said the market change went beyond a normal product cycle and reflected a broader shift in how businesses use software.

"What we are witnessing is not merely a technological development, but a fundamental shift in the way companies use software and organise value creation. Artificial intelligence is increasingly taking on tasks, supporting decision-making and transforming communication processes. This is precisely the trend that NFON is aligning itself with, with the aim of making AI available where it delivers the greatest value for businesses," said Andreas Wesselmann, Chief Executive Officer of NFON.

NFON reported consolidated revenue of EUR 89.1 million for the year, while recurring revenue reached EUR 82.0 million. Adjusted EBITDA rose to EUR 12.6 million, giving the company a margin of 14.2%, and free cash flow came in at EUR 4.3 million.

The figures indicate that NFON is drawing a larger share of income from repeat business while improving returns. Products including Intelligent Assistant and Customer Engagement are helping broaden monetisation across newer parts of its portfolio.

Financial position

Chief Financial Officer Alexander Beck told shareholders that profitability, liquidity and cash generation all improved during the year. He said the company intended to maintain financial discipline while making selective investments in innovation.

"The financial year 2025 was also a significant year for NFON from a financial perspective. We further improved our profitability, generated solid cash flow and strengthened our liquidity. This stability gives us the flexibility to invest selectively in innovation while maintaining financial discipline. For us, the quality of our cash flow is not merely a financial metric, but a reflection of operational strength, financial resilience and strategic agility, enabling us to respond flexibly to changes in the market," said Beck.

Based in Munich, NFON sells business communications software across several European markets, including Germany, the UK, Italy, Spain and France. The company has been positioning itself around AI applications in telephony, digital assistants and customer interaction tools.

Management said trust, data protection and regulatory certainty are becoming more important in purchasing decisions as businesses adopt AI within communications systems. That is particularly relevant in Europe, where companies face tighter scrutiny over how customer and business data are handled.

NFON is using its platform as the base for introducing AI functions across its wider product range. The approach is important to its position in the European market, especially as customers look for systems that can connect automated tools with existing communications workflows.

Strategy focus

The annual meeting also served as a progress update on NFON Next 2027, the company's strategy for growth and operational change. Executives said the plan remained on track as the group continued to reshape itself around AI-led communications services.

That repositioning comes as software providers across Europe compete to embed generative and task-based AI into established business applications. For providers such as NFON, the challenge is to convince customers that newer AI tools can be integrated without disrupting core communications services or raising compliance concerns.

Recurring revenue of EUR 82.0 million accounted for most of NFON's total revenue in the year. That mix can provide steadier income than one-off software sales and offer a clearer view of customer retention and product adoption.

The company did not announce any changes to its management structure at the meeting. Instead, the focus remained on execution, financial improvement and the role of AI in its longer-term product direction.

All proposals put forward by the Management Board and Supervisory Board passed with clear majorities, underlining investor backing for the group's current course. The level of shareholder participation also pointed to strong engagement with the company's strategy and recent performance.