SoftwareONE (SWON) H1 2025 earnings summary

Executive summary

• The combination with Crayon created a global leader in software and cloud solutions, with integration progressing on schedule and CHF 11 million run-rate cost synergies achieved by end-August 2025.

• H1 2025 revenue declined 4.9% YoY in constant currency to CHF 487.7 million, with adjusted EBITDA margin up 0.5 percentage points to 23.5%.

• Cost control and synergy realization improved margins despite revenue declines, and new leadership and turnaround measures were implemented in NORAM.

• Both companies are focused on transitioning customers from Enterprise Agreements to Cloud Solution Provider (CSP) models, which offer higher margins.

• Strategic focus areas include CSP conversion, AI enablement, FinOps, and cybersecurity to drive future growth.

Financial highlights

• H1 2025 group revenue was CHF 487.7 million, down 4.9% YoY in constant currency; adjusted EBITDA was CHF 114.7 million, margin up to 23.5%.

• Reported EBITDA rose 3.5% to CHF 85 million, margin up 1.9 percentage points; adjusted profit for H1 2025 was CHF 29.6 million.

• Net working capital improved by CHF 400.6 million YoY to negative CHF 216.6 million, aided by expanded non-recourse factoring.

• Net cash position at June 30, 2025 was CHF 36.2 million, compared to net debt of CHF 208.7 million a year ago.

• Dividend of CHF 45.6 million paid in H1 2025.

Outlook and guidance

• Full-year 2025 guidance expects flat revenue growth in constant currency and adjusted EBITDA margin above 20%.

• Return to growth anticipated in H2 2025, supported by easing Microsoft incentive headwinds and positive Q3 trends.

• Cost synergies of CHF 80-100 million targeted by end-2026; further guidance for FY 2026 to be provided with FY 2025 results.

• Dividend payout ratio set at 30-50% of adjusted profit for the year.