Earnings release
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RNS Number : 2556OSage Group PLC (The)29 July 2026 The Sage Group plcTrading update for the nine months ended 30 June 2026 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 2026[1]. Jacqui Cartin, Chief Financial Officer, commented: "Sage has delivered nine months of accelerating revenue growth, with momentum strengthening further in the thirdquarter. This reflects focused execution as we deepen AI capabilities across our platform, scale key products includingSage Intacct, and increase the value customers get from Sage. Demand from new and existing customers remains strong,with small and mid-sized businesses increasingly relying on Sage for finance, HR and payroll workflows, where gettingit right is essential. This gives us confidence in delivering sustainable, efficient growth, and we reiterate our guidancefor the full year." Underlying Revenue Performance[2] Q3 26 YTD Q3 25 YTD % Growth Organic% Growth Total Revenue £2,062m £1,858m +11% +10% of which Sage Business Cloud £1,762m £1,533m +15% +14% Total Revenue by Region North America £932m £817m +14% +13% UKIA £602m £547m +10% +10% Europe £528m £494m +7% +7% Total revenue increased by 11% to £2,062m in the first nine months of the year, with strong growth across the Groupdriven by both new and existing customers. In North America, revenue increased by 14% to £932m, with further strength in Sage Intacct together with continuedgrowth in Sage 50 and Sage 200. In the UKIA region, revenue grew by 10% to £602m, driven by the rapid scaling ofSage Intacct, alongside strong growth in Sage 50 and a good performance from Sage's cloud native solutions for smallbusinesses. In Europe, revenue increased by 7% to £528m, with good levels of growth in Sage X3 and Sage 200,supported by other accounting, HR and payroll solutions. Sage Business Cloud revenue grew by 15% to £1,762m, supported by the continued adoption of Sage's cloud solutionsand expansion of AI-powered capabilities across the portfolio. Within Sage Business Cloud, cloud native revenueincreased by 25% to £794m (Q3 25 YTD: £637m). Recurring revenue grew by 11% to £2,002m (Q3 25 YTD: £1,801m), reflecting continued momentum in AnnualisedRecurring Revenue (ARR) during the period. Software subscription revenue grew by 13% to £1,743m (Q3 25 YTD:£1,546m) resulting in subscription penetration of 84% (Q3 25 YTD: 83%). In the third quarter, total revenue increased by 12% to £699m (Q3 25: £627m), driven by continuing growth across theSage Business Cloud portfolio. On an organic basis (excluding the impact of M&A), total revenue increased by 10% in the first nine months of the yearto £2,057m (Q3 25 YTD: £1,864m), while recurring revenue increased by 11% to £1,998m (Q3 25 YTD: £1,806m). Outlook We continue to expect organic total revenue growth for FY26 to be above 9%, and operating margins to trend upwardsin FY26 and beyond, as we focus on efficiently scaling the Group. Foreign exchange Sterling strengthened against the US dollar and weakened against other currencies compared to the prior period,resulting in a broadly neutral exchange rate impact at the Group level. Analyst and investor conference call Steve Hare, Chief Executive Officer, and Jacqui Cartin, Chief Financial Officer, will hold a webcast and conference calltoday at 8.30am UK time. The webcast can be accessed via the following link: https://edge.media- server.com/mmc/p/5v6rh83x. To join the conference call, please register via: https://register-conf.media-server.com/register/BIfaab1d39f4f84c8f8ad5b1f86c072b00. Enquiries Sage +44 (0) 7341 479956
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Jacqui Cartin, Chief Financial OfficerJames Sandford, Investor RelationsBecky Potgieter, Corporate PR FGS Global +44 (0) 20 7251 3801 Conor McClaffertySophia 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 workand money flow. By digitalising business processes and relationships with customers, suppliers, employees, banks andgovernments, our AI-powered platform connects SMBs, removing friction and delivering insights. Knocking downbarriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and theclimate crisis. [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 FY25 Annual Report. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END