Freenet AG NA shares rose 3.14% to €25.97 today after the company posted first-quarter 2026 results that surpassed analyst expectations on several fronts. Management reported better-than-forecast outcomes for adjusted EBITDA, gross profit and adjusted free cash flow, and maintained its full-year outlook for both profitability and free cash flow.
On the headline profitability measure, adjusted EBITDA for Q1 2026 was €122 million, above the median analyst estimate of €119.8 million. The executive board reiterated its guidance for fiscal 2026 adjusted EBITDA in a range of €500 million to €530 million, and confirmed a target for adjusted free cash flow of €270 million to €300 million for the year.
Revenue expansion was attributed to two operational drivers cited by the company: the integration of Mobilezone Deutschland and continued IPTV customer acquisition. Gross profit reached €242 million in the quarter, outpacing the €232 million median forecast from analysts. Adjusted free cash flow totaled €85.7 million, materially above the €64.7 million consensus median and up from a restated €77.6 million in the same period a year earlier.
Customer metrics illustrated the company's growth mix. Freenet added 29,000 postpaid customers during the quarter, and reported an increase of 182,000 postpaid contracts in its reselling business. The company noted that it is deliberately managing growth with an emphasis on margin preservation.
The IPTV business was highlighted as a standout performer. The waipu.tv unit delivered a 49.0% rise in adjusted EBITDA, a contribution the company said supported favourable movements in working capital and underpinned the strong free cash flow outcome for the quarter.
The backdrop for the report was a softer German equity market. The DAX index fell 1.04% to 24,201 points, while the MDAX declined 1.31% to 31,476 points. The market decline was described as being weighed down by elevated oil prices, profit-taking in technology shares, and investor concern over rising interest rates and inflation. In that context, Freenet's share gain stood out against broader sector selling pressure.
In sum, the quarter combined solid operational cash generation with outperformance relative to median analyst forecasts and a reaffirmation of full-year targets. The company pointed to integration activity and IPTV customer growth as the primary contributors to the quarter's revenue and cash flow strength, while also signalling an active approach to managing the balance between subscriber growth and margin protection.
Data points from the quarter:
- Adjusted EBITDA: €122 million (vs. median estimate €119.8 million)
- Full-year adjusted EBITDA guidance: €500 million - €530 million
- Full-year adjusted free cash flow guidance: €270 million - €300 million
- Gross profit: €242 million (vs. median €232 million)
- Adjusted free cash flow: €85.7 million (vs. median €64.7 million; prior-year restated €77.6 million)
- Net additions: 29,000 postpaid customers; 182,000 postpaid reselling contracts
- IPTV - waipu.tv adjusted EBITDA increase: 49.0%
- German market indices: DAX -1.04% to 24,201; MDAX -1.31% to 31,476