INTERSHOP Communications : Quarterly Statement Q1 2026

About this update from Intershop Communications Ag

Quarterly Statement Q1 2026 INTERSHOP Communications AG / Quarterly Statement Q1 2026 1 January - March 2026 Letter to Our Stockholders Dear stockholders and business partners, The cost-cutting measures we introduced last year will take effect in the first quarter of 2026. We were able to achieve a slightly positive EBIT and therefore lay the foundation for achieving breakeven in 2026 as a whole. In the Cloud segment, the recovery that began in the fourth quarter of 2025 continued. Incoming orders increased by 8%, the Cloud margin improved further and the share of Cloud revenue in total revenue rose again. This development makes us cautiously optimistic, even if the net new ARR is still negative due to lag effects, as announced. Overall, new customer business remains challenging. Regardless of the sector, many potential customers are still under considerable cost pressure due to economic uncertainties and a weak economy, which is significantly delaying capital expenditure decisions. The acceptance of the complex major project in February had a positive impact on the service business. The margin has improved noticeably. At the same time, the restrained order situation in the market is also having an impact. Operationally, we are focusing on the Spring Release 2026 of our platform planned for May. With this release, we are taking another decisive step towards Agentic-B2B-commerce. The numerous AI agents that we have now integrated into our platform will help our customers to automate business processes, reduce costs and make their e-commerce units more efficient. Furthermore, we are preparing a refresh of our brand and a modernization of our market presence to make our innovative strength more tangible for the market and prospective customers. This underlines our position as one of the leading providers in the field of Agentic-B2B-commerce for SMEs. Despite the challenging market environment, we are confident that we have laid the foundations for sustainable business development with our technological focus, optimized cost base and dedicated team. Best regards, Markus Dränert Petra Stappenbeck Key Figures for the Group in EUR thousand Q1 2026 Q1 2025 Change KPIs Cloud order entry 4,247 3,942 8% Net New ARR (614) 554 n.a. Revenues 7,941 9,141 -13% EBIT 101 73 38% REVENUES Revenues 7,941 9,141 -13% Licenses and Maintenance 1,035 1,802 -43% Cloud and Subscription 5,322 5,161 3% Service Revenues 1,584 2,178 -27% Revenues Europe 5,739 6,488 -12% Revenues USA 1,538 1,877 -18% Revenues Asia/Pacific 664 776 -14% EARNINGS Cost of revenues 4,065 4,727 -14% Gross profit 3,876 4,414 -12% Gross margin 49% 48% Operating expenses, operating income 3,775 4,341 -13% Research and development 1,652 1,851 -11% Sales and marketing 1,324 1,626 -19% General and administrative 762 790 -4% Other operating income/expenses 37 74 -50% EBIT 101 73 38% EBIT-Margin 1% 1% EBITDA 922 841 10% EBITDA margin 12% 9% Net result (18) (68) 74% Earnings per share (EUR) 0.00 0.00 0% NET ASSETS Shareholders' equity 12,006 10,861 11% Equity ratio 35% 30% Balance sheet total 34,658 36,422 -5% Noncurrent assets 19,429 21,790 -11% Current assets 15,229 14,632 4% Noncurrent liabilities 8,789 9,066 -3% Current liabilities 13,863 16,495 -16% FINANCIAL POSITION Cash and cash equivalents 10,933 7,789 40% Net cash operating activities 2,927 (143) n.a. Depreciation and amortization 821 767 7% Net cash used in investing activities (311) (256) 21% Net cash provided by financing activities (526) (458) 15% EMPLOYEES 222 262 -15% Business development Business performance during the first three months of 2026 In the first quarter of 2026, the Intershop Group recorded a 13% decline in revenue to EUR 7.9 million (previous year: EUR 9.1 million). Despite the decline in sales, a positive EBIT of EUR 0.1 million was achieved (previous year: EUR 0.1 million), which is due in particular to the cost measures implemented. The Group's most important financial key figures (KPIs) are shown in the overview below. in EUR thousand Q1 2026 Q1 2025 Change Cloud Order Entry 4,247 3,942 8% Net New ARR (614) 554 n.a. Revenue 7,941 9,141 -13% EBIT 101 73 38% Increase in revenue and margin improvement in the Cloud segment despite continued restrained new customer business Revenue from the Cloud segment increased slightly by 3% to EUR 5.3 million in the first quarter of 2026 (previous year: EUR 5.2 million). The share of Cloud revenue in total revenue increased by eleven percentage points to 67% (previous year: 56%). The Cloud margin also improved slightly year-on-year to 65% (previous year: 64%). Incoming Cloud orders also recorded an increase of 8% to EUR 4.2 million in the first quarter of 2026 (previous year: EUR 3.9 million). Overall, however, new customer business remained subdued. As in the same period of the previous year, Intershop acquired two new Cloud customers in the first quarter of 2026, which contributed EUR 1.0 million to incoming Cloud orders (previous year: EUR 0.5 million). The share of incoming orders attributable to existing customers amounted to EUR 3.2 million (previous year: EUR 3.4 million). Annual recurring revenue (ARR) amounted to EUR 19.6 million as at March 31, 2026, which corresponds to a decrease of 4% (March 31, 2025: EUR 20.4 million). At EUR 0.6 million, new ARR was at the previous year's level. Net new ARR (new ARR less terminations) amounted to EUR -0.6 million in the first quarter of 2026 (previous year: EUR 0.6 million). This was mainly due to a lag effect resulting from customer contracts that were not renewed last year and are expiring in 2026. Cloud Business Development Cloud Revenue Cloud Revenue in % 5.161 5.322 ARR development in Q1 2026 in EUR thousand ARR December 31, 2025 20,081 New ARR new customer 242 of total revenue 56% 67% New ARR existing 394 in EUR thousand Q1 2025 Q1 2026 change customer New ARR total 636 Cloud order entry 3,942 4,247 8% New ARR 616 636 3% Net New ARR 554 (614) n.a. ARR 20,406 19,592 -4% Churn (1,250) Net New ARR (614) Currency changes 125 ARR March 31, 2026 19,592 Earnings Position The development of the key earnings figures of the Group is shown in the overview below: in EUR thousand Q1 2026 Q1 2025 Change Revenues 7,941 9,141 -13% Cost of revenues 4,065 4,727 -14% Gross margin 49% 48% Operating expenses, operating income 3,775 4,341 -13% EBIT 101 73 38% EBIT margin 1% 1% EBITDA 922 841 10% EBITDA margin 12% 9% Earnings after tax (18) (68) 74% Intershop generated total revenue of EUR 7.9 million in the first quarter of 2026, which corresponds to a decrease of 13% compared to the same quarter of the previous year (previous year: EUR 9.1 million). 80% of total revenue was attributable to the main group Software and Cloud . Within this main group, revenue fell by 9% to EUR 6.4 million (previous year: EUR 7.0 million). As expected, revenue from the licenses and maintenance business fell by 43% to EUR 1.0 million (previous year: 1.8 million), whereas the Cloud and Subscription segment recorded slight growth of 3% to EUR 5.3 million (previous year: EUR 5.2 million). Service revenues declined as expected. In the first quarter of 2026, revenue in this segment amounted to EUR 1.6 million, down 27% on the previous year's figure of EUR 2.2 million. The decline in service revenue stems from the strategic decision to shift new projects to Intershop's partner network (Partner-First strategy). However, the acceptance of the complex major project in February 2026 had a positive impact on earnings in this area, with a noticeable improvement in the service margin compared to the previous quarters. The following overview shows the development of revenues: in EUR thousand Q1 2026 Q1 2025 Change Software and Cloud Revenues 6,357 6,963 -9% Licenses and Maintenance 1,035 1,802 -43% Licenses 11 75 -85% Maintenance 1,024 1,727 -41% Cloud and Subscription 5,322 5,161 3% Service Revenue 1,584 2,178 -27% Revenue total 7,941 9,141 -13% Europe remains the largest revenue-generating region for Intershop with a 72% share of total revenue (previous year: 71%) and revenues of EUR 5.7 million (previous year: EUR 6.5 million). This corresponds to a decrease of 12%. However, revenue in the strategically important Cloud segment increased by 11% to EUR 3.9 million (previous year: EUR 3.5 million). In the US region, Intershop recorded 18% lower revenue of EUR 1.5 million (previous year: EUR 1.9 million) - a share of 20% of total revenue (previous year: 21%). In the Asia-Pacific region as well, revenue declined by 14% to EUR 0.7 million (previous year: EUR 0.8 million). The region's share of revenue remained stable at 8%. Gross profit amounted to EUR 3.9 million in the reporting period (previous year: EUR 4.4 million). The gross margin rose slightly to 49% (previous year: 48%), as Intershop was able to reduce its cost of sales by 14% to EUR 4.1 million despite a 13% decline in sales. Operating expenses and income also fell significantly by 13% to EUR 3.8 million in connection with the systematic cost-cutting measures initiated in the previous year (previous year: EUR 4.3 million). Research and development costs fell by 11% and amounted to EUR 1.7 million (previous year: EUR 1.9 million). At EUR 1.3 million, sales and marketing expenses were 19% below the previous year's figure (previous year: EUR 1.6 million). General administrative expenses remained constant at EUR 0.8 million. Total costs, including cost of revenue and operating expenses/income, fell by a total of 14% to EUR 7.8 million (previous year: EUR 9.1 million). Intershop achieved positive earnings before interest and taxes (EBIT) of EUR 0.1 million in the first three months of 2026 and even slightly improved earnings compared to the previous year (EUR 73 thousand). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 0.9 million after EUR 0.8 million in the same period of the previous year. The earnings after taxes were almost balanced at EUR -18 thousand (previous year: EUR -68 thousand). Net Asset and Financial Position As at the interim balance sheet date on March 31, 2026, the Intershop Group's balance sheet total amounted to EUR 34.7 million and was therefore 4% higher than at the end of 2025 (EUR 33.3 million). On the assets side , non-current assets changed only insignificantly by EUR 0.2 million to EUR 19.4 million (December 31, 2025: EUR 19.7 million). Intangible assets decreased to EUR 12.0 million (December 31, 2025: EUR 12.2 million) due to scheduled amortization. Current assets, on the other hand, increased significantly by 12% to EUR 15.2 million (December 31, 2025: EUR 13.6 million). A reduction in trade receivables from EUR 3.5 million to EUR 2.8 million was primarily offset by an increase in cash and cash equivalents from EUR 8.8 million to EUR 10.9 million. Group Balance Key Figures March 31, 2026 Assets Liabilities Intangible assets Shareholders' equity Rights of use IFRS 16 Cash and cash equivalents Other Assets Liabilities to banks Leasing liabilities Other Liabilities 34.7 34.7 in EUR million Equity ratio: 35% On the liabilities side , equity at the end of the first quarter was EUR 12.0 million, the same level as on December 31, 2025. The equity ratio remained stable at 35% (December 31, 2025: 36%). Non-current liabilities fell by 3% to EUR 8.8 million (December 31, 2025: EUR 9.1 million), in particular due to the reduction in non-current liabilities to banks. Current liabilities increased by 13% to EUR 13.9 million (December 31, 2025: EUR 12.3 million). Contract liabilities in particular increased by EUR 2.2 million to EUR 6.6 million (December 31, 2025: EUR 4.3 million). 12.0 12.0 6.6 1.9 6.9 10.9 13.9 5.2 Cash flow from operating activities improved significantly in the first three months of the 2026 financial year and amounted to EUR 2.9 million after EUR -0.1 million in the same period of the previous year. The main reason for the cash inflow was the increase in contract liabilities due to advance payments from Cloud and maintenance contracts and the reduction in trade receivables. The cash outflow from investing activities amounted to EUR 0.3 million, as in the same period of the previous year. At EUR 0.5 million, the cash outflow from financing activities was also at the previous year's level and resulted from the repayment of loans and lease liabilities. Overall, cash and cash equivalents at the end of the first quarter of 2026 increased significantly by 25% compared to the end of 2025 to EUR 10.9 million (December 31, 2025: EUR 8.8 million). Employees As of March 31, 2026, the Intershop Group employed 222 full-time employees worldwide. Compared to the reporting date of December 31, 2025, this constitutes a slight decrease of two employees, although it represents a reduction of 40 employees as a result of the cost-cutting measures implemented in the past financial year. The following overview shows the breakdown of full-time employees by business unit. Employees by department* March 31, 2026 Dec. 31, 2025 March 31, 2025 Technical Departments (Service functions, Research and Development) 169 171 203 Sales and Marketing 29 29 35 General and administrative 24 24 24 222 224 262 *based on full time staff, including students and trainees As at the reporting date of March 31, 2026, 86% of the workforce (191 employees) were employed in Europe (March 31, 2025: 226 employees). The Asia-Pacific region accounted for 17 employees, corresponding to a share of 8% (March 31, 2025: 21 employees). The number of employees at the US subsidiary was 14 at the end of March, representing a share of 6% (March 31, 2025: 15 employees). Outlook The IMF is forecasting global economic growth of 3.1% for 2026. The outlook is therefore more pessimistic than expected at the beginning of the year (3.3%). The main reason for this is the war in Iran, which is increasing existing geopolitical uncertainties and putting considerable pressure on the global economy through its impact on the financial markets, supply chains and commodity prices. According to the forecast for 2026, the growth rate in industrialized countries remains at 1.8%. According to the current outlook, growth in the Eurozone will reach just 1.1% (January outlook: 1.3%). The IMF is now forecasting growth of 0.8% for Germany in 2026, after expecting growth of 1.1% in January. With regard to the information technology sector, analyst firm Gartner expects global IT spending to reach USD 6.2 trillion in 2026 - an increase of 10.8% compared to 2025. IT services will continue to account for the largest share of IT expenditure in 2026: Gartner is forecasting total expenditure of 1.9 trillion US dollars, which corresponds to an increase of 8.7%. According to Gartner, artificial intelligence, generative AI in particular, will continue to be a major driving force for capital expenditure. After a stable first quarter of 2026 with a slightly positive EBIT of EUR 0.1 million and predominantly improved Cloud key figures, Intershop is cautiously optimistic about the year as a whole despite the continued restrained new customer business and the associated reluctance to expend capital. However, there are still macroeconomic uncertainties, which are caused in particular by trade tensions and wars. The Spring Release 2026, planned for May, will be a decisive further step towards Agentic-B2B-Commerce. Intershop is transitioning from a pure platform provider to a strategic partner for the entire e-commerce unit of its customers - with a strong focus on process automation and cost savings. Against this backdrop, Intershop continues to expect incoming Cloud orders and net new ARR for the 2026 financial year to be at the previous year's level. With regard to revenues, a slightly lower percentage decline is still forecast compared to the previous year. Thanks to the improved cost base, Intershop expects a balanced operating result (EBIT). Jena, April 20, 2026 The Management Board of INTERSHOP Communications Aktiengesellschaft Markus Dränert Petra Stappenbeck Consolidated Balance Sheet in EUR thousand March 31, 2026 December 31, 2025 ASSETS Noncurrent assets Intangible assets 11,958 12,172 Property, plant and equipment 196 217 Rights of use IFRS 16 6,599 6,682 Other noncurrent assets 455 400 Restricted cash 159 159 Deferred tax assets 62 59 19,429 19,689 Current assets Trade receivables 2,840 3,478 Other receivables and other assets 1,456 1,392 Cash and cash equivalents 10,933 8,773 15,229 13,643 TOTAL ASSETS 34,658 33,332 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Subscribed capital 18,957 18,957 Capital reserve 2,957 2,957 Other reserves (9,908) (9,959) 12,006 11,955 Noncurrent liabilities Liabilities to bank 1,046 1,301 Leasing liabilities IFRS 16 5,924 6,008 Other noncurrent liabilities 1,819 1,785 8,789 9,094 Current liabilities Other current provisions 705 1,039 Liabilities to banks 890 890 Trade accounts payable 1,867 2,245 Contract liabilities 6,584 4,344 Income tax liabilities 18 9 Leasing liabilities IFRS 16 995 991 Other current liabilities 2,804 2,765 13,863 12,283 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 34,658 33,332 Consolidated Statement of Comprehensive Income Three months ended March 31, in EUR thousand 2026 2025 Revenues Software and Cloud Revenues 6,357 6,963 Service Revenues 1,584 2,178 7,941 9,141 Cost of revenues Cost of revenues - Software and Cloud (2,762) (2,879) Cost of revenues - Services (1,303) (1,848) (4,065) (4,727) Gross profit 3,876 4,414 Operating expenses, operating income Research and development (1,652) (1,851) Sales and marketing (1,324) (1,626) General and administrative (762) (790) Other operating income 64 61 Other operating expenses (101) (135) (3,775) (4,341) Result from operating activities 101 73 Interest income 11 27 Interest expense (114) (119) Financial result (103) (92) Earnings before tax (2) (19) Income taxes (16) (49) Earnings after tax (18) (68) Other comprehensive income: Exchange differences on translating foreign operations 69 (52) Other comprehensive income from exchange differences 69 (52) Total comprehensive income 51 (120) Earnings per share (EUR, basic, diluted) 0.00 0.00 Consolidated Statement of Cash Flows Three months ended March 31, in EUR thousand 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Earnings before tax (2) (19) Adjustments to reconcile net profit/loss to cash used in operating activities Financial result 103 92 Depreciation and amortization 821 767 Changes in operating assets and liabilities Accounts receivable 668 (310) Other assets (131) (150) Liabilities and provisions (716) (1,126) Contract liabilities 2,221 714 Net cash provided by (used in) operating activities before income tax and interest 2,964 (32) Interest received 11 27 Interest paid (64) (90) Income taxes received 29 0 Income taxes paid (13) (48) Net cash provided by (used in) operating activities 2,927 (143) CASH FLOWS FROM INVESTING ACTIVITIES Payments for investments in intangible assets (293) (235) Proceeds on disposal of equipment 3 0 Purchases of property and equipment (21) (21) Net cash provided by (used in) investing activities (311) (256) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of loans (255) (124) Payments for leasing liabilities (271) (334) Net cash provided by (used in) financing activities (526) (458) Effect of change in exchange rates 70 (49) Net change in cash and cash equivalents 2,160 (906) Cash and cash equivalents, beginning of period 8,773 8,695 Cash and cash equivalents, end of period 10,933 7,789 Consolidated Statement of Shareholders' Equity in EUR thousand (Number shares) capital reserve reserve profit/ loss currency differences shareholders' equity Balance, January 1, 2026 18,956,975 18,957 2,957 (93) (11,599) 1,733 11,955 Total comprehensive income (18) 69 51 Balance, March 31, 2026 18,956,975 18,957 2,957 (93) (11,617) 1,802 12,006 Balance, January 1, 2025 14,582,291 14,582 3,030 (93) (8,379) 1,841 10,981 Total comprehensive income (68) (52) (120) Balance, March 31, 2025 14,582,291 14,582 3,030 (93) (8.447) 1,789 10,861 Common shares Subscribed Capital Conversion Other reserves Cumulative Cumulative Total Intershop Shares Stock Market Data on Intershop Shares ISIN DE000A254211 WKN A25421 Stock market symbol ISHA Admission segment Prime standard/Regulated market Sector Software Membership of Deutsche Börse indices CDAX, Prime All Share, Technology All Share Investor Relations Contact INTERSHOP Communications AG Steinweg 10 07743 Jena Germany Phone +49 3641 50 1000 E-Mail [email protected] https://www.intershop.com

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