The Sage Group (SGE) Q3 2025 TU earnings summary

Executive summary

• Group revenue for the first nine months rose 9% year-over-year to £1,862 million, with growth across all regions and cloud solutions.

• North America revenue increased 11% to £846 million, driven by Sage Intacct and continued growth in Sage 200 and Sage 50.

• UK, Ireland & Africa revenue grew 9% to £539 million, supported by Sage Intacct, Sage Accounting, and Sage 50.

• Europe revenue rose 7% to £477 million, with strong performance in cloud, accounting, HR, and payroll solutions.

• Cloud and AI-powered solutions continue to drive customer success and strategic confidence.

Financial highlights

• Sage Business Cloud revenue grew 13% to £1,538 million, with cloud-native revenue up 22% to £645 million, now over a third of group revenue.

• Recurring revenue increased 10% to £1,805 million, with subscription revenue up 11% to £1,549 million and penetration at 83%.

• Q3 standalone revenue was £620 million, up 9% year-over-year.

Outlook and guidance

• Full-year organic total revenue growth expected at 9% or above, with operating margins projected to trend upwards in FY2025 and beyond.

• Full-year guidance reiterated, reflecting sustained and efficient growth focus despite macroeconomic headwinds.

• Sequential ARR growth in Q3 was about 2%, slightly below last year but within normal variation; Q4 faces a tougher comparison.