TeamViewer cuts 2026 revenue growth to -2% to -1% range; LLYC targets €81 million
Key Facts
TeamViewer cut its 2026 revenue growth forecast to a range of -2% to -1% in constant currencies, from 0% to 3%, reflecting its expectation of revenue pressure in the fourth quarter. In its third-quarter results statement, the company said delayed conversion of large enterprise deals and renewed economic uncertainty in Europe would weigh on growth in the coming period. Third-quarter revenue was €184.5 million, down 2.2% year on year in constant currencies. Annual recurring revenue reached €736.9 million, down 0.6% in constant currencies. The figures put the lowered guidance in the context of a near-term slowdown in activity, although the company continues to target an annual profit margin of around 43%.
The company is comparing its new revenue forecast with pro forma revenue of €767.5 million in 2025, while its previous range projected annual growth of 0% to 3% in constant currencies. In the first nine months of 2026, TeamViewer recorded revenue of €550.4 million, down 1.3% year on year in constant currencies. Adjusted EBITDA margin for the same period was 43.7%, compared with 42.8% in the third quarter alone. The company reiterated that it expects an adjusted annual margin of around 43% in 2026, maintaining its profitability target despite lowering its revenue outlook. On growth, ARR in its higher-value enterprise customer segment rose 13% year on year in constant currencies in the third quarter, while small and medium-sized business activity was stable.
The company said its challenge goes beyond weak deal conversion, as customer retention remains low and requires it to expand and improve the performance of its enterprise sales team globally. The chief executive said, “Deal conversion in the pipeline remains far too slow, and customer retention is very low.” Total ARR in the enterprise segment grew 6.7% year on year in constant currencies, supported by new customer wins, particularly in the Americas, higher customer engagement and a stronger go-to-market model. By contrast, ARR among small and medium-sized businesses fell 3.7% year on year in constant currencies to €499.3 million, in line with the company’s internal expectations. TeamViewer said the third quarter saw the first quarter-on-quarter stabilization in churn in this segment.
TeamViewer’s net income rose to €36.0 million in the third quarter, from €28.7 million in the corresponding period of 2025, an increase of 26%. But adjusted basic earnings per share fell to €0.27 from €0.34. The results present a mixed picture, with higher net income alongside lower revenue and adjusted earnings per share. The company believes that expanding its enterprise sales team in Europe, the Middle East and Africa, improving momentum in its U.S. enterprise business and its new sales pipeline will support faster ARR growth in 2027. Slow deal conversion and weak customer retention remain challenges acknowledged by the chief executive in the company’s assessment of sales performance.
In a separate update, LLYC’s board cut its 2026 operating revenue estimate to a range of €81 million to €82.5 million, and forecast recurring EBITDA of €15.5 million. The company said this EBITDA level would be 12.3% higher than the previous year, despite lowering its operating revenue estimate. LLYC aims to raise its EBITDA margin to a range of 18.8% to 19.1% in 2026, compared with 15.4% in 2025. The expected improvement is tied to an €8.8 million efficiency plan, 92.07% of which had been implemented as of September 30, 2026. The company expects to complete the plan by year-end, according to its statement following its first-half results.
LLYC’s revision follows first-half 2026 operating income of €40.1 million and recurring EBITDA of €5.3 million, alongside a net loss of €0.6 million. The chairman said, “The positive impact of these measures will be seen immediately in the results for the second half of 2026 and in 2027.” The global chief executive added that the measures had already begun to have a positive impact in the second half, and that the company had launched a transformation plan in the United States to improve profitability in the coming months. The company reported net financial debt of €36.2 million on June 30, 2026, equivalent to net debt of 3.2 times EBITDA. The company has placed completion of its efficiency plan by the end of 2026 among its announced steps to support profitability in the period ahead.