74Software: Sustained Momentum Reinforces Long-Term Objectives
Press ReleaseParis, July 24, 2025
74Software: Sustained Momentum Reinforces Long-Term Objectives
Group H1 2025 revenue of €344.0m, up 6.5% organically and 6.2% in total
Strong H1 across both brands, Axway up 8.9% to €160.8m and SBS up 5.0% to €184.2m
Marked improvement in margin on operating activities, up 585bps to 12.0% of revenue (€41.3m)
ARR increased year-on-year by 11.8% at Axway and 10.9% at SBS, further strengthening recurring revenues
74Software's Board of Directors, chaired by Pierre Pasquier, approved today the financial statements for the first half of 2025, which were subject to a limited review by the statutory auditors1. Consequently, 74Software announces:
Half-Year Key Income Statement Items
Half-year 2025
Half-year 2024Proforma6M AXW + 6M SBS
Half-year 2024ReportedAxway Standalone
€m
% of Rev.
€m
% of Rev.
€m
% of Rev.
TOTAL REVENUE
344.0
323.9
148.7
GROSS PROFIT
228.1
66.3%
206.8
63.9%
104.7
70.5%
PROFIT ON OPERATING ACTIVITIES
41.3
12.0%
19.9
6.1%
17.1
11.5%
OPERATING PROFIT
19.5
5.7%
2.6
0.8%
8.3
5.6%
NET PROFIT
5.8
1.7%
-15.6
-4.8%
2.8
1.9%
EARNINGS PER SHARE
0.20 €
-0.54 €
0.13 €
Patrick Donovan, Chief Executive Officer, stated:
"Our H1 results confirm our strong start to the year and demonstrate both the strength of our strategic direction and our ability to execute in-line with our stated plans. As noted in our Q1 press release, the solid early execution front-loads part of the year's commercial activity— especially in the Axway business. We remain fully committed to our full-year guidance and, more broadly, to our 2027 and 2028 ambitions. Axway is now firmly established as a subscription-first business, while SBS is rapidly scaling its modular banking platforms and expanding its SaaS footprint. With recurring revenue accelerating and capital deployment tightly managed, 74Software is becoming a more structured, resilient, and forward-looking group, built to deliver long-term value creation."
Comments on H1 2025 activity
74Software delivered a strong first-half performance, confirming its ability to execute on its strategic roadmap and capitalize on the operational integration initiated following the transaction closing in September 2024. Revenue growth was solid in both brands, while profitability improved as planned, reflecting the strength of the Group's model and the improved execution driven by Axway's infrastructure software expertise and SBS's leadership in banking software.
Following a particularly dynamic Q1, the second quarter allowed the Group to consolidate its gains, maintain commercial selectivity, and further shift toward a recurring, scalable revenue model. Axway has now largely transitioned, while SBS continues to advance its own transformation, expanding SaaS deployments and rebalancing its revenue mix in favor of product revenue. Key highlights for the period include:
Axway recorded a strong first half, with consistent growth across all product lines. Nearly 60 new customers were signed during the period (+20% year-on-year), with new-name deals accounting for around one-third of Q2 bookings. Large-scale projects gained momentum, including six contracts exceeding €1 million signed in Q2 alone. Demand for cloud-based delivery continued to rise, with Axway-managed deployments representing 40% of Q2 bookings and 35% over the first half. This shift was broad-based, with steady adoption across all geographies and industry verticals.
SBS also reported strong results, with product revenue now accounting for 75% of total revenue, up from 67% in H1 2024, marking significant progress in the company's shift toward a software-led model. Growth was supported by all product lines, including solid license activity in integrated platforms, components, and financing solutions, as well as continued expansion of modular offerings. The company has now contracted more than 230 SaaS regulatory reporting services, reinforcing adoption across its client base. During the period, SBS welcomed several new clients and completed the first SaaS deployment of its digital engagement platform in Europe. Two additional implementations are scheduled for the third quarter in Africa, where demand is driven by microfinance and Islamic banking. The company's progress was also recognized through multiple industry awards highlighting its leadership in compliance, payments, and digital banking.
The Group enters H2 with improving visibility, disciplined execution, and a clear focus on delivering its full-year objectives. Integration of support functions between Axway and SBS is now largely complete, and joint commercial initiatives are steadily expanding across selected regions.
Comments on H1 2025 operational performance
Half-year Revenue Breakdown by Portfolio Brand
H1 2025
H1 2024Proforma
H1 2024Restated
Total Growth
Organic Growth
€m / %
Axway Scope
160.8
148.7
147.6
8.1%
8.9%
SBS Scope
184.2
175.2
175.4
5.1%
5.0%
Consolidation
-1.0
0.0
0.0
-
-
74Software
344.0
323.9
323.0
6.2%
6.5%
In the first half of 2025, the Group generated revenue of €344.0 million, reflecting total growth of 6.2% and organic growth of 6.5% year-on-year. This performance was supported by both brands, with Axway contributing €160.8 million in revenue and organic growth of 8.9%, and SBS contributing €184.2 million with 5.0% organic growth (compared to proforma H1 2024).
Half-year Revenue Breakdown by Type
H1 2025
H1 2024Proforma
H1 2024Restated
Total Growth
Organic Growth
€m / %
Product revenue
280.0
248.7
248.1
12.6%
12.9%
Recurring revenue
258.0
229.3
228.7
12.5%
12.8%
o/w Maintenance & Support
91.5
96.2
96.0
-4.9%
-4.7%
o/w Customer-managed Subscription
98.7
76.6
76.5
28.8%
29.0%
o/w Own-managed Subscription
67.8
56.5
56.2
20.0%
20.6%
License revenue
22.1
19.4
19.4
13.5%
13.7%
Services revenue
64.0
75.2
74.9
-14.9%
-14.6%
Total revenue
344.0
323.9
323.0
6.2%
6.5%
In the first half of 2025, Product revenue reached €280.0 million, up 12.9% organically, reflecting strong execution across both Axway and SBS. The Group continued to benefit from rising demand for subscription-based offers, with both customer-managed and own-managed subscriptions posting growth above 20%. Maintenance revenue declined as anticipated, while license activity increased but remained low at 6.4% of total revenue. Product revenues accounted for 81% of total revenue (up from 77% in H1 2024) and recurring revenues were at 75% of total revenue (up from 71% in H1 2024), confirming 74Software's successful transition toward a product- and subscription-led model.
Axway generated €143.3 million in product revenue, up 10.5% organically. Recurring activities made nearly the entire contribution, driven by a 29.5% increase in customer-managed subscriptions and 6.8% growth in own-managed deployments, reflecting continued momentum in hybrid environments. License revenue decreased by 34.9% as the company continues to phase out new license sales. Maintenance and support dropped by 20.6% due to the continued shift of the customer base towards subscription models. Services revenue was slightly lower, down 2.2%, and represented 11% of Axway's total.
SBS recorded €137.7 million in product revenue, up 16.3% organically, with strong performance across all product categories. Own-managed subscriptions rose by 35.2%, customer-managed subscriptions by 25.5%, and maintenance and support increased by 4.2%, supported by a growing installed base. License revenue climbed 21.2%, reflecting continued expansion of integrated and lending solutions. Recurring revenue now represents 64% of SBS's business (up from 58% in H1 2024), with services accounting for 25% and licenses for 11%. This illustrates SBS's continued shift from a service-led to a product-led business model.
Group-wide, Services generated €64.0 million in the first half, or 18.6% of total revenue, down 14.6% compared to last year. This decrease mainly reflects SBS's repositioning, while Axway's service contribution remained stable. The difference in service trends between the two businesses stems from their respective models. Axway relies on lighter implementation cycles, whereas SBS delivers more comprehensive banking transformation programs.
At the end of June 2025, ARR for Axway stood at €255.9 million, reflecting an organic growth of 11.8% year-on-year. SBS also continued to expand its ARR to €233.3 million, up 10.9% organically year-on-year. These solid performances confirm the effectiveness of both companies' strategic repositioning and reinforce the Group's revenue predictability and resilience.
Comments on H1 2025 product line performance
Axway, a recognized leader in application infrastructure and middleware, delivered solid momentum in the first half of 2025. All product lines contributed to growth, supported by strong commercial execution and increasing demand for cloud-based solutions:
Managed File Transfer remained a key contributor despite a normalization of activity following an exceptional 2024. The gradual erosion of legacy maintenance was more than offset by strong momentum in managed deployments, confirming the sustained value of Axway's hybrid approach.
B2B Integration delivered robust gains across the board, benefiting from growing demand for managed solutions and early signs of successful cross-sell with SBS. The product line also saw improvements in both subscription and service revenue.
API Management accelerated sharply, supported by strong commercial execution and increased adoption of its integration and engagement modules. The Fusion extension also contributed positively, confirming the platform's potential.
Specialized Products, including the Financial Accounting Hub, maintained steady momentum through targeted compliance and finance use cases. Recent wins via ecosystem partnerships reinforced Axway's positioning with key accounts.
SBS, a trusted provider of banking and financing software, posted solid growth in all product lines, confirming the strength of its modular and targeted approach as it continues its shift toward a product-led model:
Financing Products maintained a steady trajectory, reflecting stable demand in wholesale auto finance and UK mortgage service. Activity remained resilient despite longer decision cycles in certain regions.
Modular Products continued to gain traction, primarily driven by momentum in instant payments and the regulatory reporting platform. Cross-sell into the integrated base gained pace, confirming the appeal of modular architectures.
Integrated Products delivered consistent performance, with solid customer retention and ongoing functional improvements. In some markets, modular alternatives are beginning to complement legacy platforms, paving the way for more composable setups. SBS' market-leading product in Africa continues to perform strongly, adding new customers as well as increasing share of wallet in its installed base.
Banking Components continued to gain momentum, particularly in payments, lending, and cards. The strength of customer relationships across key accounts in France continues to drive upsells.
Comments on H1 2025 profit on operating activities
Profit on Operating Activities - Group
H1 2025
H1 2024Proforma
Change
€m
% of Rev.
€m
% of Rev.
€m
Basis Points
Product revenue
280.0
81.4%
248.7
76.8%
+ 31.3
+ 461
Services revenue
64.0
18.6%
75.2
23.2%
- 11.2
- 461
Total revenue
344.0
323.9
+ 20.1
Total costs of revenue
115.9
117.1
- 1.2
GROSS PROFIT
228.1
66.3%
206.9
63.9%
+ 21.2
+ 243
o/w product gross profit
217.9
77.8%
191.7
77.0%
+ 26.2
+ 75
o/w services gross profit
10.2
15.9%
15.2
20.2%
- 5.0
- 422
Operating expenses
186.8
54.3%
186.9
57.7%
- 0.1
- 341
o/w research & development
93.2
27.1%
95.0
29.3%
- 1.8
- 224
o/w sales & marketing
62.8
18.3%
62.3
19.2%
+ 0.5
- 96
o/w general & administrative
30.8
8.9%
29.6
9.1%
+ 1.1
- 20
PROFIT ON OPERATING ACTIVITIES
41.3
12.0%
19.9
6.1%
+ 21.4
+ 585
Net Capitalisation of R&D
8.4
2.4%
9.1
2.8%
- 0.8
- 39
in % of gross R&D
8.2%
8.8%
-0.5%
In H1 2025, profit on operating activities reached €41.3 million, representing a margin of 12.0% of revenue, compared with 6.1% in H1 2024. This sharp improvement reflects strong gross profit expansion, driven by a more favorable revenue mix and tight cost control across operating expenses with all lines showing year-on-year efficiencies. Gross margins increased—particularly at Axway—thanks to strong bookings in customer-managed subscriptions, which generated significant upfront revenue at high margins.
Comments on H1 2025 net profit
Net Profit - Group
Half-year 2025
Half-year 2024Proforma6M AXW + 6M SBS
Half-year 2024ReportedAxway Standalone
€m
% of Rev.
€m
% of Rev.
€m
% of Rev.
PROFIT ON OPERATING ACTIVITIES
41.3
12.0%
19.9
6.1%
17.1
11.5%
Share-based expenses
-6.7
-2.4
-2.9
Amortization of allocated intangibles
-6.2
-7.1
-1.7
PROFIT FROM RECURRING OPERATIONS
28.4
8.3%
10.5
3.2%
12.5
8.4%
Other operating income and expenses
-8.9
-7.9
-4.1
OPERATING PROFIT
19.5
5.7%
2.6
0.8%
8.3
5.6%
Cost of financial debt
-9.0
-8.9
-2.7
Other financial income and expenses
-2.2
-2.0
-0.9
Income tax expenses
-2.5
-7.2
-2.0
NET PROFIT
5.8
1.7%
-15.6
-4.8%
2.8
1.9%
Earnings per share
0.20 €
-0.54 €
0.13 €
Profit from recurring operations reached €28.4 million, after accounting for the amortization of allocated intangibles and share-based expenses. This marks a substantial improvement from the H1 2024 proforma figure of €10.5 million.
Share-based expenses increased, reflecting the inclusion of SBS in the new long-term incentive program, the Group's strong share price performance, and higher employer social security rates in France. The purchase price allocation (PPA) related to the SBS acquisition has now been finalized. Amortization of allocated intangibles has been restated for 2024 on a pro forma basis and is expected to total €12–13 million for full-year 2025.
After including other operating income and expenses, such as restructuring charges and non-recurring items totaling €8.9 million, operating profit amounted to €19.5 million, compared with €2.6 million on a proforma basis in H1 2024.
Net profit for the half-year came to €5.8 million (1.7%), a significant turnaround from the €15.6 million loss recorded on a proforma basis in the prior year.
Basic earnings per share stood at €0.20, compared with a loss of €0.54 per share in the first half of 2024 (proforma).
Financial position on June 30, 2025
74Software made strong progress in its deleveraging effort during H1 2025. Free cash flow was particularly robust, supported by seasonal inflows from maintenance and subscription renewals, as well as the first-time implementation of a factoring program on selected receivables. Unlevered free cash flow reached €76.4 million, enabling €42 million in debt repayments and boosting cash balances. As a result, net debt stood at €191.8 million (before ...
