SOFTWAREONE (=) : Off the conference call

Research evidence excerpt

SOFTWAREONE (=) : Off the conference call

EQUITIES

IT SERVICES

SOFTWAREONE NEUTRALPRICE* CHF7.2  TARGET PRICE CHF9 (UPSIDE 25%)

FLASH NOTE

Off the conference call

12 MAY 2026 Securities Research Report Production time: 09:11* (London time)

Research Analyst & Publishing Entities

Ines Mao BNP Paribas London Branch +44 207 595 6564 ines.mao@uk.bnpparibas.com

What happened?

Q1’26 conference call just ended. Mgmt. tone was supportive for momentum to continue through the rest of 2026. We

sense caution in the Q&A regarding Q1 beat given early renewals ahead of MSFT price increases. With Q1 usually the

weakest quarter (seasonality) and Q2/Q4 the largest, this could play in favour of SWON despite tougher comps going

into year-end.

Share price is up +8% as we write this.

See our first take here: SOFTWAREONE: Upping FY26 guidance as momentum sustains in Q1

BNPP View:

– Q1’26 growth momentum driven by CSP agreements and demand for multi-vendor architectures (Co. cites

Google, AWS, alongside Microsoft).

– Q1 beat was also driven by renewals ahead of MSFT price increases in May 2026 (impacting both Channel

and Services), which raises questions on the sustainability of growth momentum.

– All regions returned to growth in Q1, incl. NORAM +10% ccy which pivots back in positive territory. Elsewhere,

we note LATAM +9% and Nordics +33% ccy.

– Reported EBITDA margin improves by 7pp Y/Y, driven by strong revenue growth and operating leverage.

Profitability improves across Channel and Services segments, but remains broadly flat Y/Y in the Direct segment,

owing to lower EBITDA adjustments and SG&A accounting adjustments related to Crayon acquisition.

– Revenue synergies are not yet quantified, although mgmt. expects them to outperform cost synergies (no

timing).