TNE: 1H26 Preview: Defensive SaaS with AI Tailwinds

Research evidence excerpt

TNE: 1H26 Preview: Defensive SaaS with AI Tailwinds

as of prior trading day's market close, EST (unless otherwise noted).

PLUS Adoption. PLUS emerges as one of the first AI products successfully

monetised across our coverage universe and serves as a broader bellwether

on enterprise receptivity to consumption-based models for AI. Negligible

contribution for FY26 with PLUS having only launched late-Feb and

transaction use cases starting 15th Mar, however, we note that PLUS now

has 30+ customers (up from 22 customers mid-Feb) and implying ~$2.2m

ARR. Feedback on AI productivity, ROI, usage, and upsell GTM will be well

watched and provide a gauge on the opportunity set.

UK Momentum. UK showing strong momentum with FY25 ARR +32% and

Sales ARR +70%. The focus will remain on further wins within local gov/

higher ed segments. In local gov, Islington and Greenwich borough wins

across FY25 are a strong endorsement and provide referenceability for the

remaining London boroughs and larger unitary councils. While in higher

education, we expect TNE to continue to lift its presence and leverage off

its product/implementation superiority and capitalise on local competitor

weakness.

Don't Forget ANZ. We look forward to further Aus Fed Gov wins

spearheaded by SaaS+ after it was approved for procurement by the DTA

ERP panel. SaaS+ consistently cited as a meaningful differentiator and TNE

notes strong referenceability across its Aus local gov customer base is

seeing it gradually pulled upstream towards Federal level opportunities.

Minor Estimate Changes, Retain Outperform and $33/share PT. Adjusting

1H/2H26 ARR -1%/+0% to account for minor ARR seasonality and EBITDA

+0%/+2% on slightly lower 2H variable cost assumptions.

Disseminated: May 11, 2026 06:57EDT; Produced: May 11, 2026 06:57EDT