TeamViewer's Platform Inflection: DEX Turnaround and ServiceNow Partnership

Q2 2026 shows a small-cap software name executing a strategic pivot, with AI adoption and churn stabilization supporting a reaccelerating H2.

TMV.DE · Earnings Call · 2026-07-28

The Inflection Point

TeamViewer's Q2 2026 earnings call was a clear signal that the company is past the trough of its integration and repositioning efforts. CEO Oliver Steil opened with “The second quarter marked a real inflection point for TeamViewer.” — Oliver Steil, CEO · 2026-07-28 This wasn't just rhetoric—the numbers back it up. “Enterprise NRR improved sequentially to 94% and to 98% if you adjust for SMB to enterprise upsell.” — Oliver Steil, CEO · 2026-07-28 The 1E acquisition drag is noticeably fading: “Top line growth continued to reflect the effects of previously disclosed headwinds in SMB and the one-off 1E churn in Q1 2026,” — Michael Wilkens, CFO · 2026-07-28 but the DEX business is turning around, and “the key leading indicators across the business all improved during the quarter.” — Mark Banfield, CRO · 2026-07-28 The DEX turnaround is the central theme here. After a troubled 2025 (as detailed in prior calls), the company is now seeing the cross-sell and upsell engine fire. The adoption of TeamViewer ONE is accelerating, especially at the high end: “In June alone, customers ran more than 500,000 AI-powered support sessions on our platform.” — Mark Banfield, CRO · 2026-07-28 That is a dramatic jump from March's 300,000 and underscores the stickiness of the platform.

Platform and Partnership Traction

The most significant strategic announcement this quarter was the ServiceNow partnership. Steil emphasized that it's a long-term, multi-pronged deal combining technology and go-to-market. He said:

Clearly, customer reach will be enormous. ServiceNow is serving more than 8,800 very large enterprise customers, very much the upper end of what we typically do.
Oliver Steil, CEO · 2026-07-28

This partnership is a validation of TeamViewer's autonomous endpoint management vision (as captured in autonomous endpoint management), and it could meaningfully expand addressable market. The company also made progress on FedRAMP authorization for its DEX product, a key gateway to the U.S. federal and regulated industries. On the SMB side, SMB churn is stabilizing, as anticipated. CFO Michael Wilkens noted: “Clear stabilization, which we indicated in Q2 already for Q1 on churn.” — Michael Wilkens, CFO · 2026-07-28 The strategic pricing and commercial blocker changes from 2025 are now washing through, and the company is seeing early improvement in July. While SMB ARR was still down 4% YoY in constant currency, the sequential momentum improved, and the high end of SMB is increasingly adopting TeamViewer ONE.

Financial Discipline and Outlook

Despite the top-line contraction, profitability remains strong. Adjusted EBITDA margin came in at “43.2%” — Michael Wilkens, CFO · 2026-07-28 (excluding FX headwinds, it would have been 44.4%). Net income was up 33% YoY, and adjusted EPS was €0.27. The company is investing intentionally in AI and go-to-market capabilities while keeping a tight line on costs. However, there are some cautionary notes on cash flow. “Levered free cash flow conversion in the quarter was 52%,” — Michael Wilkens, CFO · 2026-07-28 below the prior year, largely due to fewer upfront paid multiyear deals (a macro-driven trend) and some technical payment delays. Management expects that to improve in H2, with the full year conversion around 60%. The company reaffirmed its full-year guidance: “We expect a constant currency revenue growth in the range of 0% to 3% versus pro forma '25 revenue.” — Michael Wilkens, CFO · 2026-07-28 The second half is expected to see ARR growth acceleration, driven by the DEX turnaround, TeamViewer ONE adoption, and stabilization in SMB. As Steil said in the Q&A: “Q2 was really all about proving the plan and building momentum.” — Oliver Steil, CEO · 2026-07-28 Looking at the prior quarters, this narrative is a clear departure from the more defensive tone of 2025. In February, the company was still talking about “TeamViewer ONE is selling and has been selling and is increasing to sale day by day” — Oliver Steil, CEO · 2026-02-10—a more tentative early sign. Now, it's claiming an inflection with hard metrics. The AI adoption curve is steep, and with “we see a good continuation of the growth” — Oliver Steil, CEO · 2026-02-10 (from Oliver's February comment on AI), the company is incrementally building a data moat. TeamViewer's market cap may be modest (~€906M), but the strategic moves and the improving operational KPIs suggest it is a name worth watching. The ServiceNow partnership could be a major catalyst if it converts into pipeline. All in all, this quarter provides strong evidence that the company is on a genuine upward trajectory.