Taxation – Page 8 – NewzIntel.com

MIL-OSI Security: Utah Man Sentenced for Wire Fraud Schemes

Source: United States Attorneys General

Defendant Impersonated Federal Agent, Attorney, and Others to Perpetrate $3.5M Fraud

A Utah man was sentenced yesterday to 108 months in prison for wire fraud, impersonating a federal officer, aggravated identity theft, and making a false statement.

The following is according to court documents and statements made in court: from 2018 through 2020, Santiago Garcia Gutierrez (Garcia), of Salt Lake City, defrauded a single victim out of more than $2.8 million by falsely representing that he was a confidential informant with the Department of Homeland Security. He also falsely represented that he could acquire, at discounted prices, exotic cars, planes, and vessels that had been seized by the U.S. government through forfeiture. Garcia falsely induced the victim to use him as an intermediary to receive the money that the victim believed was then being used to purchase what turned out to be non-existent luxury assets. To convince his victim the scheme was legitimate, Garcia contacted the victim on numerous occasions via text message from multiple phone numbers, falsely claiming to be a confidential government informant, federal agent and, at times, Garcia’s own attorney.

In addition, from 2019 through 2024, Garcia defrauded eight additional victims across the country. To execute these other frauds, Garcia falsely induced victims to invest money into federal oil wells in which he had an ownership interest, promising large returns on investment. The victims never realized any profits, however, because Garcia diverted the investment funds for his own benefit. To effectuate these schemes and lend them legitimacy, Garcia again assumed the identity of his attorney. In total, Garcia defrauded these victims of more than $900,000.

Finally, Garcia did not pay royalties to the federal government on the sale of oil extracted from the wells, despite knowing that he had a duty to do so.

In addition to the term of imprisonment, U.S. District Judge Howard C. Nielson Jr. for the District of Utah ordered Garcia to pay $3,795,930.60 in restitution to the victims of his crimes, and to forfeit $2,853,789.27.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, Acting U.S. Attorney Felice John Viti for the District of Utah, and Special Agent in Charge Carissa Messick of IRS Criminal Investigation’s Phoenix Field Office made the announcement.

IRS Criminal Investigation’s Phoenix Field Office and the EPA investigated the case.

Senior Litigation Counsel Richard M. Rolwing and former Trial Attorney Erika Suhr of the Tax Division prosecuted the case.

MIL Security OSI –

July 25, 2025

MIL-OSI USA: Sen. Greg Dolezal Appointed to Senate Special Committee on Eliminating Georgia’s Income Tax

Source: US State of Georgia

ATLANTA (July 24, 2025) — Recently, Lt. Governor Burt Jones appointed Sen. Greg Dolezal (R–Cumming) to serve as a member of the Senate Special Committee on Eliminating Georgia’s Income Tax.

“I am grateful to Lt. Governor Burt Jones for appointing me to this crucial committee,” said Sen. Dolezal, Vice Chair of the Senate Committee on Appropriations. “Thanks to the fiscally conservative budgeting of the Georgia General Assembly, we’ve lowered the income tax rate from 5.39% to 5.19%, with a plan to reduce it by another tenth of a percent annually starting in 2026. However, that’s not good enough. Georgia can only stay ahead if we keep pushing for a tax structure that lets families keep more of their paychecks and gives job creators every reason to grow here. I’ve championed eliminating the income tax since my first term, and this special committee is our chance to build a fiscally sound plan that finishes the job.”

Sen. Blake Tillery (R–Vidalia) will serve as Chairman of the Special Committee on Eliminating Georgia’s Income Tax. Additional Senators appointed to the special committee include Senators Jason Anavitarte (R–Dallas), Ed Harbison (D–Columbus), Chuck Hufstetler (R–Rome), Steve Gooch (R–Dahlonega), John F. Kennedy (R–Macon), Nan Orrock (D–Atlanta), Michael “Doc” Rhett (D–Marietta), Larry Walker III (R– Perry) and Sam Watson (R–Moultrie).

# # # #

Sen. Greg Dolezal serves as Chairman of the Senate Committee on Transportation. He represents the 27th Senate District, which includes a portion of Forsyth County. He may be reached by phone at (404) 656-7127 or via email at Greg.Dolezal@senate.ga.gov.

For all media inquiries, please reach out to SenatePressInquiries@senate.ga.gov.

MIL OSI USA News –

July 25, 2025

MIL-OSI: LECTRA: First half 2025: stable revenues and limited decline in EBITDA in a context of increased volatility in Q2

Source: GlobeNewswire (MIL-OSI)

First half 2025: stable revenues and limited decline in EBITDA in a context of increased volatility in Q2

Revenues: 261.3 million euros (stable)*
EBITDA before non-recurring items: 40.4 million euros (-4%)*
Annual objectives are no more relevant, in the absence of visibility

(*) At actual exchange rates

	April 1 – June 30				January 1 – June 30
	2025	2024	Variation 2025/2024		2025	2024	Variation 2025/2024
(in millions of euros)			Actual exchange rates	Like-for-like⁽¹⁾			Actual exchange rates	Like-for-like⁽¹⁾
Revenues	126.8	132.7	-4%	-2%	261.3	262.3	0%		-1%
ARR ⁽²⁾⁽³⁾	–	–	–	–	90.9	88.9	+2%		+6%
EBITDA before non-recurring items ⁽³⁾	19.2	21.2	-9%	-3%	40.4	42.2	-4%		-4%
EBITDA margin before non-recurring items	15.2%	15.9%	-0.7 point	-0.2 point	15.4%	16.1%	-0.7 point		-0.7 point
Net income	5.3	4.4	20%	–	11.1	11.1	0%		–
Consolidated Shareholders’ Equity ⁽²⁾	–	–	–	–	343.8	374.4	–		–
Net cash (+) / Net debt (-) ⁽²⁾	–	–	–	–	-34.1	-20.6	–		–

⁽¹⁾ At constant exchange rates and comparable scope
⁽²⁾ As of June 30, 2025 and December 31, 2024
⁽³⁾ The definition of performance indicators is included in the Financial report as of 30 June 2025

Paris, July 24, 2025. Today, Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2025, which have been subject to a limited review by the Statutory Auditors.

A PARADIGM SHIFT AT THE GLOBAL LEVEL

The deterioration in the global economic situation since early March continued throughout the second quarter, extending to all geographical areas and all sectors of activity. The US tariff announcements on April 2 came as a shock that increased the uncertainty weighing on the business climate, particularly for the Group’s customers, who are highly exposed to international trade.

While the direct impact of these measures is limited for Lectra, the indirect impacts, linked to the reactions of the customers concerned, together with the lack of visibility, have led to a pause in their investment decisions. The Group’s customers — brands and subcontractors alike — must adapt to this new economic situation, whether in terms of pricing policy, production, investment or future strategy, and are waiting for negotiations to be concluded before choosing their options.

The 90-day suspension of reciprocal tariffs, announced on April 9 and due to end on July 9 was followed by further announcements. The frequent changes in the decisions of the US administration and the negotiations still underway have contributed to persistent uncertainty.

The direct impacts of tariffs remain limited, and are under control

European and Chinese exports to the United States account for less than 10% of Lectra’s sales. Starting in April, Lectra has taken several measures to deal with the new commercial situation: the Group has reflected the full impact of customs tariffs on price lists in the United States for equipment, consumables and parts and maintenance contracts. It also rerouted some shipments to Mexico to avoid customs formalities and removed several products from the Chinese and American catalogs.

Indirect impacts are characterized by high customer wait-and-see position

Lectra’s three strategic markets are highly exposed to tariffs.

Particularly in the fashion and automotive sectors, the United States’ dependence on imports is very strong. Whatever the outcome of the negotiations, the need to diversify sources of supply and their countries of origin seems clear and will require additional production capacities and relocations.

In the Group’s three strategic markets, the turbulence of the last few months represents medium- and long-term development opportunities for Lectra, irrespective of the tariff rates ultimately decided, and will necessarily lead to structural changes in the industrial landscape and supply chains.

2. Q2 2025

The slowdown that affected the Americas and Automotive from mid-March onwards spread to all geographies and sectors. Indeed, the successive announcements, then the shock of “Liberation Day” on April 2, have led to a strong wait-and-see attitude from customers. New systems orders were accordingly 27% lower in the second quarter.

Q2 2025 revenues were down 4% on an actual basis and 2% on a like-for-like basis, reflecting the continued slowdown that began in mid-March.

EBITDA before non-recurring items (€19.2 million) declined 3%, resulting in a recurring EBITDA margin before non-recurring items of 15.2%, down 0.7 percentage point on an actual basis (0.2 percentage point like-for-like).

Considering the amortization of intangible assets (€5.7 million), income from operations before non-recurring items was down 6% on a like-to-like basis, to €8.9 million. Net income reached €5.3 million, up 20% on an actual basis, driven by a reduction in tax expense.

3. FIRST HALF 2025

To facilitate analysis of the Group’s results, the financial statements are compared to those published in 2024 that consolidated Launchmetrics as of January 23 (“actual”) and, for the analysis of variations, to the 2024 Proforma statements that consolidate Launchmetrics as of January 1, expressed at 2024 exchange rates (like-for-like”). Proforma revenues and EBITDA increased by €2.5 million and €0.3 million respectively compared to the reported financial statements.

H1 2025 revenues amounted to €261.3 million, down 1%. This breaks down into €69.3 million in non-recurring revenues, down 7%, and €192.0 million in recurring revenues (73% of revenues), up 2%, including €43.6 million in revenues from SaaS subscription contracts (17% of revenues, +13%).

The ARR at June 30, 2025 was €90.9 million, up 6% on a like-for-like basis (+2% on an actual basis) compared to the level at the end of 2024, confirming the relevance of Lectra’s strategy.

In a context of declining revenues, the gross margin reached €190.0 million, up 1%, and the gross margin rate stood at 72.7%, up 1 point, thanks to the favorable sales mix and strengthened cost control.

EBITDA before non-recurring items reached €40.4 million, down 4%, with an EBITDA margin before non-recurring items of 15.4%, down 0.6 point.

Income from operations before non-recurring items amounted to €19.2 million, down 9%.

Net income, following a tax expense of 3.6 million euros, was stable at 11.1 million euros.

Free cash flow before non-recurring items remained high in the first half of 2025 at € 33.0 million, reflecting good management of the working capital requirement, which was negative by €41.6 million, benefiting from lower receivables and a further reduction in inventories.

As of June 30, 2025, the Group’s balance sheet remained very strong: shareholders’ equity stood at €343.8 million and net debt at €34.1 million after disbursement of the second tranche of Launchmetrics’ share capital (€20.5 million), the acquisition of Glengo Turkey (€1.7 million), and dividend payments (€15.2 million). Net debt consisted in financial debt of €94.6 million and cash of €60.6 million, reflecting the continued deleveraging of the company.

4. OUTLOOK

In the Annual Financial Report 2024 published February 12, 2025, Lectra reiterated its long-term vision, as well as the objectives of its 2023-2025 strategic roadmap. The Group then underlined, in a deteriorating environment, its resilient nature, the quality of its fundamentals, and the pursuit of its strategy with a focus on the development of its SaaS business.

Following the series of announcements on tariffs, the 2025 outlook had not been updated when the first quarter 2025 results were published on April 24, 2025.

At the end of the second quarter, there were still no signs of significant improvement that would point to an upturn in activity. The economic and political context remains uncertain and continues to lead to a strong wait-and-see attitude on the part of the Group’s customers. In this context, the annual objectives announced by the Group in February 2025 are no more relevant.

The Company remains attentive to the evolution of the situation and relies on its solid fundamentals, notably its low net debt and high free cash flow generation, to pursue its strategy.

The 2024 Annual Financial Report, as well as the Management Discussion and Analysis of Financial Conditions and Results of Operations and the financial statements for H1 2025 are available on lectra.com. Q3 and the first nine months of 2025 earnings will be published on October 29, 2025 after market.

About Lectra

At the forefront of innovation since its founding in 1973, Lectra provides industrial intelligence technology solutions—combining software in SaaS mode, cutting equipment, data, and associated services—to players in the fashion, automotive and furniture industries. With boldness and passion, Lectra accelerates the transformation and success of its customers in a world in perpetual motion thanks to the key technologies of Industry 4.0: AI, big data, cloud and the internet of things.

The Group is present in more than one hundred countries. It operates three production sites for its cutting equipment, located in France, China and the United States. Lectra’s 3,000 employees are driven by three core values: being open-minded thinkers, trusted partners and passionate innovators. They all share the same concern for social responsibility, which is one of the pillars of Lectra’s strategy to ensure its sustainable growth and that of its customers.

Lectra reported revenues of €527 million in 2024, including €77 million coming from its SaaS offerings. The company is listed on Euronext, and is included in the CAC All Shares, CAC Technology, EN Tech Leaders and ENT PEA-PME 150 indices.

For more information, visit ww.lectra.com.

Lectra – World Headquarters et siège social: 16–18, rue Chalgrin • 75016 Paris • France
Tel. +33 (0)1 53 64 42 00 – lectra.com
A French Société Anonyme with capital of € 37,966,274. RCS Paris B 300 702 305

Attachment

Lectra_Press Release_H12025

The MIL Network –

July 25, 2025

MIL-OSI Canada: Keeping Life More Affordable Through the Active Families Benefit

Source: Government of Canada regional news

Released on July 24, 2025

Saskatchewan families with children and youth participating in sports, culture, and recreation can access the Active Families Benefit, a tax credit that helps keep these activities more affordable.

Starting in 2025, the refundable tax benefit has been doubled to $300 per child, or $400 per child, who are eligible for the federal Child Disability Tax Credit. In addition, the benefit is now available to families with a gross family income of $120,000 or less.

“One of the best ways to ensure strong and healthy families in our province is to have children and youth involved in sport, recreation and cultural activities,” Parks, Culture and Sport Minister Alana Ross said. “Fulfilling our commitment to doubling the Active Families Benefit means that more than 69,000 or 56 per cent of all families with children will be eligible in our province, ensuring that the families who need it most can access it.”

Parents who enroll their children in sport, culture and recreation activities in the 2025 calendar year are reminded to keep their receipts so they may claim the benefit when they file their taxes for 2025.

Many communities offer affordable and accessible activities for children and youth through local recreation facilities and community organizations.

“Programs like the Active Families Benefit make a real difference for families in Moose Jaw,” City of Moose Jaw Mayor James Murdock said. “By helping reduce the cost of sports, recreation, and cultural activities, we are not only supporting affordability we are investing in the health, development, and wellbeing of our children.”

The following are eligible for the Active Family Benefit:

Sporting activities: that provide exposure, training, or participation in any field of sport in an organized and competitive environment that requires strategy, physical training and mental preparation.

Recreational activities:
- that provide exposure, training, or participation in any field of recreation designed to refresh, provide satisfaction, entertain, and provide physical or mental benefits.

Cultural activities:
- that provide exposure, training, or participation in the field of arts, heritage or multiculturalism.

For more information on the Active Families Benefit visit the frequently asked questions at:

https://www.saskatchewan.ca/residents/parks-culture-heritage-and-sport/sport-and-recreation/programs-and-supports/active-families-benefit.

-30-

For more information, contact:

MIL OSI Canada News –

July 25, 2025

MIL-OSI USA: Vasquez Announces Major Milestone: $4.3 Million Returned to Southern New Mexicans through Casework

Source: US Representative Gabe Vasquez’s (NM-02)

WASHINGTON, D.C. – On July 24, 2025, U.S. Representative Gabe Vasquez (NM-02) announced that his office has successfully returned over $4.3 million to constituents in New Mexico’s Second District in 2025.

“I’m excited to announce that my office has put over $4 million back in constituents’ pockets,” said Vasquez. “New Mexicans deserve an accessible, accountable government that works for them without red tape or bureaucracy. These success stories are a testament to my office’s commitment to ensuring hard working folks get every last dollar they deserve.”

Rep. Vasquez’s casework team works directly with constituents to resolve issues with federal agencies including the IRS, Social Security Administration, Department of Veterans Affairs, and more.

“With the help of Congressman Vasquez, our case was resolved in just two weeks — with back pay of $4,555.00 and monthly benefits of $421.00. We are so grateful for the fast, successful outcome thanks to Congressman Vasquez. After a tough year of loss and disappointment, their help turned everything around,” said Dorothy and Stefanie of Socorro.

“Congressman Vasquez was a great help in helping me recover $9,512 in delayed income tax refunds from the past two years, which had been held up after my husband passed away,” said Kate of Las Cruces.

“Before my VA benefits were approved, I was barely getting by, unable to afford basics like food. With the $78,816 I received in benefits and back pay, I paid off high‑interest debt and now can live with dignity. I’m deeply grateful to Congressman Vasquez and his office for helping make this possible,” said Jerome of Belen.

###

MIL OSI USA News –

July 25, 2025

MIL-OSI: 74Software: Sustained Momentum Reinforces Long-Term Objectives

Source: GlobeNewswire (MIL-OSI)

Press Release
Paris, July 24, 2025

74Software: Sustained Momentum Reinforces Long-Term Objectives

Group H1 2025 revenue of €344.0m, up 6.5% organically and 6.2% in total
Strong H1 across both brands – Axway up 8.9% to €160.8m and SBS up 5.0% to €184.2m
Marked improvement in margin on operating activities, up 585bps to 12.0% of revenue (€41.3m)
ARR increased year-on-year by 11.8% at Axway and 10.9% at SBS, further strengthening recurring revenues

74Software’s Board of Directors, chaired by Pierre Pasquier, approved today the financial statements for the first half of 2025, which were subject to a limited review by the statutory auditors¹. Consequently, 74Software announces:

Half-Year Key Income Statement Items

	Half-year 2025		Half-year 2024 Proforma 6M AXW + 6M SBS		Half-year 2024 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
TOTAL REVENUE	344.0		323.9		148.7
GROSS PROFIT	228.1	66.3%	206.8	63.9%	104.7	70.5%
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	17.1	11.5%
OPERATING PROFIT	19.5	5.7%	2.6	0.8%	8.3	5.6%
NET PROFIT	5.8	1.7%	-15.6	-4.8%	2.8	1.9%
EARNINGS PER SHARE	0.20 €		-0.54 €		0.13 €

Patrick Donovan, Chief Executive Officer, stated:

“Our H1 results confirm our strong start to the year and demonstrate both the strength of our strategic direction and our ability to execute in-line with our stated plans. As noted in our Q1 press release, the solid early execution front-loads part of the year’s commercial activity— especially in the Axway business. We remain fully committed to our full-year guidance and, more broadly, to our 2027 and 2028 ambitions. Axway is now firmly established as a subscription-first business, while SBS is rapidly scaling its modular banking platforms and expanding its SaaS footprint. With recurring revenue accelerating and capital deployment tightly managed, 74Software is becoming a more structured, resilient, and forward-looking group — built to deliver long-term value creation.”

Comments on H1 2025 activity

74Software delivered a strong first-half performance, confirming its ability to execute on its strategic roadmap and capitalize on the operational integration initiated following the transaction closing in September 2024. Revenue growth was solid in both brands, while profitability improved as planned — reflecting the strength of the Group’s model and the improved execution driven by Axway’s infrastructure software expertise and SBS’s leadership in banking software.

Following a particularly dynamic Q1, the second quarter allowed the Group to consolidate its gains, maintain commercial selectivity, and further shift toward a recurring, scalable revenue model. Axway has now largely transitioned, while SBS continues to advance its own transformation, expanding SaaS deployments and rebalancing its revenue mix in favor of product revenue. Key highlights for the period include:

Axway recorded a strong first half, with consistent growth across all product lines. Nearly 60 new customers were signed during the period (+20% year-on-year), with new-name deals accounting for around one-third of Q2 bookings. Large-scale projects gained momentum, including six contracts exceeding €1 million signed in Q2 alone. Demand for cloud-based delivery continued to rise, with Axway-managed deployments representing 40% of Q2 bookings and 35% over the first half. This shift was broad-based, with steady adoption across all geographies and industry verticals.
SBS also reported strong results, with product revenue now accounting for 75% of total revenue, up from 67% in H1 2024 — marking significant progress in the company’s shift toward a software-led model. Growth was supported by all product lines, including solid license activity in integrated platforms, components, and financing solutions, as well as continued expansion of modular offerings. The company has now contracted more than 230 SaaS regulatory reporting services, reinforcing adoption across its client base. During the period, SBS welcomed several new clients and completed the first SaaS deployment of its digital engagement platform in Europe. Two additional implementations are scheduled for the third quarter in Africa, where demand is driven by microfinance and Islamic banking. The company’s progress was also recognized through multiple industry awards highlighting its leadership in compliance, payments, and digital banking.

The Group enters H2 with improving visibility, disciplined execution, and a clear focus on delivering its full-year objectives. Integration of support functions between Axway and SBS is now largely complete, and joint commercial initiatives are steadily expanding across selected regions.

Comments on H1 2025 operational performance

Half-year Revenue Breakdown by Portfolio Brand

	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
€m / %	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
Axway Scope	160.8	148.7	147.6	8.1%	8.9%
SBS Scope	184.2	175.2	175.4	5.1%	5.0%

Consolidation	-1.0	0.0	0.0	–	–

74Software	344.0	323.9	323.0	6.2%	6.5%

In the first half of 2025, the Group generated revenue of €344.0 million, reflecting total growth of 6.2% and organic growth of 6.5% year-on-year. This performance was supported by both brands, with Axway contributing €160.8 million in revenue and organic growth of 8.9%, and SBS contributing €184.2 million with 5.0% organic growth (compared to proforma H1 2024).

Half-year Revenue Breakdown by Type

	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
€m / %	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
Product revenue	280.0	248.7	248.1	12.6%	12.9%
Recurring revenue	258.0	229.3	228.7	12.5%	12.8%
o/w Maintenance & Support	91.5	96.2	96.0	-4.9%	-4.7%
o/w Customer-managed Subscription	98.7	76.6	76.5	28.8%	29.0%
o/w Own-managed Subscription	67.8	56.5	56.2	20.0%	20.6%
License revenue	22.1	19.4	19.4	13.5%	13.7%

Services revenue	64.0	75.2	74.9	-14.9%	-14.6%

Total revenue	344.0	323.9	323.0	6.2%	6.5%

In the first half of 2025, Product revenue reached €280.0 million, up 12.9% organically, reflecting strong execution across both Axway and SBS. The Group continued to benefit from rising demand for subscription-based offers, with both customer-managed and own-managed subscriptions posting growth above 20%. Maintenance revenue declined as anticipated, while license activity increased but remained low at 6.4% of total revenue. Product revenues accounted for 81% of total revenue (up from 77% in H1 2024) and recurring revenues were at 75% of total revenue (up from 71% in H1 2024), confirming 74Software’s successful transition toward a product- and subscription-led model.

Axway generated €143.3 million in product revenue, up 10.5% organically. Recurring activities made nearly the entire contribution, driven by a 29.5% increase in customer-managed subscriptions and 6.8% growth in own-managed deployments, reflecting continued momentum in hybrid environments. License revenue decreased by 34.9% as the company continues to phase out new license sales. Maintenance and support dropped by 20.6% due to the continued shift of the customer base towards subscription models. Services revenue was slightly lower, down 2.2%, and represented 11% of Axway’s total.

SBS recorded €137.7 million in product revenue, up 16.3% organically, with strong performance across all product categories. Own-managed subscriptions rose by 35.2%, customer-managed subscriptions by 25.5%, and maintenance and support increased by 4.2%, supported by a growing installed base. License revenue climbed 21.2%, reflecting continued expansion of integrated and lending solutions. Recurring revenue now represents 64% of SBS’s business (up from 58% in H1 2024), with services accounting for 25% and licenses for 11%. This illustrates SBS’s continued shift from a service-led to a product-led business model.

Group-wide, Services generated €64.0 million in the first half, or 18.6% of total revenue, down 14.6% compared to last year. This decrease mainly reflects SBS’s repositioning, while Axway’s service contribution remained stable. The difference in service trends between the two businesses stems from their respective models. Axway relies on lighter implementation cycles, whereas SBS delivers more comprehensive banking transformation programs.

At the end of June 2025, ARR for Axway stood at €255.9 million, reflecting an organic growth of 11.8% year-on-year. SBS also continued to expand its ARR to €233.3 million, up 10.9% organically year-on-year. These solid performances confirm the effectiveness of both companies’ strategic repositioning and reinforce the Group’s revenue predictability and resilience.

Comments on H1 2025 product line performance

Axway, a recognized leader in application infrastructure and middleware, delivered solid momentum in the first half of 2025. All product lines contributed to growth, supported by strong commercial execution and increasing demand for cloud-based solutions:

Managed File Transfer remained a key contributor despite a normalization of activity following an exceptional 2024. The gradual erosion of legacy maintenance was more than offset by strong momentum in managed deployments, confirming the sustained value of Axway’s hybrid approach.
B2B Integration delivered robust gains across the board, benefiting from growing demand for managed solutions and early signs of successful cross-sell with SBS. The product line also saw improvements in both subscription and service revenue.
API Management accelerated sharply, supported by strong commercial execution and increased adoption of its integration and engagement modules. The Fusion extension also contributed positively, confirming the platform’s potential.
Specialized Products, including the Financial Accounting Hub, maintained steady momentum through targeted compliance and finance use cases. Recent wins via ecosystem partnerships reinforced Axway’s positioning with key accounts.

SBS, a trusted provider of banking and financing software, posted solid growth in all product lines, confirming the strength of its modular and targeted approach as it continues its shift toward a product-led model:

Financing Products maintained a steady trajectory, reflecting stable demand in wholesale auto finance and UK mortgage service. Activity remained resilient despite longer decision cycles in certain regions.
- Modular Products continued to gain traction, primarily driven by momentum in instant payments and the regulatory reporting platform. Cross-sell into the integrated base gained pace, confirming the appeal of modular architectures.
- Integrated Products delivered consistent performance, with solid customer retention and ongoing functional improvements. In some markets, modular alternatives are beginning to complement legacy platforms, paving the way for more composable setups. SBS’ market-leading product in Africa continues to perform strongly, adding new customers as well as increasing share of wallet in its installed base.
Banking Components continued to gain momentum, particularly in payments, lending, and cards. The strength of customer relationships across key accounts in France continues to drive upsells.

Comments on H1 2025 profit on operating activities

Profit on Operating Activities – Group

	H1 2025		H1 2024 Proforma		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	280.0	81.4%	248.7	76.8%	+ 31.3	+ 461
Services revenue	64.0	18.6%	75.2	23.2%	– 11.2	– 461
Total revenue	344.0		323.9		+ 20.1
Total costs of revenue	115.9		117.1		– 1.2
GROSS PROFIT	228.1	66.3%	206.9	63.9%	+ 21.2	+ 243
o/w product gross profit	217.9	77.8%	191.7	77.0%	+ 26.2	+ 75
o/w services gross profit	10.2	15.9%	15.2	20.2%	– 5.0	– 422
Operating expenses	186.8	54.3%	186.9	57.7%	– 0.1	– 341
o/w research & development	93.2	27.1%	95.0	29.3%	– 1.8	– 224
o/w sales & marketing	62.8	18.3%	62.3	19.2%	+ 0.5	– 96
o/w general & administrative	30.8	8.9%	29.6	9.1%	+ 1.1	– 20
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	+ 21.4	+ 585
Net Capitalisation of R&D	8.4	2.4%	9.1	2.8%	– 0.8	– 39
in % of gross R&D	8.2%		8.8%		-0.5%

In H1 2025, profit on operating activities reached €41.3 million, representing a margin of 12.0% of revenue, compared with 6.1% in H1 2024. This sharp improvement reflects strong gross profit expansion, driven by a more favorable revenue mix and tight cost control across operating expenses with all lines showing year-on-year efficiencies. Gross margins increased—particularly at Axway—thanks to strong bookings in customer-managed subscriptions, which generated significant upfront revenue at high margins.

Comments on H1 2025 net profit

Net Profit – Group

	Half-year 2025		Half-year 2024 Proforma 6M AXW + 6M SBS		Half-year 2024 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	17.1	11.5%
Share-based expenses	-6.7		-2.4		-2.9
Amortization of allocated intangibles	-6.2		-7.1		-1.7
PROFIT FROM RECURRING OPERATIONS	28.4	8.3%	10.5	3.2%	12.5	8.4%
Other operating income and expenses	-8.9		-7.9		-4.1
OPERATING PROFIT	19.5	5.7%	2.6	0.8%	8.3	5.6%
Cost of financial debt	-9.0		-8.9		-2.7
Other financial income and expenses	-2.2		-2.0		-0.9
Income tax expenses	-2.5		-7.2		-2.0
NET PROFIT	5.8	1.7%	-15.6	-4.8%	2.8	1.9%
Earnings per share	0.20 €		-0.54 €		0.13 €

Profit from recurring operations reached €28.4 million, after accounting for the amortization of allocated intangibles and share-based expenses. This marks a substantial improvement from the H1 2024 proforma figure of €10.5 million.

Share-based expenses increased, reflecting the inclusion of SBS in the new long-term incentive program, the Group’s strong share price performance, and higher employer social security rates in France. The purchase price allocation (PPA) related to the SBS acquisition has now been finalized. Amortization of allocated intangibles has been restated for 2024 on a pro forma basis and is expected to total €12–13 million for full-year 2025.

After including other operating income and expenses, such as restructuring charges and non-recurring items totaling €8.9 million, operating profit amounted to €19.5 million, compared with €2.6 million on a proforma basis in H1 2024.

Net profit for the half-year came to €5.8 million (1.7%), a significant turnaround from the €15.6 million loss recorded on a proforma basis in the prior year.

Basic earnings per share stood at €0.20, compared with a loss of €0.54 per share in the first half of 2024 (proforma).

Financial position on June 30, 2025

74Software made strong progress in its deleveraging effort during H1 2025. Free cash flow was particularly robust, supported by seasonal inflows from maintenance and subscription renewals, as well as the first-time implementation of a factoring program on selected receivables. Unlevered free cash flow reached €76.4 million, enabling €42 million in debt repayments and boosting cash balances. As a result, net debt stood at €191.8 million (before IFRS 16), with a leverage ratio of 1.83x and a gearing ratio of 0.37x—achieving the full-year leverage target of below 2.0x well ahead of schedule. This deleveraging is expected to reduce interest expenses going forward. Due to seasonal patterns in cash collection, the leverage ratio is expected to remain below 2.0x through year-end, though without material further improvement.

Shareholders’ equity stood at €512.8 million (72.8% of total capital) at June 30, 2025.

Change in the workforce

At June 30, 2025, the Group employed 4,679 full-time equivalents, compared with 4,787 at year-end 2024. This 2.6% reduction reflects continued disciplined workforce management across both Axway and SBS, aligned with the Group’s operational efficiency focus.

Targets & Ambitions

Following a strong first half, 74Software confirms its full-year 2025 guidance, underpinned by solid execution and front-loaded bookings. The Group continues to target revenue growth between 2% and 4%, reaching approximately €700 million, with an operating margin between 14% and 16%. Due to the first-time introduction of the factoring program, unlevered free cash flow is now expected to be at least 10% of revenue, and the leverage ratio is projected to remain below 2.0x.

Looking ahead, 74Software reiterates its ambition to surpass €750 million in revenue by 2027 with an operating margin above 17%, and to reach around 20% by 2028 — in line with its trajectory toward a scalable, profitable, and product-led growth model.

[ NEW TIME ] Today, Thursday, July 24, 2025, 6.00 p.m. (CEST):

2025 HALF-YEAR RESULTS – VIRTUAL ANALYST CONFERENCE

Register here or join by phone by dialing one of the numbers below:
- France: +33 (0) 1 70 37 71 66 / USA: +1 786 697 3501 / International: +44 (0) 33 0551 0200

Please note that the meeting will be held in English.

Financial Calendar

Thursday, October 30, 2025, before market opening: Publication of Q3 2025 Revenue

Thursday, February 26, 2026, after market closing: Publication of 2025 Full-Year Results

Glossary and Alternative Performance Measures

Axway ARR: Annual Recurring Revenue – Expected annual billing amounts from all active maintenance and subscription agreements.

SBS ARR: Annual Recurring Revenue – Monthly recurring revenue (MRR) for the last month of the reporting period multiplied by 12. Where contracts are affected by seasonality or contracted volume-based elements, the last 12 months of revenue are aggregated in determining ARR. Expected recurring revenue from contracts signed but not yet active are not included in ARR.

NPS: Net Promoter Score – Customer satisfaction and recommendation indicator for a company.

Organic growth: Growth in revenue between the period under review and the prior period, restated for consolidation scope and exchange rate impacts.

Profit on operating activities: Profit from recurring operations adjusted for the non-cash share-based payment expense, as well as the amortization of allocated intangible assets.

Proforma: Proforma measures assume the acquisition of SBS happened at the beginning of the respective reporting period.

Restated revenue: Revenue for the prior year, adjusted for the consolidation scope and exchange rates of the current year.

Unlevered free cash flow: Free cash flow before exceptional items and before net interest expense.

About 74Software

74Software is an enterprise software group founded through the combination of Axway and SBS – independently operated leaders with unique experience and capabilities to deliver mission-critical software for a data driven world. A pioneer in enterprise integration solutions for 25 years, Axway supports major brands and government agencies around the globe with its core line of MFT, B2B, API, and Financial Accounting Hub products. SBS empowers banks and financial institutions to reimagine tomorrow’s digital experiences with a composable cloud-based architecture that enables deposits, lending, compliance, payments, consumer, and asset finance services and operations to be deployed worldwide. 74Software serves more than 11,000 companies, including over 1,500 financial service customers. To learn more, visit 74Software.com

Contacts – Investor Relations:

Arthur Carli – +33 (0)1 47 17 24 65 – acarli@74software.com

Chloé Chouard – +33 (0)1 47 17 21 78 – cchouard@74software.com

Appendices (1/5)

Income Statement – Group

	Half-year 2025		Half-year 2024 Proforma 6M AXW + 6M SBS		Half-year 2024 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
TOTAL REVENUE	344.0		323.9		148.7
Total costs of revenue	-115.9		-117.1		-44.0
GROSS PROFIT	228.1	66.3%	206.9	63.9%	104.7	70.5%
Operating expenses	-186.8		-186.9		-87.6
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	17.1	11.5%
Share-based expenses	-6.7		-2.4		-2.9
Amortization of allocated intangibles	-6.2		-7.1		-1.7
PROFIT FROM RECURRING OPERATIONS	28.4	8.3%	10.5	3.2%	12.5	8.4%
Other operating income and expenses	-8.9		-7.9		-4.1
OPERATING PROFIT	19.5	5.7%	2.6	0.8%	8.3	5.6%
Cost of financial debt	-9.0		-8.9		-2.7
Other financial income and expenses	-2.2		-2.0		-0.9
Income tax expenses	-2.5		-7.2		-2.0
NET PROFIT	5.8	1.7%	-15.6	-4.8%	2.8	1.9%
Earnings per share	0.20 €		-0.54 €		0.13 €

Simplified Balance Sheet

in €m	H1 2025 IFRS Consolidated	FY 2024 IFRS Consolidated	Change	in €m	H1 2025 IFRS Consolidated	FY 2024 IFRS Consolidated	Change
Accounts receivables	246.7	293.5	– 46.8	Cash & cash equivalents	-57.8	-41.4	– 16.4
Other current assets	123.3	101.9	+ 21.4	Financial debt	249.6	291.8	– 42.2
Accounts payables	-34.1	-28.7	– 5.4	Net debt	191.8	250.4	– 58.6
Deferred revenue	-138.2	-88.6	– 49.6	Equity	512.8	532.4	– 19.6
Other current liabilities	-137.2	-158.0	+ 20.8	CAPITAL EMPLOYED	704.6	782.8	– 78.2
Net working capital	60.5	120.1	– 59.7
Tangible fixed assets	20.9	25.0	– 4.1
Goodwill	523.1	497.4	+ 25.7		H1 2025 IFRS Consolidated	FY 2024 IFRS Consolidated	Change
Other intangibles	132.1	192.3	– 60.2
Fixed assets	676.1	714.7	– 38.6	Ratios
Other assets	100.2	78.1	+ 22.1	DSO (days)	121	145	-24
Other liabilities	-132.1	-130.1	– 2.0	Net debt / total capital	27.2%	32.0%	– 4.8%
Other assets – liabilities	-31.9	-52.0	+ 20.1	Equity / total capital	72.8%	68.0%	+ 4.8%
INVESTED ASSETS	704.5	782.8	– 78.4

Cash Flow Statement

	H1 2025			H1 2024	Change Axway H1 25 vs. H1 24
in €m	74Software	SBS	Axway	Axway Standalone	Change Axway H1 25 vs. H1 24
Operating cashflow	89.6	35.8	53.9	15.0	+ 38.8
o/w change in NWC	55.0	29.4	25.6	2.6	+ 23.1
o/w other operating cashflow	34.6	6.4	28.2	12.5	+ 15.7
Investing cashflow	-14.2	-9.8	-4.4	-2.7	– 1.6
o/w PP&E & others	-5.0	-0.6	-4.4	-2.7	– 1.7
o/w capitalized R&D	-9.2	-9.2	0.0	0.0	0.0
Financing cashflow	-58.1	-14.6	-43.4	-12.6	– 30.8
o/w debt repayment	-42.0	0.0	-42.0	0.0	– 42.0
o/w other financing cashflow	-16.1	-14.6	-1.4	-12.6	+ 11.2
NET CHANGE IN CASH	16.2	11.1	5.1	-0.2	+ 5.3

Unlevered free cashflow	76.4	29.0	47.4	13.9	+ 33.5
as a % of revenue	22.2%	15.7%	29.5%	9.4%	+ 20.1%

Appendices (2/5)

Profit on Operating Activities – Axway

	H1 2025 Axway		H1 2024 Reported Axway		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	143.3	89.1%	130.5	87.8%	+ 12.8	+ 134
Services revenue	17.5	10.9%	18.2	12.2%	– 0.7	– 134
Total revenue	160.8		148.7		+ 12.1
Total costs of revenue	40.3		44.0		– 3.7
GROSS PROFIT	120.5	74.9%	104.7	70.4%	+ 15.8	+ 451
o/w product gross profit	119.3	83.2%	104.6	80.2%	+ 14.7	+ 308
o/w services gross profit	1.2	7.0%	0.1	0.6%	+ 1.1	+ 644
Operating expenses	93.8	58.4%	87.6	58.9%	+ 6.2	– 58
o/w research & development	32.6	20.3%	31.2	21.0%	+ 1.4	– 69
o/w sales & marketing	43.0	26.8%	41.8	28.1%	+ 1.2	– 137
o/w general & administrative	18.2	11.3%	14.6	9.8%	+ 3.6	+ 148
PROFIT ON OPERATING ACTIVITIES	26.7	16.6%	17.1	11.5%	+ 9.6	+ 508

Profit on Operating Activities – SBS

	H1 2025 SBS		H1 2024 Proforma SBS		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	137.7	74.8%	118.2	67.5%	+ 19.5	+ 729
Services revenue	46.5	25.2%	57.0	32.5%	– 10.5	– 729
Total revenue	184.2		175.2		+ 8.9
Total costs of revenue	76.6		73.1		+ 3.5
GROSS PROFIT	107.6	58.4%	102.1	58.3%	+ 5.5	+ 14
o/w product gross profit	98.6	71.6%	87.1	73.6%	+ 11.5	– 202
o/w services gross profit	9.0	19.3%	15.1	26.4%	– 6.1	– 710
Operating expenses	93.0	50.5%	99.3	56.7%	– 6.3	– 619
o/w research & development	60.6	32.9%	63.8	36.4%	– 3.3	– 354
o/w sales & marketing	19.8	10.7%	20.5	11.7%	– 0.7	– 93
o/w general & administrative	12.6	6.8%	15.0	8.6%	– 2.4	– 173
PROFIT ON OPERATING ACTIVITIES	14.6	7.9%	2.8	1.6%	+ 11.8	+ 633

Quarterly Revenue Breakdown by Portfolio Brand

	Q1 2025	Q2 2025	H1 2025
€m	Q1 2025	Q2 2025	H1 2025
Axway Scope	82.5	78.3	160.8
SBS Scope	88.3	95.8	184.2

Consolidation	-0.4	-0.6	-1.0

74Software	170.4	173.5	344.0

Appendices (3/5)

Quarterly Revenue Breakdown by Type

	Q1 2025	Q2 2025	H1 2025
€m / %	Q1 2025	Q2 2025	H1 2025
Product revenue	139.1	141.0	280.0
Recurring revenue	129.5	128.4	258.0
o/w Maintenance & Support	47.0	44.5	91.5
o/w Customer-managed Subscription	48.6	50.1	98.7
o/w Own-managed Subscription	34.0	33.8	67.8
License revenue	9.5	12.5	22.1

Services revenue	31.3	32.6	64.0

Total revenue	170.4	173.6	344.0

Quarterly Revenue Breakdown by Type – Axway

	Q1 2025	Q2 2025	H1 2025
€m / %	Q1 2025	Q2 2025	H1 2025
Product revenue	73.4	69.8	143.3
Recurring revenue	72.1	69.5	141.6
o/w Maintenance & Support	14.4	12.8	27.2
o/w Customer-managed Subscription	43.7	43.2	87.0
o/w Own-managed Subscription	13.9	13.4	27.4
License revenue	1.3	0.4	1.7

Services revenue	9.0	8.5	17.5

Total revenue – Axway	82.5	78.3	160.8

Quarterly Revenue Breakdown by Type – SBS

	Q1 2025	Q2 2025	H1 2025
€m / %	Q1 2025	Q2 2025	H1 2025
Product revenue	66.0	71.7	137.7
Recurring revenue	57.9	59.5	117.3
o/w Maintenance & Support	32.5	31.7	64.2
o/w Customer-managed Subscription	4.9	6.9	11.7
o/w Own-managed Subscription	20.5	20.9	41.4
License revenue	8.2	12.2	20.4

Services revenue	22.3	24.2	46.5

Total revenue SBS	88.3	95.8	184.2

Appendices (4/5)

Half-year Revenue Breakdown by Portfolio Brand & Type

	H1 2025 Axway	H1 2025 SBS	H1 2025 Consolidation	H1 2025 74Software
€m / %	H1 2025 Axway	H1 2025 SBS	H1 2025 Consolidation	H1 2025 74Software
Product revenue	143.3	137.7	-1.0	280.0
Recurring revenue	141.6	117.3	-1.0	258.0
o/w Maintenance & Support	27.2	64.2	0.0	91.5
o/w Customer-managed Subscription	87.0	11.7	0.0	98.7
o/w Own-managed Subscription	27.4	41.4	-1.0	67.8
License revenue	1.7	20.4	0.0	22.1

Services revenue	17.5	46.5	0.0	64.0

Total revenue	160.8	184.2	-1.0	344.0

Half-year Revenue Breakdown by Portfolio Brand & Type

	H1 2024 Axway	H1 2024 Proforma SBS	H1 2024 Proforma Consolidation	H1 2024 Proforma 74Software
€m / %	H1 2024 Axway	H1 2024 Proforma SBS	H1 2024 Proforma Consolidation	H1 2024 Proforma 74Software
Product revenue	130.5	118.2	0.0	248.7
Recurring revenue	127.9	101.4	0.0	229.3
o/w Maintenance & Support	34.6	61.6	0.0	96.2
o/w Customer-managed Subscription	67.3	9.3	0.0	76.6
o/w Own-managed Subscription	25.9	30.5	0.0	56.5
License revenue	2.6	16.8	0.0	19.4

Services revenue	18.2	57.0	0.0	75.2

Total revenue	148.7	175.2	0.0	323.9

Half-year Revenue Breakdown by Region

	H1 2025		H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
	H1 2025
	€m	% of Rev.
Europe	208.1	60.5%	203.0	203.2	2.5%	2.4%
o/w France	99.5	28.9%	99.7	99.7	-0.2%	-0.2%
o/w UK	46.7	13.6%	44.8	45.0	4.3%	3.7%
Americas	73.3	21.3%	65.6	64.6	11.7%	13.5%
Middle East & Africa	43.1	12.5%	39.3	39.3	9.7%	9.7%
Asia & Pacific	19.4	5.7%	15.9	15.8	22.0%	22.7%

74Software	344.0		323.9	323.0	6.2%	6.5%

Appendices (5/5)

Headcount

	30/06/2025	31/12/2024	Change
Europe	3.001	3.090	-89
Americas	370	378	-8
Asia – Pacific	869	882	-13
Middle East – Africa	439	437	2

TOTAL	4.679	4.787	-108

Impact on Half-year Revenue of Changes in Scope and Exchange Rates

€m / %	H1 2025	H1 2024	Growth
Revenue	344.0	148.7	+ 131.4%
Changes in exchange rates		-0.9
Revenue at constant exchange rates	344.0	147.7	+ 132.8%
Changes in scope		+175.2
Revenue at constant scope and exchange rates	344.0	323.0	+ 6.5%

Changes in Main Exchange Rates

For 1€	Average Rate H1 2025	Average rate H1 2024	Change
US Dollar	1.093	1.081	– 1.1%
Great Britain Pound	0.842	0.855	+ 1.5%

1 The interim consolidated financial statements were subject to limited review procedures.

Attachment

24072025_74Software_PR_H1 Results 2025_English_VFinal

The MIL Network –

July 25, 2025

MIL-OSI: 74Software: Sustained Momentum Reinforces Long-Term Objectives

Source: GlobeNewswire (MIL-OSI)

Press Release
Paris, July 24, 2025

74Software: Sustained Momentum Reinforces Long-Term Objectives

Group H1 2025 revenue of €344.0m, up 6.5% organically and 6.2% in total
Strong H1 across both brands – Axway up 8.9% to €160.8m and SBS up 5.0% to €184.2m
Marked improvement in margin on operating activities, up 585bps to 12.0% of revenue (€41.3m)
ARR increased year-on-year by 11.8% at Axway and 10.9% at SBS, further strengthening recurring revenues

74Software’s Board of Directors, chaired by Pierre Pasquier, approved today the financial statements for the first half of 2025, which were subject to a limited review by the statutory auditors¹. Consequently, 74Software announces:

Half-Year Key Income Statement Items

	Half-year 2025		Half-year 2024 Proforma 6M AXW + 6M SBS		Half-year 2024 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
TOTAL REVENUE	344.0		323.9		148.7
GROSS PROFIT	228.1	66.3%	206.8	63.9%	104.7	70.5%
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	17.1	11.5%
OPERATING PROFIT	19.5	5.7%	2.6	0.8%	8.3	5.6%
NET PROFIT	5.8	1.7%	-15.6	-4.8%	2.8	1.9%
EARNINGS PER SHARE	0.20 €		-0.54 €		0.13 €

Patrick Donovan, Chief Executive Officer, stated:

“Our H1 results confirm our strong start to the year and demonstrate both the strength of our strategic direction and our ability to execute in-line with our stated plans. As noted in our Q1 press release, the solid early execution front-loads part of the year’s commercial activity— especially in the Axway business. We remain fully committed to our full-year guidance and, more broadly, to our 2027 and 2028 ambitions. Axway is now firmly established as a subscription-first business, while SBS is rapidly scaling its modular banking platforms and expanding its SaaS footprint. With recurring revenue accelerating and capital deployment tightly managed, 74Software is becoming a more structured, resilient, and forward-looking group — built to deliver long-term value creation.”

Comments on H1 2025 activity

74Software delivered a strong first-half performance, confirming its ability to execute on its strategic roadmap and capitalize on the operational integration initiated following the transaction closing in September 2024. Revenue growth was solid in both brands, while profitability improved as planned — reflecting the strength of the Group’s model and the improved execution driven by Axway’s infrastructure software expertise and SBS’s leadership in banking software.

Following a particularly dynamic Q1, the second quarter allowed the Group to consolidate its gains, maintain commercial selectivity, and further shift toward a recurring, scalable revenue model. Axway has now largely transitioned, while SBS continues to advance its own transformation, expanding SaaS deployments and rebalancing its revenue mix in favor of product revenue. Key highlights for the period include:

Axway recorded a strong first half, with consistent growth across all product lines. Nearly 60 new customers were signed during the period (+20% year-on-year), with new-name deals accounting for around one-third of Q2 bookings. Large-scale projects gained momentum, including six contracts exceeding €1 million signed in Q2 alone. Demand for cloud-based delivery continued to rise, with Axway-managed deployments representing 40% of Q2 bookings and 35% over the first half. This shift was broad-based, with steady adoption across all geographies and industry verticals.
SBS also reported strong results, with product revenue now accounting for 75% of total revenue, up from 67% in H1 2024 — marking significant progress in the company’s shift toward a software-led model. Growth was supported by all product lines, including solid license activity in integrated platforms, components, and financing solutions, as well as continued expansion of modular offerings. The company has now contracted more than 230 SaaS regulatory reporting services, reinforcing adoption across its client base. During the period, SBS welcomed several new clients and completed the first SaaS deployment of its digital engagement platform in Europe. Two additional implementations are scheduled for the third quarter in Africa, where demand is driven by microfinance and Islamic banking. The company’s progress was also recognized through multiple industry awards highlighting its leadership in compliance, payments, and digital banking.

The Group enters H2 with improving visibility, disciplined execution, and a clear focus on delivering its full-year objectives. Integration of support functions between Axway and SBS is now largely complete, and joint commercial initiatives are steadily expanding across selected regions.

Comments on H1 2025 operational performance

Half-year Revenue Breakdown by Portfolio Brand

	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
€m / %	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
Axway Scope	160.8	148.7	147.6	8.1%	8.9%
SBS Scope	184.2	175.2	175.4	5.1%	5.0%

Consolidation	-1.0	0.0	0.0	–	–

74Software	344.0	323.9	323.0	6.2%	6.5%

In the first half of 2025, the Group generated revenue of €344.0 million, reflecting total growth of 6.2% and organic growth of 6.5% year-on-year. This performance was supported by both brands, with Axway contributing €160.8 million in revenue and organic growth of 8.9%, and SBS contributing €184.2 million with 5.0% organic growth (compared to proforma H1 2024).

Half-year Revenue Breakdown by Type

	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
€m / %	H1 2025	H1 2024 Proforma	H1 2024 Restated	Total Growth	Organic Growth
Product revenue	280.0	248.7	248.1	12.6%	12.9%
Recurring revenue	258.0	229.3	228.7	12.5%	12.8%
o/w Maintenance & Support	91.5	96.2	96.0	-4.9%	-4.7%
o/w Customer-managed Subscription	98.7	76.6	76.5	28.8%	29.0%
o/w Own-managed Subscription	67.8	56.5	56.2	20.0%	20.6%
License revenue	22.1	19.4	19.4	13.5%	13.7%

Services revenue	64.0	75.2	74.9	-14.9%	-14.6%

Total revenue	344.0	323.9	323.0	6.2%	6.5%

In the first half of 2025, Product revenue reached €280.0 million, up 12.9% organically, reflecting strong execution across both Axway and SBS. The Group continued to benefit from rising demand for subscription-based offers, with both customer-managed and own-managed subscriptions posting growth above 20%. Maintenance revenue declined as anticipated, while license activity increased but remained low at 6.4% of total revenue. Product revenues accounted for 81% of total revenue (up from 77% in H1 2024) and recurring revenues were at 75% of total revenue (up from 71% in H1 2024), confirming 74Software’s successful transition toward a product- and subscription-led model.

Axway generated €143.3 million in product revenue, up 10.5% organically. Recurring activities made nearly the entire contribution, driven by a 29.5% increase in customer-managed subscriptions and 6.8% growth in own-managed deployments, reflecting continued momentum in hybrid environments. License revenue decreased by 34.9% as the company continues to phase out new license sales. Maintenance and support dropped by 20.6% due to the continued shift of the customer base towards subscription models. Services revenue was slightly lower, down 2.2%, and represented 11% of Axway’s total.

SBS recorded €137.7 million in product revenue, up 16.3% organically, with strong performance across all product categories. Own-managed subscriptions rose by 35.2%, customer-managed subscriptions by 25.5%, and maintenance and support increased by 4.2%, supported by a growing installed base. License revenue climbed 21.2%, reflecting continued expansion of integrated and lending solutions. Recurring revenue now represents 64% of SBS’s business (up from 58% in H1 2024), with services accounting for 25% and licenses for 11%. This illustrates SBS’s continued shift from a service-led to a product-led business model.

Group-wide, Services generated €64.0 million in the first half, or 18.6% of total revenue, down 14.6% compared to last year. This decrease mainly reflects SBS’s repositioning, while Axway’s service contribution remained stable. The difference in service trends between the two businesses stems from their respective models. Axway relies on lighter implementation cycles, whereas SBS delivers more comprehensive banking transformation programs.

At the end of June 2025, ARR for Axway stood at €255.9 million, reflecting an organic growth of 11.8% year-on-year. SBS also continued to expand its ARR to €233.3 million, up 10.9% organically year-on-year. These solid performances confirm the effectiveness of both companies’ strategic repositioning and reinforce the Group’s revenue predictability and resilience.

Comments on H1 2025 product line performance

Axway, a recognized leader in application infrastructure and middleware, delivered solid momentum in the first half of 2025. All product lines contributed to growth, supported by strong commercial execution and increasing demand for cloud-based solutions:

Managed File Transfer remained a key contributor despite a normalization of activity following an exceptional 2024. The gradual erosion of legacy maintenance was more than offset by strong momentum in managed deployments, confirming the sustained value of Axway’s hybrid approach.
B2B Integration delivered robust gains across the board, benefiting from growing demand for managed solutions and early signs of successful cross-sell with SBS. The product line also saw improvements in both subscription and service revenue.
API Management accelerated sharply, supported by strong commercial execution and increased adoption of its integration and engagement modules. The Fusion extension also contributed positively, confirming the platform’s potential.
Specialized Products, including the Financial Accounting Hub, maintained steady momentum through targeted compliance and finance use cases. Recent wins via ecosystem partnerships reinforced Axway’s positioning with key accounts.

SBS, a trusted provider of banking and financing software, posted solid growth in all product lines, confirming the strength of its modular and targeted approach as it continues its shift toward a product-led model:

Financing Products maintained a steady trajectory, reflecting stable demand in wholesale auto finance and UK mortgage service. Activity remained resilient despite longer decision cycles in certain regions.
- Modular Products continued to gain traction, primarily driven by momentum in instant payments and the regulatory reporting platform. Cross-sell into the integrated base gained pace, confirming the appeal of modular architectures.
- Integrated Products delivered consistent performance, with solid customer retention and ongoing functional improvements. In some markets, modular alternatives are beginning to complement legacy platforms, paving the way for more composable setups. SBS’ market-leading product in Africa continues to perform strongly, adding new customers as well as increasing share of wallet in its installed base.
Banking Components continued to gain momentum, particularly in payments, lending, and cards. The strength of customer relationships across key accounts in France continues to drive upsells.

Comments on H1 2025 profit on operating activities

Profit on Operating Activities – Group

	H1 2025		H1 2024 Proforma		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	280.0	81.4%	248.7	76.8%	+ 31.3	+ 461
Services revenue	64.0	18.6%	75.2	23.2%	– 11.2	– 461
Total revenue	344.0		323.9		+ 20.1
Total costs of revenue	115.9		117.1		– 1.2
GROSS PROFIT	228.1	66.3%	206.9	63.9%	+ 21.2	+ 243
o/w product gross profit	217.9	77.8%	191.7	77.0%	+ 26.2	+ 75
o/w services gross profit	10.2	15.9%	15.2	20.2%	– 5.0	– 422
Operating expenses	186.8	54.3%	186.9	57.7%	– 0.1	– 341
o/w research & development	93.2	27.1%	95.0	29.3%	– 1.8	– 224
o/w sales & marketing	62.8	18.3%	62.3	19.2%	+ 0.5	– 96
o/w general & administrative	30.8	8.9%	29.6	9.1%	+ 1.1	– 20
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	+ 21.4	+ 585
Net Capitalisation of R&D	8.4	2.4%	9.1	2.8%	– 0.8	– 39
in % of gross R&D	8.2%		8.8%		-0.5%

In H1 2025, profit on operating activities reached €41.3 million, representing a margin of 12.0% of revenue, compared with 6.1% in H1 2024. This sharp improvement reflects strong gross profit expansion, driven by a more favorable revenue mix and tight cost control across operating expenses with all lines showing year-on-year efficiencies. Gross margins increased—particularly at Axway—thanks to strong bookings in customer-managed subscriptions, which generated significant upfront revenue at high margins.

Comments on H1 2025 net profit

Net Profit – Group

	Half-year 2025		Half-year 2024 Proforma 6M AXW + 6M SBS		Half-year 2024 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
PROFIT ON OPERATING ACTIVITIES	41.3	12.0%	19.9	6.1%	17.1	11.5%
Share-based expenses	-6.7		-2.4		-2.9
Amortization of allocated intangibles	-6.2		-7.1		-1.7
PROFIT FROM RECURRING OPERATIONS	28.4	8.3%	10.5	3.2%	12.5	8.4%
Other operating income and expenses	-8.9		-7.9		-4.1
OPERATING PROFIT	19.5	5.7%	2.6	0.8%	8.3	5.6%
Cost of financial debt	-9.0		-8.9		-2.7
Other financial income and expenses	-2.2		-2.0		-0.9
Income tax expenses	-2.5		-7.2		-2.0
NET PROFIT	5.8	1.7%	-15.6	-4.8%	2.8	1.9%
Earnings per share	0.20 €		-0.54 €		0.13 €

Profit from recurring operations reached €28.4 million, after accounting for the amortization of allocated intangibles and share-based expenses. This marks a substantial improvement from the H1 2024 proforma figure of €10.5 million.

Share-based expenses increased, reflecting the inclusion of SBS in the new long-term incentive program, the Group’s strong share price performance, and higher employer social security rates in France. The purchase price allocation (PPA) related to the SBS acquisition has now been finalized. Amortization of allocated intangibles has been restated for 2024 on a pro forma basis and is expected to total €12–13 million for full-year 2025.

After including other operating income and expenses, such as restructuring charges and non-recurring items totaling €8.9 million, operating profit amounted to €19.5 million, compared with €2.6 million on a proforma basis in H1 2024.

Net profit for the half-year came to €5.8 million (1.7%), a significant turnaround from the €15.6 million loss recorded on a proforma basis in the prior year.

Basic earnings per share stood at €0.20, compared with a loss of €0.54 per share in the first half of 2024 (proforma).

Financial position on June 30, 2025

74Software made strong progress in its deleveraging effort during H1 2025. Free cash flow was particularly robust, supported by seasonal inflows from maintenance and subscription renewals, as well as the first-time implementation of a factoring program on selected receivables. Unlevered free cash flow reached €76.4 million, enabling €42 million in debt repayments and boosting cash balances. As a result, net debt stood at €191.8 million (before IFRS 16), with a leverage ratio of 1.83x and a gearing ratio of 0.37x—achieving the full-year leverage target of below 2.0x well ahead of schedule. This deleveraging is expected to reduce interest expenses going forward. Due to seasonal patterns in cash collection, the leverage ratio is expected to remain below 2.0x through year-end, though without material further improvement.

Shareholders’ equity stood at €512.8 million (72.8% of total capital) at June 30, 2025.

Change in the workforce

At June 30, 2025, the Group employed 4,679 full-time equivalents, compared with 4,787 at year-end 2024. This 2.6% reduction reflects continued disciplined workforce management across both Axway and SBS, aligned with the Group’s operational efficiency focus.

Targets & Ambitions

Following a strong first half, 74Software confirms its full-year 2025 guidance, underpinned by solid execution and front-loaded bookings. The Group continues to target revenue growth between 2% and 4%, reaching approximately €700 million, with an operating margin between 14% and 16%. Due to the first-time introduction of the factoring program, unlevered free cash flow is now expected to be at least 10% of revenue, and the leverage ratio is projected to remain below 2.0x.

Looking ahead, 74Software reiterates its ambition to surpass €750 million in revenue by 2027 with an operating margin above 17%, and to reach around 20% by 2028 — in line with its trajectory toward a scalable, profitable, and product-led growth model.

[ NEW TIME ] Today, Thursday, July 24, 2025, 6.00 p.m. (CEST):

2025 HALF-YEAR RESULTS – VIRTUAL ANALYST CONFERENCE

Register here or join by phone by dialing one of the numbers below:
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