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Original-Research: g.beyond AG - from NuWays AG

12.08.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to g.beyond AG

Company Name: g.beyond AG

ISIN: DE0005137004

Reason for the research: Update

Recommendation: BUY

from: 12.08.2025

Target price: EUR 1.30

Target price on sight of: 12 month

Last rating change:

Analyst: Philipp Sennewald

Q2 results display continuous operational improvements; chg.

Yesterday, q.beyond released its Q2/H1 report, showing ongoing operational

improvements with adj. sales growth of 2% and as well as significant margin

improvements. In detail:

Q2 '25 sales increased by 2% (adj.) yoy to EUR 44.4m, while the reported yoy

change was -6.1% following the communicated accounting change this year in

accordance with IFRS 15. As in Q1, this was again driven by the Consulting

segment, which showed 12.0% yoy sales growth to EUR 15.2m. This came with a

further improved profitability, visible in the segment's 15.0% gross margin

(+8.3pp yoy) following an increased near- and off-shoring ratio of 17% (+5%

yoy; FY25 target: 20%) as well as an improved utilization. Reported Managed

Services sales on the other hand decreased 14.9% yoy to EUR 22.8m mainly due

to the aformentioned accounting change. Yet, the segment margin rose to

22.1% (+1.4pp yoy) resulting in an overall gross margin of 19.7% (+3.0pp

yoy; EUR 8.7m gross profit).

On this basis, Q2'25 EBITDA increased disproportionately by 24.2% yoy to EUR

2.7m thanks to ongoing operating leverage, efficiency gains and despite

one-offs connected with internal projects (SAP integration, new time

recording system; total FY25e costs: EUR 1m).

Next to the operating results, QBY announced that it has received the fund

from the Plusnet transaction (EUR 8.6m), which were directly reinvested to

reduce trade payables and other liabilities. On this basis, a FCF figure

that can act as a comparable is hard to find due to this one-off. Mind you,

QBY will have to pay c. EUR 3.6m taxes during the remainder of FY25 in

connection with the transaction.

Guidance confirmed. Against the backdrop of the sound release management

confirmed the FY outlook of EUR 184-190m sales, EUR 12-15m EBITDA as well a

sustainably positive net income and FCF, which appears totally sensible in

our view given the release as well as the seasonally strong Q4 still ahead.

M&A pending. CEO Rixen reiterated that QBY is currently in advanced

negotiations for a potential M&A deal which is likely to by modeled like the

logineer transaction (e.g. JV with industry partner). The CEO further

underscored that targets should be in the EUR >10m and 10% EBITDA margin

ballpark. In our view, it is also likely that targets will increase public

sector exposure (i.e. energy, healthcare). Mind you, that future M&A is not

included in our calculations.

Reiterate BUY with an unchanged PT of EUR 1.30 based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=b43a362528311ea67cc8e025f3ccee5e

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2182500 12.08.2025 CET/CEST

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