Earnings release
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-1- Lectra - Quarterly financial information as of September 30, 2025 Quarterly Financial Information as of September 30, 2025
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-2- Lectra - Quarterly financial information as of September 30, 2025 I. REPORT ON THE THIRD QUARTER AND FIRST NINE MONTHS OF 2025 CONSOLIDATED ACTIVITIES AND FINANCIAL STATEMENTS ......................................................................... 3 1. HIGHLIGHTS ................................ ................................ ................................ ..................... 3 2. ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER OF 2025 ................................ ................................ ................................ ................................ 5 3. ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST NINE MONTHS OF 2025 ................................ ................................ ................................ ........................... 7 4. ASSESSMENT OF THE 2023-2025 STRATEGIC ROADMAP ................................ .................... 8 5. SHARE CAPITAL - OWNERSHIP – SHARE PRICE PERFORMANCE ................................ ......... 14 6. RISK FACTORS AND RELATED PARTY TRANSACTIONS ................................ ....................... 14 7. FINANCIAL CALENDAR ................................ ................................ ................................ .... 15 8. OUTLOOK ................................ ................................ ................................ ....................... 15 II. CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2025 ................................................................................................................... 16 1. ADDITIONAL INFORMATION – THIRD QUARTER 2025 ................................ ........................... 16 2. ADDITIONAL INFORMATION – FIRST NINE MONTHS OF 2025 ................................ ................ 19 3. CONSOLIDATED ACCOUNTS FOR FIRST NINE MONTHS OF 2025 ................................ ............ 22 III. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT SEPTEMBER 30, 2025 . 26 1. THE GROUP’S ACTIVITY ................................ ................................ ................................ ... 26 2. SUMMARY OF ACCOUNTING RULES AND METHODS ................................ ........................ 27 3. SCOPE OF CONSOLIDATION ................................ ................................ ............................ 31 4. OPERATING SEGMENTS INFORMATION ................................ ................................ ........... 33 5. CONSOLIDATED CASH FLOW SUMMARY ................................ ................................ ......... 34 6. RESEARCH TAX CREDIT ................................ ................................ ................................ ... 35 7. TREASURY SHARES ................................ ................................ ................................ ......... 35 8. CASH AND CASH EQUIVALENTS AND NET CASH ................................ ............................... 36 9. SENSITIVITY ANALYSIS TO ECONOMIC CONTEXT ................................ .............................. 36 IV. CERTIFICATION OF THE FIRST NINE MONTHS OF 2025 FINANCIAL report ..................... 38
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-3- Lectra - Quarterly financial information as of September 30, 2025 I. REPORT ON THE THIRD QUARTER AND FIRST NINE MONTHS OF 2025 CONSOLIDATED ACTIVITIES AND FINANCIAL STATEMENTS Below you will find the report on business activity and consolidated financial statements of the Lectra Group (the “Group”) for the third quarter and the first nine months of 2025. 1. HIGHLIGHTS July 1 – September 30 January 1 – September 30 2025 2024 Variation 2025/2024 2025 2024 Variation 2025/2024 (in million of euros) Actual exchange rates Like-for- like(1) Actual exchange rates Like-for- like(1) Revenues 121.8 131.9 -8% -4% 383.1 394.2 -3% -2% ARR (2) - - - - 92.7 88.9 4% 9% EBITDA before non-recurring items 21.2 26.2 -19% -13% 61.6 68.5 -10% -8% EBITDA margin before non-recurring items 17.4% 19.9% -2.5 points -1.7 points 16.1% 17.4% -1.3 points -1.1 points Net income 7.2 10.1 -29% - 18.3 21.2 -14% - Consolidated Shareholders’ Equity (2) - - - - 346.9 374.4 - - Net cash (+) / Net debt (-)(2) - - - - -38.1 -20.6 - - (1) At constant exchange rates and like-for-like scope (2) As of September 30, 2025 and December 31, 2024 • Trade wars continue to impact the Group’s customers’ activities, as demonstrated by the renewed tensions in Q3 between China and the United States regarding rare earths. • Recurring revenue s (75% of total revenue s) increased by 2% on a like-for-like basis, driven by a 13% rise in SaaS subscriptions in Q3 2025. • ARR reached €92.7 million as of 30 September 2025, up 9% on a like-for-like basis. • New system orders improved in Q3 2025 ( -15% on a like-for-like basis vs. -27% on a like-for-like basis in Q2 2025). • EBITDA before non-recurring items stood at €21.2 million (-13% on a like-for-like basis) in Q3 2025, representing an EBITDA margin before non-recurring items of 17.4%, affected by low activity and negative currency effects. • 96% of annual fixed overhead costs were covered by the gross profit on recurring revenues for the first nine months of 2025 , remaining a key pillar of Lectra’s financial strength. • The balance sheet is robust, with €347 million in shareholders’ equity and net debt of €38.1 million as of 30 September 2025. • In the absence of lasting geopolitical stabilization, caution remains essential. The Group continues its strategy and accelerates its SaaS transformation, relying on reinforced fundamentals: recurring revenue s, strict cost control, and a healthy balance sheet.
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-4- Lectra - Quarterly financial information as of September 30, 2025 Uncertainty persists in a tense economic and geopolitical context While the first months of 2025 were marked by escalating trade tensions, customs duties have become a tool of pressure in broader international negotiations. Indeed, since June, several bilateral agreements and various exemptions have been announced, temporarily easing trade tensions —except with China, India, and Mexico, three countries that are important for the Group. By the end of September, the tariff differential between China and other Asian countries, with an average range of 30 -35% according to the trade agreements signed, was not sufficient to justify major relocations. India, although expected in April to be a potential beneficiary of the tightening of tariffs between the United States and China, has not fully taken advantage of this situation, with a rate of about 60% on multiples product categories. Temporary agreements have made it possible to suspend certain tariff increases between the United States and Mexico, but discussions remain open, with an extended timeline to finalize a lasting agreement. Europe obtained a tariff cap of 15% on the majority of European products exported to the United States (automotive, semiconductors, pharmaceuticals, wood, etc.) and an exemption for certain strategic products (aeronautics, generic medicines, specific chemi cals, etc.), but at the cost of significant concessions in terms of economic and energy sovereignty. The uncertain political situation in France has little impact on the Group, which generates 94% of its revenues outside France. Despite a bilateral agreement signed in June 2025 between the United States and China, trade tensions between the two countries remain unstable, notably due to China’s dominant position in rare earths. In response to new Chinese restrictions on this subjec t, the U.S. administration retaliated on October 13 by imposing additional tariffs of 100% on all Chinese imports starting November 1, 2025. Negotiations are still on-going. Direct impacts of tariffs are under control As announced in July, European or Chinese exports of equipment, consumables and parts to the United States account for less than 10% of Lectra’s revenues. The Group has repeatedly adjusted its price lists to reflect the impact of tariffs in China and the United States for equipment, consumables and parts, and maintenance contracts. It has also rerouted certain shipments to Mexico and removed several products from the Chinese and American catalogs to avoid customs formalities. Indirect impacts are closely tied to customers’ wait-and-see behavior Whether in fashion, automotive, or furniture, tariffs have so far resulted in little competitive distortion or industrial relocation. However, changes cannot be ruled out in the coming months. Disruptions continue, and uncertainty remains, especially for M exico, China, and India. Furthermore, an increase in import costs for American companies and a risk of inflation induced by tariffs are to be feared. Given the strong dependence of supply chains in all sectors, the need to diversify sourcing and countries of origin is more relevant than ever for all companies concerned. In the medium and long term, this could imply additional production capacities and represent business opportunities for Lectra. Lectra focuses on its long‑term objectives Lectra immediately took action to counter the direct impacts of tariff changes. The current context of instability is expected to lead to structural changes and open up new opportunities that the Group is already preparing to seize by: - pursuing its transformation strategy, - maintaining its investments in R&D to remain at the forefront of innovation,
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-5- Lectra - Quarterly financial information as of September 30, 2025 - offering solutions that meet the growing needs for agility and control in an increasingly complex supply chain environment, - accelerating the adaptation of its organization to achieve optimal structure at all levels, - and actively monitoring external growth opportunities to support its strategic vision. The absolute priority is to strengthen customer proximity: ongoing dialogue, securing recurring contracts, presenting SaaS offers, and consolidating positions are at the heart of the teams’ objectives, positioning themselves as strategic partners for customers. As the 2023–2025 strategic roadmap draws to a close (see assessment on page 9), Lectra, backed by solid fundamentals, is fully committed to preparing its new 2026 –2028 strategic roadmap focused on SaaS development, which will be presented in February 2026. 2. ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER OF 2025 The U.S. dollar and Chinese yuan depreciated by 5% and 6% respectively compared to Q3 2024, with average exchange rates of 1.16 USD/1 EUR and 8.30 CNY/1 EUR respectively over the period. Currency fluctuations mechanically reduced revenues by €4.2 million and EBITDA before non-recurring items by €1.7 million at actual exchange rates compared to the like-for-like figures. Unless otherwise stated, comparisons are made on a like-for-like basis. New System Orders New systems include software sold separately as perpetual licenses, equipment (including embedded software), and non-recurring services. Orders for new systems had already been impacted by customer s’ wait-and-see behavior as early as mid-March, when the first successive tariff announcements were made, and this impact extended to all regions and markets of the Group in the second quarter. Despite the continued cautiousness of customers, the third quarter saw a less pronounced decline in new systems orders than in the second quarter (15% like-for-like after -27% in Q2). By region, new systems orders decreased by 22% in the Americas, 21% in Asia -Pacific, and 15% in Europe. They increased by 55% in Other countries (notably in the Middle East and Africa). By sector, orders fell by 23% in Fashion and 16% in Automotive, while orders increased by 30% in Furniture, thanks to a more favorable comparison base. Other industries recorded an increase of 7%. Annual Recurring Revenue (ARR) Given the importance of SaaS activity, Lectra began publishing ARR (Annual Recurring Revenue) in Q1 2025, replacing the previous metric of new SaaS subscription orders. As of September 30, 2025, ARR stood at €92.7 million, up 9% like -for-like (4% actual) compared to year-end 2024, confirming the relevance of Lectra’s strategy. Three Months Ended September 30 2025 2024 Changes 2025/2024 (in thousands of euros) % % Actual rates Like-for-like Perpetual software licenses 1,716 6% 1,772 2,164 7% -21% -18% Equipment 20,222 75% 21,082 25,382 77% -20% -17% Training and consulting services 4,363 16% 4,436 4,676 14% -7% -5% Miscellaneous 743 3% 767 649 2% ns ns Total 27,044 100% 28,057 32,872 100% -18% -15%
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-6- Lectra - Quarterly financial information as of September 30, 2025 Revenues Revenues for the third quarter of 2025 declined by 8% on a n actual basis and by 4% on a like -for-like basis, reflecting the continued wait-and-see attitude of customers. Recurring revenues, which represent 77% of total revenues (compared to 72% in Q3 2024), increased by 2%. This growth was driven by recurring contracts, which rose by 5%, and in particular by SaaS subscriptions, which continued their momentum with 13% growth. Revenue s from consumables and parts were still slightly down by 2% in Q3 2025, but the improvement in the trend (-5% in Q2 2025) could signal a low point reached in the Group’s customers’ production. Non-recurring revenues fell by 21%, with declines observed across all its components. As of September 30, 2025, the order book for perpetual software licenses, equipment and training and consulting, amounted to €27.9 million. This is a decrease of €1.8 million compared to June 30, 2025, on a like-for-like basis. Results Gross margin Gross margin rate reached 73.1%, up 2.0 points from Q3 2024, mainly due to growth in recurring SaaS activity. Personnel expenses and other operating expenses incurred as part of service contracts or training and consulting are not included in the cost of goods sold but are accounted for in overhead costs. Overhead costs Overhead costs amounted to €78.1 million, a contained increase of 2% compared to Q3 2024, and break down as follows: - €71.8 million in fixed overhead costs, up by only 1%; - €6.3 million in variable expenses, up 20%, mainly due to additional costs related to agent commissions and the outsourcing of certain training and consulting activities. Gross research and development expenses (€16.6 million), fully expensed for the period and included in fixed overhead costs, represented 14% of revenues. After deducting the research tax credit applicable in France and subsidies received, net research and development costs totaled €15.6 million (€15.2 million in Q3 2024). EBITDA before non-recurring items EBITDA before non-recurring items was €21.2 million, down 13%, with a margin of 17.4%, down -1.7 points like-for-like (-2.5 points in actual terms) vs. Q3 2024. Three Months Ended September 30 2025 2024 Changes 2025/2024 (in thousands of euros) % % Actual rates Like-for-like Non recurring revenues, of which: 27,860 23% 36,667 28% -24% -21% - Perpetual software licenses 1,787 1% 2,497 2% -28% -26% - Equipment 21,081 17% 28,909 22% -27% -24% - Training and consulting services 4,250 3% 4,611 3% -8% -6% - Miscellaneous 743 1% 649 ns ns ns Recurring revenues, of which: 93,965 77% 95,267 72% -1% +2% - Recurring contracts 59,797 49% 58,823 45% +2% +5% - SaaS subscriptions 22,402 18% 20,221 15% +11% +13% - Software maintenance contracts 12,609 10% 13,074 10% -4% -1% - Equipment maintenance contracts 24,786 20% 25,528 19% -3% +1% - Consumables and parts 34,168 28% 36,444 28% -6% -2% Total 121,825 100% 131,934 100% -8% -4%
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-7- Lectra - Quarterly financial information as of September 30, 2025 Income from operations before non-recurring items After amortization of intangible assets (€5.6 million), income from operations before non-recurring items was €11.0 million, down 21% like-for-like. Net Income Financial income and expenses resulted in a net charge of €1.5 million. Foreign exchange gains were €0.1 million. Net income was €7.2 million, down 29% in actual terms. 3. ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST NINE MONTHS OF 2025 To facilitate analysis of the Group's results, the financial statements are compared to those published in 2024 that consolidated Launchmetrics as of January 23 ("actual") and, for the analysis of variations, to the 2024 Proforma statements that consolidate Launchmetrics as of January 1, expressed at 2024 exchange rates (like-for-like"). Proforma revenue s and EBITDA increased by €2.5 million and €0.3 million respectively compared to the reported financial statements. 3.1 Business analysis Revenues for the first nine months of 2025 amounted to €383.1 million, down 2%. This breaks down into €97.2 million in non-recurring revenues, down 11%, and €285.9 million in recurring revenues (75% of total revenues), up 2%, including €66.0 million from SaaS subscription contracts (17% of revenue s, +13%). Gross margin reached €279.1 million, stable compared to the first nine months of 2024, with a gross margin rate of 72.9%, up 1.3 points, thanks to a favorable sales mix and strict cost control. The security ratio (fixed overhead costs covered by gross profit on recurring revenues) stood at 96%, confirming the undeniable strength of the business model. EBITDA before non-recurring items was €61.6 million, down 8%, with an EBITDA margin of 16.1%, down 1.2 points. Operating income before non-recurring items amounted to €30.2 million, down 14%. Financial income and expenses represented a net expense of €4.5 million, and the foreign exchange result was negative by €1.2 million. After a tax expense of €6.0 million, net income amounted to €18.3 million, down 14%. 3.2 Balance sheet and cash flow analysis The working capital requirement was negative at €29.8 million as of 30 September 2025, remaining one of the strengths of the Group’s business model. Free cash flow before non-recurring items amounted to €36.9 million (€49.9 million in 2024). This lower level is explained by: - €3.9 million due to the decrease in EBITDA before non -recurring items, partly offset by good management of customer collections and inventories; - €4.2 million due to increased capital and intangible investments, particularly the replacement of the Group’s ERPs with a new ERP common to all entities; - €4.9 million due to the difference between the collection in 2024 of the remaining 2020 research tax credit (€6.9 million) and the collection in 2025 of the remaining 2021 research tax credit (€2.0 million).
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-8- Lectra - Quarterly financial information as of September 30, 2025 Free cash flow amounted to €33.7 million due to a non -recurring outflow of €3.1 million related to the research tax credit (CIR) dispute . The company received a tax adjustment notice in July 2023 concerning the CIR for 2018 and 2019. The Group also received a notice regarding the ongoing dispute with the tax authorities over the CIR for 2018 and 2019. This adjustment amounts to €8.2 million, including €5.1 million for the non-reimbursement of the 2018 credit and a €3.1 million outflow related to the 2019 credit (reimbursed by the State in 2023 and repaid in September 2025). After this non-recurring outflow, free cash flow stands at €33.7 million. The company intends to defend its position through legal proceedings. As a reminder, a provision of €6.6 million (80% of the adjustment) was set up in 2023 and has therefore been maintained as of September 30, 2025. As of September 30, 2025, the Group’s balance sheet remains very solid: equity stands at €346.9 million and net debt at €38.1 million after outflows for the buyback of the second tranche of Launchmetrics’ capital (€20.5 million), the buyback of Glengo Turkey (€1.7 million), and the payment of dividends (€15.2 million) during the first half. Net debt consists of €94.1 million in financial debt and €56.0 million in available cash. 4. ASSESSMENT OF THE 2023-2025 STRATEGIC ROADMAP Launched in 2017, the Lectra 4.0 strategy aims to position the Group as a key Industry 4.0 player in its three strategic market sectors: fashion, automotive and furniture, before 2030. The strategy has been implemented up to now through three strategic roadmaps. The first strategic roadmap, which covered the 2017-2019 period, established the key fundamentals for the future of the Group. These included the successful integration into its new offers of the key technologies for Industry 4.0 (cloud computing, the Internet of things, big data, and artificial intelligence), the transformation of sales organizations into four main regions, and the launch of the first software offers in SaaS mode. The second roadmap, which ran from 2020 through 2022, achieved a new dimension for the Group – primarily through the acquisition of Gerber in June 2021 – and opened new perspectives, with a financial position stronger than ever before, an extended worldwid e presence, a broader customer base, a powerful product portfolio, a growing number of customers using its new offers for Industry 4.0, and a new brand image. The third roadmap, for 2023 -2025, published in the financial report dated February 8, 2023, was designed to enable Lectra to take full advantage of its change in dimension to accelerate growth, to significantly increase the volume of SaaS in its revenues, and to seize acquisition opportunities. Lectra's long-term strategy more relevant than ever before Over the past three years, marked by persistent macroeconomic and geopolitical challenges, Lectra’s 4.0 strategy has proven its relevance and resilience. Designed to position the Group as a leading Industry 4.0 player in its three strategic markets by 2030 , this strategy is built on five pillars: premium positioning, focus on three strategic market sectors, integration of customers into the heart of the Group’s activities, the gradual market launch of new 4.0 services and a committed sustainability policy. Customers are facing growing pressure to adapt to global disruptions, evolving consumer expectations, and sustainability imperatives. Many have begun modernizing their operations –adopting digital tools, modular production systems, and Industry 4.0 technologies – but these efforts mark only the beginning of a broader transformation. Compounding these shifts, geopolitical tensions such as trade wars and regional instability have disrupted supply chains and sourcing strategies. These challenges have led to longer lead times,
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-9- Lectra - Quarterly financial information as of September 30, 2025 increased costs, and heightened uncertainty. In response, customers are prioritizing digital transformation to gain agility and resilience – an evolution that Lectra’s strategy is designed to support. Industry 4.0 offers a path forward: a fully connected value chain that enhances performance, reduces costs, and increases production agility while supporting sustainability goals. Lectra’s modular and SaaS- based solutions are aligned with this vision, help ing customers adapt their business models and drive long-term value creation. 2023-2025: a strategic leap toward the Lectra 4.0 vision Over the 2023–2025 period, Lectra made decisive progress toward its Lectra 4.0 vision, guided by six strategic priorities: (1) Reinforce implementation of ethical, social, societal and environmental best practices both internally and for customers, (2) Lev erage all synergies arising from the Gerber acquisition, (3) Accelerate the transition of software sales to the SaaS model, (4) Accelerate the transformation of the Group’s customer relationship and customer engagement model, (5) Pursue external growth, (6) Prepare Lectra for the 2026-2030 period. Despite a complex macroeconomic and geopolitical environment, the strategic roadmap was executed with discipline and ambition. It delivered a wide range of solid results - notably a threefold increase in SaaS revenues, deeper integration of sustainability across operations, and enhanced financial resilience. These achievements were complemented by significant progress in other areas, including organizational transformation, innovation, and customer-centricity. Accelerating the adoption of Lectra’s SaaS offers During 2023 -2025, adoption of Lectra’s SaaS offers accelerated, driven by strong market demand, sustained investment in R&D , and targeted acquisitions that enabled the Group to address evolving customer needs in the context of the 4th industrial revolution. A key milestone was the acquisition of Launchmetrics in 2024, a global leader in digital marketing for fashion. This strategic move expanded Lectra’s SaaS portfolio, reinforced its leadership in the fashion industry, and accelerated its SaaS -driven growth. This move follows earlier strategic acquisitions such as Retviews (in 2018), an AI -powered market intelligence solution, and Neteven (in 2021), a solution that optimizes product distribution on major fashion marketplaces. Kubix Link (in 2018), a collabora tive solution for product data, and TextileGenesis (in 2023), a leading traceability solution, have seen strong sales growth, confirming their status as Lectra's SaaS flagship solutions. The launch of Valia Fashion at the end of 2024 (see following paragraph), incorporating innovations such as Quick Offer, Flex Offer, and the Lectra Digital Cutting Platform, marked a strategic breakthrough. Already adopted by 17 customers in Europe and North America, its rollout in China at the CISMA trade show in September 2025 signaled Valia Fashion’s entry into the Asia -Pacific market. To support this momentum, Lectra began a progressive transformation of its customer -oriented organization in 2023, notably by strengthening its Customer Success function with dedicated Customer Success Managers focused on driving adoption and optimizing cu stomer performance through the use of Lectra’s solutions. In addition, the SaaS transformation has enabled Lectra to further adopt a progressive selling model, offering scalable solutions that evolve with customer needs. This approach strengthens long -term relationships and supports sustainable, high-margin, recurring revenues growth. In line with this shift in the business model, Lectra introduced Annual Recurring Revenue (ARR) as a key performance indicator in 2025. As of September 30, ARR reached €92.7 million, reflecting the strong market momentum for Lectra’s SaaS offers. This prog ress is all the more remarkable considering that ARR was zero in 2017, highlighting exceptional growth achieved in just eight years. Sustained investments to drive 4.0 innovation Lectra reinforced its position as a major player in Industry 4.0 by maintaining a high level of R&D
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-10- Lectra - Quarterly financial information as of September 30, 2025 investment over three years, with more than €190 million invested - representing an average of nearly 13% of annual revenue s - demonstrating a consistent commitment to innovation. These investments have made it possible to enhance existing offers and launch new solutions that expand the product portfolio. Since 2018, all new offers have incorporated advanced technologies such as cloud computing, IoT, big data, and artificial intelligence. In 2023, the Group launched a new generation of intelligent, connected cutting equipment: VectorFurniture iX2 and Q2 in January, followed by VectorFashion iX2 and Q2 in July. Replacing previous Gerber and Lectra models, these solutions deliver significant gains in productivity, flexibility, and environmental performance across Fashion, Furniture, Automotive, and Other industries. Building on this momentum, in 2024, Lectra introduced two intelligent cloud -based solutions: Valia Furniture (January) and Valia Fashion (October). Designed to optimize production, enhance agility, and support more sustainable operations, these solutions f ully embody Lectra’s vision for Industry 4.0 and Cutting Room 4.0. By combining artificial intelligence with deep industry expertise, they automate and streamline workflows from order processing to fabric cutting. Throughout the year, Valia Fashion and Valia Furniture continued to evolve, notably integrating advanced connectivity features with Lectra, Gerber, and third-party equipment. In September 2025, Lectra reached a new milestone with the launch of Empower Fashion, marking an industry first by introducing a new generation of maintenance contracts built on a contractual guarantee of equipment uptime. Combined with Valia Fashion, Empo wer Fashion ensures optimal cutting room performance through real-time monitoring and full connectivity. R&D efforts also strengthened other flagship solutions: Kubix Link now better supports product lifecycle management and collaboration, while TextileGenesis enables traceability for textiles, leather, and footwear - both upstream and downstream. In line with its innovation strategy, Lectra formed strategic partnerships in 2024 with Six Atomic (generative AI for fashion design) and AQC (AI-based textile defect recognition). Together, these innovations reflect Lectra’s commitment to delivering impactful, future -ready technologies that drive digital transformation and operational excellence for its customers. Successful synergy realization following the Gerber acquisition Following the acquisition of Gerber, which transformed the Group’s scale and redefined Lectra’s international footprint through significant expansion in the Americas and robust growth in Asia -Pacific, Lectra successfully integrated both organizations, bringing together two industry leaders. During the 2023-2025 period, the Group focused on optimizing synergies in sales, team optimization, and operational efficiency, which yielded significant strategic and financial advantages. Between 2022 and 2025, recurring contract revenues from Lectra and Gerber combined increased by 6% annually on a like -for-like basis. This growth was mainly driven by the integration of Gerber’s customer base and the adoption of new -generation maintenance contracts, aligning Gerber’s service practices with Lectra’s high standards. Additionally, this positive momentum was reinforced by complementary initiatives such as harmonizing commercial practices, developing high value -added services, and strengthening customer engagement. The Group’s profitability improved markedly, as evidenced by 3.6 points increase in its gross margin, rising from 66.6% in 2022 to 70.2% in the first nine months of 2025 on a like -for-like basis. This improvement resulted from both optimized production costs for Gerber equipment and harmonized commercial practices. The integration of the two organizations enabled Lectra to fully capitalize on the synergies between Gerber and Lectra, generating significant strategic and financial benefits. This achievement also demonstrated the Group’s ability to manage and execute la rge-scale transformation projects with discipline and efficiency. More than €36 million in synergies will be achieved in 2025, which is more than
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-11- Lectra - Quarterly financial information as of September 30, 2025 double the initial target for 2022 (€12–18 million) set at the time of the acquisition. This result stands out as a key factor in the success of the integration. Thanks to this integration, full compatibility has been established between Gerber and Lectra’s flagship solutions, paving the way for numerous cross -selling opportunities within the Group’s portfolio. In addition, Lectra’s innovation capacity has been strengthened: the combined expertise and resources of both organizations now support the development of next -generation solutions, further consolidating Lectra’s position as a technological and industrial leader. On the operational front, the deployment of industrial excellence practices from Bordeaux -Cestas and Tolland to Suzhou marked a major milestone: the first Vector equipment was assembled in China in December 2023, further strengthening Lectra’s global indus trial footprint. With three strategic sites (France, United States, China), Lectra is now the only company in its sector with such a global industrial base, providing a unique competitive edge and ensuring operations’ continuity for customers amid tariff tensions and global supply chain changes. The dual -brand value proposition, combining products from both Lectra and Gerber and unified processes, has enhanced the customer experience. This approach merges the strengths of Lectra and Gerber, offering customers a broader range of solutions and a sea mless transition between brands, solutions, and teams they interact with. At the same time, sustained efforts to simplify, align, and centralize processes have established a unified framework that accelerates the implementation of digital tools post-integration, ensuring operational excellence. All these achievements have further strengthened the Group’s fundamentals and improved Lectra’s customer value proposition. Today, Lectra stands as a global reference player, with extensive geographic coverage, technological leadership, and an unmatched customer base. A proven acquisition strategy driving strategic expansion Lectra’s acquisition strategy has consistently proven its effectiveness in accelerating innovation and expanding the Group’s capabilities across key areas of Industry 4.0. Each acquisition was carefully selected to reinforce Lectra’s value proposition and respond to evolving customer needs. The acquisition of TextileGenesis in January 2023 marked Lectra’s entry into textile traceability, allowing fashion brands to digitally map their supply chains and meet increasing sustainability demands. To date, over 3.8 billion fashion products have been traced via the platform, compared to just 800,000 in January 2023 - encompassing more than 20,000 supply chain partners. TextileGenesis also boasts a 100% customer retention rate, demonstrating the strategic value and robustness of its solution, and now appears in the sustainability reports of several premium brands. The company has also expanded into the footwear and leather goods sectors, where traceability and sustainability are becoming key differentiators. Furthermore, TextileGenesis’s ARR has more than quadrupled since January 2023, highlighting strong commercial momentum and the solution’s growing adoption within the industry. In January 2024, Launchmetrics joined the Group, bringing powerful brand performance and marketing analytics capabilities used by more than 1,700 fashion and beauty brands worldwide. This acquisition significantly strengthened Lectra’s offer for fashion brands, enabling them to measure and optimize their marketing investments, while extending Lectra’s reach across the entire fashion value chain. This acquisition occurred at a pivotal moment in the Group’s transition to a SaaS model, making a significant contribution of €40 million in SaaS revenues. As a result, Lectra doubled its SaaS revenues to reach €77.4 million by the end of the year. The integration fostered synergies between solutions, notably through the connection with Kubix Link, and joint commercial initiatives were launched in Europe and the United States, supported by a unified training and certification program designed for both Lectra and Launchmetrics sales teams. The synergies resulting from Lectra’s integration and acquisition strategy are reflected in solid financial performance. By the end of the third quarter of 2025, Launch metrics reported an EBITDA margin of 18% and an ARR of €43.6 million, representing an 8.9% year-over-year increase.
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-12- Lectra - Quarterly financial information as of September 30, 2025 Cultural initiatives such as Lectra Together - the onboarding journey offered to all new team members, including those from acquisitions - and YourVoice, the annual employee satisfaction survey, have supported efforts to build a cohesive team. In July 2025 , high engagement scores were reported for both acquisitions: 70% for Launchmetrics and 88% for TextileGenesis, compared to a Group average of 62%, reflecting a positive experience for the teams involved. These acquisitions are part of a strategic approach focused on identifying high -potential targets, successful integrations, and leveraging synergies within the Group and its customer ecosystem. The complementarities between these solutions provide fertile ground for the years ahead, paving the way for increased value creation for customers. This ongoing strategy continues to strengthen Lectra’s technological leadership and its position as a trusted partner in the digital transformation of its core markets. Expanding the Fashion customer value proposition Between 2023 and 2025, Lectra significantly expanded its fashion offer through strategic acquisitions and the launch of internally developed products, thereby broadening its portfolio of SaaS solutions. Lectra’s SaaS offer for this sector now includes Laun chmetrics, Valia Fashion, Kubix Link, TextileGenesis, Retviews, and Neteven, complemented by its historical CAD solutions (Modaris, Gerber AccuMark) and flagship cutting equipment (Vector, Virga). These solutions cover all the key stages of the value chain in this sector - Create, Manufacture, Market - as well as cross-functional activities such as Collaboration and Traceability. In a sector where speed and agility are essential, many brands still operate with teams organized in silos, which slows decision-making and harms efficiency. To remain competitive, they must connect their teams, processes, and data. Lectra addresses this challenge by breaking down silos and connecting data through an integrated, collaborative approach. Leveraging fashion data and Industry 4.0 technologies - cloud computing, IoT, big data, and artificial intelligence - Lectra enables companies to make better-informed decisions, faster, and to optimize their processes. No competitor matches Lectra’s level of expertise in integration and embedded software, nor offers such comprehensive coverage of all their customers’ business processes. This leadership position is built on continuous innovation and sustained strategic investments. By supporting fashion companies in aligning performance, sustainability, and growth, Lectra helps reconcile two sometimes opposing notions: profitability and sustainability. Leading in sustainability and responsibility Between 2023 and 2025, Lectra made major strides in integrating sustainability and responsible leadership into the core of its operations, culture, and offers. The publication of its first sustainability report, compliant with the CSRD (Corporate Sustainab ility Reporting Directive), marked a turning point for transparency. At the same time, the launch of a climate transition plan demonstrated the Group’s long-term commitment to the environment, with ambitious quantified goals: a 25% reduction in greenhouse gas emissions for scopes 1 and 2, and a 20% reduction for scope 3 between 2022 and 2030. Sustainability is now fully embedded in Lectra’s solutions and governance. Its technologies enable customers to reduce waste, optimize resource use, and improve traceability throughout their value chains. ESG (Environmental, Social, and Governance) practic es have been strengthened in product design, procurement processes, and talent development. Lectra’s efforts have been recognized by independent organizations. For the fourth consecutive year, the Group was named one of the best -managed companies by Deloitte France, highlighting its excellence in strategy, innovation, sustainability, and governance. In January 2025, Lectra also received a silver medal from EcoVadis, ranking among the top 10% of companies evaluated and the top 4% in its sector, thanks to enhanced sustainability policies and governance.
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-13- Lectra - Quarterly financial information as of September 30, 2025 At the heart of this transformation is “The Lectra Way,” a set of values and practices that shape the company’s culture and guide its responsible growth. This cultural foundation, embraced at all levels of the organization, strengthens Lectra’s position as an industry leader in sustainability. Consolidating the Group’s financial strength The third strategic roadmap of Lectra 4.0 once again highlights the robustness and resilience of the Group’s financial model. Despite a complex global environment, Lectra has maintained strong performance across all its key financial indicators, driven by sustained growth in recurring revenue s, rigorous cost management, and strong cash flow generation. This financial strength is also reflected in the indicators as of September 30, 2025: a significant portion of SaaS in total revenues (17%), demonstrating the success of the transition to the SaaS model; a high gross margin rate (73%), illustrating the Group’s ability to preserve profitability despite challenging conditions; a strengthened safety ratio (96%), confirming the structural s tability of the business model; and a healthy balance sheet (net debt reduced to 38 million euros), enabling a confident ou tlook for a new phase of growth. These performances attest to Lectra’s ability to invest confidently in innovation and strategic initiatives, while consolidating its technological leadership and financial discipline —cornerstones of its long -term strategy. Strengthening the governance of Lectra Lectra’s governance structure continued to evolve over the three years, reflecting the Group’s strategic ambitions and commitment to leadership excellence. In May 2023, Karine Calvet and Pierre -Yves Roussel joined Lectra’s Board of Directors, bringing valuable expertise in strategic development and international business. On March 31, 2024, Jérôme Viala retired from his role as Executive Vice President and al so joined the Board of Directors on April 26, 2024, continuing to contribute to Lectra’s strategic oversight. The Executive Committee welcomed several new members: Frédéric Morel, President, Asia -Pacific (September 2023), Anne Borfiga, General Secretary (October 2023), Antonella Capelli, President EMEA (April 2024). Michael Jaïs, Co -founder and CEO of Launchmetric s (January 2024) and Amit Gautam (July 2025), founder and CEO of TextileGenesis also joined the Committee, further strengthening Lectra’s expertise in acquired activities. Appointed President of the Americas in October 2025, John Brearley brings four decades of experience, including over 20 years at Lectra, with notable expertise in customer relations and developing recurring business. Finally, in June 2025, Maximilien Abadie was appointed Deputy Chief Executive Officer, marking a significant milestone in Lectra’s leadership development and SaaS transformation journey. The third stage in implementing Lectra’s 4.0 strategy successfully completed The consistent improvement of Lectra’s financial indicators since 2023, supported by steady growth in recurring revenues, rigorous cost management, as well as the success and effective integration of targeted acquisitions , demonstrates the strength of the Group’s performance. Despite a challenging macroeconomic and geopolitical environment, the success of Lectra’s various offers confirms the relevance of its strategic choices since 2017. These results allow Lectra to confidently continue investing in innovation and to approach the evolution of its strategy for the 2026–2028 roadmap with optimism.
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-14- Lectra - Quarterly financial information as of September 30, 2025 5. SHARE CAPITAL - OWNERSHIP – SHARE PRICE PERFORMANCE 5.1 Change in share capital As of September 30, 2025, the share capital amounted to €38,046,200, divided into 38,046,200 shares with a nominal value of €1.00 each. Since July 1, 2025, the capital was increased by €8,450 in nominal value (with an issue premium of €143,650) through the creation of 8,450 shares resulting from the exercise of stock subscription options. 5.2 Main shareholders As of the date of this report, to the Company’s knowledge: - Daniel Harari holds 12.7% of the share capital and voting rights; - Alantra EQMC Asset Management SGIIC (Spain) declared, on July 24, 2025, that it had crossed above the 10% threshold of the share capital and voting rights of LECTRA SA; - Brown Capital Management (United States) and Kempen Oranje Participaties (Netherlands) each hold more than 5% (and less than 10%) of the share capital and voting rights; - Fidelity Management & Research Company LLC declared, on September 24, 2025, that it had crossed below the 5% threshold of the share capital and voting rights of LECTRA SA. Note that FMR LLC, directly and indirectly through the companies it controls, still holds more than 5% of the share capital and voting rights. No other shareholder has declared holding more than 5% of the share capital and voting rights. 5.3 Share price performance and trading volumes As of September 30, 2025, the stock price was €23.65, down 9.0% compared to December 31, 2024 (€26.00). During the third quarter , its lowest price was €22.40 on September 4, and its highest was €25.95 on July 25. Market capitalization stood at €0.90 billion as of September 30, 2025 (€0.99 billion as of December 31, 2024). During the third quarter of 2025, 4.5 million shares were traded (vs. 2.3 million in Q3 2024) across all platforms, of which 35% traded on Euronext. The Company is included in the CAC All Shares, CAC Technology, EN Tech Leaders, and ENT PEA - PME 150 indices. Its shares are eligible for Euronext’s standard Deferred Settlement Service (SRD), allowing French investors to defer settlement or delivery of sec urities. The Company also confirmed its eligibility for the PEA-PME scheme in its press release dated April 10, 2025. 6. RISK FACTORS AND RELATED PARTY TRANSACTIONS 6.1 Risk factors The main risk factor is linked to the evolution of the global geopolitical context following the tariff announcements made by the U.S. administration since the beginning of 2025. The impacts of these measures are detailed in section 1 of this report. Other risk factors are of the same nature as those described in section 3 of the Management Report included in the 2024 Annual Financial Report.
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-15- Lectra - Quarterly financial information as of September 30, 2025 6.2 Related Party Transactions During the first nine of 2025, the business relationships between the Group and companies involving Group directors were carried out under normal market conditions and were not materially significant. 7. FINANCIAL CALENDAR Q3 2025 Results Presentation Meeting October 30, 2025 at 8:30 am (CET) 2025 Annual Results February 11, 2026 after market close 2025 Annual Results Presentation Meeting February 12, 2026 at 8:30 am (CET) Q1 2026 Results April 28, 2026 after market close Q2 & H1 2025 Results July 30, 2026 after market close Regular calendar updates are available on www.lectra.com 8. OUTLOOK 2025 has proven to be an unprecedented year in terms of macroeconomic and geopolitical environment, marked by successive announcements since March that have led most of the Group’s customers to adopt a wait-and-see attitude, regardless of market or geographic region. Lectra has continued to pursue its strategy, which has demonstrated its relevance through the development of its SaaS business, despite the adverse context. In July 2025, the lack of visibility led the Group not to reiterate its annual targets announced in February 2025. Today, the situation still calls for caution. The Group therefore cannot commit to specific targets and is focusing on the future, accelerati ng its transformation to seize every opportunity that may arise in a normalized environment, both in terms of organic and external growth. This year marks the completion of the final stage of its 2023 –2025 strategic roadmap. The Group’s ambitions for the next three years, in line with its long -term vision, will be detailed in the 2026 –2028 strategic roadmap, which will be presented on Februar y 12, 2026. The Group will rely on its strong fundamentals to drive this new phase of its development. The Board of Directors October 29, 2025
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-16- Lectra - Quarterly financial information as of September 30, 2025 II. CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2025 1. ADDITIONAL INFORMATION – THIRD QUARTER 2025 1.1 Orders for New Systems Three Months Ended September 30 By product line 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates [A] [B] [C] [A] vs [C] [B] vs [C] Perpetual software licenses 1,716 6% 1,772 2,164 7% -21% -18% Equipment 20,222 75% 21,082 25,382 77% -20% -17% Training and consulting services 4,363 16% 4,436 4,676 14% -7% -5% Miscellaneous 743 3% 767 649 2% +14% +18% Total 27,044 100% 28,057 32,872 100% -18% -15% € / $ average parity 1.17 1.10 1.10 (1) In Q3 2024, Actual 2024 is identical to Proforma 2024 given the integration of Launchmetrics on January 23rd 2024 Three Months Ended September 30 By region 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates [A] [B] [C] [A] vs [C] [B] vs [C] Europe 6,421 24% 6,437 7,531 23% -15% -15% Americas 7,981 30% 8,483 10,899 33% -27% -22% Asia-Pacific 9,072 34% 9,511 12,106 37% -25% -21% Other countries 3,570 13% 3,627 2,335 7% +53% +55% Total 27,044 100% 28,057 32,872 100% -18% -15% € / $ average parity 1.17 1.10 1.10 (1) In Q3 2024, Actual 2024 is identical to Proforma 2024 given the integration of Launchmetrics on January 23rd 2024 Three Months Ended September 30 By market 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates [A] [B] [C] [A] vs [C] [B] vs [C] Fashion 13,848 51% 14,356 18,766 57% -26% -23% Automotive 6,690 25% 6,884 8,234 25% -19% -16% Furniture 2,748 10% 2,904 2,232 7% +23% +30% Other 3,758 14% 3,913 3,640 11% +3% +7% Total 27,044 100% 28,057 32,872 100% -18% -15% € / $ average parity 1.17 1.10 1.10 (1) In Q3 2024, Actual 2024 is identical to Proforma 2024 given the integration of Launchmetrics on January 23rd 2024
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-17- Lectra - Quarterly financial information as of September 30, 2025 1.2 Breakdown of revenues Three Months Ended September 30 Revenues by region 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates [A] [B] [C] [A] vs [C] [B] vs [C] Europe, of which: 42,611 35% 42,858 42,986 33% -1% 0% - France 8,473 7% 8,524 7,880 6% +8% +8% Americas 40,117 33% 42,444 42,346 32% -5% 0% Asia-Pacific 28,201 23% 29,761 36,450 28% -23% -18% Other countries 10,897 9% 10,983 10,152 8% +7% +8% Total 121,825 100% 126,047 131,934 100% -8% -4% € / $ average parity 1.17 1.10 1.10 (1) In Q3 2024, Actual 2024 is identical to Proforma 2024 given the integration of Launchmetrics on January 23rd 2024 Three Months Ended September 30 Revenues by type of business 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates [A] [B] [C] [A] vs [C] [B] vs [C] Non recurring revenues, of which: 27,860 23% 28,874 36,667 28% -24% -21% - Perpetual software licenses 1,787 1% 1,838 2,497 2% -28% -26% - Equipment 21,081 17% 21,928 28,909 22% -27% -24% - Training and consulting services 4,250 3% 4,341 4,611 3% -8% -6% - Miscellaneous 743 1% 767 649 0% +14% +18% Recurring revenues, of which: 93,965 77% 97,173 95,267 72% -1% +2% - Recurring contracts 59,797 49% 61,544 58,823 45% +2% +5% - SaaS subscriptions 22,402 18% 22,863 20,221 15% +11% +13% - Software maintenance contracts 12,609 10% 12,884 13,074 10% -4% -1% - Equipment maintenance contracts 24,786 20% 25,796 25,528 19% -3% +1% - Consumables and parts 34,168 28% 35,628 36,444 28% -6% -2% Total 121,825 100% 126,047 131,934 100% -8% -4% € / $ average parity 1.17 1.10 1.10 (1) In Q3 2024, Actual 2024 is identical to Proforma 2024 given the integration of Launchmetrics on January 23rd 2024
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-18- Lectra - Quarterly financial information as of September 30, 2025 1.3 Consolidated income statement Three months ended September 30 2025 2024 Changes 2025/2024 (in thousands of euros) Actual at 2025 rates Actual at 2024 rates Actual (1) at 2024 rates Actual rates Like-for-like [A] [B] [C] [A] vs [C] [B] vs [C] Revenues 121,825 126,047 131,934 -8% -4% Cost of goods sold (32,761) (33,639) (37,854) -13% -11% Gross profit 89,064 92,408 94,080 -5% -2% (in % of revenues) 73.1% 73.3% 71.3% +1.8 points +2.0 points Research and development (15,553) (15,806) (15,176) +2% +4% Selling, general and administrative expenses (62,527) (64,244) (63,248) -1% +2% Income from operations before non-recurring items 10,985 12,358 15,657 -30% -21% (in % of revenues) 9.0% 9.8% 11.9% -2.9 points -2.1 points Income from operations 10,985 12,358 15,657 -30% -21% (in % of revenues) 9.0% 9.8% 11.9% -2.9 points -2.1 points Income before tax 9,599 10,945 14,394 -33% -24% Income tax (2,340) na (4,296) -46% na Share of result from associates (87) na - na na Net income 7,172 na 10,098 -29% na of which, Group share 6,850 na 10,262 -33% na of which, Non-controlling interests 322 na (164) -296% na Income from operations before non-recurring items 10,985 12,358 15,657 -30% -21% + Net depreciation and amortization of non-current assets 10,244 10,557 10,583 -3% 0% EBITDA before non-recurring items 21,229 22,915 26,239 -19% -13% (in % of revenues) 17.4% 18.2% 19.9% -2.5 points -1.7 points € / $ average parity 1.17 1.10 1.10 (1) In Q3 2024, Actual 2024 is identical to Proforma 2024 given the integration of Launchmetrics on January 23rd 2024
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-19- Lectra - Quarterly financial information as of September 30, 2025 2. ADDITIONAL INFORMATION – FIRST NINE MONTHS OF 2025 2.1 Orders for New Systems Nine Months Ended September 30 By product line 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Proforma (2) Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates at 2024 rates [A] [B] [C] [D] [A] vs [C] [B] vs [D] Perpetual software licenses 6,072 7% 6,156 8,702 8% 8,702 -30% -29% Equipment 69,434 75% 70,543 82,423 76% 82,423 -16% -14% Training and consulting services 14,255 15% 14,341 14,732 14% 14,840 -3% -3% Miscellaneous 2,242 2% 2,274 2,243 2% 2,243 0% +1% Total 92,004 100% 93,315 108,100 100% 108,208 -15% -14% € / $ average parity 1.12 1.09 1.09 1.09 (1) Actual 2024 includes Launchmetrics as of January 23rd 2024 (2) Proforma 2024 includes Launchmetrics as of January 1st 2024 Nine Months Ended September 30 By region 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Proforma (2) Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates at 2024 rates [A] [B] [C] [D] [A] vs [C] [B] vs [D] Europe 24,140 26% 24,116 25,757 24% 25,864 -6% -7% Americas 19,348 21% 20,075 25,092 23% 25,093 -23% -20% Asia-Pacific 38,725 42% 39,304 47,290 44% 47,290 -18% -17% Other countries 9,791 11% 9,820 9,961 9% 9,961 -2% -1% Total 92,004 100% 93,315 108,100 100% 108,208 -15% -14% € / $ average parity 1.12 1.09 1.09 1.09 (1) Actual 2024 includes Launchmetrics as of January 23rd 2024 (2) Proforma 2024 includes Launchmetrics as of January 1st 2024 Nine Months Ended September 30 By market 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Proforma (2) Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates at 2024 rates [A] [B] [C] [D] [A] vs [C] [B] vs [D] Fashion 49,328 54% 50,002 56,563 52% 56,672 -13% -12% Automotive 27,932 30% 28,224 36,316 34% 36,316 -23% -22% Furniture 5,261 6% 5,428 7,401 7% 7,400 -29% -27% Other 9,483 10% 9,660 7,820 7% 7,820 +21% +24% Total 92,004 100% 93,315 108,100 100% 108,208 -15% -14% € / $ average parity 1.12 1.09 1.09 1.09 (1) Actual 2024 includes Launchmetrics as of January 23rd 2024 (2) Proforma 2024 includes Launchmetrics as of January 1st 2024
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-20- Lectra - Quarterly financial information as of September 30, 2025 2.2 Breakdown of revenues Nine Months Ended September 30 Revenues by region 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Proforma (2) Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates at 2024 rates [A] [B] [C] [D] [A] vs [C] [B] vs [D] Europe, of which: 135,670 35% 135,806 132,659 34% 134,465 +2% +1% - France 26,593 7% 26,655 24,082 6% 24,629 +10% +8% Americas 124,038 32% 127,823 132,174 34% 132,668 -6% -4% Asia-Pacific 92,631 24% 94,977 97,938 25% 98,121 -5% -3% Other countries 30,764 8% 30,782 31,449 8% 31,490 -2% -2% Total 383,103 100% 389,389 394,220 100% 396,745 -3% -2% € / $ average parity 1.12 1.09 1.09 1.09 (1) Actual 2024 includes Launchmetrics as of January 23rd 2024 (2) Proforma 2024 includes Launchmetrics as of January 1st 2024 Nine Months Ended September 30 Revenues by type of business 2025 2024 Changes 2025/2024 (in thousands of euros) Actual % Actual Actual (1) % Proforma (2) Actual rates Like-for-like at 2025 rates at 2024 rates at 2024 rates at 2024 rates [A] [B] [C] [D] [A] vs [C] [B] vs [D] Non recurring revenues, of which: 97,165 25% 98,706 111,278 28% 111,469 -13% -11% - Perpetual software licenses 6,033 2% 6,111 9,290 2% 9,290 -35% -34% - Equipment 74,894 20% 76,208 85,485 22% 85,485 -12% -11% - Training and consulting services 13,996 4% 14,116 14,260 4% 14,452 -2% -2% - Miscellaneous 2,242 1% 2,272 2,243 1% 2,243 0% +1% Recurring revenues, of which: 285,938 75% 290,683 282,942 72% 285,275 +1% +2% - Recurring contracts 181,407 47% 183,918 172,512 44% 174,846 +5% +5% - SaaS subscriptions 66,019 17% 66,611 56,442 14% 58,776 +17% +13% - Software maintenance contracts 38,633 10% 39,018 39,687 10% 39,687 -3% -2% - Equipment maintenance contracts 76,755 20% 78,289 76,383 19% 76,383 0% +2% - Consumables and parts 104,531 27% 106,765 110,429 28% 110,429 -5% -3% Total 383,103 100% 389,389 394,220 100% 396,745 -3% -2% € / $ average parity 1.12 1.09 1.09 1.09 (1) Actual 2024 includes Launchmetrics as of January 23rd 2024 (2) Proforma 2024 includes Launchmetrics as of January 1st 2024
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-21- Lectra - Quarterly financial information as of September 30, 2025 2.3 Consolidated income statement Nine months ended September 30 2025 2024 Changes 2025/2024 (in thousands of euros) Actual at 2025 rates Actual at 2024 rates Actual (1) at 2024 rates Proforma (2) at 2024 rate Actual rates Like-for-like [A] [B] [C] [D] [A] vs [C] [B] vs [D] Revenues 383,103 389,389 394,220 396,745 -3% -2% Cost of goods sold (104,003) (105,525) (112,655) (112,784) -8% -6% Gross profit 279,100 283,864 281,565 283,961 -1% 0% (in % of revenues) 72.9% 72.9% 71.4% 71.6% +1.5 points +1.3 points Research and development (48,829) (49,209) (46,076) (46,449) +6% +6% Selling, general and administrative expenses (200,058) (202,945) (198,178) (200,632) +1% +1% Income from operations before non-recurring items 30,215 31,710 37,311 36,879 -19% -14% (in % of revenues) 7.9% 8.1% 9.5% 9.3% -1.6 points -1.2 points Non-recurring expenses - - (452) (452) -100% -100% Income from operations 30,215 31,710 36,860 36,428 -18% -13% (in % of revenues) 7.9% 8.1% 9.4% 9.2% -1.5 points -1.1 points Income before tax 24,525 25,973 31,197 30,880 -21% -16% Income tax (5,973) na (9,973) (9,799) -40% na Share of result from associates (238) na - - na na Net income 18,315 na 21,224 21,080 -14% na of which, Group share 18,980 na 22,770 22,699 -17% na of which, Non-controlling interests (666) na (1,547) (1,619) -57% na Income from operations before non-recurring items 30,215 31,710 37,311 36,879 -19% -14% + Net depreciation and amortization of non-current assets 31,370 31,808 31,161 31,853 +1% 0% EBITDA before non-recurring items 61,585 63,518 68,471 68,732 -10% -8% (in % of revenues) 16.1% 16.3% 17.4% 17.3% -1.3 points -1.0 point € / $ average parity 1.12 1.09 1.09 1.09 (1) Actual 2024 includes Launchmetrics as of January 23rd 2024 (2) Proforma 2024 includes Launchmetrics as of January 1st 2024
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-22- Lectra - Quarterly financial information as of September 30, 2025 3. CONSOLIDATED ACCOUNTS FOR FIRST NINE MONTHS OF 2025 3.1 Consolidated statement of financial position (1) The 2024 amounts integrate Launchmetrics since January 23, 2024 (see note 3). (2) At December 2024 and September 2025, the amounts correspond to the equity interest in Six Atomic and AQC Industry (see note 3). ASSETS (In thousands of euros) September 30, 2025 December 31, 2024 (1) September 30, 2024 (1) Goodwill 345,640 369,470 355,395 Other intangible assets 162,975 188,036 185,032 Leasing rights-of-use 22,336 28,351 25,467 Property, plant and equipment 21,351 23,430 23,446 Investments in associates (2) 3,330 3,854 2,373 Other non-current assets 15,894 13,078 7,274 Deferred tax assets 11,892 13,247 13,336 Total non-current assets 583 418 639 467 612 324 Inventories 57,834 63,423 66,280 Trade accounts receivable 87,963 102,601 89,497 Other current assets 29,499 28,293 33,787 Cash and cash equivalents 55,991 81,901 66,736 Total current assets 231,287 276,218 256,301 Total assets 814,704 915,685 868,625 EQUITY AND LIABILITIES (In thousands of euros) September 30, 2025 December 31, 2024 (1) June 30, 2024 (1) Share capital 38,046 37,966 37,955 Share premium 144,236 142,869 142,670 Treasury shares (834) (937) (915) Currency translation adjustments 77 35,390 16,091 Retained earnings and net income 150,558 137,999 113,268 Non-controlling interests 14,844 21,063 23,583 Total equity 346,927 374,350 332,650 Retirement benefit obligations 10,784 10,930 11,529 Non-current lease liabilities 15,593 22,223 19,705 Minority shares purchase commitments 66,749 117,887 128,082 Deferred tax liabilities 13,396 19,012 18,851 Borrowings, non-current portion 78,594 86,773 94,546 Derivative financial instruments 521 664 661 Total non-current liabilities 185,637 257,490 273,374 Trade and other current payables 91,714 101,150 90,361 Deferred revenues 105,865 111,845 99,811 Current income tax liabilities 7,543 6,545 8,061 Current lease liabilities 9,612 9,941 9,909 Minority shares purchase commitments 43,033 29,766 32,085 Borrowings, current portion 15,522 15,704 13,212 Provisions for other liabilities and charges 8,852 8,893 9,160 Total current liabilities 282,140 283,844 262,600 Total equity and liabilities 814,704 915,685 868,625
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-23- Lectra - Quarterly financial information as of September 30, 2025 3.2 Consolidated income statement 3.3 Statement of comprehensive income, Group share (3) (1) The 2024 amounts integrate Launchmetrics since January 23, 2024 (see note 3 hereafter). (2) The non-recurring expenses correspond mainly to costs related to the acquisition of Launchmetrics. (3) The Group considered as non-material the information regarding the comprehensive income of the non-controlling interests (for Neteven, Gemini CAD Systems, Glengo Lectra Teknoloji, TextileGenesis and Launchmetrics, see note 3 hereafter) and thus only presen ts the comprehensive income of the Group share. (In thousands of euros) Nine months ended September 30, 2025 Nine months ended September 30, 2024 (1) Revenues 383,103 394,220 Cost of goods sold (104,003) (112,655) Gross profit 279,100 281,565 Research and development (48,367) (46,076) Selling, general and administrative expenses (200,519) (198,178) Income from operations before non-recurring items 30,215 37,311 Non-recurring expenses (2) - (451) Income from operations 30,215 36,860 Financial income 739 2,017 Financial expenses (5,220) (6,657) Foreign exchange income (loss) (1,208) (1,023) Income before tax 24,525 31,197 Income tax (5,973) (9,973) Share of result from associates (238) - Net income 18,315 21,224 of which, Group share 19,515 22,770 of which, Non-controlling interests (1,200) (1,547) (in euros) Earnings per share, Group share: - basic 0.51 0.60 - diluted 0.51 0.60 Shares used in calculating earnings per share: - basic 37,965,761 37,856,368 - diluted 38,138,508 38,173,623 (in thousands of euros) Income from operations before non-recurring items 30,215 37,311 + Net depreciation and amortization of non-current assets 31,370 31,161 EBITDA before non-recurring items 61,585 68,472 (In thousands of euros) Nine months ended September 30, 2025 Nine months ended September 30, 2024 (1) Net income, Group share 19,515 22,770 Currency translation adjustments (35,313) (886) Changes in derivative financial instruments 143 (661) Tax effect (36) 165 Other comprehensive income to be reclassified in net income (35,206) (1,382) Remeasurement of the net liability arising from defined benefits pension plans - 53 Tax effect - (13) Other comprehensive income not to be reclassified in net income - 40 Total other comprehensive income (35,206) (1,342) Comprehensive income, Group share (15,691) 21,428
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-24- Lectra - Quarterly financial information as of September 30, 2025 3.4 Consolidated statement of cash flow (1) The 2024 amounts integrate Launchmetrics since January 23, 2024 (see note 3 hereafter). (2) The 2025 amounts include the payment of implementation costs for the new ERP for 2. 9 million euros. (3) This amount corresponds to the acquisition cost, net of cash acquired, of Launchmetrics (see note 3 hereafter). (4) These amounts mainly correspond to the valuation of purchases and sales of treasury shares made through the liquidity agreement, and for which the counterpart is shown in the corresponding cash flows arising from financing activities. (5) This amount corresponds to the acquisition of minority interests in Launchmetrics , Glengo and Neteven (see note 3 hereafter). (In thousands of euros) Nine months ended September 30, 2025 Nine months ended September 30, 2024 (1) I - OPERATING ACTIVITIES Net income 18,315 21,224 Net depreciation and amortization (non-current assets) 31,370 31,161 Net depreciation and provisions (current assets) 1,436 3,107 Non-cash operating expenses 1,513 1,071 Loss (profit) on sale of fixed assets (110) 72 Changes in deferred income taxes (4,230) (2,177) Changes in inventories 2,109 249 Changes in trade accounts receivable 9,452 11,173 Changes in other current assets and liabilities (6,735) (3,987) Changes in other operating non-current assets (3,140) 197 Net cash provided by (used in) operating activities 49,977 62,091 II - INVESTING ACTIVITIES Purchases of intangible assets (2) (6,332) (3,109) Purchases of property, plant and equipment (2,349) (1,349) Proceeds from sales of intangible and tangible assets 141 0 Acquisition cost of companies purchased (3) - (71,590) Acquisition cost of equity investments - (2,382) Purchases of financial assets (4) (7,113) (4,574) Proceeds from sales of financial assets (4) 7,426 4,762 Net cash provided by (used in) investing activities (8,227) (78,241) III - FINANCING ACTIVITIES Proceeds from issuance of ordinary shares by the parent company 1,447 2,015 Proceeds from issuance of ordinary shares to non controlling interests 278 - Payment of dividends to Lectra shareholders (15,199) (13,625) Payment of dividends paid to minority interests (990) - Change in share of interests in controlled entities (5) (25,077) - Purchases of treasury shares (6,800) (4,190) Sales of treasury shares 6,835 4,164 Subscription of long-term and short-term debt - 104,012 Repayment of lease liabilities (8,040) (8,719) Repayments of long-term and short-term borrowings (8,294) (115,550) Net cash provided by (used in) financing activities (55,838) (31,893) Increase (decrease) in cash and cash equivalents (14,089) (48,044) Cash and cash equivalents at opening 81,901 115,049 Increase (decrease) in cash and cash equivalents (14,089) (48,044) Effect of changes in foreign exchange rates (11,822) (269) Cash and cash equivalents at closing 55,991 66,736 Net cash provided by (used in) operating activities 49,977 62,091 + Net cash provided by (used in) investing activities (8,227) (78,241) - Acquisition cost of companies purchased - 71,590 -Acquisition cost of equity investments - 2,382 - Repayment of lease liabilities (8,040) (8,719) Free cash flow 33,711 49,103 Non-recurring items of the free cash flow (3,141) (785) Free cash flow before non-recurring items 36,851 49,888 Income tax (paid) / reimbursed, net (8,453) (5,899) Interest (paid) on lease liabilities (666) (520) Interest (paid) (3,399) (4,935)
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-25- Lectra - Quarterly financial information as of September 30, 2025 3.5 Consolidated statement of change in equity (1) These amounts stem from the takeover of Launchmetrics on January 23, 2024 (see note 3 hereafter). Retained Share capital Currency earnings Equity, Non (In thousands of euros, except for par value Number Par value Share Share Treasury translation and net Group controlling Total per share expressed in euros) of shares per share capital premium shares adjustments income share interests equity Balance at December 31, 2023 37,832,965 1 37,833 140,777 (885) 16,977 215,124 409,828 8,033 417,860 Net income 22,770 22,770 (1,547) 21,224 Other comprehensive income (886) (456) (1,342) (266) (1,608) Comprehensive income (886) 22,314 21,428 (1,813) 19,616 Exercised stock options 121,620 1 122 1,893 2,015 2,015 Fair value of stock options 1,039 1,039 55 1,094 Sale (purchase) of treasury shares (31) (31) (31) Profit (loss) on treasury shares 4 4 4 Integration of Launchmetrics and minority shares purchase commitment(2) (110,405) (110,405) 17,308 (93,097) Discounting and revision of minority shares purchase commitments (1,185) (1,185) (1,185) Dividend paid (13,625) (13,625) (13,625) Balance at September 30, 2024 37,954,585 1 37,955 142,670 (915) 16,091 113,268 309,067 23,583 332,650 Balance at December 31, 2023 37,832,965 1 37,833 140,777 (885) 16,977 215,124 409,827 8,033 417,860 Net income 31,164 31,164 (1,532) 29,632 Other comprehensive income 18,414 98 18,511 392 18,903 Comprehensive income 18,414 31,261 49,675 (1,140) 48,535 Exercised stock options 133,309 1 133 2,092 2,225 228 2,453 Fair value of stock options 1,419 1,419 67 1,486 Sale (purchase) of treasury shares (52) (52) (52) Profit (loss) on treasury shares (85) (85) (85) Integration of Launchmetrics and minority shares purchase commitment (1) (105,405) (105,405) 17,277 (88,128) Discounting and revision of minority shares purchase commitments 7,256 7,256 7,256 Purchase of Gemini minority stakes 2,045 2,045 (2,904) (859) Dividend paid (13,615) (13,615) (498) (14,113) Balance at December 31, 2024 37,966,274 1 37,966 142,869 (937) 35,390 137,999 353,287 21,063 374,350 Net income 19,515 19,515 (1,200) 18,315 Other comprehensive income (35,313) 107 (35,206) 912 (34,294) Comprehensive income (35,313) 19,622 (15,691) (288) (15,979) Exercised stock options 79,926 1 80 1,367 177 1,624 101 1,725 Fair value of stock options 1,424 1,424 130 1,554 Sale (purchase) of treasury shares 103 103 103 Profit (loss) on treasury shares (49) (49) (49) Discounting and revision of minority shares purchase commitments (2,311) (2,311) (2,311) Purchase of Gemini minority stakes (477) (477) (477) Purchase of Launchmetrics minority stakes 8,783 8,783 (4,828) 3,955 Purchase of Neteven minority stakes (40) (40) 125 85 Purchase of Glengo minority stakes 629 629 (469) 160 Dividend paid (15,199) (15,199) (990) (16,189) Balance at September 30, 2025 38,046,200 1 38,046 144,236 (834) 77 150,558 332,083 14,844 346,927
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-26- Lectra - Quarterly financial information as of September 30, 2025 III. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT SEPTEMBER 30, 2025 1. THE GROUP’S ACTIVITY At the forefront of innovation since its founding in 1973, Lectra provides industrial intelligence technology solutions combining Software-as-a-Service (SaaS) solutions, cutting equipment, data, and associated services to players in the fashion, automotive and furniture industries. With boldness and passion, Lectra accelerates the transformation and success of its customers in a world in perpetual motion thanks to the key technologies of Industry 4.0: artificial intelligence, big data, cloud and the Internet of Things. These solutions support customers in achieving their strategic objectives: boosting productivity; cutting costs; reducing time-to-market; tackling globalization challenges; enhancing product quality; increasing production capacity; developing stronger bran ds; and improving marketing campaign impact all while ensuring sustainable growth. The Group is present in more than one hundred countries. It operates three production sites for its cutting equipment, located in France, China and the United States. The company is listed on Euronext, and is included in CAC All Shares, CAC Technology, EN Tech Leaders and ENT PEA-PME 150 indices. A unique offer Lectra has an unparalleled understanding of its customers' business and technological leadership that enables it to offer a portfolio of innovative products that combine: − SaaS solutions: optimization of industrial processes from design through production, all the way up to market launch; − Connected and intelligent industrial equipment: cutting of soft materials (fabric, leather, composite materials and technical textiles); − Data: solutions to collect, organize and harness data to make well-informed decisions; − Services: consulting, training, support and maintenance to maximize the value provided by our solutions. The Lectra 4.0 strategy, a long-term vision Launched in 2017, the Lectra 4.0 strategy aims to position the Group as a key Industry 4.0 player in its three strategic market sectors (fashion, automotive and furniture) by 2030. It is based on five pillars: − Premium positioning; − Focus on three strategic market sectors; − Customers at the heart of the Group’s activities; − New 4.0 services; − A committed sustainability policy. This strategy is implemented through successive three -year roadmaps. The Group's particularly solid financial fundamentals allow it to execute these plans with confidence: − A wide distribution of activities across various sectoral and geographical markets with different purchasing cycles, as well as a large number of customers worldwide; − A significant proportion of recurring revenues (over 70%), with margins covering nearly all fixed overhead costs; − The generation of major annual free cash flow, significantly exceeding net income.
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-27- Lectra - Quarterly financial information as of September 30, 2025 More than 50 years of innovation Significant investments in innovation and R&D are at the core of the strategy, with over 10% of revenues and almost 25% of employees dedicated to these initiatives each year. Since 2018, all new software is available through the SaaS model. This model has been widely adopted by customers, as evidenced by a 2.5-fold increase in SaaS revenues between 2023 and 2024, reaching 77 million euros (representing 15% of total revenues). Successful external growth operations Since 2018, the Group has made nine acquisitions and two strategic partnerships. These acquisitions have allowed it to consolidate its market shares by integrating companies operating within the same industries and accessing technological building blocks and offers that round out its portfolio. A decades-long dedication to durability Committed to sustainability, Lectra has set high standards in terms of transparency and ethics. It is actively involved in contributing to the conservation and protection of the environment, providing a work environment where all employees feel fulfilled a nd valued, and giving future generations the means to become leaders in their fields. Passionate employees Lectra can rely on the skills and expertise of nearly 3,000 employees across the world. Driven by three core values–being open-minded thinkers, trusted partners and passionate innovators –they work daily alongside the Group’s customers to ensure their success. 2. SUMMARY OF ACCOUNTING RULES AND METHODS The consolidated financial statements are compliant with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board as adopted within the European Union, and available for consultation on the European Commission website: https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company- reporting/financial-reporting_en The condensed consolidated financial statements at September 30 , 2025, have been prepared in accordance with IAS 34 – Interim Financial Statements. They do not comprise all the financial disclosures required in the complete financial statements and should be read in conjunction with the Group’s consolidated financial statements and corresponding notes for the fiscal year 202 4, available on Lectra.com. The consolidated financial statements at September 30, 2025, have been prepared in accordance with the same rules and methods as those applied in the preparation of the 2024 financial statements. They have been prepared under the responsibility of the Board of Directors at its meeting of October 29, 2025. The standards, amendments and interpretations adopted by the European Union whose application is required for fiscal years starting from January 1, 2025 have no impact on the Group’s financial statements. The Group has not adopted in advance any standard, amendment or interpretation whose application is not required for fiscal years starting from January 1, 2025. Seasonality Comparability of the Group’s interim and annual accounts may be affected by the slightly seasonal nature of the Group’s business, which mostly achieves a higher level of revenues during the fourth quarter of the year. This, in particular, applies to new systems sales. Moreover, overhead costs are reduced during the third quarter due to the summer holidays in France and in European subsidiaries.
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-28- Lectra - Quarterly financial information as of September 30, 2025 These two items have a positive impact on income from operations in these quarters. Critical accounting estimates and judgments Preparation of the financial statements in accordance with IFRS demands that certain critical accounting estimates be made. Management is also required to exercise its judgment in applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity or requiring material assumptions and estimates in relation to the establishment of the consolidated financial statements, relate to the calculation of the recoverable amount of goodwill and fix ed assets, the evaluation of minority shares purchase commitments and the evaluation of deferred tax assets. Revenues Contracts with customers comprise multiple obligations such as equipment and accompanying software, software licenses in the form of subscription or perpetual licenses, consumables and parts, training and consulting, installation, maintenance, evolution an d online services contracts for equipment and software (updates). Software sales are only recognized separately when the customer can benefit from the software independently from the other goods and services promised in the contract. In particular, the software accompanying automated cutting equipment (called pilots) are not recognized separately from these, as they are an inseparable part of the equipment: without the pilot, the equipment would be useless, and without the equipment, the pilot has no use either. On the other hand, specialized software (for instance, software for collection management, patternmaking, simulation), sold under perpetual license separately from the equipment and usually installed on the customers’ computers are considered separate performance obligations. The other obligations are considered as separate under IFRS 15 and are thus accounting for based on the following elements among others: − installation of equipment and specialized software is made in a few days and easy to implement, and does not modify their characteristics; − training is short-term and had no interdependence relationship with the other obligations; − consulting usually regards the optimization of customers’ design and production processes and is very often sold separately to customers; − regarding maintenance of software and equipment, these are mostly yearly contracts in which the Group’s commitment is a stand -ready type, or an obligation to make future not -yet- developed versions of the software available ; th e solutions (equipment and software) are distinct from maintenance since they are entirely ready to work upon delivery and since maintenance services are not critical for the customer to use the solution. Equipment is sold most often with one or two years of maintenance, and the customer holds renewal options that are not discounted compared to the initial price for subscribing maintenance. Renewal options are thus not considered as significant rights that would require separate accounting under IFRS 15. The Group determines stand-alone selling prices of the multiple elements by using observable data as much as possible. For elements which are not sold separately on a customary basis, stand-alone selling prices are estimated based on the Company’s pricing policy, reflecting expected costs plus an appropriate margin. Revenues from sales of equipment (including pilot software) is recognized when the control has been transferred to the purchaser. These conditions are fulfilled upon physical transfer of the equipment in
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-29- Lectra - Quarterly financial information as of September 30, 2025 accordance with the contractual sale terms. Software sold as perpetual licenses is regarded as right -of-use licenses under IFRS 15, for which revenues is booked at a certain date, generally the time of installation of the software on the customer’s computer (either by USB flash drive or downloading). Revenues from subscription sales of software (granting the customer with an access right to the said software licenses) is spread over the duration of the customer’s commitment. Revenues from training and consulting is recognized based on the completion of hours or days of work. Revenues from equipment and specialized software installation is recognized when these services are rendered. Revenues from software and equipment maintenance contracts is spread linearly over the duration of the contracts, as they are ‘stand-ready obligations’. Lectra acts as principal in the sale of equipment insofar as parts and sub-ensembles assembled by the Group in France, in the United States and in China only constitute inputs used in the manufacturing of finished goods sold to customers. Cost of goods sold Cost of goods sold comprises all purchases of raw materials included in the costs of manufacturing, the net change in inventory and inventory write-downs, all labor costs included in manufacturing costs which constitute the added value, freight out costs o n equipment sold, and a share of depreciation of the manufacturing facilities. Cost of goods sold does not include salaries and expenses associated with service revenues, which are included under ‘Selling, General and Administrative Expenses’. Research and development costs The technical feasibility of software and equipment developed by the Group is generally not established until a prototype has been produced or until feedback is received from its pilot sites, setting the stage for their commercialization. Consequently, the technical and economic criteria requiring the recognition of development costs in assets at the moment they occur are not met, and these, together with research costs, are therefore fully expensed in the period in which they are incurred. The French research tax credit (crédit d’impôt recherche ), as well as grants linked to R&D projects, if any, are deducted from R&D expenses. Other intangible assets: Internal software and developments This item contains only software utilized for internal purposes. Purchased management information software packages are amortized on a straight -line basis. In addition to expenses incurred in the acquisition of software licenses, the Group also activates direct software development and configuration costs, comprising personnel costs for personnel involved in development of the software and external expenses directly relating to these items. For SaaS based software, these costs are capitalized as intangible assets only if the implementation result in the creation of additional code that is separate from the SaaS, controlled by the Group, and meets the definition of an intangible asset. Earnings per share Basic net earnings per share are calculated by dividing net income by the weighted-average number of shares outstanding during the period, excluding the weighted-average number of treasury shares. Diluted net earnings per share are calculated by dividing net income by the weighted -average number of shares adjusted for the dilutive effect of stock options outstanding during the period and excluding
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-30- Lectra - Quarterly financial information as of September 30, 2025 the weighted-average number of treasury shares held solely under the liquidity agreement. The dilutive effect of stock options is computed in accordance with the share repurchase method provided by IAS 33. The assumed proceeds from exercise of stock options are regarded as having been used to repurchase shares at the average market price during the period. The number of shares thus obtained is deducted from the total number of shares resulting from the exercise of stock options. Only options with an exercise price below the said average share price are included in the calculation of the number of shares representing the diluted capital. Performance indicators The Group uses performance indicators such as income from operations, EBITDA before non-recurring items, free cash flow, ARR and security ratio, as defined below; it considers these aggregates appropriate for management of the Group and for measurement of the implementation of its strategy. Income from operations before non-recurring items and income from operations The Group uses an intermediate balance referred to as ‘Income from operations’, defined as income excluding financial operations, companies accounted for by the equity method, discontinued operations or those held for sale, and income tax. When the Group identifies non -recurring items, it tracks its operating performance by means of an intermediate balance referred to as ‘Income from operations before non -recurring items’. This financial metric reflects income from operations less non-recurring income and plus non-recurring expenses. Where applicable, non -recurring items are presented on a specific line and reflect the impact on the financial statements of events that are either unusual, abnormal, or infrequent. There are very few of these and their amounts are significant. EBITDA before non-recurring items The Group defines EBITDA before non-recurring items (Earnings Before Interest, Tax, Depreciation and Amortization) as the addition of operating income before non -recurring items and net depreciation and amortization of non-current assets. This indicator allows the Group to monitor its operating performance directly related to business activity, excluding the impacts of capitalized investments. Free cash flow before non-recurring items and free cash flow Free cash flow is equal to net cash provided by operating activities minus cash used in investing activities, excluding cash used for acquisitions of companies and minority interests (net of cash acquired), and minus repayments of lease liabilities according to IFRS 16. Within free cash flow, the Group isolates non-recurring cash-ins and -outs, corresponding to the income and expenses of the same nature in the income from operations. Restated from these elements presented on a specific line, the Group thus identifies the free cash flow before non-recurring items. The Group considers this definition of free cash flow before non -recurring items as a performance indicator of its work on cash management. Annual Recurring Revenue Given the importance of SaaS activity for Lectra, the Group has decided to publish starting in 2025 a new indicator, the ARR (Annual Recurring Revenue), which is commonly used in the SaaS industry. It replaces the new orders indicator for SaaS subscriptions. ARR can be thought of as the stock of active SaaS subscriptions at a given point in time. ARR therefore anticipates the evolution of SaaS revenues in the coming years. As ARR is an inventory-based concept, it will be published at the exchange rate prevailing on the last day of the quarter. These factors should be considered when evaluating this indicator each quarter.
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-31- Lectra - Quarterly financial information as of September 30, 2025 Security ratio The security ratio is defined by the Group as the percentage of annual fixed overhead costs covered by gross profit on recurring revenues. This ratio is used by the Group to measure the coverage of annual fixed overhead costs by revenues that do not depend on customer’s investment decisions from one year to the next. Operating segments Operating segment reporting is based directly on the Group’s performance tracking and review systems. The segments disclosed in note 4 are identical to those covered by the information regularly communicated to the Executive Committee, in its capacity as t he Group’s ‘chief operating decision maker’. Reported segments refer to the major marketing regions. The regions concerned are the Americas, Europe, Middle East and Africa (EMEA); and Asia-Pacific. These regions provide sales and services to their customers. They do not perform any industrial activit ies or R&D. They draw on centralized competencies and a wide array of functions that are pooled among all the regions, including marketing, business development, logistics, procurement, production, R&D, finance, legal affairs, human resources, information systems, etc. All these cross -divisional activities are reported as an additional column referred to here as ‘Corporate’ and which allows for reconciliation with the amounts presented in the Group’s financial statements. Performance is measured by the segment’s EBITDA before non -recurring items and impairment of assets, if any. Marketing regions derive their revenues from external customers; all inter-segment billings are excluded from this item. The gross profit margin rates used to determine operating performance are identical for all regions. They are computed for each product line and include added value supplied by Corporate. Consequently, for products or services supplied in full or in part by Corporate, a percentage of consolidated gross profit is retained in the income computed for Corporate to cover its costs. Since most of Corporate’s general overheads are fixed, its profit margin and consequently its EBITDA before non-recurring items depend mainly on the volume of business generated by marketing regions. 3. SCOPE OF CONSOLIDATION On September 30, 2025, the Group’s scope of consolidation comprised the parent company, Lectra SA, together with 75 fully consolidated companies, 16 of which come from the acquisition of Launchmetrics and two entities consolidated under equity method. Four companies are not consolidated. Acquisition of Launchmetrics On January 9, 2024, the Group announced the signature of an agreement to acquire the majority of the capital and voting rights of the American company Launchmetrics. The transaction was finalized on January 23, 2024. It involves, in 2024, the acquisition of 50.2% of Launchmetrics’ capital and voting rights for an amount of 83.2 million dollars (77.0 million euros). The acquisition of the remaining capital and voting rights (minority shares purchase commitment – with cross puts and calls) will take place in five phases in 2025 (paid in June), 2026, 2027, 2028 and 2030 . It will bring the total cost of the acquisition to an estimated amount, at the initial date of the acquisition, between 200 and 240 million dollars, based on an expected double-digit growth of both recurring revenues and EBITDA before non -recurring items, over the 2024- 2029 period. The purchase price accounting is in the process of being finalized, and the main impacts on the Group financial statements to date are as follows: − Recording of 100% of total net assets of 37.9 million dollars (34.8 million euros at January 23, 2024 exchange rate), resulting from:
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-32- Lectra - Quarterly financial information as of September 30, 2025 ▪ intangible assets relating to customer relationships, technology, data base and trademark for the respective amounts of 38.7, 20.1, 16.5 and 3.5 million dollars (35.5, 18.5, 15.2 and 3.2 million euros respectively at January 23, 2024 exchange rate); ▪ a deferred tax liability related to these intangible assets of 20.5 million dollars (18.8 million euros at January 23, 2024 exchange rate); ▪ a negative 20.5 million dollars of net acquired asset (18.8 million euros at January 23, 2024 exchange rate); − Recording of non-controlling interests (“partial goodwill” method), valued at their share in the net assets of the company (i.e. 49.8% of the total net assets above), for 18.8 million dollars (17.3 million euros at January 23, 2024 exchange rate); − Recording of a goodwill of 64.2 million dollars (59.6 million euros at January 23, 2024 exchange rate); − Recording of a debt to recognize the minority shares purchase commitment, booked for a total amount of 114.7 million dollars (105.3 million euros at January 23, 2024 exchange rate), before discounting impact, classified as non -current liabilities. The counterpart is recorded in ‘Equity, Group share’. Launchmetrics has been fully consolidated since January 23, 2024. If the acquisition by Lectra had been completed on January 1, 2024, the proforma revenues, EBITDA before non -recurring items, and net income of Launchmetrics for the 2024 fiscal year would have respectively amounted to: 43.7; 7.2; and - 2.5 million euros. The second phase of the buyback of minority stakes occurred in June 2025 for an amount of 23.8 million dollars, increasing Lectra voting rights to 63.2 %. As of September 30, 2025, the minority shares purchase commitments amounts to 82.0 million dollars before discounting impact (69.9 million euros at September 30, 2025 exchange rate). Acquisition of a minority interest in Six Atomic Following the signing of an agreement on September 16, 2024, Six Atomic carried out a capital increase of 2.5 million dollars, reserved for Lectra, allowing it to acquire 17.9% of the company's shares and voting rights. Lectra also holds options for progressively increasing its stake in the company in order to support its development. Founded in 2020, Six Atomic develops and sells SaaS solutions based on Artificial Intelligence, particularly generative intelligence, to streamline and accelerate the garment design and development process for the fashion market. The Group will have two representatives on Six Atomic's Board of Directors, which is composed of five members in total. This representation on the Board of Directors allows Lectra to exert significant influence over Six Atomic's strategic decisions. The interest in Six Atomic has been accounted for using the equity method in the consolidated financial statements since September 16, 2024. Acquisition of a minority interest in AQC Industry (AQC) Following the signing of an agreement on October 7, 2024, Six Atomic carried out a capital increase of 1.3 million euros, reserved for Lectra, allowing it to acquire 28.9 % of the company's shares and voting rights. Lectra also holds options for progressively increasing its stake in the company in order to support its development. Founded in 2019, AQC is a French company which develops and sells SaaS solutions based on Artificial Intelligence and innovative equipment for automatic textile defect recognition powered by machine learning algorithms. AQC aims to accelerate the textile q uality control processes, which are still largely
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-33- Lectra - Quarterly financial information as of September 30, 2025 manual and rely on the expertise of highly skilled operators and bring textile quality control into the era of Industry 4.0. The interest in AQC Industry SAS has been accounted for using the equity method in the consolidated financial statements since October 7, 2024. Minority shares purchase commitments During the acquisition of TextileGenesis and Launchmetrics, the Group did not acquire 100% of the capital and voting right at one, but committed to later purchases (sometimes staggered), with cross puts and calls. This entails the recording of a liability (short- or long-term, depending on the scheduling of the options). The Group has finalized an agreement regarding the acquisition of the remaining minority interests in Neteven and Glengo Lectra Teknoloji for 3.3 and 1.7 million euros , respectively. The payment for Glengo's minority shares took place in June 2025, and that for Neteven occurred in September 2025. These two companies have been fully consolidated since June 30, 2025. There was no other change in the scope of consolidation in 2025, nor in 2024. Non-consolidated entities Historically, four sales and services subsidiaries were not consolidated, their revenues being immaterial both separately and combined. On September 30, 202 5, their combined revenues amounted to 2.3 million euros, and their combined assets amounted to 3. 4 million euros. They had no financial debt outside of the Group. Most of the sales activity of these subsidiaries is billed directly by Lectra SA. Transactions with these subsidiaries mainly concern purchases from Lectra SA for the purposes of their local operations, or charges and commissions billed to Lectra SA to cover their overheads when they act as agents. The amount of these transactions was not significant on September 30, 2025. 4. OPERATING SEGMENTS INFORMATION (1) This segment covers the following regions: Europe, Middle East and Africa. The ‘Corporate’ column allows for the reconciliation with the amounts in the Group’s financial statements. Nine months ended Septembre 30, 2025 (In thousands of euros) EMEA (1) Americas Asia-Pacific Corporate Total Revenues 166,434 124,038 92,631 - 383,103 EBITDA before non-recurring items 27,677 22,535 5,675 5,697 61,585 Nine months ended September 30, 2024 (In thousands of euros) EMEA (1) Americas Asia-Pacific Corporate Total Revenues 164,934 132,094 97,192 - 394,220 EBITDA before non-recurring items 26,580 22,928 8,701 10,261 68,471
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-34- Lectra - Quarterly financial information as of September 30, 2025 5. CONSOLIDATED CASH FLOW SUMMARY (1) Resulting solely from the exercise of stock options. (2) Carried out solely under the liquidity agreement administered by Natixis Oddo BHF (see note 7). (3) The amount corresponds to the acquisition cost of minority interests held in Launchmetrics and Gengo (see note 3). Free cash flow before non-recurring items at September 2025, was 36.9 million euros. This figure is adjusted for a non -recurring cash outflow of 3.1 million euros related to the repayment of a balance of research tax credit questioned by the tax authorities, which the company disputes (see note 6). Therefore, the free cash flow stands at 33.7 million euros. It results from an operating self-financing capacity of 48.3 million euros, investments of 8.2 million euros, and a decrease in working capital requirements of 4.8 million euros. It also takes into account an increase in other non-current operating assets of 3.1 million euros. Finally, it also includes the repayment of lease liabilities (as defined by IFRS 16) totaling 8.0 million euros. The change in working capital is explained as follows: − - 9.5 million euros comes from the decrease in trade receivables (the change in receivables reflected in the consolidated cash flow statement is calculated considering the "Deferred Revenue" line item in the statement of financial position, which primarily includes the portio n of recurring contracts billed but not yet recognized as revenue); − + 3.2 million euros comes from the decline in customer deposits; − - 2.1 million euros comes from the decrease in inventory; − +1.2 million euros comes from the decrease in trade payables; − +1.9 million euros comes from the increase in tax receivables; − +0.5 million euros comes from changes in other current assets and liabilities; none of these changes, taken individually, represent a significant amount. As of September 30, 2025, the working capital requirement is negative at 29.8 million euros. It includes the current portion (4.6 million euros) of the receivable of 15.3 million euros from the French tax administration relating to the uncollected and unapplied research tax credit. Nine months ended Septembre 30, 2025 (In thousands of euros) Cash and cash equivalents Financial debts Net cash Free cash flow before non-recurring items 36,851 - 36,851 Non-recurring items included in free cash flow (3,141) - (3,141) Proceeds from issuance of ordinary shares (1) 1,447 - 1,447 Proceeds from issuance of ordinary shares to non controlling intrests 278 - 278 Sale and purchase of treasury shares (2) 36 - 36 Change in share of interests in controlled entities (25,077) - (25,077) Dividends paid to Lectra shareholders (15,199) - (15,199) Dividend paid to minority interests (990) - (990) Repayment of short-term and long-term debt (8,294) 8,294 - Impact of currency variations and others (11,822) 68 (11,754) Change in cash position for the period (25,910) 8,361 (17,549) Cash position at December 31, 2024 81,901 (102,477) (20,576) Cash position at Septembre 30, 2025 55,991 (94,116) (38,125) Change in cash position for the period (25,910) 8,361 (17,549)
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-35- Lectra - Quarterly financial information as of September 30, 2025 6. RESEARCH TAX CREDIT When the research tax credit applicable in France recognized in the year cannot be deducted from the corporate income tax, it is treated as a receivable on the French tax administration. If unused in the three following years, it is historically repaid to the Company in the fourth year. The Group presents separately the current and non -current (to be repaid in over a year, and time - discounted) part of the income tax receivable related to the French research tax credit. The research tax credit (3.6 million euros) for the third quarter of 2025 has been recognized, and 2.4 million euros has been applied against corporate income tax due. As of September 30, 2025, the Group holds a receivable of 15.7 million euros from the French tax administration (of which 11.1 million euros is classified under other non-current assets), consisting of: − The balance of the research tax credit for Lectra SA, after application against corporate income tax for each fiscal year: 1.6 million euros for the first nine months of 2025, 2.7 million euros for the fiscal year 2024, none for the fiscal years 2020 to 2023 (as the research tax credit receivable was fully applied against corporate income tax for those periods), and 8.2 million euros for 2018- 2019; − The balance of the research tax credit for Launchmetrics France (2.2 million euros); − The balance of the research tax credit for Neteven (1.0 million euros). Furthermore, the amounts due beyond one year have been reduced by 0.4 million euros due to their discounting. As of December 31, 2023, the Group booked a provision for risks amounting to 6.6 million euros following the tax administration's challenge of the research tax credit for Lectra SA. This adjustment concerns the fiscal years 2018 and 2019, for a total amount of 8.2 million euros, of which: − 5.1 million euros corresponds to unreimbursed CIR receivable from the French tax administration; − 3.1 million euros pertains to CIR receivable that were incorrectly reimbursed in July 2023 as they were still part of the dispute. This amount was returned to the tax administration in September 2025 following the tax collection notice. With all administrative appeals exhausted, the company now intends to defend its position in a contentious procedure. The provision was maintained as of September 30, 2025. Considering its estimates of tax credits and corporate income tax for the next three fiscal years, the Group does not expect to make any significant payment in respect of corporate income tax in France, from which will be deducted in full the research tax credit of each fiscal year. In July 2025, Lectra SA received 2.0 million euros of the outstanding balance of the research tax credit in respect of 2021. 7. TREASURY SHARES Since January 1, 202 5, the Company has purchased 270,721 shares and sold 270,467 shares at an average price of €25.11 and €25.27 respectively under the liquidity agreement administered by Natixis Oddo BHF. On September 30, 2025, the Company held 35,722 Lectra shares (i.e. 0.09% of the share capital) with an average purchase price of €23.36 entirely under the liquidity agreement.
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-36- Lectra - Quarterly financial information as of September 30, 2025 8. CASH AND CASH EQUIVALENTS AND NET CASH In calculating net debt, l ease liabilities, accounted for under IFRS 16, and minority shares purchase commitment are not considered as financial debts. The Company signed an agreement with its banks in January 2024 for a 100 million euros loan with a five-year maturity, payable by eight semi -annual instalments of 7.5% and 40% in fine. It bears interest at the 3-month or 6-month Euribor rate, to which a margin is added, depending on a leverage ratio and set at 175 base points for the first year. This loan was drawn down on June 27, 2024. The costs related to the set-up of the loan were deducted from the initial amount recorded in the balance sheet and will be amortized over the duration of the loan (amortized cost under IFRS 9). In parallel, an interest rate hedge has been established through an interest rate swap for one -third of the borrowed amount over three years. The fair value of this financial instrument as of September 30, 2025, represents a liability of 0.5 million. The Company also has a Revolving Credit Facility (RCF) of a maximum amount of 60 million euros, it bears interest at the Euribor rate of the period, to which a margin is added, depending on a leverage ratio and set at 135 base points for the first year. On September 30, 2025, Launchmetrics’ financial debts amounted to 2.3 million euros. The maturity of the financial instruments was as follows: 9. SENSITIVITY ANALYSIS TO ECONOMIC CONTEXT In Q3 2025, the average parity between the US dollar and the euro was €1/ $1.12. For Lectra’s legacy entities, the Group’s currency risk hedging policy is unchanged relative to December 31, 2024. Exchange risk hedging instruments on September 30, 2025, were comprised of forward sales and purchases of foreign currencies (mainly US dollars) for a net total equivalent value (purchases minus sales) of 5 5.3 million euros, intended to hedge existing balance sheet positions. Thus, the Company has hedged almost all its balance sheet positions. Sensitivity of revenues and EBITDA before non-recurring items to a change in exchange rates The sensitivity of revenues and EBITDA before non-recurring items to a change in exchange rates was based on December 31, 2024, exchange rates for the relevant currencies, in particular €1/$1.04. The sensitivity to a change in exchange rates takes past acquisitions into account. (In thousands of euros) September 30, 2025 December 31, 2024 Available cash 55,991 81,901 Cash equivalents - - Borrowings and financial debts (94,116) (102,477) Net cash / (net debt) (38,124) (20,576) (In thousands of euros) September 30, 2025 December 31, 2024 Borrowings Short term – less than one year 15,522 15,704 Long term – more than one year, and less than five years 78,594 86,773 Total 94,116 102,477 Derivative financial instruments Long term – more than one year, and less than five years 521 664 Total 521 664
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-37- Lectra - Quarterly financial information as of September 30, 2025 In view of the estimated share of revenues and costs denominated in US dollars or in currencies correlated with the US dollar, a 5-cent fall in the euro against the US dollar (leading to an annual average exchange rate of €1/$0.99) would mechanically incre ase 2025 annual revenues by approximately 12.0 million euros and annual EBITDA before non-recurring items by 5.4 million euros. Conversely, a 5- cent appreciation of the euro against the US dollar (i.e. €1 /$1.09) would mechanically reduce annual revenues and EBITDA before non-recurring items by the same amounts.
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-38- Lectra - Quarterly financial information as of September 30, 2025 IV. CERTIFICATION OF THE FIRST NINE MONTHS OF 2025 FINANCIAL REPORT We certify that, to our knowledge, the condensed accounts for the first nine months of 2025 have been prepared in accordance with currently applicable accounting standards and provide a fair view of the assets, financial condition, and financial results of the Company and of its consolidated companies. We further certify that the first nine months report on operations presents a true and sincere view of the significant events that occurred during the first nine months of the fiscal year and their impact on the financial statements, and a description of the main risks and uncertainties for the coming nine months. Paris, October 29, 2025 Daniel Harari Olivier du Chesnay Chairman and Chief Executive Officer Chief Financial Officer