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Original-Research: ATOSS Software SE - from NuWays AG

27.04.2026 / 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
Target price: EUR 134
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald

Strong start into FY26; Guidance already upgraded

On Friday, ATOSS released strong Q1 results that confirmed the company's
ability to compound top-line growth and profitability in parallel, prompting
management to lift its full-year margin guidance already. In detail:

Group sales rose 11% yoy to EUR 51.4m (eNuW: EUR 51.9m), driven mainly by
software (+13% yoy to EUR 38.3m). Once again, Cloud & Subscriptions
accelerated significantly to EUR 27.0m (+27% yoy), now accounting for 53% of
total sales (Q1 25: 46%), while license revenues continued their planned
compression to just EUR 1.6m (-40% yoy), reflecting the ongoing successful
migration of customers towards recurring cloud contracts. Together with
maintenance, recurring revenues reached EUR 36.7m (+17% yoy), lifting the
recurring share to 71%, reflecting a 3pp yoy improvement.

The cloud ARR trajectory remains the most important forward indicator. Cloud
ARR grew 27% yoy to EUR 110m, supported by a net retention rate of 112% (+1pp
yoy). The 12-month cloud order backlog rose 23% yoy to EUR 114m, while the
total ARR backlog climbed 16% yoy to EUR 152.5m. New ACV came in at EUR 21.5m
(flat yoy), with new logos accounting for ~50% of contracts signed.
Healthcare is gaining additional traction as a vertical, contributing a
significant share of new business. During the CC, management stated the flat
ACV is in-line with budget and thus baked in the FY26 top-line guidance (c.
EUR 215m). Should the current (macro-related) elongation of sales cycle ease,
this could imply upside to the current outlook.

On profitability, EBIT reached EUR 18.2m, corresponding to a 35.3% margin
(eNuW: EUR 17.9m), once more reflecting ATOSS' disciplined cost management and
the operating leverage inherent in the SaaS model. A revaluation of the
long-term incentive programme had a marginal accretive impact on the
quarter. FCF surged 97% yoy to EUR 39.4m, reflecting front-loaded cloud
billings and a normalisation of tax outflows vs. Q1 2025, which had been
inflated by one-off back taxes. Liquidity reached EUR 162.1m, providing the
company with ample strategic flexibility for further organic investments
into AI or potential bolt-on acquisitions, while organic growth alone
remains sufficient to drive value creation with ROICs well above 50%.

On AI, ATOSS targets two near-term deliverables: the agentic ATC assistant
launching in Q2 2026 and thetwo new Agents for ASES, both due in Q4 2026.
The latter allows workers to describe complex scheduling needs, even by
voice, with the agent checking all applicable rules and surfacing compliant
options autonomously. Strategically, AI is proving a pull-forward catalyst
for cloud migration with early adoption trends across healthcare and retail
suggesting the product roadmap is resonating with the installed base.

Management confirmed FY26 sales guidance of ~EUR 215m and lifted the EBIT
margin target to >=34% (previously >=32%), which we already flagged in
previous notes and hence regard as reasonable given the strong start into
the year.

Reiterate BUY with a new EUR 134 PT (old: EUR 148) based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=bcc3eaf22c7a75b2a9dc599a0a795f07
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 Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
++++++++++

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