ATOSS Software (AOF) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 and 9M 2025 results with 11% year-over-year revenue growth, driven by a 28% increase in cloud and subscriptions, and a significant improvement in order development after a slower H1.

• Cloud and subscriptions are now the main revenue driver, accounting for 48% of total revenue, with robust order backlog and ARR growth; EBIT margin for 9M 2025 reached 35%, exceeding full-year guidance.

• Transformation to a recurring revenue model is progressing, with recurring revenues now 70% of total and cloud and subscriptions nearly 50%.

• Management raised EBIT margin guidance for 2025 to 34% from at least 31%, expecting to exceed the initial earnings forecast.

• Demand for software solutions, especially cloud and subscriptions, rebounded in Q3, supporting a solid pipeline and robust order intake.

Financial highlights

• Group revenues for the first nine months rose 11% year-over-year to €139.3 million, driven by 13% software revenue growth and 28% growth in cloud and subscription revenues.

• EBIT for Q1–Q3 2025 was €48.2 million (35% margin), up 5% year-over-year; net profit reached €34.1 million, up 4%; EPS was €2.14.

• Cloud and subscription ARR reached €95.4 million in Q3 2025, up 26% year-over-year; total ARR (including maintenance) up 13% to €134.1 million.

• Operating cash flow for the first nine months was €49.5 million; liquidity at Q3 end was €125.7 million, up from €112 million at 2024 year-end.

• Dividend payments of €33.9 million made in May 2025.

Outlook and guidance

• Full-year 2025 revenue expected at around €190 million, with EBIT margin guidance raised to 34%.

• Recurring revenue growth for 2025 projected at 18% year-over-year; cloud and subscription revenue growth at 27%.

• Medium-term revenue target of €245 million by 2027, representing a 13% CAGR, remains unchanged; recurring revenue target ~75% by 2027.

• Cloud revenue growth expected to stay around 25% in 2026; recurring revenue to grow approximately 15% in 2026.

• EBIT margin target for 2027 is at least 33%.