Freenet shares fell 11% after missing Q4 expectations across key metrics
The company's 2026 guidance fell short of market expectations despite revenue growth projection
Management cited 'conservative accounting' related to a Mobile Network Operator agreement as a major factor
Despite weak near-term outlook, Freenet raised its mid-term 2028 targets for EBITDA and free cash flow
📖 Full Retelling
Freenet shares slumped approximately 11% on Thursday, February 26, 2026, after the German telecom group reported weaker-than-expected fourth quarter results and issued 2026 guidance that fell short of market expectations, overshadowing an upgrade to its medium-term targets. For the fourth quarter, revenue came in at €612 million, down 3.3% versus consensus, while gross profit of €236 million missed expectations by 7.5%. Adjusted EBITDA of €120 million was 6.7% below forecasts, and free cash flow of €66 million undershot projections by 16%. The revenue shortfall was primarily driven by the less relevant 'other mobile' segment, with management attributing the EBITDA miss to 'conservative accounting' related to a Mobile Network Operator agreement, which had a €12.9 million negative impact and remains 'subject to discussions.' Looking ahead to fiscal 2026, while Freenet guided for 'significant growth' in revenue, its adjusted EBITDA guidance of €500 million to €530 million sits below the €547 million consensus, incorporating approximately €50 million headwind from the same MNO contract. Despite the soft near-term outlook, Freenet lifted its mid-term ambitions, now targeting adjusted EBITDA of at least €620 million and free cash flow of at least €340 million by 2028.
🏷️ Themes
Telecom performance, Market expectations, Business strategy
Peer-to-peer Internet platform for censorship-resistant communication
Hyphanet (until mid-2023: Freenet) is a peer-to-peer platform for censorship-resistant, anonymous communication. It uses a decentralized distributed data store to keep and deliver information, and has a suite of free software for publishing and communicating on the Web without fear of censorship. Bo...
A mobile network operator (MNO), also known as a mobile network provider, mobile network carrier, mobile , wireless service provider, wireless carrier, wireless operator, wireless telco, or cellular company, is a telecommunications provider of services that sells, delivers and maintains mobile telep...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold just higher ahead of U.S.-Iran nuclear talks Nvidia shares edge up as cash return questions remain despite revenue outlook beat Nvidia, Salesforce earnings; U.S.-Iran nuclear talks - what’s moving markets Nasdaq ends more than 1% higher as Nvidia rises pre-earnings, tech extends rebound (South Africa Philippines Nigeria) Freenet shares sink 11% after significant Q4 miss, weak 2026 outlook By Vahid Karaahmetovic Author Vahid Karaahmetovic Earnings Published 02/26/2026, 05:08 AM Freenet shares sink 11% after significant Q4 miss, weak 2026 outlook 0 FNTGn -9.69% Investing.com -- Freenet shares slumped around 11% on Thursday after the telecom group reported a weak fourth quarter and issued 2026 guidance that fell short of market expectations, overshadowing an upgrade to its medium-term targets. Get timely alerts on market-moving news with InvestingPro For the fourth quarter, revenue came in at €612 million, down 3.3% versus consensus, according to Bernstein. Gross profit was €236 million, missing the consensus by 7.5%, while adjusted EBITDA of €120 million was 6.7% below expectations, the broker highlighted. Free cash flow of €66 million undershot forecasts by 16%. The revenue shortfall was mainly driven by the less relevant “other mobile” segment. Management said EBITDA was affected by “conservative accounting” related to a Mobile Network Operator agreement, which had a €12.9 million negative impact and remains “subject to discussions.” "Without this item, group EBITDA would be 3.3% ahead of consensus," Bernstein analyst Ulrich Rathe said. Looking ahead, the company guided for “significant growth” in fiscal 2026 (FY26) revenue. However, adjusted EBITDA guidance of €500 million to €530 million sits below the €547 million consensus, while free cash flow of €270 million to €300 million compares with €306 million expected. The outlook incorporates an approximately €50 million headwind from the same MNO contract...
