The Sage Group (SGE) investor relations material

Executive summary

• Achieved double-digit revenue growth of 11% year-over-year in H1 FY2026, driven by strong demand for key products, new customer acquisition, and AI integration in core workflows.

• Operating profit grew 15% to £326m, with margin expansion and EPS up 16% to 23.7p, supported by efficient operations and strategic investments.

• AI-powered features and agentic solutions now available to over 500,000 customers, accelerating adoption and enhancing customer value.

• Cloud solutions, especially Sage Intacct, delivered robust growth across all regions, with cloud-native revenue up 25%.

• Strategic acquisitions (Criterion, Akao, Doyen AI, LIFE) and expanded partnerships with AWS, banks, and fintechs broadened the ecosystem and customer base.

Financial highlights

• Total revenue rose 11% year-over-year to £1,363m; recurring revenue also up 11% to £1,323m.

• Operating margin expanded by 80 basis points to 23.9%; EBITDA grew 14% to £375m with margin at 27.6%.

• Profit after tax increased by 10% to £224m; basic EPS up 16% to 23.7p.

• Cash conversion reached 116%, with free cash flow of £241m and strong working capital management.

• Interim dividend increased by 8% to 8.05p per share.

Outlook and guidance

• Organic revenue growth for FY2026 expected to be above 9%, with operating margins anticipated to trend upwards.

• Continued focus on balanced growth across new customer acquisition and net revenue retention.