Earnings release
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The Sage Group plc Trading update for the nine months ended 30 June 2025 ©2025 THE SAGE GROUP PLC OR ITS LICENSORS. SAGE, SAGE LOGOS, SAGE PRODUCT AND SERVICE NAMES MENTIONED HEREIN ARE THE TRADEMARKS OF THE SAGE GROUP PLC OR ITS LICENSORS. ALL OTHER TRADEMARKS ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS. The Sage Group plc (FTSE: SGE), a leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, today issues a trading update for the nine months ended 30 June 20251. Jonathan Howell, Chief Financial Officer, commented: “Sage has performed well in the first nine months of the year, in line with our expectations, delivering good levels of growth despite ongoing macroeconomic uncertainty. Accordingly, we reiterate our guidance for the full year, as set out in our half year results announcement. Our cloud and AI-powered solutions are driving success for our customers and confidence in our strategy, as we focus on the continued delivery of sustained, efficient growth.” Underlying Revenue Performance2 Q3 25 YTD Q3 24 YTD % Growth Organic % Growth Total Revenue £1,862m £1,701m +9% +9% of which Sage Business Cloud £1,538m £1,359m +13% +12% Total Revenue by Region North America £846m £761m +11% +11% UKIA £539m £495m +9% +9% Europe £477m £444m +7% +6% Total revenue increased by 9% to £ 1,862m in the first nine months of the year , as Sage continues to drive growth in all regions. In North America, revenue grew by 11% to £846m, with a strong performance from Sage Intacct together with continuing growth in Sage 200 and Sage 50. In the UKIA region, revenue increased by 9% to £539m, as Sage Intacct continues to scale rapidly, supported by ongoing growth in small business solutions (including Sage Accounting), Sage 50 and Sage 200. In Europe, revenue grew by 7% to £477m, with good growth across our accounting, HR and payroll solutions. Sage Business Cloud revenue increased by 13% to £ 1,538m, driven by balanced growth from both new and existing customers, including cloud native revenue growth of 22% to £645m (Q3 24 YTD: £528m). Recurring revenue grew by 1 0% to £ 1,805m (Q3 24 YTD: £1,645m), reflecting continued momentum in Annualised Recurring Revenue (ARR) during the period. S oftware subscription revenue grew by 11% to £1,549m (Q3 24 YTD: £1,390m) resulting in subscription penetration of 83% (Q3 24 YTD: 82%). In the third quarter, total revenue increased by 9% to £620m (Q3 24: £567m), driven by continuing growth across the Sage Business Cloud portfolio. On an organic basis (excluding the impact of M&A), total revenue increased by 9% in the first nine months of the year to £1,858m (Q3 24 YTD: £1,705m), while recurring revenue increased by 9% to £1,802m (Q3 24 YTD: £1,649m). Foreign exchange Sterling strengthened against the US dollar and other international currencies compared with the prior period, leading to an exchange rate headwind. 1 All figures are on an underlying basis unless otherwise stated. 2 Underlying and organic results are presented on a constant currency basis, while organic growth also excludes the impact of M&A. Underlying and organic measures are defined on page 261 of Sage’s FY24 Annual Report.
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Analyst and investor conference call Jonathan Howell will host a webcast and conference call today at 8.30am UK time . The webcast can be accessed via https://edge.media-server.com/mmc/p/24mjrmpf. To join the conference call, please register via https://register-conf.media-server.com/register/BI020d52621d70415f8ec7572165e377dd. Enquiries Sage +44 (0) 7341 479956 Jonathan Howell, Chief Financial Officer James Sandford, Investor Relations David Ginivan, Corporate PR FGS Global +44 (0) 20 7251 3801 Conor McClafferty Sophia Johnston About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses (SMBs) served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital networ k connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and exp erience to tackle digital inequality, economic inequality and the climate crisis.