Business Leader: 'The second quarter demonstrated mediocre results' - Modest performance in the second quarter, according to the Intershop manager
Jena-based software provider Intershop is facing cost and personnel cuts following a disappointing second quarter performance, which saw a 9% revenue decline to €17.24 million and a net loss of €1.12 million in the first half of 2025. These financial results have led the company to revise its full-year revenue guidance downwards to a 10-15% decline.
Intershop's CEO, Markus Klahn, has stated, "We are staying innovative. It's not about shrinking." Despite this optimistic outlook, the company is taking decisive action to address the earnings shortfall, with planned job cuts primarily in the service sector.
The Intershop board is also relying on the new e-commerce platform launched in May, which integrates various functions based on artificial intelligence. Discussions with the works council regarding the job cuts are ongoing.
The earnings before interest and taxes (EBIT) for Intershop was negative at €900,000, an increase from the previous year's negative €400,000. This financial underperformance indicates operational and market challenges impacting revenues, necessitating cost-cutting measures such as workforce reductions.
Other contributing factors include the investment restraint of Intershop's e-commerce clients and uncertainty surrounding the US trade policy, which has affected potential clients. The order intake for rental software, a focus for Intershop, decreased by 41% to €6.7 million in the first six months.
Despite these challenges, there are indications of longer-term optimism, such as UBS upgrading Intershop’s stock citing potential for improved returns and dividend growth driven partly by inorganic growth strategies. However, these improvements are projected over a multi-year horizon rather than the immediate quarter in question.
The Intershop board expects a turnover decrease of 10 to 15% and a negative EBIT in the lower single-digit million range this year. The second quarter report was published by the German Press Agency. Intershop currently employs around 260 people.
[1] Intershop AG, Half-Year Financial Report, 2025 [2] UBS Research, Intershop AG Upgrade, 2025 [5] Intershop AG, Interim Report, 2025
The Intershop board is considering implementing a community policy to address the job cuts, focusing on offering vocational training programs to help employees transition into new roles within the business. To generate additional income and support the revised financial plan, the company is exploring opportunities for technology-driven business expansions in vocational training.
Despite the financial challenges faced by Intershop this year, UBS Research has projected improved returns and dividend growth for the company over a multi-year horizon, partly driven by inorganic growth strategies. This long-term outlook suggests thatIntershop's e-commerce platform, which integrates artificial intelligence, could provide significant value in the future.
