74Software (74SW) Investor presentation summary

Company overview and strategy

• Formed from the merger of Axway and SBS, creating a leading enterprise software group with a focus on integration, API management, and digital banking solutions.

• Operates two complementary brands: Axway (integration/control layer) and SBS (banking execution layer), both with strong recurring revenue and high customer retention.

• Listed on Euronext Paris with a market capitalization of approximately €1.22bn as of August 2026, serving over 12,000 customers in more than 100 countries.

• Strategic focus on sustainable value creation for customers, employees, and shareholders through trusted, mission-critical software.

• Operating model emphasizes scale, brand accountability, and disciplined capital allocation to drive efficiency and growth.

Financial performance (FY 2025 and H1 2026)

• FY 2025 revenue reached €707m (+2.5% YoY), with profit on operating activities up 14.1% to €107.3m and net profit up 40.7% to €40.8m.

• Recurring revenue accounted for 75% of FY 2025 revenue, with product revenue at 81% and continued shift toward subscription-driven models.

• H1 2026 revenue grew 6.7% to €367m, with profit on operating activities up 34.8% to €55.7m and net profit up 371% to €27.4m.

• Unlevered free cash flow for FY 2025 was €80.4m (11.4% of revenue), and H1 2026 generated €32.8m (8.9% of revenue).

• Leverage ratio improved to 1.39x in H1 2026, with net debt reduced to €181.3m.

Revenue and ARR breakdown

• Both brands exceeded €250m in ARR by H1 2026, with Axway ARR up 11.2% and SBS ARR up 8.9% YoY at constant FX.

• Product revenue mix continues to increase, reaching 83% of H1 2026 revenue; recurring revenue at 76%.

• Strong growth in customer-managed and own-managed subscriptions, while maintenance/support revenue declined.

• Axway's growth driven by MFT, B2B integration, and API management; SBS by modular, integrated, and financing products.

• Revenue geographically diversified, with Europe (especially France and UK) as key markets, and growth in Americas and MEA.