Original-Research: q.beyond AG (von NuWays AG): BUY

Classification of NuWays AG to q.beyond AG

Company Name:	q.beyond AG
ISIN:	DE0005137004
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 1.3
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Margin trajectory intact heading into FY26

As QBY approaches FY26, the company is leaving the most demanding phase of its multi-year transformation behind. The past year has been shaped by a clear prioritization of profitability and cash generation over top-line growth. A strategy, that is seen to continue to deliver tangible results despite an unchanged challenging demand environment.

That said, Q3 as the latest reported quarter proved to be operationally weaker with sales sequentially down amid cautious customer spending. Yet, this did not derail the broader trajectories, in our view. Thanks to sustained cost discipline, improved consulting utilization and a better mix, operating EBTIDA (adj. for positive tax assessment in Q3 of € 2.6m) still came in positive at € 0.4m (1% margin). Importantly, management reiterated that the FY25 outlook of € 184-190m sales (eNuW: € 184m), € 12-15m EBITDA (eNuW: € 12.1m) as well as positive net income (eNuW: € 1.0m) and FCF (€ 1.3m) remains intact.

Overall, FY25 thus for has demonstrated a resilient business model with 9m EBITDA standing at € 8.1m (6.0% margin), supported by a high share of recurring revenues of c. 70%, long contract durations and low churn of around 5%. At the same time, the organization became leaner and more focused, while the near- and off-shoring ratio increased to 18% (Q3’25), providing a structural margin tailwind.

Looking ahead, FY26 should mark a gradual normalization phase. With most portfolio clean-up measures completed and utilization further stabilizing, sales are set to return to moderate growth (eNuW: +7% yoy). This is supported by easing macro headwinds, rising demand for cloud, security and AI-enabled services and a further progressing near- and off-shoring ratio towards the mid-term target of 30%.

In parallel, profitability remains the key upside lever. Operating leverage from the streamlined cost base, combined with mix improvements, are set to lead to further expanding EBITDA margins in in FY26e (eNuW: 8.4%). With a net liquidity position of € 35m and no financial debt, QBY moreover retains the necessary flexibility to execute on targeted M&A deals. In fact, we expect at least one acquisition to be announced this year. As communicated before, management is putting an eye on the energy and healthcare sectors, aiming to add new verticals.

Besides that, in December management and supervisory board decided to convene an EGM on 30 January, where a reverse stock split in the a ratio of 5:1 will be proposed. A sensible measure in our view, as it will sustainably lift the share price above € 1.00, thus eliminating penny stock status and thus improve perception.

Overall, while Q3 highlighted continued demand volatility, the investment case remains fully intact, as centered on margin expansion, cash generation and valuation. That said, share continue to trade on highly undemanding levels of 4.0x EV/EBITDA FY25e (2.7x FY26e). We hence reiterate BUY with an unchanged PT of € 1.30 based on DCF.
 

You can download the research here: qbeyond-ag-2026-01-09-update-en-eadd6
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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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