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Original-Research: ATOSS Software SE - from NuWays AG

10.09.2025 / 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
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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: 10.09.2025
Target price: EUR 152.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald

Quality comes at a price

Topic: While we already published our first piece on ATOSS, reviewing the
company's H1 report, this report aims to provide a broader introduction into
the investment case.

ATOSS stands out as a pure-play on workforce management software (WFM), a
segment increasingly critical amid talent scarcity, rising labor costs,
complex regulation, and growing union influence. Despite these pressures,
many firms in the DACH region, ATOSS' core market, still operate with
outdated, mostly Excel-based or manual systems - thus leaving significant
efficiency potential untapped.

ATOSS addresses this need with a comprehensive, cloud-native WFM platform
spanning time & attendance, shift planning, and algorithm-driven scheduling,
all fully compliant with local labor regulations. This combination of
functionality and regulatory expertise sets ATOSS apart: smaller domestic
rivals struggle to match its breadth, while international WFM vendors often
lack the depth of local compliance knowledge. The result is a loyal
blue-chip customer base and consistently high gross retention rates of >96%.

In recent years, the business model of ATOSS has successfully transitioned
from perpetual licenses to recurring subscriptions. In H1'25, cloud and
subscription revenues increased 30% yoy to EUR 44.1m, representing 48% of
total sales (+8pp yoy). Total recurring revenues (cloud + mainentance)
reached EUR 64.0m, or 70% of group sales. With a current cloud backlog of
96.9m and ARR of EUR 130.1m (+19% yoy), earnings visibility remains
exceptionally strong.

Beyond its DACH stronghold, ATOSS is rolling out into France, Benelux, and
other non-DACH countries - markets offering the company an estimated EUR 400m
ARR potential (eNuW). In parallel, upselling within the existing customer
base remains a key growth lever, with adoption often expanding from partial
use to 80-100% of available modules across the customer lifecycle. In sum,
revenues are seen to grow at a 13% CAGR into FY27e.

Strong current trading. After FY24 marked another record year with sales up
13% to EUR 171m and EBIT up 22% to EUR 63.4m (37% margin), momentum carried into
H1'25 as sales increased 10% yoy to EUR 92.1m and EBIT margin arrived at 34%.
Mind you, the FY24 margin was temporarily elevated by unspent investment
funds during the sales restructuring. For FY25, management guides c. EUR 190m
sales and an EBIT margin of at least 31%, which we regards as absolutely
achievable. In the longer term, the highly scalable and capital-light setup
should enable EBIT margins to approach 40% as well as ROICs of >70% (eNuW).

Against this backdrop, we confirm our BUY rating with an unchanged EUR 152 PT
based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=6f6e627fb4138bc1565be1a208e57850
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
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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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