🧠 Food for thought

Implications, context, and why it matters.

A shaky acquisition and a plan shift drive the cautious forecast

• TeamViewer’s guarded 2026 view follows a cut to full-year 2025 Annual Recurring Revenue (ARR) guidance, with management lowering it by about €35 million to €40 million due to execution problems 1.
• 1E, acquired in January 2025, has weighed on results. Its standalone ARR fell 2% in constant currency year over year in Q3 2025, which management tied to customer churn, slower deal closes, and after-the-merger disruption including employee exits 2.
• TeamViewer also dropped short-term money-making moves for free users and small and medium-sized business (SMB) subscribers, including free-to-paid and price-up campaigns. The company said the change aims to cut churn and lift usage, while keeping SMB ARR growth near 0% in constant currency 2.

Profitability holds while growth slows in a mature product line

• The core business stays lucrative, with a 46% pro forma adjusted EBITDA margin in the third quarter 2.
• Even so, expansion has slowed. SMB ARR slid 1% year over year, or 0% in constant currency, to €526.3 million in Q3 2025 3.
• For established software firms, using profits from a steady product to buy growth can backfire when integration problems hurt the acquired business 1.