SoftwareONE Holding AG "Q1: On the road with management" (Buy) Tong

Research evidence excerpt

SoftwareONE Holding AG "Q1: On the road with management" (Buy) Tong

ear deals, the 12/26E 0.77 0.76 -1 0.68

company estimates its underlying Q1 revenues grew 8.5% y/y. 12/27E 0.85 0.91 6 0.87

Cost synergies of CHF 80m were achieved, with the target for CHF 100m 12/28E 0.95 1.00 6 0.96

reiterated Christopher Tong

Analyst

Growth across regions were broad-based, with NORAM notably returning to

christopher.tong@ubs.com

positive growth after declining 13% in 2025. LATAM also notably returned to +44-20-7568 7747

growth at 9% in Q1 having fallen 4% in FY25. When asked on the direction of

Michael Briest travel SWON flagged it was confident in growth in both regions for the year.

Management stated that Microsoft incentives will not dramatically change over michael.briest@ubs.com

the next 1-2 years, with the reduction in EA incentives in tiers A and B seen as an +44-20-7568 8367

isolated event Jarrod Chisholm

On current trading, management flagged that April looked good but June is the jarrod.chisholm@ubs.com

2nd biggest month in the year (given Microsoft year end), which makes it too early +44-73-0852 0351

to call out trends in the quarter

On seasonality, while management previously flagged a back end loaded year

regarding top and bottom growth, they updated their view and now see more

balanced demand given the strength in Q1, with the FY revenue growth guidance

now at MSD-HSD (previously: MSD)

On cash flow, the company highlighted that it implemented a number of changes

Highlights (CHFm) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 1,011 1,015 1,243 1,619 1,740 1,856 1,961 2,062

EBIT (UBS) 194 165 198 286 316 341 367 489

Net earnings (UBS) 121 80 117 168 203 227 250 346

EPS (UBS, diluted) (CHF) 0.78 0.53 0.63 0.76 0.91 1.00 1.09 1.50