Core Insights - 74Software reported a strong financial performance for the year ended December 31, 2025, with total revenue reaching €707.2 million, reflecting a 2.5% increase compared to the previous year, and an organic growth of 3.8% [2][8] - The company achieved significant margin expansion, with operating profit increasing to €73.3 million, representing a margin of 10.4%, up from 8.2% in 2024 [20][21] - Net profit rose to €40.8 million, a 40.7% increase year-on-year, with earnings per share reaching €1.39, up from €0.99 [23][25] Financial Performance - Total revenue for 2025 was €707.2 million, with a gross profit of €476.1 million, resulting in a gross margin of 67.3%, compared to 65.0% in 2024 [2][21] - Profit on operating activities was €107.3 million, reflecting a margin of 15.2%, an increase from 13.6% in the previous year [20][21] - Unlevered free cash flow reached an all-time high of €80.4 million, representing 11.4% of revenue, compared to €26.3 million in 2024 [28][51] Business Segments - Axway contributed €337.9 million in revenue with an organic growth of 4.6%, while SBS generated €371.2 million with a 3.0% organic growth [8][12] - Annual recurring revenue (ARR) for Axway grew by 11.8% to €273.0 million, while SBS's ARR increased by 8.9% to €243.8 million, indicating a strengthening of the subscription model [16][18] Strategic Initiatives - The integration of SBS is progressing as planned, with measurable profitability gains expected [3][5] - The company aims for organic revenue growth of 3%–5% per year over the next three years, targeting revenue close to €800 million by the end of 2028 [5][34] - 74Software is focusing on AI-driven transformation, embedding AI capabilities into production workflows to enhance operational efficiency and compliance in regulated environments [19][34] Operational Efficiency - The company has implemented a rigorous capital allocation framework and improved operational discipline, leading to enhanced visibility and cash generation [3][5] - Operating cash flow improved significantly to €110.9 million, up from €31.7 million in 2024, reflecting optimized net working capital management [26][28] - The workforce was reduced by 4.5% to 4,571 full-time equivalents, aligning with the focus on operational efficiency [31]

on 20-Feb-2026 20 February 2026 European Technology/Software AI disruption radar - Want to try it yourself? Richard Nguyen +33 1 42 13 54 22 richard.nguyen@bernsteinsg.com Mark L. Moerdler, Ph.D. +1 917 344 8506 mark.moerdler@bernsteinsg.com Derric Marcon +33 1 58 98 06 30 derric.marcon@bernsteinsg.com Specialist Sales Kiran Shah +44 20 3547 1533 kiran.shah@bernsteinsg.com This report includes minor clarifications following recent feedback from companies and investors. See the Disclosure Appendix of this re ...

Company Overview - 74Software is an enterprise software group formed by the merger of Axway and SBS, focusing on delivering mission-critical software solutions for a data-driven world [3] - Axway has been a pioneer in enterprise integration solutions for 25 years, providing services to major brands and government agencies globally, with products including MFT, B2B, API, and Financial Accounting Hub [3] - SBS specializes in empowering banks and financial institutions with a cloud-based architecture for various financial services, enabling global deployment of operations [3] - The company serves over 11,000 clients, including more than 1,500 in the financial services sector [3] Voting Rights and Shares - As of January 31, 2026, the total number of shares is 29,746,194 [5] - The total number of exercisable voting rights is 40,789,394, while the total number of theoretical voting rights is 41,275,643 [5]

Group 1 - 74Software has a total number of shares amounting to 29,746,194 as of December 31, 2025 [5] - The total number of exercisable voting rights is reported to be 40,816,540 [1] - The total number of theoretical voting rights is 41,288,507 [5] Group 2 - 74Software is an enterprise software group formed by the merger of Axway and SBS, focusing on mission-critical software solutions [3] - The company serves over 11,000 clients, including more than 1,500 in the financial services sector [3] - Axway has been a pioneer in enterprise integration solutions for 25 years, while SBS provides cloud-based architecture for financial institutions [3]

Company Information - 74Software is an enterprise software group formed by the merger of Axway and SBS, specializing in mission-critical software for a data-driven world [3] - Axway has been a pioneer in enterprise integration solutions for 25 years, providing services to major brands and government agencies globally [3] - SBS focuses on empowering banks and financial institutions with a cloud-based architecture for various financial services [3] - The company serves over 11,000 clients, including more than 1,500 in the financial services sector [3] Voting Rights and Shares - As of December 31, 2025, the total number of shares is 29,746,194 [5] - The total number of exercisable voting rights is 40,824,746, while the theoretical voting rights amount to 41,288,507 [5]

Core Viewpoint - 74Software has transferred its liquidity contract from Kepler Cheuvreux to NATIXIS ODDO BHF SCA, effective January 2, 2026, to enhance liquidity and market surveillance for its shares on Euronext Paris [1][2]. Group 1: Contract Details - The new liquidity contract is established in compliance with AMF Decision No. 2021-01 and adheres to the AMAFI code of ethics [2]. - The contract aims to provide liquidity and market animation for 74Software shares, with resources allocated for its implementation [2]. - The contract can be suspended or terminated by either party with prior notice, allowing flexibility in management [2]. Group 2: Company Overview - 74Software is an enterprise software group formed by the merger of Axway and SBS, focusing on mission-critical software solutions [3]. - The company has over 11,000 clients, including more than 1,500 in the financial services sector, showcasing its extensive market reach [3]. - Axway has been a pioneer in enterprise integration solutions for 25 years, while SBS offers cloud-based architecture for financial institutions [3].

Group 1 - The total number of shares of 74Software is 29,746,194 [5] - The total number of exercisable voting rights is 40,809,354 [1] - The total number of theoretical voting rights is 41,290,909 [5] Group 2 - 74Software is an enterprise software group formed from the combination of Axway and SBS, focusing on mission-critical software for a data-driven world [3] - Axway has been a pioneer in enterprise integration solutions for 25 years, serving major brands and government agencies globally [3] - SBS provides a cloud-based architecture for banks and financial institutions, enabling various financial services to be deployed worldwide [3] - 74Software serves over 11,000 companies, including more than 1,500 financial service customers [3]

Group 1 - The total number of shares of 74Software is 29,746,194 [5] - The total number of exercisable voting rights is 40,808,597 [1] - The total number of theoretical voting rights is 41,291,200 [5] Group 2 - 74Software is an enterprise software group formed by the combination of Axway and SBS, focusing on mission-critical software for a data-driven world [3] - The company serves over 11,000 clients, including more than 1,500 financial service customers [3]

Core Insights - 74Software reported a strong Q3 performance, achieving revenue of €172.8 million, which reflects a 6.3% organic growth year-on-year, driven by solid demand and effective sales execution [7][8][39] - The company has raised its full-year growth guidance, now expecting organic revenue growth to reach around 4%, supported by a healthy pipeline and continued traction in software renewals [19][20] Financial Performance - Q3 revenue breakdown shows Axway contributing €82.6 million (up 8.8% organically) and SBS contributing €90.8 million (up 4.7% organically) [7][11] - Annual Recurring Revenue (ARR) for Axway reached €262.8 million (+12.2%) and for SBS €233.8 million (+10.1%), indicating strong expansion in both brands [14][19] - Product revenue for Q3 was €140.1 million, up 9.4% organically, while recurring revenue rose to €129.2 million, reflecting a shift towards subscription models [9][10] Strategic Developments - Integration between Axway and SBS has advanced, with shared support functions and joint commercial initiatives enhancing market reach and operational efficiency [2][3] - Axway's performance is bolstered by a focus on integration and API management, with significant growth in cloud-based subscriptions and automation capabilities [3][10] - SBS has shown progress across its product families, with a notable improvement in its Net Promoter Score, indicating increased customer satisfaction [4][11] Market Positioning - 74Software's hybrid-cloud, subscription-led model demonstrates resilience amid economic uncertainties, emphasizing sustainable value creation for stakeholders [1][5] - The company aims to surpass €750 million in revenue by 2027, with a focus on maintaining a scalable and profitable software model [21][20] Regional Performance - In Q3 2025, Europe accounted for 58.7% of total revenue, with notable growth in France and the UK, while the Americas experienced a slight decline [38][39] - The Middle East & Africa region showed strong growth at 12.4%, while Asia & Pacific faced a decline of 9.9% [38][39]

Core Viewpoint - 74Software has outlined its financial calendar for 2026, detailing key dates for financial results and meetings, emphasizing its commitment to transparency and investor communication [1][2]. Financial Calendar Summary - The 2025 Full-Year Results will be released on February 25, 2026, followed by a virtual analyst conference [1]. - The 2025 Universal Registration Document will be filed and published on March 24, 2026 [1]. - The 2026 Q1 Revenue will be announced on April 30, 2026, before market opening [1]. - The 2026 Annual General Meeting is scheduled for May 19, 2026, at 2:30 p.m. (CEST) in Paris [1]. - The 2026 Half-Year Results will be published on July 23, 2026, after market closing, with a virtual analyst conference to follow [1]. - The 2026 Q3 Revenue will be reported on October 29, 2026, before market opening [1]. - The 2026 Full-Year Results will be released on February 24, 2027, after market closing, along with a virtual analyst conference [1]. Company Overview - 74Software is an enterprise software group formed from the merger of Axway and SBS, focusing on delivering mission-critical software solutions [2]. - Axway has been a pioneer in enterprise integration solutions for 25 years, serving major brands and government agencies globally with products in MFT, B2B, API, and Financial Accounting Hub [2]. - SBS specializes in providing cloud-based architecture for banks and financial institutions, enhancing digital experiences across various financial services [2]. - The company serves over 11,000 clients, including more than 1,500 in the financial services sector [2].