Intershop Communications AG reported a positive operating result for the first nine months of 2026, a significant turnaround from the previous year's loss, as aggressive cost-cutting measures offset a decline in overall revenues. The company's earnings before interest and taxes (EBIT) reached EUR 0.2 million, compared to EUR -1.4 million in the same period of 2025. This marks the third consecutive quarter with a positive operating result, signaling a stable recovery that began at the end of 2025.
While total revenues fell to EUR 23.4 million from EUR 25.2 million, the decline was expected as part of the company's strategic shift toward cloud-based offerings. Cloud revenues grew by 2% to EUR 15.7 million and now account for 67% of total revenues, up six percentage points year-over-year. More importantly, incoming cloud orders surged by 29% to EUR 14.2 million, with new customers contributing EUR 3.7 million and existing customers EUR 10.5 million. This growth in cloud orders indicates strengthening demand for Intershop's agentic B2B commerce solutions despite a subdued investment climate.
The company's cost discipline was evident across all expense categories. Total expenses, including cost of revenues and operating expenses, declined by 13% to EUR 23.2 million. Research and development expenses fell by 6% to EUR 5.1 million, sales and marketing costs decreased by 10% to EUR 4.2 million, and general administrative expenses dropped to EUR 2.2 million. These reductions, initiated in the previous year, have significantly improved the company's cost base and contributed to the positive EBIT.
Cloud annual recurring revenues (ARR) stood at EUR 20.3 million as of 30 September 2026, up 3% year-over-year. New ARR rose by 27% to EUR 2.1 million. Net new ARR showed a clear upward trend, rising to EUR 0.5 million in the third quarter from EUR 0.2 million in the second quarter. CEO Markus Dränert commented, "Nine months into the year, the positive trend seen in the first two quarters continues: our consistent cost discipline is paying off, we have once again generated positive EBIT, and we are on track to meet our full-year targets."
Cash flow from operating activities improved significantly to EUR 3.6 million from EUR 1.6 million, and cash and cash equivalents increased to EUR 9.6 million. The equity ratio rose slightly to 37%. Intershop confirmed its forecast for the full year 2026, expecting incoming cloud orders and net new ARR at the previous year's level, a slightly smaller percentage decline in revenues, and a balanced operating result. The quarterly statement is available at https://www.intershop.com/financial-reports. The original release can be viewed on www.newmediawire.com.
