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Introduction & Market Context
TeamViewer AG (ETR:TMV) presented its Q2/6M 2025 results on July 29, 2025, highlighting continued growth in its Enterprise segment and improved profitability despite ongoing macroeconomic challenges. The company’s stock closed at €9.22 on July 28, showing a decline from earlier in the year when it traded around €13.37 following Q1 results.
The remote connectivity and digital workplace solutions provider maintained its full-year guidance, expressing confidence in accelerated growth during the second half of 2025 despite persistent market uncertainties and U.S. headwinds affecting customer decision-making.
Quarterly Performance Highlights
TeamViewer reported solid Q2 2025 results with revenue reaching €190.7 million, representing a 5% year-over-year increase (6% in constant currency). The company achieved an impressive 17% growth in Adjusted EBITDA to €84.0 million, with margin expanding to 44%, up 4 percentage points from the previous year.
As shown in the following comprehensive overview of Q2 highlights, the company maintained double-digit growth in its Enterprise segment while delivering strong profitability:
The Enterprise segment continued to be the primary growth driver, with revenue increasing by 13% (15% in constant currency) to €58.7 million. Enterprise Annual Recurring Revenue (ARR) grew by 13% to €227.1 million, demonstrating the company’s success in targeting larger customers.
Regional performance showed EMEA as the strongest contributor to revenue growth, as illustrated in this geographical breakdown:
EMEA led with €99.8 million in revenue (+8% YoY), while the Americas generated €72.7 million (+3% YoY, +5% in constant currency) and APAC contributed €18.2 million (+3% YoY, +4% in constant currency). The slower growth in the Americas was attributed to macroeconomic headwinds affecting the U.S. market.
Detailed Financial Analysis
TeamViewer’s Enterprise segment showed robust growth across all ARR value ranges, with particularly strong performance in the €10,000-50,000 ARR (+16% cc) and €>50,000 ARR (+24% cc) categories. The company also reported a net upsell from SMB to Enterprise of €16.8 million.
The following chart illustrates the continued growth across Enterprise ARR value ranges:
The SMB segment delivered a stable performance with revenue of €132.0 million, up 2% year-over-year (3% in constant currency). However, SMB ARR growth slowed to 1% and customer churn increased slightly to 15.6% compared to 14.6% in Q2 2024.
TeamViewer’s quarterly financial trends demonstrate consistent revenue performance and margin expansion:
The company’s profitability metrics showed significant improvement, with Adjusted EBITDA increasing by 17% year-over-year to €84.0 million. This resulted in an Adjusted EBITDA margin of 44%, up 4 percentage points from Q2 2024.
The following breakdown highlights the key financial metrics for Q2 2025:
Adjusted earnings per share increased by 19% to €0.28, driven by strong operational performance. The company also reported a solid Levered Free Cash Flow (FCFE) conversion of 71% in Q2, though pre-tax FCFE decreased by 13% due to higher interest payments related to the 1E acquisition.
Strategic Initiatives
TeamViewer continues to make progress on integrating 1E, a digital employee experience (DEX) company acquired earlier. The integration follows a structured timeline with key milestones for cross-selling, go-to-market readiness, and technology infrastructure harmonization.
A significant achievement highlighted in the presentation is TeamViewer’s recognition as a Leader in the 2025 Gartner (NYSE:IT) Magic Quadrant for Digital Employee Experience (DEX) Management Tools. The company showcased its expanded DEX capabilities through TeamViewer DEX Essentials and TeamViewer ONE platform:
TeamViewer is also enhancing its product portfolio with AI-powered features, including TeamViewer CoPilot for IT troubleshooting and Session Insights for improved connection management and control:
The company’s deleveraging efforts have shown progress, with the pro forma net leverage ratio improving to 2.9x. TeamViewer outlined its debt maturity profile and emphasized its commitment to further reducing leverage by the end of 2025.
Forward-Looking Statements
TeamViewer reiterated its pro forma guidance for FY 2025, expecting ARR to reach €815-840 million (+7.5% to +10.8% YoY) and revenue of €778-797 million (+5.1% to +7.7% YoY). The company anticipates growth acceleration in the second half of 2025, as shown in this guidance overview:
Factors expected to drive this acceleration include a larger pipeline with higher conversion rates, synergies from the 1E acquisition, improved customer journey and sales channels to reinvigorate the SMB segment, and targeted go-to-market campaigns. However, management acknowledged that macroeconomic uncertainty continues to affect customer decision-making.
The Enterprise segment is expected to remain the primary growth driver, with continued focus on expanding the customer base and increasing average selling prices. For the SMB segment, TeamViewer aims to improve customer retention through enhanced product offerings and optimized sales channels.
In conclusion, TeamViewer’s Q2 2025 results demonstrate the company’s ability to deliver solid growth and improved profitability despite challenging market conditions. The successful expansion of its Enterprise business and strategic investments in DEX capabilities position the company well for future growth, though macroeconomic headwinds remain a concern for investors.
Full presentation:
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