ATOSS Software stock raises margin outlook after strong Q3

ATOSS Software SE reported stronger profitability for the third quarter and first nine months of 2026, while cautioning that full-year revenue is likely to land at the lower end of its existing forecast range. In its release published by EQS News, the company said group revenue rose 12 percent year over year to 155.8 million euros in the nine months ended September 30, 2026.

Cloud growth supports recurring revenue

Software revenue increased 14 percent to 117.5 million euros. Cloud and Subscriptions expanded 26 percent to 85.2 million euros and accounted for 55 percent of group revenue, up from 48 percent in the prior-year period. Maintenance revenue declined 3 percent to 28.6 million euros, but total recurring revenue still increased 17 percent to 113.8 million euros.

The shift toward recurring business remains central to the investment case. Recurring revenue represented 73 percent of group revenue in the first nine months, compared with 70 percent a year earlier. At the same time, one-off software license revenue fell 39 percent to 3.7 million euros, highlighting the trade-off between weaker legacy sales and continued cloud expansion.

Profitability outlook moves higher

ATOSS reported an EBIT margin of 37 percent for the first nine months, compared with 35 percent in the prior-year period. EBIT rose 19 percent to 57.3 million euros, while net profit increased 14 percent to 39.0 million euros. Operating cash flow climbed 53 percent to 75.7 million euros, and liquidity rose 26 percent to 158.9 million euros.

Management raised its full-year EBIT margin forecast to around 37 percent from at least 34 percent previously. The company maintained its revenue forecast of 210 million to 215 million euros but said revenue is currently expected at the lower end because on-premises license sales are below expectations. Recurring revenue is developing at the upper end of the outlook range, according to the company.

For the third quarter alone, revenue reached 52.6 million euros, up from 47.2 million euros a year earlier. EBIT increased to 21.1 million euros from 17.2 million euros, lifting the quarterly EBIT margin to 40 percent from 36 percent. Net profit rose to 14.4 million euros from 12.3 million euros.

Cloud visibility shapes the next stage

ATOSS said its Cloud and Subscriptions order backlog rose 23 percent from a year earlier to 125.0 million euros at September 30. Cloud and Subscriptions annual recurring revenue increased 25 percent to 119.4 million euros, while the total annual recurring revenue order backlog grew 16 percent to 161.4 million euros.

The company attributes the margin improvement primarily to continued cost discipline and productivity gains supported by artificial intelligence, particularly in Innovation and Development. It also said digitalization, demand for workforce flexibility and advances in artificial intelligence should create additional opportunities, although near-term license trends remain an important factor for revenue delivery.

ATOSS stock traded at 94.60 euros on Lang and Schwarz at 10:01 CEST on Friday, October 30, 2026. Investors can follow the real-time quote of ATOSS Software stock.

The company is scheduled to appear at the German Equity Forum on November 23, 2026. The DAX market page provides the broader German equity context for investors.

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