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Original-Research: ATOSS Software SE - from NuWays AG

24.10.2025 / 09:00 CET/CEST
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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
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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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