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Original-Research: ATOSS Software SE - from NuWays AG

30.07.2025 / 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: 30.07.2025
Target price: EUR 152.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald

Solid H1 despite headwinds // Mid-term prospects promising

Q2 sales grew by 9.2% yoy (-0.9% qoq) to EUR 45.8m (H1 +10% yoy to EUR 92.1m),
mainly carried by Cloud & Subscriptions (+29% yoy, +6.6% qoq to EUR 22.8m),
which compensated for a weaker Licenses business (-61% yoy, -43% qoq to EUR
1.6m). The latter was the result of the ongoing cloud transition but also
economic headwinds. Consulting and Maintenance revenues stayed largely flat
at EUR 9.4m and EUR 9.8m. The recurring revenue share rose to 69.4%, up from 64%
at the end of FY24 (2030 ambition of 80%).

Both Q2 and H1 saw a decline in intake compared to last year's strong
performance. This was primarily due to longer sales cycles and cautious
customer sentiment towards IT investments amidst the current macroeconomic
conditions. With the arrival of the new CRO in November and new key sales
hiring during the past few months, this should pick up from Q4/Q1 '26 again
(eNuW).

In the second quarter, the EBIT margin settled at 33.6%, coming down from
last year's elevated 37.3%, which had been temporarily boosted by unspent
investment funds during the sales restructuring. With the H1 EBIT margin
having come in at 33.6%, management expressed its confidence in being able
to reach 32-33% (eNuW 33%; guidance >31%), though this will ultimately
depend on how revenues develop and the pace of new hiring. Q2 operating cash
flow was EUR -5.5m, mainly due to higher tax payments of EUR 23.3m in H1 2025,
up from EUR 5.2m last year.

Mid-term prospects remain promising. The European Workforce Management (WFM)
market is expected to grow by 10% p.a. until 2030 carried by (1) a
constantly increasing regulatory environment which is particularly relevant
of enterprises operating across multiple countries, (2) resource and skilled
staff scarcity and (3) the rising share of digitalization, supported by
Germany's planned EUR 500bn infrastructure investments. While 2025 is likely
to show slower growth for ATOSS (eNuW: 11.8%) due to postponements of IT
investments as a result of macro uncertainties, growth is seen to accelerate
as for next year carried by the pent-up demand and cross-selling potentials
from recently launched AI services.

While ATOSS' valuation remains high at 29x EV/EBIT 2025e, the company's high
competitive quality grounded in deep regulatory know-how as well as
top-class product suites, reflected by ROCEs of around 60%, a strong balance
sheet (EUR 97m net cash) and ample mid-term growth prospects (16% sales CAGR
until 2030 as reflected by its mid-term ambition) form an attractive
investment case. BUY with a EUR 152 PT based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=e30879b880184bc2b6fe9f4495f8a227
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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2176512 30.07.2025 CET/CEST

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