Germany's ATOSS Software 9-month revenue rises 12%, EBIT margin improves

Overview

• Germany workforce management software firm's 9-month revenue rose 12% yr/yr to EUR 155.8 mln

• EBIT margin for the period improved to 37% from 35% a year earlier

• Company raised full-year EBIT margin forecast to around 37%, expects revenue at lower end of guidance

Outlook

• ATOSS expects 2026 revenue at the lower end of EUR 210 mln to EUR 215 mln range

• Company raises 2026 EBIT margin forecast to around 37%

• Company sees continued strong growth in recurring revenue for 2026

Result Drivers

• CLOUD & SUBSCRIPTIONS - Revenue from Cloud & Subscriptions rose 26% yr/yr to EUR 85.2 mln, accounting for 55% of total revenue, and was the main driver of software revenue growth

• RECURRING REVENUE - Recurring revenue advanced 17% yr/yr to EUR 113.8 mln, making up 73% of total revenue, supported by growth in Cloud & Subscriptions

• COST MANAGEMENT & AI PRODUCTIVITY - EBIT margin improvement attributed to rigorous cost management and AI-driven productivity gains, especially in Innovation & Development

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for ATOSS Software SE is €115.00, about 19.9% above its October 22 closing price of €95.90

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Oct 21 - Software provider SAP Q3 revenue rises on cloud business growth

• Oct 20 - France's OVHcloud slightly beats FY2026 revenue estimates on strength in public cloud segment

• Oct 21 - Sweden's HMS Networks Q3 sales rise 15%, meet expectations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)