freenet AG FRTAY

Communication ServicesTelecommunications ServicesGermany

Last close 12.80 USD on Nov 2, 2026, −28.6% year to date

Quant rating

Quant rating B Rank 56 of 152 in Communication Services

Growth B 60 of 152
Valuation C 88 of 152
Quality A 21 of 152
Revisions C 90 of 152
Momentum C 106 of 152

Wall Street consensus Hold (2.73)Average target 31.71 USD +147.8%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 3.0B
Enterprise value: 3.8B
52-week range: 12.30 – 18.02
3-year range: 12.30 – 20.98
Dividend yield: 9.37%
Beta (5 years): –
Shares outstanding: 119M
Next earnings: Nov 11, 2026

About the company

freenet AG is a Germany-based Company, which is a network-independent telecommunications provider. The Company's main activities are telecommunications, TV, Internet and mobile devices as well as all services, applications and equipment associated with mobile devices or that can be controlled or used via an intelligent device. It provides various activities such as packaging, multichannel distribution and customer management. It focuses on direct customer relationships as well as directly managed sales channels which includes around 520 freenet shops and 40 GRAVIS stores along with online marketing platforms. It also holds exclusive marketing rights for mobile communication services on the Telekom and Vodafone networks in more than 400 electronics stores.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	2,866	2,565	2,632	2,736	2,906	–
Revenue growth	11.7%	−2.6%	−3.8%	−5.8%	−7.6%	−1.9%
EPS (basic, normalized)	2.64	2.25	1.41	0.72	1.78	–
EPS growth	17.4%	59.6%	95.3%	−59.5%	–	–
Gross margin	41.1%	40.3%	39.4%	35.7%	34.3%	38.1%
Net margin	11.0%	12.0%	7.0%	3.1%	7.8%	8.2%
ROE	17.8%	20.3%	11.4%	5.1%	11.4%	13.2%

Balance sheet, last quarter
Cash & short-term investments (mil)	172
Current ratio	0.75x
Long-term debt (mil)	800
Net debt (mil)	788
Total equity (mil)	1,570
Net debt / equity	0.50x
Net debt / EBITDA	1.32x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	2,866	+11.7%	1.3x	596	+6.2%	6.4x	2.64	+17.4%	4.9x
2026	3,455	+20.6%	1.1x	564	−5.5%	6.7x	2.32	−12.1%	5.5x
2027	3,521	+1.9%	1.1x	606	+7.6%	6.3x	2.61	+12.6%	4.9x
2028	3,600	+2.2%	1.1x	648	+6.8%	5.9x	2.78	+6.6%	4.6x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	3,455	−0.3%	+0.4%	+0.8%	2.32	−1.3%	−5.8%	−3.8%
2027	3,521	−0.1%	+1.0%	+1.5%	2.61	−1.6%	−3.4%	−0.7%
2028	3,600	0.0%	−1.0%	−0.5%	2.78	−1.4%	−1.7%	+0.7%

Earnings surprises

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	639	559	618	661	604	609	615	612	762	751
Sales mean (mil)	640	606	623	650	606	626	629	634	–	807
Surprise	−0.2%	−7.8%	−0.8%	+1.7%	−0.3%	−2.7%	−2.3%	−3.5%	–	−6.9%
EPS reported	0.55	0.38	0.60	0.55	0.48	0.57	0.68	0.56	0.40	0.40
EPS mean	0.54	0.79	0.53	0.51	0.67	0.67	0.77	0.63	0.46	0.58
Surprise	+2.6%	−51.7%	+12.6%	+8.1%	−28.5%	−15.4%	−12.0%	−11.7%	−12.3%	−31.5%

Peer comparison Telecommunications Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
FRTAY freenet AG	3.0B	1.32x	11.0%	1.94x	5.5x	4.9x	6.7x	6.3x
KYIV Kyivstar Group Ltd	3.0B	0.08x	10.7%	2.17x	9.2x	8.0x	4.2x	3.9x
AD Array Digital Infrastructure Inc	2.9B	−273.45x	104.1%	2.30x	4.9x	26.9x	13.9x	13.9x
IHS IHS Holding Limited	2.9B	2.39x	39.3%	−15.79x	10.1x	7.5x	5.2x	5.1x
LBTYA Liberty Global Ltd	2.8B	4.84x	−146.3%	0.30x	−5.3x	−6.3x	5.6x	4.6x
LBTYB Liberty Global Ltd	2.8B	–	−146.3%	0.30x	–	–	–	–
Mean		−52.97x	−21.3%	−1.46x	4.9x	8.2x	7.1x	6.8x
Median		1.32x	10.9%	1.12x	5.5x	7.5x	5.6x	5.1x

Technical analysis

1M−9.9%
3M−10.5%
1Y−23.3%
3Y+14.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, freenet AG, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	2,866	2,565	2,632	2,736	2,906	3,146
Cost of revenue	1,688	1,531	1,596	1,761	1,910	2,067
Gross profit	1,178	1,034	1,037	976	996	1,080
Selling, general & administrative expenses	427	362	367	350	346	392
Research & development	–	–	–	–	–	–
Depreciation/amortization	163	150	269	373	176	198
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	31.0	16.3	18.4	23.8	64.7	42.1
Other operating expenses	104	116	99.5	90.4	126	126
Operating income	453	389	283	138	284	321
Net interest income (expense)	−20.9	−30.6	−27.8	−19.9	−32.5	−52.5
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−5.9	−0.7	0	3.4	−3.9	−3.1
Net income before taxes	426	357	255	122	248	266
Provision for taxes	103	50.5	70.0	34.4	30.5	33.0
Minority interest	−6.6	1.2	−1.9	−2.7	7.9	5.9
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	316	308	183	84.9	225	239
Extraordinary items	2.7	−52.6	−9.2	–	0	452
Net income	319	256	174	84.9	225	691
EBIT, normalized	484	405	301	162	349	363
EBITDA, normalized	646	556	577	535	525	561
Basic EPS, normalized	2.64	2.25	1.41	0.72	1.78	–

Balance sheet in millions of USD, fiscal years

Balance sheet, freenet AG, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	278	253	254	245	380	874
Receivables	700	545	530	487	477	482
Total inventory	79.0	48.3	70.4	97.5	105	91.3
Prepaid expenses	–	–	–	–	–	–
Other current assets	0.1	0	0.1	0	0	0
Total current assets	1,057	847	855	830	962	1,447
Property, plant & equipment	354	347	467	519	598	711
Goodwill	1,714	1,434	1,523	1,479	1,572	1,688
Intangibles	350	165	211	338	522	604
Long-term investments	212	120	140	127	229	333
Note receivable	210	137	152	155	173	208
Other long-term assets	421	410	432	436	438	511
Total assets	4,318	3,460	3,779	3,883	4,493	5,503
Liabilities
Accounts payable	449	328	373	354	385	463
Payable/accrued	–	–	–	–	–	–
Accrued expenses	–	–	–	–	–	–
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	531	283	286	212	260	356
Other current liabilities	708	579	595	618	642	653
Total current liabilities	1,688	1,190	1,254	1,184	1,287	1,472
Long-term debt	443	439	573	781	1,025	1,449
Minority interest	0.7	−5.2	−4.2	−5.9	−4.8	0.7
Other liabilities	387	294	360	346	318	358
Total liabilities	2,518	1,918	2,182	2,305	2,625	3,279
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	140	123	131	127	146	156
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	1,843	1,580	1,644	1,636	2,049	2,222
Treasury stock	−70.5	–	–	0	−187	−62.8
Other equity	−113	−161	−178	−185	−139	−92.2
Total equity	1,799	1,542	1,597	1,578	1,868	2,223
Total liabilities & shareholders' equity	4,318	3,460	3,779	3,883	4,493	5,503

Cash flow statement in millions of USD, fiscal years

Cash flow statement, freenet AG, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	453	389	283	138	284	750
Depreciation, depletion & amortization	163	150	269	373	176	198
Deferred taxes	–	–	–	–	–	–
Non-cash items	−35.8	−47.5	−4.8	−23.0	93.3	−430
Changes in working capital	−103	−108	−108	−64.7	−136	−82.2
Cash from operations	477	384	439	423	417	436
Investing activities
Capital expenditures	−49.2	−45.2	−56.7	−67.4	−54.8	−60.9
Other investing cash flows	−191	1.4	−4.3	−9.6	4.7	1,373
Cash from investing	−240	−43.8	−61.0	−76.9	−50.2	1,312
Financing activities
Financing cash flow items	−278	−225	−226	−4.1	−10.9	−4.7
Cash dividends paid	–	–	–	−200	−232	−6.3
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−91.6	−92.9	−173	−259	−557	−1,086
Cash from financing	−370	−317	−398	−462	−800	−1,097
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	−133	22.6	−20.1	−116	−433	651
Free cash flow	427	339	383	356	363	375

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.