IONOS Group SE ended H1 2025 with a strong economic performance. Revenue reached €895m, up +19.1% y-o-y. Even better, adjusted EBITDA jumped 23.3% to €268.7m, representing an operating margin of 30.0%, compared with 29.0% a year earlier. The company thus continues to demonstrate a rare balance between growth and profitability. These results confirm Ionos' momentum in the digitalization of European SMEs, its core customer base. The user base grew by 150,000 customers over the half-year, reaching 6.47 million as of June 30, 2025, compared to 6.32 million six months earlier. In a context where digital transformation remains a strategic priority for microbusinesses and SMEs, the company's strong foothold in this segment is a source of recurring, resilient and scalable revenue.
Digital Solutions & Cloud: the powerhouse continues to deliver
The group's core business (the Digital Solutions & Cloud division) generated revenue of €656m in H1, up 7.0% (or 7.4% excluding intercompany revenue). This segment alone accounts for 73% of consolidated revenue. It encompasses two sub-activities: Web Presence & Productivity solutions and public/private cloud offerings. The profitability of this division is impressive: adjusted EBITDA of €236.9m, up +20.7%, representing a margin of 36.1%, compared with 32.0% a year earlier. This improvement is due to both healthy organic growth and enhanced cost discipline. Momentum remains particularly strong in Europe, where Ionos has dominant positions (No. 1 or No. 2 in six key markets) and generates approximately $130m in annual revenue in North America.
Note: the Cloud Solutions division alone posted revenues of €90m (10% of the total), representing strong growth. Ionos indicates that this business will be profitable within a year, with margins currently being reinvested in growth.
AdTech: the risky bet that is starting to pay off
The AdTech segment (formerly Aftermarket), historically more volatile, is now emerging as a powerful growth driver. Its revenues exploded by +72.7% y-o-y to €239m in H1 2025 (compared to €138.4m in H1 2024). Although starting from a low base, this performance reflects the success of an accelerated product transition, particularly towards the RSOC model, which is continuing in the second half of the year. In terms of profitability, the contrast remains stark: the EBITDA margin was only 13.3% for the half-year, reflecting the low maturity of this segment. However, the outlook is positive. Management anticipates stable revenue in H2, resulting in a total of €400m for the year. In the medium term, AdTech's new positioning could generate growth drivers with strong operational leverage.
Quarterly momentum remains strong
The second quarter confirmed the upward trend. Revenue amounted to $448.7m, up 18.5% compared to Q2 2024. Adjusted EBITDA rose by 22.8% to €137.7m, representing a margin of 30.7%, an improvement of 110bp. The performance was driven by Digital Solutions & Cloud, which generated revenue of €326.4 million (+6.7%) with a significantly higher EBITDA margin of 38%. AdTech recorded a spectacular jump of +68.3% to €122.3m, although its profitability remained down (margin of 11.1% vs. 12.8% in Q2 2024).
A growing customer base generating more revenue
Beyond the accounts, the operational fundamentals are just as solid. The company recorded 150,000 new customers over six months, with steady growth in average revenue per user (ARPU), which reached $6.47/month at the end of June 2025, compared to $6.32 six months earlier. Churn remains very low (~1% per month), reflecting good customer retention. The cross-selling and up-selling strategy is paying off: the combined growth of the user base and ARPU, at +3% and +5% CAGR respectively, validates the group's recurring model. The number of customers continues to rise, while the value of each customer is increasing.
Strong cash flow growth and enhanced strategic visibility
Adjusted free cash flow reached €168m in H1 2025, compared with €151m a yearIonosI
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