Hello everyone, and welcome to the 2025 full year results presentation of 74 Software. Let me start off by making the usual disclaimer that today we will be presenting some forward-looking results and guidance that is subject to risk and uncertainty, especially during this period of AI revolution.

I welcome you to look at the universal registration document filed on our website in the Investor Relations section, where we cover the usual subjects. Let's go ahead and get started.

Today, with Eric and [Tobie-?] Tobias, we'll cover the 2025 performance, highlight some key things, and talk about the milestones as we're going through the journey we presented when we kicked off 74 Software.

Before we jump into the usual presentation, I want to say one quick word about the artificial intelligence activity we're seeing in the stock market and the drama and the share prices, etc. For 74 Software, we believe we're in a very good position, being at the core of enterprises' activities, which gives us really an opportunity, as we see it, in the AI positioning.

Éric Bierry will cover in far more detail in his presentation why we believe this. Because of this belief, it's absolutely critical that myself and the management team also continues to progress on the path of improvement and growth that we talked about when we kicked off 74 Software.

I'm happy to say we've done that for '24 and '25, and the outlook as we roll into 2026 is on track. We're quite stable in what we've projected in our outlook, and we will also look at how AI can impact and help us improve.

As I said, Eric will go through that further in this presentation. Let me come back to 2024 when we kicked off 74 Software.

We had talked about an operating model that we would be building for scale, accountability, efficiency, and to allow both brands, Axway and SBS, to really deliver the customer value and have that be their core focus while we build out the central organization. We called that corporate chapters, and a year and a half ago when we kicked this off, we started organizing Human Resources, Finance, Legal, IT, etc., as more of shared service centers that are delivering the value and support for the operating brands.

I'm happy to say that each of our corporate chapters has a defined leader, organizational structure, and as of today, we're in the process of defining the common structure for all the operating systems. We're investing in new software and technology that will help them do their job in a more efficient and effective way.

We will do this through 2026 with the hope as we roll into 2027, this is established and structural that when we welcome additional companies into the group, it will be a much more efficient and structured onboarding. With regards to the brands themselves, whether it's Axway or SBS, we have a clearly defined model with established general managers over each product line, and their job is really to get as close to the customer, and with this customer proximity, we want them to deliver very positive customer outcomes.

We're measuring that with the NPS score and other metrics to make sure that that job is done. It's our belief that if we do this very well, that gives us the best chance to overall success.

We're doing this to create value for all our stakeholders and to deliver on our purpose: that we want to be a trusted independent enterprise software provider that sustainably grows and during value for all three constituents, whether it's our employees, customers, or shareholders. I believe I've talked about before that we're tracking corporate metrics among each of those three constituents.

We use a metric for the employees, which I'll cover in the next slide. We also have one for the customers, which Eric will cover in his slides.

For the shareholders, we're looking on building reliable, sustainable growth, whether it's in our organic revenue growth, our profitability, or unlevered free cash flow, to deliver that return our shareholders are expecting. I'm really happy to say for 2025, we've delivered on all three of those, and you're going to see that in our presentations.

As we look at the employee metric, we use the Employee Engagement Score. This is a measurement that measures the effectiveness, the engagement of the employees in ensuring that the company and its strategy is delivered.

In the tool and the process we use, we collect the employee feedback, and as long as we have greater than 60% of the employees engaged and on our journey, we should give ourselves the best opportunity to achieve our goals. Many years ago, we started talking about this in Axway, and it's been a long, progressive, constant journey of improvement and hearing the employee's feedback and putting that into action, seeing the results, measuring it again over and over and over.

Axway, a few years back, crossed that 60% threshold, and now the mission of Axway is to continue to look for the improvements year after year to see if we could fix and address all the employees' concerns or feedback they have for us. Axway clearly achieved that this year, up 2 points over last year, but the key point there is we never want to go below 60 again.

SBS just started this journey. The first measurement, I believe, was in March of last year, and over the first 9 months or so of taking that feedback from the employees and putting in action some of the things that they heard, I'm happy to say that there's been an increase in 3 points this year.

We collected the surveys again, and there was great participation from the employees really sharing their voice and how we can make this company the best place to be. It's our belief that as we're really a human capital business, and as we have our employees engaged with the customers, it gives us the chance to deliver the value they expect.

I'm happy with the improvement on both of these metrics. This overall operating model and activity that we've been doing, and the team has been doing to improve and to push into what we needed to do over these last couple of years, we've seen it on both brands, both Axway and SBS.

Axway, as we talked about when we were doing the deal, their job now is to constantly deliver consistent, profitable growth. At the time, we talked about a 1% to 3% organic growth.

Over the past couple years, they've been beating that, and the margin we had hit the 20%, which was always the target and wanted to see how we could get sustainably over 21%, and they've done that as well the last couple of years. If you remember, and if you followed the story for a while, a key part of the journey in the subscriptions for Axway was to really start returning the cash flow to us, and it was going to increase faster than the operating profit, and we're clearly seeing that on the Axway side of the business.

For SBS, it was turning from a software company within a service company to a pure software editor, and to do the things necessary to create a pure software model within the group. That's been done year after year, and the progress has been great.

They've been able to do it with a nice growth between 3% and 5%, with a improving focus on the product revenue and a defocus from the service revenues. As they're doing this, as well as challenging the investments made across the group, the margins should improve step by step over the years.

All this is on track and looks really good for the first year and a half, and as we're looking into 2026, the improvement will continue. You see this then aggregated.

You have the chapter build-outs and the brand delivering what they need to do for the last couple years, and you're seeing this then on an aggregate basis come into our 74 Software overall financials. Our guidance that we published at the beginning of 2025 was all met.

We were at the top end of the revenue guidance, right in line on the profitability guidance, and the free cash flow beat while that allowed us to delever at the expected rate. With that, I want to hand it over to Éric Bierry.

Eric?

Thanks, Patrick. Let's have a look at highlights, and especially on our two brands, and let's start with our Axway brand.

I would like to deliver two key messages in regard to Axway. The first one is we did deliver a very, very strong 2025 inside the Axway brand, taking into account, I would say, our strengths, meaning discipline in execution first, and a deep trust from our customer.

The proof is based upon few, I would say, highlights: MFT first, with a double-digit ARR growth, which is very significant, and being the first product line today of Axway; a second, also the expansion of B2B and also the API management, and also based upon volume expansion, which is significantly showing that our client are more and more adopting and leveraging our technology; and third, looking at the booking on what we called cloud on our side, meaning when we do operate for our clients our solution. Close to 30% of booking means that, first, our client are trusting us in the way to operate for them our solution, but this is also helping us to increase our predictability for the future.

The second message is we can say that inside Axway in 2025, we did shift already into the future. When I'm looking at Amplify Fusion, at Engage, at Workbench, looking at all the different first clients who are live, we see that we did already leverage our client capability to deliver AI.

This is really important because it has started already, it's not proof-of-concept, these are clients live leveraging already our technology. These are the two key message I wanted to highlight on Axway brand.

Same exercise with the SBS brand. The two key message are, the first one, a strong execution, I would say, according to the plan, and we were having a challenging plan looking at 2025.

We see that especially in regard to the NPS score, SBS did reach a small record. It's still not to be part of the first quartile of the industry, but this is showing that the approach or our transformation into a product-centric, market-led strategy, and exactly what was explained by Patrick just before, is starting to show results, and that perception from our client side is definitely there based upon the last NPS.

The second part is that we are having very long-term contracts with our clients on the core part of their business, and even within that what we call foundational products, meaning core banking and core lending, we were able to gain 17 new logos within 2025. Again, the market appetite for all our solutions and our ability to deliver that trust for banks mainly, we do have the proof, and it's very, very important.

The second key message is we start to see the result of our investments, meaning that we are starting to have proof within our client base when we are delivering a growth on our modular products. That will be coming later in the next slide on what we call the incubation, but it was really important for us to have that first proof and to see our clients adopting the product we were building and leveraging our recent investments.

As a transition, and you're already used to see our incubation zone, it's exactly where we are driving our strong investment at the moment. The first one is Digital Engagement, meaning our ability to bring a modern UI with open API and AI capabilities for engaging on top of the system of record for banks.

Today, we can say that more than 10 banks have signed, three went live already in 2025, and—and I will be coming back into that topic—with early adopters already on AI-augmented capabilities on top of that digital engagement platform. The second is the Digital Core, where we took the decision to progressively not rewrite a core banking, because the expectation from a bank in 2030 and later are not at all the same than the one banks were having 15 or 10 years ago.

Meaning that we are redesigning what we could call an AI-native core banking platform, and we do it, I would say, by pieces to secure that we are delivering progressively proof to address our existing client base. Today, 25 clients are live on a multi-tenant cloud SaaS approach for especially instant payments, and three of our clients have already signed for that Digital Core, with expected go-live second part of '27.

You all know that starting and delivering a core banking is taking a lot of time. The third one is linked to Amplify Fusion, Amplify Engage, and Workbench.

Part of it, we can say that in 2025, we are moving at scale. When we see that we have more than 100 clients already engaged within Amplify Engage, today we can consider that we can move at scale.

This should be, I would say, disappearing from that slide for the future, because it's entering into what we call at scale, meaning the performance zone in the way we are driving our business. Fusion, which is the key cornerstone for us, where I said just before that we did shift already into the future, today it's more than 50 clients who did adopt.

We are having strong ambition for this year, and we see the market appetite and traction definitely to move forward, and I will be coming back into this specific topic with the AI strategy. The last one is the regulatory reporting.

Just as a reminder, the new IREF regulation in Europe, which has to be started in '27, meaning moving from aggregate to granular data reporting for central bank in Europe, has forced us and has forced the market and has forced our client to progressively change and anticipate to be able to deliver all of this expectation to banks. That's exactly what we did with a key decision to move into a multi-tenant SaaS public cloud strategy.

Today, it's more than 400 SaaS service which have been sold. It's more than 160 which are live over 70 banks.

Today, like with the example of Amplify Engage, we move at scale, meaning that we are leaving that incubation zone, and we then start to follow KPIs which are linked to a mature product where we need to grow, and of course, where we need to met with discipline the profitability objectives. Of course, I was already touching the 38 as a NPS for SBS, but I would like just to pause one minute on the 55 of Axway.

When we are looking at our industry, and especially within that what we call horizontal software capability industry, being above 50 means that we are definitely in the top 20% within that industry. Staying at that level, even improving that level year-over-year, is showing what I said at the beginning: the trust from our clients, but also their perception that we do track the right expectation, the right insight to deliver more and more value for the long term for our clients.

Let me jump now on AI. I think I don't want to repeat what Patrick was saying about the drama and the volatility within the stock market, but of course, the last 4 or 5 weeks have been shaking our industry and forcing many people to ask maybe questions they were not asking themselves in the past.

AI, as I said, we did shift already within the AI landscape in 2025. We are still learning, we are still experimenting also many things, and I will be coming back on clear use case and clear benefit we are expecting within our portfolio and within our value proposition to the market.

Let me start from where we do start and who we are. I think our positioning is something very critical to avoid that we are putting all the different software player inside the same bucket, because, of course, we are in a very unique position like some other vendors, meaning that we are operating in a, I would say, highly regulated, mission-critical environment.

What does it mean? On one side, we are under regulation for banks, meaning that the deterministic approach and the trust in the ability to explain any decision is very critical.

I would say that the cost of error in that system of record is really high for a bank, and where it's very difficult to, I would say, drive the trust even for their client and for their ecosystem. On the other side, on Axway, we are moving, securing, governing data, meaning that the product is not the data, we are not owning the data, but we are definitely giving the governance and giving the security that when our client are moving this data, when tomorrow an agent will be accessing to this data, the one driving that control, the one driving that governance is us.

That, I would say, two legs positioning within that highly regulated environment where the determinism at the end as an outcome is very critical, is giving us a position where we are convinced that we have a role to play, and I'm going to come back into this at the next slide, but that also we are playing a game where the disruption on our core business is not going to come easily tomorrow, and it's definitely where we consider that our added value will make a difference to enable AI capabilities for our clients. Why do we consider that we are in a unique position, and it's for us mainly an opportunity?

We do see within our environment, and especially in 74 Software, three kinds of AI. Let me start with the AI-driven.

What does it mean, AI-driven? Tomorrow, when there are exchange of data and we are leveraging the data, we need to be able to secure and to govern that data.

Tomorrow, and very fast, there will be tons of agents which will have to access to that data, and to do so, they will need to be authorized, they will need to be managed, they will need to be orchestrated. Something maybe people are forgetting at the moment, but also we need to be able to anticipate what will be the cost of all of this agent manipulating all of this data.

It's the strong core business positioning of Axway with Amplify Fusion. Amplify Fusion is delivering what we call that control plane, and that control plane is providing already that security, that governance, all the policies, the authorization, and the way to drive the cost control of AI, which is going to increase dramatically in the future.

That's really the heart of Axway strategy with Amplify. On the other side, we see a second AI which we call AI-augmented.

That AI-augmented is definitely there to see how we can enhance, how we can, I would say, accelerate the usage of AI on top of the system of record we are operating today. It means that there are workflows which will be generated by AI, but the determinism and the explainability behind what will be happening around this agent will have to be at any point in time justified.

It's our positioning in SBS to secure that explainability and that all the different data which are manipulated and existing in the system of record will be giving the right quality first, and it's very critical, but second, being accessible, and tomorrow with the support of Amplify, by the way, to be governed with the agents and to check that any data cannot be accessed without any policy, without any security coming, especially coming from outside. I do repeat myself: the cost of error in the two environments where 74 Software is operating is massive, and we cannot take that risk.

It's definitely an opportunity for us first to secure that data in the system of record are well used and well augmented, and tomorrow be able to drive additional agents to bring additional value to our client, but in a highly governed and secured and orchestrated world which is delivered by Amplify Fusion. There is a third AI, of course, which is what we call internal use of AI.

I should admit that we see a lot of initiative. We have deployed to all our engineering team since more than one year already AI capability for developers, AI capability for support, AI capability also in the product design and in the product marketing.

We do see today a better ability for us to accelerate our time-to-market. Our key, I would say, bet at the moment is how do we move faster to the market, how do we deliver faster with an improved quality.

It's the way today we are driving that internal use of AI. Of course, we are working at the moment on even moving into what we call AI SDLC for new developments where agents will be coding for us, and where our deep industry knowledge is going to make a huge difference to support that ability to develop by agent in the future.

I'm sure we will be coming into that. You see that each month, each quarter, this is moving so fast that there are things where we are still maybe suffering and testing today, and I'm sure that in 3 months, technology will go so fast that we will be able even to accelerate.

That's all I wanted to share with you, and now let's move into the figures and to Tobias.

Thank you, Eric. In terms of figures, we had very strong results in 2025, which were meeting or beating all of our guidance, as Patrick has already mentioned.

Patrick has already mentioned that the revenue, the organic growth, and the margin—I'll come back to the detail a little bit later. What I wanted to add is, in terms of unlevered free cash flow, we have beat our guidance quite significantly, and we have achieved about €80 million of unlevered free cash flow.

On a per-share basis, that equates to €2.75, which is more than double the highest ever achieved by Axway before the transaction or since the transaction. In terms of the profitability of all the lines, I think, have significantly grown, showing the positive operating leverage we have in the business, with EPS up more than 40% and net profit as well compared to the pro forma 2024.

The total revenue growth was, of course, impacted by FX headwinds. We have US dollar and British pound revenues, the FX impact was about -€8 million on the full-year basis.

Adjusting for that, the organic growth of Axway has been 4.6%, which is very strong, also compared to the past, one of the best years. In terms of SBS, it was +3%, and this is despite the reduction of 12% in the service revenue that I come back on on the next slide, where we see the different revenue types' contribution to the revenue growth.

Maintenance revenues have gone down as expected, mainly on the Axway side as Axway is transforming maintenance revenues to subscriptions. SBS was more or less flat on that side.

Customer-managed subscriptions have gone up very strongly by 17.5%, coming from both businesses. Own-managed subscriptions up 22%, again, supported by both businesses.

Licenses have gone down by 5%, and that was a very strong drop in Axway in line with the strategy to only sell subscriptions in the future for almost all product lines. SBS has still grown licenses by 4%, but in the future, that is also expected to come down a little bit.

Finally, services with a 9% drop on a consolidated basis coming exclusively from SBS, as Axway service revenues were more or less flat. SBS dropped by 12%, and as I said before, that's in line with our strategy of moving to really a subscription-driven model where we have recurring revenues driving the overall revenue.

Most points on this slide I already made. Just maybe to summarize, the product revenue is now at 81% of the total revenue, i.e.

services down below 20%, 19% to be exact. On the SBS side, the services is now 26%, down from 30%.

We expect this to continue this drop into 2026, and we'll see this come to somewhere between 20%, 25% where we feel it's probably right at the moment. The recurring revenue—and this is on IFRS basis—recurring revenue is now 75% of our total revenue as it doesn't include licenses and services.

You will see more and more disclosure on ARR in the future from us. We have some more slides in the appendix which go down to product line level and also revenue line level ARR.

We see ARR as being the best measure to track as it adequately reflects the progress we're making on a underlying basis. We're trying to move more and more to ARR-based disclosures.

If you look at the last 2 years, both at Axway as well as SBS, ARR has grown with a CAGR of 10%, and it equates now to 90% of the product revenue on Axway and 89% on the SBS side. We continue to expect this to improve and to grow faster than product revenue.

Of course, as we converge, the two will align more closely into the future, but we're not there yet. In terms of margins, our margin on operating activity is up by 160 basis points to 15.2%.

That is mainly driven by a significantly improved gross profit margin, which stands now at 67.3%. It is slightly offset by higher R&D costs and by higher sales and marketing costs.

We also introduce a new measure called brand contribution, which is basically how we are tracking the success of the business of Axway and SBS, i.e. the brands.

The G&A will, in the future, not be allocated between those brands anymore. This is in line with the governance and model that Patrick outlined in the beginning, where we have the accountability for the G&A costs on the corporate chapter leaders, whereas the accountability for the brand contribution relies with our brand CEOs.

The increase on R&D and sales and marketing, just I will comment on the next slide. If we look at the Axway brand contribution and the ROA, which we'll still disclose here so you can compare this to '24, but we'll stop disclosing that in the future as we stop allocating the G&A, the ROA has gone up to 21.6%.

The driver behind that again here is gross margin, as we had a lot of growth in the customer-managed revenues, which come at a very high margin. On R&D, you can see an increase in spend.

This is really related to what Eric was talking about in terms of the Fusion, the AI-related investments. Sales and marketing has grown on the back of the strong growth in revenues and the strong commercial activity that we had.

SBS is well on track with the profitability improvement plan. SBS has improved the ROA by 3.3 percentage points year-on-year, and therefore is well on track on the 2028 improvement plan.

The gross margin is also up here and has benefited from the shift towards product revenues and the decrease in service revenue, and therefore, the contribution of higher-margin revenues has increased. On the R&D, R&D is slightly up.

This is mainly due to increased amortization of capitalized R&D. When we adjust for capitalization and amortization effect, you have the percentages in the bottom of the slide, the efficiency has increased slightly from 38 36.8% of revenue in '24 down to 36.3% in '25.

This is, as continues downwards and will trend lower over the next few years as some of these incubation zone investments that Eric mentioned come to the end. In terms of cash flow, I've already mentioned the unlevered free cash flow that we've achieved of €80 million.

The cash flow statement, just as a reminder, we did not do a pro forma cash flow statement in 2024 due to the carve-out. Therefore, the only disclosure we've had previously was the 12 months of Axway plus 4 months of SBS cash flow.

What we're showing here is the comparison of Axway to Axway in '24 as well. Of course, the full consolidation for the full year of SBS has meant a significant improvement in cash flow since we only consolidated the last 4 months of '24 of SBS, and the last 4 months of the year typically the weakest in terms of cash flow in SBS's business due to the seasonality of the cash flow.

If we look at Axway stand-alone, there is a significant improvement in net working capital, partly driven by the first-time introduction of a factoring program in 2025 that we've already disclosed in H1. That benefited the group by about €21 million, with most of that coming from the Axway side.

However, even looking at the other operating cash flow, you can see a significant improvement on the Axway side as well of €15 million. One word on the expected unlevered free cash flow going forward.

We will not have this one-off effect from the introduction of the factoring in 2026. You will see in Patrick's guidance later that this is not expected to grow, but expected to slightly drop for 2026, and I just wanted to mention that to explain the reason.

Finally, what we've done with all of that cash generated is, of course, delever in line with the strategic capital allocation priorities. As you can see from this slide, we have reduced net debt by €57 million in 2025, which equates to a reduction of 23%.

We're now below €200 million net debt at €193 million. Leverage ratio is down by 33% to 1.92 times, below the two times target that we set ourselves as well.

With that, I'm giving back to Patrick.

Thank you, Tobias. I'll make a few closing remarks.

First, Tobias covered the cash generation in the business. We've been very pleased to delever as planned, below two times EBITDA.

We had messaged when we had come together and did the deal in 2024 that it was not our intentions and the plan to propose a dividend for fiscal year 2025. As we didn't have any M&A activities, and our focus was really on the deleveraging of the business, we are going to look at this unique opportunity right now to do some share buybacks to top up our LTI plans that we had paused, because if you remember, we usually have this sequence of opening up and buying back shares to cover our LTI plans.

We had paused that to focus on deleveraging. We'll go back and pick up the shares that we didn't buy in the prior period and also the current year.

We have announced up to 800,000 shares will go into the market and be buying over the coming months until we have some M&A that we could spend on. Looking at the forecast for 2026 and guidance, we're really pleased.

When we had talked about doing the deal in 2024, we wanted to be very conservative on the top-line revenue as I went through, and make sure we focus on the business coming together, doing the right things for our customers, and that we believed, and I've always believed, that if you're doing the right things inside the business and for our customers, that will come back to you in revenue. We gave guidance to kick off the deal throughout the 2028 period of a 2% to 4% average organic growth.

With what we're seeing in the business the last couple of years, and as we look into '26 budget and '27 what we see in already pipeline or renewals, we're going to lift that guidance up slightly to 3% to 5% range for 2026, but as also as we go into 2028. Our margin on operating activities will be between 15% and 17%, and we'll work hard to get, hopefully, to the upper end of that guidance.

As Tobias already covered, the unlevered free cash flow as a percentage of revenue will be around 10%, but we'll look to continue continually improve that to where we get just a few points below the margin on operating activities. With that, I'll do a quick wrap-up.

For 2025, and as we roll into 2026, we will continue with a disciplined execution on delivering the plan we've committed to as we brought these companies together. The teams are doing fantastic work along with that plan, and we're getting the results, and we're seeing the metrics that we track internally across the board continuing to improve.

Very pleased to see the big jump in the SBS Net Promoter Score, which is a key part of our strategy having that customer proximity. Axway, as Eric had covered, is well in the Net Promoter Score is sitting at 55 and continuing to be in their top group within the industry they operate in.

We also are pleased to see the improvement in the Employee Engagement Score as well, as I covered earlier. As Eric went through in detail in his presentation, we see AI opportunistically.

We're going to look to attack the market on both sides, either to grow revenue or to defend revenue, but we really see it as a good opportunity for the group. With that, Alicia, could you go ahead and open up the lines for Q&A?

Thanks for taking my question. I wanted to ask on the free cash flow guidance for the year.

Does it include or exclude restructuring outflows? How big might those restructuring outflows be?

Thank you.

Hi, Eric. It's unlevered free cash flow guidance, it is before restructuring costs and before interest costs.

We had €12 million of restructuring and other income and expenses in 2025, and we expect slightly higher number for 2026.

So €12 million restructuring outflows, or slightly higher for 2026.

Correct.

Hello?

Yes, we heard you.

Yes, correct.

Great. Maybe you can give us a sense of interest cost.

What would you expect for 2026 as it looking right now if we exclude further acquisitions, etc.?

As we delever further, if we don't deploy capital elsewhere, it should go down. We're also doing a refinancing transaction as we speak, I don't have the visibility yet on that, but just come from the deleveraging, it should come down.

That's clear. Thank you so much.

Yes, hello. Good afternoon.

Two additional ones from my end. First, on, let's say, the sources of revenue growth.

You mentioned the adding of new logos and, let's say, volume growth at individual product. Can you give us an idea how you see the, let's say, the combination in the years to come?

Will it largely be volume growth or price increases, or do you also have a part for upselling or adding new customer logos? Then on the unlevered free cash flow margin, do I understand that there should be a step down given the contribution from factoring during 2025?

Nevertheless, the 10 look a little bit low, is it probably just a cautiousness because you have some moving parts you cannot foresee at this point of time, or do you really believe that the margin is going to drop that far?

Eric, you want to cover the revenue question?

There will be a mix of cross-sell and upsell. On the Axway side, this is mainly going to be driven by upsell based upon the volume, but mainly based upon the acceleration of the adoption of Fusion on top of the existing product line.

This will be generating large part of the growth. On the SBS side, this will be mainly driven by cross-sell.

Even when we have 17 new logos, this is not dramatically changing the revenue profile, meaning that the cross-sell where we do progressively deliver the new product on top of the existing foundation we are having with a very long-term contract is driving the major part of the growth.

Maybe I'll add one thing on top of that. As we're launching some new products into the market, almost the majority of these products, especially Fusion, but other products we're launching as well, Digital Engagement and others, they are SaaS or often SaaS contracts.

The revenue will come over time, but we'll be giving metrics in our presentations to track the number of new customers, and ARR is a beautiful model to also show, and that's why we're moving more in that direction. The ARR will continue to grow, giving guidance of how that's layering up for the revenue for the future.

Maybe on the free cash flow question, Tobias?

Yes. If you look at the free cash flow or the unlevered free cash flow achieved in 2025, and if you were to exclude the 20-plus million from the introduction of the factoring program, you will still see the underlying growth in cash flow from '25 to '26.

So '26 is actually higher than '25, excluding that €25 million. It is gradually increasing, as Patrick was saying.

We expect cash conversion to become something like 80%, 85% of our operating profit by 2028. In order to get there, we need to see the margin improvement come through, we need to see the net working capital normalize, and so forth.

As we have grown revenues on customer-managed in Axway quite strongly in '25 and are expecting to continue to grow those, we will see some drag on net working capital from that due to the IFRS 15 recognition of the upfront revenue.

Tobias, I think you covered this in the July presentation, but the treasury team did a really nice job to step into the market and do the factoring so that we could get our ratios and our debt down to have a lower overall interest cost. We used that as the tool to manage our interest expense.

Now that the tool is no longer needed, they'll be backing off it a bit, and so that's why we've chosen to do that earlier and accelerate some of the cash into 2025. ]:

Understood. Thanks a lot.

Maybe aligned with that, before we take another call question, we have a question on the chat which is asking, "What is the total amount of the deconsolidating factoring at the end of 2025, Tobias?"

The number is €21.3 million, to be exact.

Okay. Succinct answer.

Alicia, do we have any other questions from the line?

Hi, thank you for taking my questions. I've got three, if I may.

Firstly, on guidance, would you mind just unpacking the increased sales growth guidance between product revenue growth and the kind of implied decline in services, and when we should see the decline in services flatten out? Then the second question on guidance is, with growth guidance lifted slightly, does this bring the higher end of the margin guidance more into play, given the potential positive mix effect?

I've got a third one, but I'll wait for the moment.

Go ahead and ask it, and we'll hit them 1, 2, 3.

Okay. Then the last one was just on sales cycles and decision-making by the clients, if there's been much change in that since the kind of AI whirlwind has struck us over the last few months.

Let me take the growth one first, and then I'll ask Tobias and Eric to help. On the growth guidance of 3% to 5%, we're lifting up the guidance, and we see a little higher target growth overall organically.

As Eric, I think, mentioned during his presentation, we're selectively choosing to increase the R&D, which wasn't planned at the start of this journey, so that it could really invest behind the AI activity and the AI gateway inside the Fusion product line. We're eating up some of that revenue growth, but we're trying to respect and stick to the plan of the margin and the cash generation when we launched this.

We will occasionally make slight shifts like that as we see market changes and we have to react to that. We should stick on the guidance for the margin that we launched over the plan through 2028.

Then for the next question—

You asked the contribution from product growth and service growth. In '26, we see services reducing further.

As I said, in '25, the reduction was 12 was 9% for the group. We see a slower reduction, something -4% to -6%, maybe.

Then the product revenue growth will be at the upper end of the 3% to 5%, just you can do the math, but we're talking something around 5%. The reduction of services is currently expected to stop at the end of '26, and then services to start growing again, maybe in line with revenues.

That's what's currently anticipated.

There's a question on sales cycles that you may want to hit, Eric.

Globally, we do not see a major shift in this big-player, I would say, purchasing life cycle. Some of them did ask to even accelerate to enable Fusion on top of important renewal.

We are not talking about 1,000 clients, but this is a first sign we have seen in the last 3, 4 months. For the rest, we do not see a major shift for taking decision.

Of course, each month, each quarter, we need to be very focused and follow our clients. No specific change at the moment.

Great.

Good evening, guys. Thank you for taking my question.

Four, if I may. The first one on pipeline.

Can you hear me well?

It's fine. ]:

Yeah. Good.

The first one on pipeline: can we discuss the pipeline a bit? Any metrics that you could share with us would be helpful.

Year-on-year growth, coverage, anything that would be meaningful by brand between SBS and Axway. The second question is about the pricing model that you will use with your AI product.

How do you see things? There are a lot of debates in the market, in the industry yet.

How do you plan to monetize this innovation? Annual recurring revenue metric is good, but if we say that you will increasingly sell your products in cloud, with cloud, let's say, does it mean that you don't capture in the annual recurring revenue metric the ramp-up of contract?

Because when you deploy a cloud solution, you don't get the 100% of the users at the beginning of the contract, and often you have a kind of ramp-up timing that will make the revenue bigger at the end of the contract than at the beginning of the contract. How do you see things here and the moving parts, and how we will be able to measure that?

Because you don't give any metrics on billings, or things like that, or RPO, or I haven't seen any. My last question is on the EBIT margin.

I was wondering how do you reconcile the fact that you are, let's say, more bullish on top-line growth and you say that you will invest, but at the same time, if you look to the low end of the guidance range for EBIT margin, you are targeting an EBIT margin below 2025 in 2026. I was wondering what would be the assumption to be there, i.e.

low end of the revenue growth guidance and a decline in margin year-over-year. Thank you.

I'll take the first one on pipeline, and the next one over to Eric. On the pipeline, as we've never disclosed pipeline metrics, but always have talked about having somewhere above two and closer to three times coverage for the bookings that we expect to do in our pipeline.

It's one of the things we've talked about quite a lot, and I've talked to other CEOs about as well, and nobody's seeing a decline in their pipeline in our industry. The health of the pipeline remains strong at this time with the AI uncertainty, and we're actually seeing demand quite strong as well.

As we rolled into the 2026 budget cycle, we always go and do a deep pipeline review of what we have now, we look at the renewals, and there was enough there that we're showing a really strong Q1 as we come out of the gate, which was great. Q2 had a decent comparable, but that will be hard to meet again, but the first half should be really strong, and the early pipeline is there to do the full year.

We are not seeing any erosion in the pipeline from the market dynamics we're hearing, and in fact, it's quite strong, and we have the 2.5 to 3 times coverage that we've always been targeting. That's been a very positive metric for the future.

]: Patrick,

in terms of quality, if you were to compare the quality of the pipeline at the beginning of 2026 versus a year ago, would you say that it's similar, it's the same, or you see big differences?

We see one difference, a major one. The AI acceleration, or all the noise, is increasing the demand for modernizing on one side the system of record, because the quality of the data is going to make or not the AI strategy of our client's success.

That part, we see the quality improving in the pipeline, because where it was trying to modernize a piece of it, now they know that they don't have any other choice, they need to have the quality of data accessible, meaning AI-ready before becoming agent-ready. On the second side of it, and that's what I said with some early renewal with upsell on Axway side, the ability to leverage that AI capability if it's not governed, especially within the landscape where we do operate, is very critical.

All the, what we can say, players on our client base considered as early AI adopter did, I would say, accelerate their demands in terms of quality of their demands to have access to what we call the control plane to govern all these AI initiatives. We see that quality, I would say, improving linked to that.

For all the other, I would say, traditional pipeline, we do not see a major shift compared to the pipeline one year ago, just to add to this. To come back to the other question on the monetizing strategy on all of this, there are a lot of debates, not only in the market, we are having a lot of debate, because early adopters are usually not the good candidates to set a monetization strategy.

The early adopter are managed by use case where when we are moving at scale, and it's the example already with Amplify Fusion, moving at scale, the use case are giving the proof, but you do not monetize at scale the use case, if I'm summarizing. We are convinced at the moment that accessing to the platform, Amplify Fusion on one side, or accessing to the data platform on the SBS product, is a subscription fee, such like we are, for example, upgrading a product, and it's a major upgrade because we are adding a AI-ready capability, if I'm talking about SBS, and we are adding a control plane for AI capability inside Amplify.

We consider that it's a subscription for additional capability. Then we need to be very cautious on the consumption.

We have set metrics to secure that they are different level of subscription, especially when we do operate, to avoid that this is going to cost us a lot more than what we were expecting. We are still tracking at the moment, but we set really threshold, first to test the market, and second to secure that it's a very beneficial for us.

For us, that AI platform on one side, and the Amplify Fusion platform, is first accessing with a addition subscription to the service. Then we can upsell use case on top of it.

Personally, I'm not convinced that this will be the major part of our additional revenue, because our clients, they know us in delivering platform and they don't know us, and many of them will expect to deliver their own use case leveraging our technology.

Let me do a bridge to handing it over to Tobias on the ARR. I want to emphasize there's been a lot of questioning and a lot of activity in the software space during this period about user-based pricing.

When we're looking at the AI gateway that we're developing, Axway really pushes into the transaction flows or API calls, or data going back and forth across the trails, and SBS often does it on the number of clients and the number of accounts managed, etc. This is estimated at the start of the contract and materialized into something more of a fixed price.

We get the incremental if they exceed that capacity, we'll go back and do a next contract, which is what Eric was talking about in the upsell. We're hoping they use our MFT system or Fusion with AI more than they're contracted to because it's a upsell opportunity, but you'll see that flow into ARR quite structured as more of defined contract value.

Then the usage, when they exceed it, we go back and recontract a fixed amount, because the customers that both companies have want to have a constant budget and expectation for the year. That's been a critical part of both businesses.

Even as we go into the cloud with both customers, when we get the environment live and they're using it is when we start taking the revenue, but the ARR is going to be quite fixed because we scope it at the beginning of the contract. I don't know if you want to add anything else to that or go into the EBITDA question.

Just wanted to remind you also on the different methodologies we use for ARR calculation between Axway and SBS, as Axway has very quick time from signature to revenue, it's a forward-looking measure and takes into account all the signed contracts at the minimum contract commitments, right? If there was a ramp-up period included, but we know that the minimum goes up to a certain level, that would already be reflected in Axway's ARR.

On the SBS side, as the time to revenue is many times more than a year or two, we don't take the forward-looking approach, but we take the MRR times 12 approach, and therefore, we would only include what has already been billed, and therefore, yes, if we were in a ramp-up period, you might actually understate ARR a little bit through that. I don't think that's a major number for any of the businesses.

On the second point, on the EBIT guidance, the first answer probably is, yes, it is being conservative in the current uncertain environment. We don't know what's going to happen to inflation and things like that.

We also know from our model that sales and marketing expenses might be higher if we have certain revenue growth profiles, and so on. The most simplest answer, it's a conservative low end of the guidance range.

]:

Can I add another one?

Sure. ]:

Just to understand the impact of the cloud on your revenue guidance, is there any metric that you could share with us about the flexibility you kept? Because if there are more sales geared to cloud, i.e.

it's a headwind on your revenue growth, is it taken into account in the range that you gave us? The follow-up on this: do you believe that with the buzz around AI or the buzz coming from AI product and willingness of customer to accelerate, at least some, cloud will become a no-brainer for all customer that are willing to go in this direction, because they will not do compute and anything related to AI on-premise?

I laughed a bit there, because I was listening to a report the other day talking about the AI movement may actually move activity back on-premise so that the customer could keep all their LLMs and the data within their control and not exposing it back and forth to the cloud. I think the market's still a bit uncertain around where cloud fits in with AI perfectly, especially for the larger regulated activities like we deal with.

As far as with cloud within the guidance, why don't you cover that, Tobias?

The way we do our planning and budgeting is obviously using an assumption on what's cloud, what's on-prem. It really only affects the Axway side of the business, because there we give customers a choice on the same product to either go cloud or on-prem.

We've seen a very stable share of cloud as a percentage of the total bookings, and that has been mentioned by Eric, I think, around 30%. That's what we assume for our planning.

We don't model in a significant shift of that. On the SBS side, as we typically offer default SaaS, and on-prem is not really offered to the customers, we don't have the same sort of assumption that we need to embed in the planning.

Some products, of course, are only available in on-prem still, like the African product, as I think but others are offered exclusively SaaS. We don't give the 50/50 option to the customer typically.

As we've run a bit over our scheduled time, I'll go ahead and wrap it up. Thank you all for joining and connecting with us for the 2025 full year results.

We look forward to coming back to you in July with the half year results and more updates. For some of you, we'll see on our roadshows over the next coming days.

Thank you all for joining us, and have a good rest of the day.