^ Original-Research: ATOSS Software SE - from NuWays AG

24.10.2025 / 09:00 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to ATOSS Software SE

Company Name: ATOSS Software SE ISIN: DE0005104400

Reason for the research: Update Recommendation: BUY from: 24.10.2025 Target price: EUR 152.00 Target price on sight of: 12 months Last rating change: Analyst: Philipp Sennewald

Cloud leverage and cost discipline deliver strong Q3; chg.

ATOSS delivered a strong set of Q3 results showing continued double-digit growth and a clear EBIT beat, underlying the company's strong operating leverage. In detail:

Q3 sales arrived at EUR 47.2m (eNuW: EUR 47.9m), growing by 12.2% yoy. This was carried by Cloud & Subscription sales (+25.3% to EUR23.4m) as well as a better utilization in Consulting (+13.8% to EUR 10.1m), both compensating for the continued decline in license revenues (-15.6% to EUR 1.8m). This is clearly displaying the success of the ongoing transition SaaS. In fact, Cloud & Subscriptions accounted for 49.6% of sales in Q3, while total recurring revenues (incl. Maintenance) made up 70% (+2pp yoy), which further enhances earnings quality and visibility. Total ARR as of 9M came in at EUR 95.4m (+26% yoy) driven by a continued strong net retention rate of 111% (EUR 8.2m contribution) as well as new and migrated customers (EUR 11.3m).

Noteworthy in this context: ATOSS' entry level solution Crewmeister, which targets customers with <30 employees, continued to show strong traction, supported by regulatory tailwinds from mandatory working-time recording, product enhancements, and efficient digital customer acquisition, visible in a strong ARR uptick to EUR 8.5m (9M'24: EUR 6.5m).

Adding to this, order intake bounced back in Q3, as overall OI at 9M came in at par with last years figure. More importantly though, OI in Cloud & Subscriptions, the company's main revenue driver, was ahead of last year's figure, as respective backlog now amounts to EUR 102m (+27% yoy).

The highlight of the release however, was the strong EBIT, which came in at EUR 17.2m (eNuW: EUR 16.1m), implying a 36.4% EBIT margin. This was mainly driven by scale effects in connection with the cloud transition, and cost discipline visible in lower-than-planned cost ramp-up across R&D, S&M, and G&A.

Against this backdrop, management lifted the FY25 EBIT outlook from previously >=31% to 34%. This is reasonable in our view, given a 9M margin of 34.6% and the seasonally rather strong Q4 still ahead. In fact, reaching the 34% target at the guided EUR 190m sales would imply a Q4 margin of only 32.4%.

Overall, Q3's strong profitability and resilient top-line momentum fully confirm our investment case of scalable, high-quality recurring growth with strong operating leverage. With recurring revenues now at 70% of total sales and still a lot of margin potential stemming from the cloud migration (eNuW: 80% cloud ratio target by FY30 should be seen as the ceiling), we continue to view ATOSS as a core quality compounder in European software.

BUY with an unchanged PT of EUR152 based on DCF.

You can download the research here: https://eqs-cockpit.com/c/fncls.ssp?u=1284ea575aef7c29032a0dc33f3b2e5e For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

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2218122 24.10.2025 CET/CEST

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Quelle: dpa-Afx