q.beyond AG

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Original-Research: q.beyond AG - from NuWays AG

28.10.2025 / 09:00 CET/CEST

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Classification of NuWays AG to q.beyond AG

Company Name: q.beyond AG

ISIN: DE0005137004

Reason for the research: Update

Recommendation: BUY

from: 28.10.2025

Target price: EUR 1.3

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Q3 preview: Expect margin expansion despite macro headwinds

QBY will release its Q3 results on November 11. We expect continued

macroeconomic pressure to weigh on topline growth, while efficiency measures

should again drive a clear improvement in margins. In detail:

Q3 sales are seen at EUR 44.3m (eNuW), reflecting a still muted demand

environment in German IT Services. Segment-wise, Managed Services sales are

expected flat yoy on an adj. basis at EUR 29.0m (eNuW), as customers continue

to postpone modernization projects. Positively, Consulting revenues are seen

at EUR 15.4m (eNuW), a further sequential improvement qoq, based on improving

utilization and increasing near-shore quotas. Despite soft revenues, we

expect another step-up in margins. With the ongoing one.QBY program,

management continues to optimize structures, leverage near- and off-shoring

(eNuW: 18% vs. 14% a year ago), and implement AI-based efficiency tools. We

therefore forecast a Q3 EBITDA of 3.1m, implying a margin of 7.1% (+2.5pp

yoy).

On this basis, management is seen to confirm the FY25 outlook of EUR 184-190m

sales (eNuW: EUR 185m), EUR 12.15m EBITDA (eNuW: EUR 13.7m), as well as positive

net income (eNuW: EUR 1m) and FCF (eNuW: EUR 7.4m).

All in all, Q3 should underline the effectiveness of ongoing efficiency and

automation measures while highlighting QBY's resilience in a still

challenging market. In our view, the positive margin trend confirms

management's focus on profitable growth rather than pure scale. With macro

headwinds likely persisting into Q4, we view QBY's disciplined cost approach

and high share of recurring revenues (c. 75%) as key stabilizers.

Beyond near-term operations, M&A remains a key value driver. With c. EUR 40m

net cash (incl. leases), QBY has ample flexibility as management is

screening targets of EUR 10-20m sales and double-digit margins, mainly in

energy, healthcare, cybersecurity, and AI. Such acquisitions would broaden

the vertical footprint and strengthen capabilities in high-demand (i.e.

data-sovereign digital solutions). While no deal is expected before YE25,

H1'26 could bring tangible newsflow, adding upside optionality to our

estimates.

Valuation x-read. A further positive read-across stems from Allgeier's sale

of its IT-Managed Services unit to Synova, valued in the "upper double-digit

million euro range". As this should translate to at least EUR 75m EV (eNuW),

the implied sales multiple would be 1.5x. Applying this to QBY's EUR 124m

Managed Service sales in FY25 (eNuW) and even considering a 20% discount

given possibly lower margins (data centre utilization currently at c. 70% at

QBY), would imply an EV of c. EUR 150m. This poses a significant upside to the

company's total current EV of only EUR 72m, thus underscoring the current

undervaluation of the shares.

Based on this, we confirm QBY as part of our AlphaList and keep our

recommendation unchanged: BUY, EUR 1.30 PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=d7ea0eb17c57aa764c01f0f273f0de97

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 Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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