TeamViewer (TMV.DE) said on Tuesday it now expects its 2025 revenue to come in at the lower end of its previous guidance—between €778 million and €797 million ($907 million–$929.5 million)—as weakness in its recently acquired 1E business continues to weigh on growth.
The 1E unit, acquired in December 2024, develops software that helps detect and fix IT issues but has underperformed expectations. TeamViewer cited “ongoing transformation efforts and persistent macroeconomic challenges” as reasons for the slowdown. The unit’s annual recurring revenue fell short of projections, with sales slipping 8% in the third quarter, even as overall company revenue rose 4% at constant currency.
TeamViewer said the downturn reflects not only Europe’s sluggish economic climate but also macroeconomic headwinds in the United States, where 1E traditionally has its strongest customer base. CFO Michael Wilkens noted that turnaround efforts for the business “will take time to materialize,” dampening near-term growth prospects.
As a result, TeamViewer cut its overall annual recurring revenue forecast to €780–€800 million, down from €815–€840 million previously, and trimmed its 2026 revenue growth outlook to 2%–6%. To mitigate the impact, the company said it will introduce new cost-cutting initiatives.
Despite the weaker revenue forecast, TeamViewer raised its adjusted EBITDA margin target for 2025 to 44% from 43%, crediting tighter cost control and improved operational efficiency. The company said its long-term focus remains on strengthening recurring revenue and restoring growth momentum at 1E.