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]