Earnings release
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1 Press Release Paris, October 30, 2025 74Software: Q3 Momentum Drives Upgraded Growth Outlook ▪ Q3 revenue reached €172.8 million, up 6.3% organically, reflecting continued momentum in market demand and sales execution ▪ Axway up 8.8% and SBS up 4.7%, both contributing to a balanced and dynamic quarter ▪ Full-year growth guidance raised on the back of continued commercial traction ▪ ARR reached €262.8 million at Axway (+12.2%) and €233.8 million at SBS (+10.1%), confirming double -digit expansion across both brands 74Software (Euronext: 74SW.PA) delivered a strong third quarter, confirming its ability to sustain solid revenue growth and commercial traction despite persistent economic and geopolitical uncertainties. The Group’s balanced exposure across technologies and geographies highlights the strength of its hybrid-cloud, subscription-led model — combining scale, adaptability, and predictability. As an independent technology provider, 74Software continues to focus on sustainable value creation for customers, employe es, and shareholders, supported by disciplined capital allocation and consistent execution across its two brands. Integration between Axway and SBS further advanced during the quarter. Shared support functions now operate under the Group’s platform services model across HR, IT, Finance, and Legal, while joint commercial and product initiatives expanded in business lin es such as Open Banking, API Management, and Digital Engagement. These developments are already generating tangible synergies and reinforcing 74Software’s market reach, demonstrating the effectiveness of its brand-led, group-powered model and the strategic complementarity of two category-leading businesses active in carefully selected niche markets. Axway exceeded expectations, driven by sustained momentum in subscription and cloud -based activities and the growing adoption of hybrid multi-cloud integration architectures. Its performance reflects the consistent execution of a strategy aimed at reinforcing leadership in Integration and API management, while embedding automation, AI- driven insights, and advanced observability across its portfolio. Growth was supported by solid renewal activity, new cloud subscriptions, and continued traction in solutions modernizing enterprise integration across regulated industries. Recent customer deployments further highlighted the versatility and scalability of the Amplify Fusion platform, enabling major digital transformation programs from public health to global manufacturing. SBS delivered performance fully in line with plan, confirming progress across its 4 product families and continued expansion of its recurring base. The brand also recorded a significant improvement in its Net Promoter Score, reaching its highest level to date — reflecting stronger customer engagement and rising satisfaction. The quarter saw sustained activity in financing and lending solutions, steady adoption of instant payments and regulatory reporting modules, and growing momentum in digital engagement. SBS also advanced its cloud -native regulatory reporting offer through a new partners hip in Europe, while maintaining robust performance in Africa with several new implementations and extensions within its installed base. With a solid year-to-date trajectory and strong fundamentals, 74Software enters the final quarter from a position of strength, demonstrating disciplined execution, sound balance-sheet management, and a clear focus on sustainable, product-led growth across its portfolio. Patrick Donovan, Chief Executive Officer, stated: "This quarter once again highlights the quality and resilience of our business. Our products continue to gain recognition for their reliability and innovation, and our shift toward subscription and cloud delivery strengthens visibility and predictability ac ross the Group. Axway is demonstrating the benefits of long -term investment in innovation and customer trust, while SBS continues to advance its transformation with focus and discipline, confirming its strong position in key financial markets. Together, o ur two brands embody what 74Software stands for — independent technology, steady execution, and sustainable growth built on lasting customer relationships. As we enter the final months of the year, the Group is well positioned to deliver on its commitments and to prepare for the next phase of profitable expansion."
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2 Comments on Q3 2025 activity In Q3 2025, the Group achieved total revenue of €172.8m, representing a total growth of 4.3% and an organic growth of 6.3% year -on-year. Within this total, Axway contributed €82.6 m, up 8.8% organically, and SBS €90.8m, up 4.7% organically. In Q3 2025, Product revenue reached €140.1 m, up 9.4% organically, confirming the Group’s strong commercial momentum. Recurring activities rose 9.1% to €129.2 m, with Customer-managed subscriptions up 23.3% and Own- managed subscriptions up 16.9%, reflecting a continued shift towards subscriptions . Upfront revenue recognition from Customer-managed subscriptions signatures amounted to €29.6m for the quarter. As expected, Maintenance & Support declined 8.1% to €43.7 m, as the customer base keeps shifting toward subscription models. License revenue increased 12.7% to €10.9 m, remaining moderate at roughly 6% of total revenue. Product revenue represented 81% of the Group total, compared with 79% a year earlier, reflecting the Group’s continued transition toward a software-centric, subscription-driven revenue model. Axway posted quarterly revenue of €82.6 m, up 8.8% organically, supported by resilient demand for integration, API management, and cloud -based subscriptions. Product revenue rose 10.3%, while recurring activities advanced 13.3%, driven by a 32.1% increase in Customer-managed subscriptions and a 12.7% rise in Own-managed subscriptions. Maintenance fell 26.7% as migrations to recurring models accelerated, and License revenue contracted to €2.5m. Services, at €8.7m (–2.3%), remained stable, consistent with Axway’s lighter implementation profile. SBS delivered revenue of €90.8m, representing 4.7% organic growth, fully in line with plan. Product revenue climbed 9.3%, driven by a 23.1% increase in Own-managed subscriptions and a 47.7% rise in License sales, partially offset by a 21.8% decrease in Customer-managed subscriptions after a stronger comparison base in 2024. Maintenance grew modestly by 1.5%, confirming the resilience of the installed base. Services revenue declined 6.2% to €24.0m, as the company continues to pivot away from large implementation projects toward standardized, modular software delivery. At Group level, Services totaled €32.7m, down 5.2% organically, mainly due to the normalization of project activity at SBS, while Axway’s contribution remained steady. Services accounted for 19% of total Group revenue, compared with 21% a year earlier, illustrating the progressive shift toward higher-margin, product-based revenue streams and recurring activities. At the end of September 2025, Annual Recurring Revenue (ARR) for Axway reached €262.8 m (+12.2%) and SBS €233.8m (+10.1%), confirming strong expansion in both portfolios. ARR is now approaching three-quarters of total Group annual revenue, underpinning a highly predictable revenue model and reinforcing the Group’s strategic emphasis on durable, compounding growth. €m / % Axway Scope 82.6 78.3 75.9 5.5% 8.8% SBS Scope 90.8 87.5 86.7 3.8% 4.7% Consolidation -0.5 0.0 0.0 - - 74Software 172.8 165.7 162.5 4.3% 6.3% Quarterly Revenue by Portfolio Brand Q3 2025 Q3 2024 Proforma Q3 2024 Restated Total Growth Organic Growth €m / % Product revenue 140.1 130.9 128.1 7.1% 9.4% Recurring revenue 129.2 121.1 118.4 6.7% 9.1% o/w Maintenance & Support 43.7 48.4 47.6 -9.7% -8.1% o/w Customer-managed Subscription 51.0 42.3 41.3 20.5% 23.3% o/w Upfront Revenue 29.6 22.7 22.2 30.1% 33.1% o/w Reccuring 21.4 19.5 19.1 9.4% 12.0% o/w Own-managed Subscription 34.5 30.4 29.5 13.7% 16.9% License revenue 10.9 9.8 9.7 11.1% 12.7% Services revenue 32.7 34.9 34.5 -6.3% -5.2% Total revenue 172.8 165.7 162.5 4.3% 6.3% Quarterly Revenue by Type Q3 2025 Q3 2024 Proforma Q3 2024 Restated Total Growth Organic Growth
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3 Comments on Q3 2025 product line performance Axway continues to benefit from resilient enterprise demand for integration, API Management, and secure data movement solutions, as well as expanding adoption of cloud and hybrid deployments. Over the quarter, the shift in product mix was largely attributable to the timing of Customer-managed subscription renewals and upsells and their resulting upfront recognition of revenue. - Managed File Transfer reaffirmed its strategic importance, combining high renewal rates with sustained traction in managed and cloud-based offerings. The line continues to evolve toward greater automation, observability, and scalability, positioning Axway as a key enabler of secure data exchange in complex enterprise environments. Share of total revenue declined this quarter, against a particularly strong comparable period in 2024. - B2B Integration maintained strong momentum, supported by customer demand for interoperability, automation, and AI -assisted process orchestration. Adoption remained broad -based across industries as organizations modernize partner ecosystems and migrate toward API-connected architectures. - API Management delivered another strong quarter, reinforcing Axway’s leadership in this segment. The recognition as a Leader in the Gartner® Magic Quadrant™ for API Management1, published in early October, came as a timely acknowledgment of the brand’s long -standing expertise and consistent innovation. The Amplify platform stood out for its distributed API Management use case, policy management, and advanced API security capabilities, supporting major digital transformation programs. The quarter also featured successful new deployments within leading European public institutions and a global automotive manufacturer, demonstrating how Amplify Fusion enables modernization, collaboration, and operational excellence. - Specialized Products, particularly in financial and compliance domains, maintained stable activity, driven by recurring renewals and ongoing adoption of modular solutions addressing modernization and operational visibility needs. SBS delivered performance fully in line with expectations, confirming progress across its four product families and continued expansion of its recurring base. Its modular and composable product strategy continues to enable agility for banks in highly regulated markets, aligning with growing demand for cloud -native and AI -ready financial platforms. - Financing Products maintained solid momentum, supported by sustained demand in lending and auto - finance solutions and high visibility through multi-year renewals. The product line also saw growing adoption of digital audit and compliance modules, further expanding its value proposition. - Modular Products recorded a steady level of activity, marked by continued adoption of instant payments, digital engagement, and regulatory -reporting solutions. The quarter saw further progress in developing cloud-native regulatory-reporting capabilities through new partnerships in Europe, alongside the signature of a major European bank for the Digital Banking Suite — illustrating SBS’s growing traction in composable digital-banking platforms. SBS’s leadership in regulatory reporting solutions was once again recognized by Chartis Research , which named the company a Leader in the 2025 RiskTech Quadrant ™ for Regulatory Reporting Solutions for the third consecutive year. 1 Gartner® Magic Quadrant™ for API Management, Shameen Pillai, John Santoro, Steve Schwent, Nicholas Carter, 7 October 2025 Quarterly Revenue by Product Line 40% 28% 18% 14% 36% 30% 19% 15% Managed File Transfer B2B Integration API Management Specialised Products Q3'24 Q3'25 24% 12% 47% 17% 26% 11% 46% 17% Financing Products Modular Products Integrated Products Banking Components Q3'24 Q3'25
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4 - Integrated Products maintained stable activity, with modernization initiatives gaining pace through incremental functional extensions and composable deployments. The line continued to perform well in Africa, with the signature of three new customers during the quarter and further expansion within the installed base as part of large-scale core-banking transformation programs. - Banking Components delivered another strong quarter, supported by ongoing expansion in payments, cards, and lending modules. Deep customer relationships and an extensive component library remain key assets supporting SBS’s recurring revenue base and long-term resilience. Financial position on September 30, 2025 As of September 30, 2025, 74Software reported cash and cash equivalents of €47.6m and bank debt of €243.7m (before IFRS 16), resulting in net debt of €196.1m. Following the strong deleveraging achieved in the first half, the Group maintained a solid balanc e sheet profile in Q3 — traditionally the weakest quarter in terms of cash flows — through disciplined working capital management. This continued deleveraging, combined with an improving cash-flow profile, positions 74Software well for potential M&A activity from 2026. Targets & Ambitions Following the strong performance over the first nine months of the year, 74Software increases its full -year 2025 growth guidance, supported by disciplined execution, a healthy pipeline, and continued traction in software renewals and cross-sell initiatives. The Group now expects full-year organic revenue growth to reach around 4%, at the upper end of its initial guidance range. Margin on o perating activities guidance remains unchanged between 14% and 16% of revenue. Unlevered free cash flow is expected to represent at least 10% of revenue, with the leverage ratio remaining below 2.0x through year-end. Looking ahead, 74Software reiterates its ambition to surpass €750m in revenue by 2027 with a margin on operating activities above 17%, and to reach around 20% by 2028 — in line with its trajectory toward a scalable, profitable, and product-led software model.
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5 Financial Calendar Wednesday, February 25, 2026 – after market close: Publication of 2025 Full-Year Results Wednesday, February 25, 2026 – 6:30 pm (UTC+1): 2025 Full-Year Results Virtual Analyst Conference Tuesday, March 24, 2026: Filing of the 2025 Universal Registration Document Thursday, April 30, 2026 – before market opening: Publication of Q1 2026 Revenue Tuesday, May 19, 2026 – 2:30 p.m. (UTC+2): Annual Shareholders’ Meeting Glossary and Alternative Performance Measures Axway ARR : Annual Recurring Revenue – Expected annual billing amounts from all active maintenance and subscription agreements. SBS ARR: Annual Recurring Revenue – Monthly recurring revenue (MRR) for the last month of the reporting period multiplied by 12. Where contracts are affected by seasonality or contracted volume -based elements, the last 12 months of revenue are aggregated in deter mining ARR. Expected recurring revenue from contracts signed but not yet active are not included in ARR. NPS: Net Promoter Score – Customer satisfaction and recommendation indicator for a company. Organic growth: Growth in revenue between the period under review and the prior period, restated for consolidation scope and exchange rate impacts. Profit on operating activities : Profit from recurring operations adjusted for the non -cash share -based payment expense, as well as the amortization of allocated intangible assets. Proforma: Proforma measures assume the acquisition of SBS happened at the beginning of the respective reporting period. Restated revenue: Revenue for the prior year, adjusted for the consolidation scope and exchange rates of the current year. Unlevered free cash flow: Free cash flow before exceptional items and before net interest expense. About 74Software 74Software is an enterprise software group founded through the combination of Axway and SBS – independently operated leaders with unique experience and capabilities to deliver mission-critical software for a data driven world. A pioneer in enterprise integration solutions for 25 years, Axway supports major brands and government agencies around the globe with its core line of MFT, B2B, API, and Financial Accounting Hub products. SBS empowers banks and financial institutions to reimagine tomorrow's digital experiences with a composable cloud -based architecture that enabl es deposits, lending, compliance, payments, consumer, and asset finance services and operations to be deployed worldwide. 74Software serves more than 11,000 companies, including over 1,500 financial service customers. To learn more, visit 74Software.com Contacts - Investor Relations: Arthur Carli - +33 (0)1 47 17 24 65 - acarli@74software.com Chloé Chouard - +33 (0)1 47 17 21 78 - cchouard@74software.com
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6 Appendices (1/4) €m / % Axway Scope 243.3 226.9 223.5 7.2% 8.9% SBS Scope 275.0 262.7 262.1 4.7% 4.9% Consolidation -1.5 0.0 0.0 - - 74Software 516.8 489.6 485.5 5.5% 6.4% Year-to-date Revenue by Portfolio Brand 9M 2025 9M 2024 Proforma 9M 2024 Restated Total Growth Organic Growth €m Axway Scope 82.5 78.3 82.6 243.3 SBS Scope 88.3 95.8 90.8 275.0 Consolidation -0.4 -0.5 -0.5 -1.5 74Software 170.4 173.6 172.8 516.8 Quarterly Breakdown of Revenue by Portfolio Brand Q1 2025 Q2 2025 Q3 2025 9M 2025 €m / % Product revenue 420.1 379.6 376.1 10.7% 11.7% Recurring revenue 387.2 350.4 347.1 10.5% 11.6% o/w Maintenance & Support 135.2 144.6 143.5 -6.5% -5.8% o/w Customer-managed Subscription 149.7 118.9 117.8 25.9% 27.0% o/w Upfront Revenue 86.0 65.1 64.5 32.0% 33.2% o/w Reccuring 63.7 53.8 53.3 18.5% 19.5% o/w Own-managed Subscription 102.3 86.8 85.7 17.8% 19.3% License revenue 33.0 29.2 29.1 12.7% 13.4% Services revenue 96.6 110.0 109.4 -12.2% -11.6% Total revenue 516.8 489.6 485.5 5.5% 6.4% Year-to-date Revenue by Type 9M 2025 9M 2024 Proforma 9M 2024 Restated Total Growth Organic Growth €m / % Product revenue 139.0 141.0 140.1 420.1 Recurring revenue 129.5 128.4 129.2 387.2 o/w Maintenance & Support 47.0 44.5 43.7 135.2 o/w Customer-managed Subscription 48.6 50.1 51.0 149.7 o/w Upfront Revenue 28.2 28.2 29.6 86.0 o/w Reccuring 20.4 21.9 21.4 63.7 o/w Own-managed Subscription 34.0 33.8 34.5 102.3 License revenue 9.5 12.5 10.9 33.0 Services revenue 31.3 32.6 32.7 96.6 Total revenue 170.4 173.6 172.8 516.8 Quarterly Breakdown of Revenue by Type Q1 2025 Q2 2025 Q3 2025 9M 2025
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7 Appendices (2/4) €m / % Product revenue 73.9 69.3 67.0 6.6% 10.3% Recurring revenue 71.4 65.2 63.0 9.5% 13.3% o/w Maintenance & Support 11.8 16.8 16.1 -29.7% -26.7% o/w Customer-managed Subscription 45.7 35.5 34.6 28.6% 32.1% o/w Upfront Revenue 28.2 19.2 18.6 47.3% 51.4% o/w Reccuring 17.5 16.4 16.0 6.7% 9.6% o/w Own-managed Subscription 13.9 12.8 12.3 8.1% 12.7% License revenue 2.5 4.1 4.0 -38.8% -37.0% Services revenue 8.7 9.0 8.9 -3.4% -2.3% Total revenue - Axway 82.6 78.3 75.9 5.5% 8.8% Quarterly Revenue by Type - Axway Q3 2025 Q3 2024 Proforma Organic Growth Q3 2024 Restated Total Growth €m / % Product revenue 217.2 199.8 196.7 8.7% 10.4% Recurring revenue 213.0 193.0 190.1 10.3% 12.0% o/w Maintenance & Support 39.1 51.5 50.4 -24.1% -22.6% o/w Customer-managed Subscription 132.7 102.8 101.8 29.0% 30.4% o/w Upfront Revenue 80.0 58.3 57.7 37.2% 38.7% o/w Reccuring 52.7 44.5 44.1 18.3% 19.6% o/w Own-managed Subscription 41.2 38.8 37.9 6.4% 8.7% License revenue 4.2 6.7 6.6 -37.6% -36.2% Services revenue 26.2 27.1 26.8 -3.6% -2.3% Total revenue - Axway 243.3 226.9 223.5 7.2% 8.9% Year-to-date Revenue by Type - Axway 9M 2025 9M 2024 Proforma Organic Growth 9M 2024 Restated Total Growth €m / % Product revenue 73.4 69.8 73.9 217.2 Recurring revenue 72.1 69.5 71.4 213.0 o/w Maintenance & Support 14.4 12.8 11.8 39.1 o/w Customer-managed Subscription 43.7 43.2 45.7 132.7 o/w Upfront Revenue 26.7 25.1 28.2 80.0 o/w Reccuring 17.0 18.2 17.5 52.7 o/w Own-managed Subscription 13.9 13.4 13.9 41.2 License revenue 1.3 0.4 2.5 4.2 Services revenue 9.0 8.5 8.7 26.2 Total revenue - Axway 82.5 78.3 82.6 243.3 Quarterly Breakdown of Revenue by Type - Axway Q1 2025 Q2 2025 Q3 2025 9M 2025
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8 Appendices (3/4) €m / % Product revenue 66.8 61.6 61.1 8.4% 9.3% Recurring revenue 58.4 55.9 55.4 4.5% 5.4% o/w Maintenance & Support 31.9 31.6 31.4 1.0% 1.5% o/w Customer-managed Subscription 5.3 6.7 6.7 -21.8% -21.8% o/w Upfront Revenue 1.4 3.6 3.6 -61.7% -61.7% o/w Reccuring 3.9 3.1 3.1 23.8% 23.8% o/w Own-managed Subscription 21.2 17.5 17.2 20.9% 23.1% License revenue 8.4 5.7 5.7 47.1% 47.7% Services revenue 24.0 25.9 25.6 -7.3% -6.2% Total revenue - SBS 90.8 87.5 86.7 3.8% 4.7% Quarterly Revenue by Type - SBS Total Growth Organic GrowthQ3 2025 Q3 2024 Proforma Q3 2024 Restated €m / % Product revenue 204.5 179.8 179.4 13.7% 13.9% Recurring revenue 175.7 157.3 157.0 11.7% 11.9% o/w Maintenance & Support 96.1 93.2 93.1 3.2% 3.3% o/w Customer-managed Subscription 17.0 16.1 16.1 5.7% 5.7% o/w Upfront Revenue 6.0 6.8 6.8 -12.6% -12.6% o/w Reccuring 11.0 9.2 9.2 19.3% 19.3% o/w Own-managed Subscription 62.6 48.1 47.8 30.2% 30.9% License revenue 28.8 22.5 22.5 27.8% 27.9% Services revenue 70.5 82.9 82.6 -15.0% -14.7% Total revenue SBS 275.0 262.7 262.1 4.7% 4.9% Year-to-date Revenue by Type - SBS Total Growth Organic Growth9M 2025 9M 2024 Proforma 9M 2024 Restated €m / % Product revenue 66.0 71.7 66.8 204.5 Recurring revenue 57.9 59.5 58.4 175.7 o/w Maintenance & Support 32.5 31.7 31.9 96.1 o/w Customer-managed Subscription 4.9 6.9 5.3 17.0 o/w Upfront Revenue 1.5 3.1 1.4 6.0 o/w Reccuring 3.4 3.8 3.9 11.0 o/w Own-managed Subscription 20.5 20.9 21.2 62.6 License revenue 8.2 12.2 8.4 28.8 Services revenue 22.3 24.2 24.0 70.5 Total revenue - SBS 88.3 95.8 90.8 275.0 Quarterly Breakdown of Revenue by Type - SBS Q1 2025 Q2 2025 Q3 2025 9M 2025
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9 Appendices (4/4) €m % of Rev. Europe 101.4 58.7% 92.7 92.4 9.8% 9.8% o/w France 47.8 27.7% 43.0 43.0 11.3% 11.3% o/w UK 24.2 14.0% 21.3 21.1 14.6% 14.6% Americas 41.0 23.7% 44.2 41.5 -1.3% -1.3% Middle East & Africa 22.9 13.3% 20.4 20.4 12.4% 12.4% Asia & Pacific 7.4 4.3% 8.4 8.2 -9.9% -9.9% 74Software 172.8 165.7 162.5 6.3% 6.3% Quarterly Revenue by Region Q3 2025 Q3 2024 Proforma Q3 2024 Restated Total Growth Organic Growth €m % of Rev. Europe 309.5 59.9% 295.7 295.6 4.7% 4.7% o/w France 147.3 28.5% 142.6 142.7 3.3% 3.2% o/w UK 70.9 13.7% 66.1 66.2 7.3% 7.2% Americas 114.3 22.1% 109.8 106.1 4.1% 7.7% Middle East & Africa 66.1 12.8% 59.7 59.7 10.6% 10.6% Asia & Pacific 26.9 5.2% 24.4 24.1 10.2% 11.6% 74Software 516.8 489.6 485.5 5.5% 6.4% Year-to-date Revenue by Region 9M 2025 9M 2024 Proforma 9M 2024 Restated Total Growth Organic Growth €m / % 9M 2025 9M 2024 Growth Revenue 516.8 261.1 + 98.0% Changes in exchange rates -3.6 Revenue at constant exchange rates 516.8 257.5 + 100.7% Changes in scope +228.0 Revenue at constant scope and exchange rates 516.8 485.5 + 6.4% Impact on Year-to-date Revenue of Changes in Scope and Exchange Rates For 1€ Average Rate 9M 2025 Average rate 9M 2024 Change US Dollar 1.119 1.087 -2.8% Great Britain Pound 0.851 0.851 + 0.1% Changes in Main Exchange Rates