TeamViewer Q3 2025 slides reveal mixed performance as stock tumbles 20%

TeamViewer AG (ETR:TMV) presented its Q3 2025 results on October 21, showing continued revenue growth amid ongoing strategic transformation, but investors responded with a sharp sell-off that sent shares plummeting nearly 21% to €6.71 the following day.

Introduction & Market Context

TeamViewer reported modest revenue growth of 4% year-over-year (in constant currency) to €192 million for Q3 2025, maintaining a strong adjusted EBITDA margin of 46%. However, the market’s negative reaction suggests investors were concerned about reduced ARR expectations and ongoing challenges with the company’s 1E integration.

The remote access and digital workplace management software provider has seen its stock decline significantly in recent months, now trading near its 52-week low of €6.41, reflecting broader market challenges and specific company headwinds.

Quarterly Performance Highlights

TeamViewer delivered growth across all regions, with EMEA leading at 6% year-over-year, while Americas and APAC regions showed more modest growth at 2% and 3% respectively (in constant currency).

As shown in the following chart of regional revenue distribution:

The company maintained strong profitability with a 46% adjusted EBITDA margin, only slightly below the 47% reported in Q3 2024. Adjusted earnings per share increased 15% year-over-year to €0.34, demonstrating improved bottom-line performance despite transformation challenges.

The following slide highlights key financial metrics for the quarter:

Enterprise performance remained a bright spot, with Enterprise ARR growing 12% year-over-year to €230.5 million and the Enterprise customer base expanding from 4,698 to 5,216. This growth was consistent across all ARR value ranges within the Enterprise segment.

The Enterprise segment’s performance is illustrated in this chart:

Strategic Initiatives

TeamViewer continues to focus on its strategic transformation, particularly the integration of 1E, which it acquired to enhance its digital employee experience (DEX) capabilities. However, the company acknowledged challenges with the 1E standalone performance, citing slower pipeline conversion and macroeconomic headwinds in the US and Europe.

The company outlined specific actions to address these challenges:

A key component of TeamViewer’s strategy is its SMB-focused DEX Essentials offering, which has seen growing adoption with a reported 2x increase in customers using DEX capabilities within the last nine months and 100,000 endpoints using the solution as of mid-October 2025.

The DEX Essentials momentum is highlighted in this slide:

TeamViewer is also advancing its AI strategy, which it calls "Agentic AI," integrating intelligence across its platform. According to the presentation, approximately 8,800 customers have opted in to use TeamViewer Intelligence, with around 80,000 session summaries conducted in September 2025.

Detailed Financial Analysis

While Enterprise segment performance remained strong, the SMB segment showed signs of pressure with customer count declining from 665,000 to 640,000 and the churn rate increasing from 14.6% to 16.0%. This contributed to the modest overall ARR growth of 4% year-over-year.

The company’s adjusted EPS growth of 15% was a positive highlight, driven by operational efficiencies and financial management:

TeamViewer continues to make progress on deleveraging, with its net leverage ratio improving to 2.8x from 2.9x in the previous quarter. The company aims to reduce this ratio to below 2.0x by the end of 2026:

Forward-Looking Statements

TeamViewer updated its guidance for fiscal year 2025, maintaining its revenue projection of €778-797 million but adjusting ARR expectations. The company also provided an initial outlook for 2026, projecting revenue of €790-800 million, which implies growth of approximately 2-6%.

The company also acknowledged reduced ARR expectations for 2025, which likely contributed to the negative market reaction:

Despite the positive narrative in the presentation, investors appear concerned about the pace of growth and ongoing transformation challenges. The significant stock decline following the results suggests the market expected stronger performance or was disappointed by the modest outlook for 2026.

TeamViewer’s management remains focused on executing its enterprise-led growth strategy, enhancing its AI capabilities, and completing the 1E integration, but will need to address investor concerns about growth trajectory and SMB segment challenges in the coming quarters.

Full presentation:

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