74Software (74SW) Q3 2026 TU earnings summary

Executive summary

• Q3 2026 revenue was €183.9m, up 6.5% reported and 5.8% organically; 9M revenue reached €550.9m, up 7.7% organically.

• Q3 product revenue grew 9.5% organically to €154.4m, reaching 84.0% of revenue versus 81.1% a year earlier.

• Subscription expansion at Axway and SBS offset lower Maintenance & Support revenue.

Financial highlights

• Q3 recurring revenue was €145.7m, up 12.8%; on an organic basis it rose 11.9% and equaled 94.3% of product revenue.

• Q3 license revenue fell 19.6% organically to €8.7m; Services revenue declined 10.3% to €29.5m.

• 9M product revenue increased 10.4% organically to €458.5m; recurring revenue rose 10.6% to €423.3m.

Outlook and guidance

• FY 2026 guidance, raised in July and confirmed, is organic revenue growth of 4%–6%, operating-activities margin of 16%–18%, and unlevered free cash flow of 10% of revenue.

• Q4 organic growth is expected to moderate versus 9M due to contract phasing and prior-year comparisons; cost discipline and cash conversion remain priorities.

• 2028 ambition: revenue close to €800m and operating-activities margin of ~20%; medium-term revenue ambition of €1bn includes selective acquisitions.