123fahrschule SE Faces Temporary Challenges Amid Reforms

123fahrschule SE's projected growth trajectory is facing delays due to uncertainties around planned driving licence reforms. Set initially for FY26, the reform aimed at reducing costs and digitizing processes lacks a clear implementation date. This uncertainty has led to a decline in new enrollments, as potential learners wait for possible fee reductions.

The company's strong brand presence and robust marketing strategies mean it is less vulnerable than smaller competitors. However, the inability to fully escape a market slowdown has prompted adjustments to FY25-27 forecasts, indicating a slower volume recovery and postponed operating leverage.

Simulator monetization is also experiencing slower growth than expected, due to pending regulatory clarity. Larger investment decisions remain on hold, affecting order conversions and meaningful contributions until FY26/27. These factors highlight timing issues rather than a decline in demand. Once reforms are enacted, growth prospects remain strong, driven by lower prices and increased convenience.