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Original-Research: THE NAGA GROUP AG - from NuWays AG

19.12.2025 / 09:31 CET/CEST

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

Group.

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Classification of NuWays AG to THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG

ISIN: DE000A41YCM0

Reason for the research: Preview / Review

Recommendation: BUY

from: 19.12.2025

Target price: EUR 9.50

Target price on sight of: 12 month

Last rating change:

Analyst: Frederik Jarchow

Guidance cut due to subdued market conditions; chg

Earlier this month, NAGA cut its FY25 guidance as a result of ongoing

subdued market conditions.Further, the company announced the implementation

of a reverse stock split. Here is what isimportant:

NAGA cut its sales outlook to EUR 62-66m from EUR 74m previously (vs EUR 63m in

FY24). We hadalready anticipated a shortfall of the guidance (eNuW old: EUR

70m), but the magnitude was a bitsurprising. The main reason for the muted

outlook was according to management the persistently lowvolatility

throughout 2025. Mind you, that volatility is usually the main driver of

number of transactionsand hence volumes. Due to the ongoing low volatility,

number of transaction fell short of expectationsand should now come in at

only 7.6m (eNuW; vs 7.6m in FY24 vs eNuW old: 8.3m). Assuming thatrevenue

per transaction remain rather stable, we now expect sales to come in at EUR

64m.

EBITDA guidance is cut to EUR 3-6m from EUR 12m (vs. eNuW old: EUR 10m, vs EUR 8m in

FY24). Positively, the cost base remained stable and largely aligned with

planned strategic initiatives within 2025.Hence, EBITDA is primarily

affected by the adjusted sales guidance.

Initially, we had expected meaningful growth in 2025 after the transition

year 2024 was mainlycharacterized by integration, automation and efficiency

processes. This expectation was based onthe restart of the company's growth

engine in early 2025, supported by measures such as thecooperation with BVB

(Q4'24) and with Mike Tyson in (Q1'25). Still, we expect the measure

bearingfruit once volatility is normalizing again. Nevertheless and in order

to take a conservative stance, weslightly trimmed our estimates also for

FY26 to EUR 70m in sales (vs eNuW old: EUR 79m) and to EUR 9.5m inEBITDA (vs eNuW

old: EUR 14.9m).

In addition to the guidance cut, management implemented a reverse stock

split at a ratio of 10:1. Given that the share price had fallen well below EUR

1, this step was appropriate to bring the share priceback into a more

„normal“ range. A higher nominal share price should also help improve

marketperception and liquidity. Moreover, with the share price now above EUR

1, capital measures are onceagain technically possible.

BUY with a reduced PT of EUR 9.50 based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=855feca6c1d386b4d74b425222028fa6

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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2249114 19.12.2025 CET/CEST

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