Original-Research: Netfonds AG (von NuWays AG): BUY

Classification of NuWays AG to Netfonds AG

Company Name:	Netfonds AG
ISIN:	DE000A1MME74
Reason for the research:	Preview / Review
Recommendation:	BUY
from:	19.12.2025
Target price:	EUR 74.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Frederik Jarchow

Solid Q3 figures; Guidance confirmed; chg

Netfonds reported solid Q3 figures with higher topline but softer than anticipated bottom line. Further,the company appointed Christian Hammer to the Management Board and prolonged the contracts ofMartin Steimeyer and Peer Reichelt. In detail:

Gross sales came in at record € 70.4m (+25% yoy), above our estimate of € 67m, mainly driven bythe ongoing positive AuA development, reaching € 30.75bn at the end of September (vs. € 27.2bn in9M´24), driven by further inflows and solid market performance. On the back of the strong AuAdevelopment and the typical delayed revenue recognition, we expect even higher Q4 sales. Asmaterial expenses of € 58m remained rather stable (82% relatively to gross sales vs. 81.4% in H1),net sales came in at € 12.7m (+23% yoy), slightly above our estimates of € 12.4m (eNuW).

EBITDA stood at € 2.1m (+11% yoy), below our estimate of € 3.1m. We assume that personnelexpenses should have increased to € 6.5m (eNuW: +12% yoy) and other OPEX to € 4.0m (eNuW:+54% yoy). EBT came in at € 0.8m (vs. € 1.2m in Q3´24 vs eNuW: € 1.8m) with D&A that shouldhave remained stable (eNuW: € 1.2m) and a financial result that was burdened by the interestpayment for the bond (eNuW: € 0.1m).

Importantly, especially the ongoing strong AuA development serves as an indicator for future growththat should already start to materialize in Q4. Knowing that the more profitable AuM´s are growingmore dynamically, EBITDA margins should expand further. Hence, we still see the company well ontrack to reach its FY25 guidance. Mind you, Q4 is usually the strongest and most profitable quarter.
Thanks to its proprietary 360° finfire platform, Netfonds should enjoy the typical scale effects of agrowing platform business.

Moreover, finfire is seen to fuel the consolidation of the insurancebroker market that is, in contrary to the investment adviser market, still highly fragmented. Goingforward, we see growth in this segment stemming from three sources, 1) direct customer wins, 2)acquisitions and 3) cooperation with large insurance portfolio holders that could potentially use awhitelabel version of the platform.

Despite the fact that the last growth layer is rather speculative, we continue to consider finfire beingthe group’s key mid- to long-term growth and scalability driver. For FY25, we now expect € 273mgross sales, € 53.8m net sales and an EBITDA of € 12.7m, which is in line with or even above the guidance of € 260-270m gross sales, € 52.5-54m net sales and an EBITDA of € 12-13.5m
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In order to further support growth going forward, Netfonds appointed Christian Hammer to theManagement Board. Christian Hammer served more than 13 years as management director of NFSNetfonds. Under his leadership, NFS Netfonds has developed into Germany's largest bank-independent liability umbrella in the industry. Further Netfonds prolonged the contracts of MartinSteimeyer and Peer Reichelt. For us the appointment as well as the prolongations symbol thecontinuation of the growth of the last years.

BUY with a unchanged PT of € 74.00 , based on DCF.

You can download the research here: netfonds-ag-2025-12-19-update-en-ae144
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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