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Original-Research: Netfonds AG - from NuWays AG

05.09.2025 / 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 Netfonds AG

Company Name: Netfonds AG

ISIN: DE000A1MME74

Reason for the research: Update

Recommendation: BUY

from: 05.09.2025

Target price: EUR 74.00

Target price on sight of: 12 month

Last rating change:

Analyst: Frederik Jarchow

Softer Q2 figures, but on track to reach the guidance

Last week, Netfonds reported mixed Q2 figures with softer than expected top-

and bottom line. Positively, OPEX remained rather stable yoy. In detail:

Gross sales came in at EUR 57.8m (2% yoy), below our estimate of EUR 64.2m,

despite a very positive AUA development reaching EUR 30bn end of July (vs EUR

28.3bn in FY24), driven by further inflows and solid market performance. The

topline decline can partially be explained by delayed revenue recognition in

Q2 that should be visible in higher Q3 sales. Positively, material expense

should have declined in absolute numbers and remained stable relatively to

sales at 81.5% (vs 81.4% in Q1´25) resulting in net sales of EUR 10.7m (-2%

yoy vs eNuW: EUR 11.9m).

EBITDA stood at EUR 2.0m (-3% yoy), below our estimate of EUR 2.7m, and Q1

figures of EUR 2.8m, mainly driven by the softer topline development. That

said, personnel expenses should have remained rather stable at EUR 6.0m (eNuW,

2% yoy) and other OPEX should have even declined to EUR 2.7m (eNuW, -10% yoy,

-16% qoq vs eNuW old: EUR 3.2m). EBT should have come in at EUR 0.9m (vs EUR 1.4m

in Q2´24 vs eNuW: EUR 1.6m) with D&A that should have remained stable (eNuW: EUR

1.2m) and a financial result that was burdened by the interest payment for

the bond (eNuW: EUR -0.2m).

In a nutshell, Q2 was not as strong as anticipated, but nothing to be

worried about. Especially the ongoing strong AuA development serves as an

indicator for future topline growth that should already start to materialize

in Q3 . Knowing that the more profitable AuM´s are growing more dynamically,

EBITDA margins should expand further. Hence, we still see the company well

on track to reach its FY25 guidance.

As the anticipated growth should be strongly supported by Netfond

proprietary 360° finfire platform, Netfonds should additionally enjoy the

typical scale effects of a growing platform business. Moreover, finfire i

seen to fuel the consolidation of the insurance broker market that is, in

contrary to the investment adviser market, still highly fragmented.

Prospectively, we not only see growth in this segment stemming from direct

customer wins and acquisitions, but also from cooperation with large

insurance portfolio holders that could potentially use a whitelable version

of the platform. Despite the fact that the last growth layer is rather

speculative, we nevertheless continue to consider finfire to remain the

Groups key mid- to long-term growth and scalability driver.

For FY25 we now expect EUR 268m gross sales, EUR 53.8m net sales and an EBITDA

of EUR 12.6m, which is in line with the guidance of EUR 260-270m gross sales, EUR

52.5-54m net sales and an EBITDA of EUR 12-13.5m. Both, guidance and our

estimates can be considered as conservative and with room for an update

until eoy.

BUY with a reduced PT of EUR 74.00 (old: EUR 78.00), based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=b7f7962f658b95c24ec61e75110beff4

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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2193432 05.09.2025 CET/CEST

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