Original-Research: ATOSS Software SE (von NuWays AG): BUY

Classification of NuWays AG to ATOSS Software SE

Company Name:	ATOSS Software SE
ISIN:	DE0005104400
Reason for the research:	Update
Recommendation:	BUY
from:	24.10.2025
Target price:	EUR 152.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Cloud leverage and cost discipline deliver strong Q3; chg.

ATOSS delivered a strong set of Q3 results showing continued double-digit growth and a clear EBIT beat, underlying the company’s strong operating leverage. In detail:

Q3 sales arrived at € 47.2m (eNuW: € 47.9m), growing by 12.2% yoy. This was carried by Cloud & Subscription sales (+25.3% to €23.4m) as well as a better utilization in Consulting (+13.8% to € 10.1m), both compensating for the continued decline in license revenues (-15.6% to € 1.8m). This is clearly displaying the success of the ongoing transition SaaS. In fact, Cloud & Subscriptions accounted for 49.6% of sales in Q3, while total recurring revenues (incl. Maintenance) made up 70% (+2pp yoy), which further enhances earnings quality and visibility. Total ARR as of 9M came in at € 95.4m (+26% yoy) driven by a continued strong net retention rate of 111% (€ 8.2m contribution) as well as new and migrated customers (€ 11.3m).

Noteworthy in this context: ATOSS’ entry level solution Crewmeister, which targets customers with <30 employees, continued to show strong traction, supported by regulatory tailwinds from mandatory working-time recording, product enhancements, and efficient digital customer acquisition, visible in a strong ARR uptick to € 8.5m (9M’24: € 6.5m).

Adding to this, order intake bounced back in Q3, as overall OI at 9M came in at par with last years figure. More importantly though, OI in Cloud & Subscriptions, the company’s main revenue driver, was ahead of last year’s figure, as respective backlog now amounts to € 102m (+27% yoy).

The highlight of the release however, was the strong EBIT, which came in at € 17.2m (eNuW: € 16.1m), implying a 36.4% EBIT margin. This was mainly driven by scale effects in connection with the cloud transition, and cost discipline visible in lower-than-planned cost ramp-up across R&D, S&M, and G&A.

Against this backdrop, management lifted the FY25 EBIT outlook from previously ≥31% to 34%. This is reasonable in our view, given a 9M margin of 34.6% and the seasonally rather strong Q4 still ahead. In fact, reaching the 34% target at the guided € 190m sales would imply a Q4 margin of only 32.4%.

Overall, Q3’s strong profitability and resilient top-line momentum fully confirm our investment case of scalable, high-quality recurring growth with strong operating leverage. With recurring revenues now at 70% of total sales and still a lot of margin potential stemming from the cloud migration (eNuW: 80% cloud ratio target by FY30 should be seen as the ceiling), we continue to view ATOSS as a core quality compounder in European software.

BUY with an unchanged PT of €152 based on DCF.

You can download the research here: atoss-software-se-2025-10-24-update-en-a01ad
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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