Hello, everyone, and a warm welcome. Thanks for joining our earnings call today to discuss the results of the third quarter and the first 9 months of 2026 with us.

With me today is our CEO, Yves Padrines, and our CFO, Louise Öfverström. Today's conference call is being recorded.

A replay of the call will be available at our website after the call. Additionally, you will find the quarterly report, the presentation, and the press release on our Investor Relations website as well.

Now, let's get started. I would like to turn over to our CEO, Yves.

Thank you, Stefanie. Welcome, everyone, to our Q3 and 9 months 2026 earnings call.

Thank you all for joining us in today's call. We have prepared a short and informative presentation that our CFO, Louise Öfverström, and I will briefly walk you through so that we have enough time to address any questions you may have in the end.

As usual, to begin with, let me summarize the key messages for the third quarter and the first 9 months of 2026 on page number 3. Starting with our third quarter performance, we continued to deliver strong revenue growth combined with a significant increase in profitability.

Our Build segment, once again, demonstrated very strong growth momentum, both organically and including the first-time contribution from HCSS, while the growth in our Design segment reflected a more gradual pace of transitioning existing maintenance customers to subscription models. Looking at the first 9 months of 2026, we delivered another period of very strong growth and high profitability in line with our guidance.

Our Build segment remained the main growth driver, supported by its outstanding operational performance. In addition, the transition to subscription and SaaS in our Design segment continued to progress, supported by a particularly strong first half of the year and a more gradual pace in Q3.

At the same time, at group level, we further strongly improved our underlying profitability, supported by healthy operating leverage, continued cost discipline, and ongoing efficiency improvements. The foundation for our strong operational performance is the continued progress we are making across all our key strategic focus areas.

In particular, we are accelerating our transformation from leading vertical software provider to a global vertical AI leader in our industries with a successful rollout of agentic AI solutions across our portfolio, including Bluebeam Max, Archicad Max, Allplan Max, but also across all other brands such as Maxon, Solibri, Spacewell, and others. Following the investment we have made in AI over the past few years, which have managed in a very capital-efficient way, we are now beginning to monetize our AI innovations.

At the same time, it is important to keep in mind that we, just like other competitors and the entire AEC/O industry, are still at the very beginning of AI monetization. In addition, we have made significant progress with the transformational acquisition of HCSS, which is delivering a strong underlying operational performance, while its integration is progressing according to plan.

Of course, we continue to successfully advance our transition to subscription and SaaS. These strategic initiatives and investments are contributing to our success today and are also further strengthening our competitive position and laying the foundation for sustainable, profitable growth in the years ahead.

Finally, turning to our outlook, based on the strong performance in the first 9 months, we are fully confirming both our organic guidance and our extended full-year outlook, including HCSS, for 2026. Overall, we are therefore, once again, on track to achieve all our targets for the financial year, while continuing to successfully execute on our long-term strategic priorities.

On page number 4, you can see an overview of the corresponding figures to the Q3 development. Overall, we continue to see a high and very profitable growth in the third quarter, which concluded a very successful first 9 months of the year 2026.

Starting with the ARR, our reported annual recurring revenue, which includes the contribution for HCSS acquisition as of July 1st, 2026, our ARR recorded an increase of +35.8%. However, even if we split out the M&A contribution, the ARR growth remained at a high level at +18%.

This continued strong increase in ARR is an important indicator for the group's revenue and cash flow growth potential in the coming 12 months. Within the recurring revenue category, subscription and SaaS revenues maintained their very strong momentum, growing organically by almost 30%.

Including the additional revenue contribution from HCSS, which already generates the majority of its revenue from subscription-based models, growth even reached an impressive +52.4%. Including the contribution of HCSS, the reported revenues for the 3 months from July to September increased by +26.6% to €371 million.

This continued high growth was in particular driven by the ongoing outstanding performance organically as well as including HCSS in the Build segment. Our organic growth moderated slightly to +13.7% year-over-year on a reported basis and +12.5% on an FX-adjusted basis, reflecting a more gradual pace of the transition of existing customers from services maintenance contracts to subscription models in the Design segment.

In addition, the Media segment continued to face challenging market conditions. Our reported EBITDA increased by +21.8% to €115.9 million, corresponding to an EBITDA margin of 31.2%.

As planned, the margin was impacted, in particular, by the deferred revenue haircut effect related to the HCSS acquisition. In addition, ongoing HCSS integration costs and recurring expenses related to the share-based compensation program established in connection with the HCSS acquisition had, as planned, a negative impact on EBITDA in the low-single-digit euro range in Q3.

However, looking at our organic EBITDA margin, which excludes the dilution due to the HCSS effects as well as HCSS-related M&A-related one-off costs, we reached a very high level of 34.8% EBITDA margin in Q3. As expected, reported earnings per share declined by 15.7%, reflecting the effects of the first-time consolidation of HCSS.

These included higher PPA-related amortization, non-controlling interests, and financing costs associated with the HCSS acquisition. Adjusting for the PPA effects, including the impact of the HCSS deferred revenue haircut, underlying EPS grew by +20% in line with our EBITDA growth.

Before Louise takes you through the financial highlights of the first 9 months of the year in more detail, let me first highlight some of our key strategic developments. I would like to start with a very important strategic milestone for the Nemetschek Group: the acquisition of HCSS, which we successfully closed on July 1st, 2026.

Let me briefly remind you why we are so excited about this transaction before providing an update on the integration progress. First, combining HCSS with our existing build and construct portfolio, including Bluebeam, GoCanvas, SiteDocs, and Nevaris, creates the next construction technology giant globally, covering both buildings and civil and infrastructure across the entire construction lifecycle.

Second, HCSS significantly expands our addressable market and strengthens our position in the highly attractive infrastructure and heavy civil construction sector, a market expected to reach approximately $12 billion by 2028, growing at around 11% annually. This also makes our overall portfolio substantially more balanced and resilient.

Third, we see compelling long-term synergies through cross-selling opportunities, access to new customer groups, and the international expansion of HCSS by leveraging our global presence. Turning to the current status, I'm pleased to report that both the integration of HCSS and its operational performance are progressing according to plan with very strong underlying growth in the higher teens.

Starting with our go-to-market activities, we are defining routes to cross-sell HCSS solutions to Bluebeam customers, including preparation to introduce HCSS products through selected Bluebeam channel partners. In parallel, we have started training and collaboration between the sales teams of HCSS, Bluebeam, GoCanvas, and Nevaris to identify joint customer opportunities.

Another priority is preparing the international expansion of HCSS beyond North America, leveraging Nemetschek's global presence. Looking at the integration, we are progressing with the alignment of key back-office functions, including finance, HR, and IT, and as of today, everything as planned.

Last but not least, culture and people are equally important. HCSS is becoming an integral part of the Nemetschek Group family with both organizations sharing a strong customer- and innovation-centric culture.

To summarize, both the operational performance and integration of HCSS are progressing according to our internal plans. We remain highly confident in the significant long-term potential of this transaction.

Let me turn to one of our most important strategic priorities on page number 6: our transformation from a leading vertical software provider to a global AI leader in our industries. As we have highlighted in previous calls, we strongly believe that Nemetschek is ideally positioned to become one of the winners in the AI era and to become the construction AI leader.

This is based on three key competitive advantages. First, our access to highly valuable industry-specific data across the entire building, and thanks to HCSS now, also the infrastructure and heavy civil lifecycles.

Second, our very deep domain expertise in a market which is highly regulated. Finally, and something which is very difficult to replicate, our long-standing, trusted, and strong customer relationships combined with strong network effects.

Building on these unique strengths, we are developing the Nemetschek intelligence platform, which provides a common AI and data foundation across our brands. This allows us to develop and scale AI capabilities across the group, while ensuring that our solutions remain open and interoperable, leveraging open standards such as IFC and protocols such as MCP to connect with third-party AI applications.

Our focus is on agentic AI solutions that are deeply integrated into our customers' existing workflows, automating repetitive tasks, improving productivity and project quality, while always keeping professional humans in control. I'm particularly pleased that we are now seeing the tangible results of this strategy with the successful launch of our first generation of premium AI-powered Max solutions across our core segments.

We launched earlier this year, as Bluebeam Max with a phased launch before becoming globally available in May. One of its key innovations is AI-powered quality checking based on the technology acquired through firmas.ai.

It automatically analyzes construction drawings to identify design discrepancies, missing information, and coordination issues across different disciplines. This can reduce quality-checking processes that traditionally take several days to just a few hours, significantly improving efficiency while helping customers identify costly errors before construction begins.

Bluebeam Max also offers intelligent drawings comparison and automated markups and takeoff. More recently, we introduced Archicad Max, bringing agentic AI directly into architectural design workflows.

Its AI assistant can perform complex multi-step tasks and bulk edits directly within the BIM model, significantly reducing repetitive manual work. At the same time, AI assistant spaces allow architects to access their own project knowledge, internal standards, and documentation through natural language queries, while the enhanced AI Visualizer accelerates the creation of high-quality design visualizations.

This enables architects to spend less time on routine tasks and more time on creative design and decision-making. In parallel, we have also been advancing Solibri's AI-powered assistant, which brings AI directly into BIM model checking and quality assurance.

Through natural language interaction, users can configure checking rules, analyze results, and identify potential issues directly within their models. This reduces time-consuming manual processes and makes quality assurance workflow faster and more efficient.

We are now taking this a step further with AI-powered rule generation, currently entering testing, which enables users to create customized checking rules simply by describing their requirements in natural language. Importantly, while AI generates the rules, Solibri executes fully deterministic checks, ensuring reliable and verifiable results.

Just last week, we also launched Allplan Max, extending our AI capabilities across our engineering portfolio, including Allplan, SCIA, Frilo, and SDS2. These AI solutions bring together a broad range of AI-powered tools that automate repetitive modeling, drawing, and analysis tasks, accelerate the generation of reports, and enable engineers to create customized workflows.

Here, we are already seeing very encouraging early results with Allplan Max. Early users reported up to 36% to 40% faster completion of selected tasks, demonstrating the significant potential of AI to improve engineering productivity and free up valuable capacity in an industry facing persistent skilled labor shortages.

Taken together, these launches mark an important milestone in our AI journey, demonstrating how our AI-first strategy is translating into tangible products and customer value. Powered by our shared Nemetschek AEC intelligence platform, these solutions allow us to scale innovation across the group, further strengthening our competitive position and creating additional long-term growth opportunities.

With that, I will hand it over to Louise.

Thank you, Yves, and a very warm welcome from my side as well to our earnings call covering the third quarter and the first 9 months of the financial year 2026. Yves has already highlighted some of our strong and key financial figures, and I would now like to walk you through our financial results in greater detail.

Our focus there, in particular, on the key developments and on the underlying drivers of our performance in the third quarter and in the first 9 months of the year. As usual, I would like to begin with an overview of the key financial highlights of the first 9 months of 2026 on page number 8.

I agree with Yves that our performance in the first 9 months of 2026 clearly demonstrates the strength of our strategic direction, combining strong and profitable growth with consistent progress across all our key strategic priorities. Starting with our reported revenue for the whole period from January to September, which increased by 16.8% to slightly more than a billion euros.

Adjusted for FX headwinds, particularly in the first quarter and mainly driven by the weaker US dollar, revenue growth was even stronger at 19.2%. Following the successful closing of the HCSS acquisition and its first-time consolidation as of July 1st, our reported revenue growth also includes the contribution from HCSS since the beginning of the third quarter.

This contribution was, as expected, reduced by approximately €15 million in Q3 due to the PPA-related deferred revenue haircut as previously announced. Confirming the progress of the subscription transition in the Design segment, our subscription and SaaS revenues maintained its strong growth dynamic with a plus of 36.1% on a reported basis to €836.5 million.

The organic growth rates also reached an impressive 28.3%. Let us turn to our profitability in the first 9 months of 2026.

Here, our EBITDA grew stronger than our revenue, increasing by 18.4% on a reported and 23.3% on a currency-adjusted basis to €312.9 million. This corresponds to an EBITDA margin of 30.9%.

The organic EBITDA margin, so that's when I exclude the HCSS contribution and recurring HCSS integration and incentive costs as well as M&A-related one-off costs, reached a high 32.1%. Our profitability development in the first half of the year and the strong underlying improvement in Q3 and Q4 are therefore fully in line with the guidance we provided in March and consistent with the seasonal pattern we have seen over the past years.

We therefore remain confident to achieve our organic full-year EBITDA margin guidance of 32% to 33%. Our reported earnings per share increased by 13.4% year-on-year to €1.50, reflecting, as expected, the effects of the first-time consolidation of HCSS.

However, when we are adjusting for PPA effects, including the HCSS deferred revenue haircut, the underlying EPS growth was significantly stronger at 26.3% and in line with our underlying strong operational performance. The right-hand side of this slide highlights our continued high cash generation with a cash conversion of around 100%, as well as the high quality of our balance sheet despite the expected and deliberate increase in net debt to €426 million at the end of the quarter, which stands in relation to the HCSS acquisition.

On page number 9, you will find the development of our four segments during the first three quarters of fiscal 2026. Starting on the left side with our Design segment, in the first 9 months of the year, the segment recorded a growth of 7.3% reported and 8.6% on a constant currency basis to €417.6 million.

The transition to a subscription- and SaaS-based business model continued to be the main growth driver here, reflected in the very strong currency-adjusted growth of 49% in this revenue category. This was supported by a particularly strong performance in the transition in the first half of the year, while Q3 reflected a more gradual pace in the transition of existing customers from service and maintenance contracts to subscription models.

Despite a healthy underlying operating performance in the segment, the reported EBITDA margin for the first 9 months contracted to 24.7%, reflecting the impact from extraordinary transactional currency effects, but in majority, the ongoing transition to subscription and SaaS as well as some smaller one-off effects resulting from some smaller organizational reorganization measures. Excluding these effects, the segment's margin would have been on a more comparable level compared to last year.

Continuing with our Build segment, which continued to deliver a stellar performance, both in the third quarter and throughout the first 9 months of the year, driven by strong underlying growth in new users, both in the US and internationally. For the first 9 months of 2026, the segment recorded reported revenue growth of 33.4%.

Adjusted for FX headwinds, mainly resulting from the weaker US dollar in the first half of the year, growth was even stronger at 37%. Reported revenue growth also benefited from the first-time contribution of HCSS, as mentioned, which has been consolidated now since July 1st, and HCSS was also demonstrating a very strong underlying growth in itself.

Importantly, organic growth, excluding HCSS, also remained very strong at 25.6%, supported, amongst others, by continued international expansion and the successful rollout of our agentic AI solution, Bluebeam Max. The EBITDA margin in the segment reached 38.1%, clearly above the prior-year level and despite the dilutive impact of the PPA-related deferred revenue haircut as well as integration costs, M&A-related costs in the segment, due to the HCSS transaction in the third quarter.

For the first 9 months, the organic EBITDA margin reached a high 41.5%. Let us move on to our smaller segment, Manage, which recorded revenue growth of 3.9% on both a reported and FX-adjusted basis.

The segment's growth was supported by a significantly stronger demand for workspace management and energy efficiency solutions, which actually accounts for the majority of the segment's business. In addition, both sales pipeline was very healthy across both existing and new customers, particularly in the public and financial sectors.

In contrast, though, the property management market in Germany, which is the smaller part of the segment, continued to face challenging conditions. For the first 9 months of 2026, the segment's EBITDA margin amounted to 8.3%, slightly below the prior-year level.

Last but not least, in the Media segment, the reported revenue declined slightly by 1.4% to €88.5 million, while the FX-adjusted growth amounted to +1.2%. The Media segment's business performance continued to be impacted by the challenging market environment, particularly, but not only, in the important US market, reflecting customer consolidation, ongoing budget constraints, and prolonged investment and decision-making cycles in the segment.

Despite these challenges, the segment maintained a stable EBITDA margin of 31.5% in the first 9 months of 2026, in line with the prior-year level. We have added slide 10 to provide a comprehensive overview of the expected impact of the HCSS acquisition on our group P&L for the full year 2026.

This is to give you a more directional input on the different P&L positions. As previously highlighted, following the first-time consolidation of HCSS as of July 1st, 2026, we expect a contribution of around 600 basis points to our currency-adjusted group revenue growth.

This already takes into account the PPA-related deferred revenue haircut, which we expect to be in the mid- to high-€20 million range in the second half of 2026. The deferred revenue haircut will impact a period of 12 months and is expected to be frontloaded with the majority of the impact therefore occurring in the first 6 months, that means in the second half of 2026.

Our expectations for the second half of 2026 therefore remain unchanged for now and are broadly in line with the impact that we already recorded in Q3. The corresponding impact of the deferred revenue haircut on EBITDA, together with the previously communicated ongoing integration costs and recurring expenses related to the share-based compensation program established in connection with the HCSS acquisition for the Build segment, is expected to result in a margin dilution of around 150 basis points from the midpoint of our organic group EBITDA margin guidance range of 32% to 33%.

Moving further down the P&L, we expect additional PPA-related amortization charges of around €40 million in the second half of 2026, which we also consider a quite realistic run rate going forward. Thanks to our innovative transaction structure of the HCSS deal, which enabled us to acquire this highly attractive asset in the first place, while preserving our financial flexibility despite the size of the transaction, our net debt increased by only the previously announced €450 million.

Given the continued strong operational and financial position of the Nemetschek Group and our resulting attractive financing conditions, we expect interest expenses related to the HCSS acquisition to be only in the mid- to higher-single-digit million-euro range in the second half of 2026. As we have already demonstrated in earlier transaction, also including the GoCanvas acquisitions, we intend to reduce the additional debt relatively quickly, supported by our very strong operating cash flow.

One more complex aspect of the transaction structure relates to the allocation of earnings between taxes and non-controlling interests. We implemented a transparent legal entity structure for income tax purposes, whereby the minorities bear 28% of the income taxes directly.

Consequently, the net income increases as allocated without tax expenses, but the minorities participate in the tax expense in the same amount. Implemented both on the net controlling interest and also then taking the tax effect into consideration, the implemented structure in total is neutral on the earnings per share for the Nemetschek Group.

Taking everything together and looking at the overall impact of the HCSS acquisition on our reported earnings per share, we continue to expect a slight EPS dilution in 2026, as communicated, reflecting the various acquisition-related IFRS accounting effects. For 2027, we expect a broadly neutral impact before the significant long-term value creation from this acquisition also becomes visible in our reported EPS with a clear EPS accretion from 2028 onwards.

However, let me emphasize here once again that these expectations showed here on this slide remain preliminary and should give you a directional guidance only, as certain key accounting figures, including the final purchase price allocation, PPA, are yet not final. As usual, to conclude our review of the first 9 months of 2026, we provide a more detailed overview of the key P&L and cash flow items on page 11.

We have already discussed our main financial KPIs, including revenue growth and EBITDA margin, in detail, both organically as well as including the impact of the HCSS acquisition. However, moving further down the P&L, we can also see the impact of our M&A activities on the development of our reported operating expenses.

For example, looking at the largest component of our overall cost base, the personnel expenses, accounting for roughly 50% of our total operating expenses, we saw a reported year-on-year increase of only 7.1% in the first half of 2026, well below our revenue growth rate. In Q3, however, reported personnel expenses increased more significantly by around 30%.

As expected, this acceleration was primarily driven by the addition of approximately 550 HCSS employees, who we were very happy to welcome to the Nemetschek Group following the closing of the acquisition on July 1st. Excluding the additional personnel expenses from HCSS, underlying organic growth in personnel costs would have been substantially lower and broadly in line with previous quarters, underlining our continued focus on cost discipline and, especially, on operational efficiency.

In addition, the higher-than-usual increase in the reported other operating income and expenses is also mainly attributable to the M&A-related costs of the HCSS acquisition. Moving further down the P&L, we see that our reported earnings per share grew underproportionally with 13.4%, as I already alluded to, reflecting, as expected and announced, the effects of the first-time consolidation of HCSS.

These effects include the deferred revenue haircut and higher amortization charges related to the purchase price allocation, non-controlling interest of €12.3 million, as well as financing costs associated with the HCSS acquisition. However, adjusting for PPA effects, as well as for the HCSS deferred revenue haircut, adjusted EPS increased strongly by 26.3% to €1.92, reflecting our strong underlying operational performance.

In addition, the high cash conversion of around 100%, along with our strong free cash flow generation, also underpin the high quality of our earnings in the group. Looking at our balance sheet KPIs, I think it's fair to say that we still maintain a very solid balance sheet with an equity ratio of 64% and a net-debt-to-EBITDA ratio of currently 1.4 times, even after the major acquisition of HCSS.

In addition, thanks to our aforementioned strong operational performance and cash flow generation capability in the group, we will be able to very quickly delever and recreate a substantial leverage headroom for further investments. All in all, I believe it's therefore fair to say that the financial performance in the first 9 months builds a good foundation to achieve our financial targets for the full financial year 2026.

With that, I conclude and hand back to you, Yves.

Thank you very much, Louise, for this comprehensive overview of our financial results. As we come to the end of our presentation on page number 13, I would like to turn to our organic guidance for the current financial year 2026, as well as the extended outlook following the acquisition of HCSS.

As highlighted earlier in the presentation, our results in the first 9 months of the year are in line with our expectations, and we have laid a good foundation to once again achieve all our targets for the financial year. Based on the strong fundamentals, as well as our very resilient operational business model, we therefore fully confirm our organic as well as our extended guidance, including HCSS, for 2026 after the first 9 months of the year.

That means an organic revenue growth at constant currency of 14% to 15%, and an organic EBITDA margin which is forecasted to be in the range of 32% to 33%. In addition, following the first-time consolidation of HCSS as of July 1st, 2026, the Executive Board continues to estimate an additional currency-adjusted contribution to the group revenue growth, after taking into account the currently estimated PPA-related deferred revenue haircut, of around 600 basis points in the financial year 2026.

Including the M&A-related one-off costs and therefore starting from the midpoint of the organic group EBITDA margin guidance of 32% to 33%, a dilution of around 150 basis points is expected following the HCSS acquisition for fiscal year 2026. This mainly reflects the expected impact of the PPA-related deferred revenue haircut for HCSS, as well as ongoing integration expenses and recurring expenses related to a newly established share-based compensation program designed to support and drive value creation in the expanded Build segment over the coming years.

Therefore, let me emphasize once again that these figures do not yet reflect the full potential of the HCSS acquisition. In addition, please be aware that the extended guidance is also based on the fact that the financial contribution of the HCSS acquisition for fiscal year 2026 remains preliminary, as the final financial impact of the acquisition, including the resulting PPA charges and deferred revenue haircut, will only be finalized later this year.

To conclude and summarize today's presentation: strong first 9 months of the year 2026 organically as well as including HCSS, and therefore in line with our full-year guidance. This is true for operational development, and also for the progress in our key strategic areas like artificial intelligence, which builds the basis for continued high and profitable strong growth in the future.

With that said, I would like to thank you for your attention, and we are now ready to take your questions. Operator, please back to you.

Hi. Afternoon, Yves and Louise, and also hi to Stefanie.

Three questions maybe to start off with. Firstly, on Design, you called out that slightly more gradual pace of customers shifting to subscription from service contracts.

Is that just a short-term fluctuation that you've seen this quarter, or is that the start of something that maybe could be a little bit more sustained from here? If so, I guess, what would be driving that from your perspective?

Second question is a question I asked last quarter, but just with the benefit of those extra few months, any numbers or details you can give on how Bluebeam Max adoption is trending would be very helpful. Then third one on the Build segment as well.

You talked about channel partners and closer collaboration across the Build sales teams following HCSS's acquisition. Looking a bit further out, how much of the opportunity can you capture by cross-selling the products in their current standalone form, and how much depends on a deeper technical integration between them?

Thank you.

Thank you very much, George. First, on the Design piece, clearly the underlying demand is completely unchanged.

We still have the growth that we expected in terms of new seats, new seats for existing customers, new seats for new logos. We are as expected here, no underlying demand.

It is true that as we highlighted a few times, with this transition and the move to subscription and SaaS, we have a more volatile performance and results. Of course, it's of course also coming from the decrease in perpetual license, but also the revenue recognition change, coming from how we recognize revenue when you are a maintenance customer or when you are moving to subscription, where with subscription we are recognizing more upfront than for maintenance, where it is completely recognized over the period.

Today we have this more gradual transition than we expected. It is true that in H1, we had a much stronger performance or, let's say, much stronger number of legacy customers who migrated from maintenance to subscription that we expected.

Here, in Q3, it is now a gradually different and more gradual, this transition. This is reflected now in the current performance for the Design revenue for Q3.

Clearly, if you look at the year-to-date, it is clearly as we planned. If you look also at the full year, we do not expect any significant change and are still expecting higher single-digit growth at constant currency and organically for the Design segment.

Regarding Bluebeam Max, we are extremely happy with the launch. As we did this launch gradually for Bluebeam Max.

First quarter with large accounts, where we tested enterprise customers and to have their feedback. Then we wanted to launch only in Q3 globally Bluebeam Max, and finally, we launched even earlier Bluebeam Max globally also on the e-commerce, as we did it in May of 2026.

Here, the demand and the success of Bluebeam Max is much better than we expected. It is highly positive.

We have very good customer feedback. Of course, as already highlighted also, Bluebeam Max is mainly concentrated on pre-construction phase, and now the adoption is going up and up.

Clearly, we are planning now to launch additional AI features and solutions on Bluebeam Max over the coming months and quarters to also cover other players in the overall lifecycle of construction, which are not necessarily only linked to pre-construction and, for example, design reviews, etc. We are not communicating on exact numbers, but what I can tell you is that we are highly positive, and not only highly positive, but we are very happy on the fact that we have clearly an overperformance of Bluebeam Max adoption than we expected.

Then on your third question related to HCSS, clearly today the short wins are really to sell HCSS as is, not to do any specific integration with GoCanvas or SiteDocs or Bluebeam. Of course, we are planning to do some of them, but we are already now tactically already between GoCanvas, HCSS, Bluebeam, and Nevaris targeting some specific accounts together to see how we can cross-sell either Bluebeam to some HCSS customers or, obviously, also to sell HCSS to some Bluebeam or part of HCSS to some Nevaris customers, and also together with SiteDocs and GoCanvas.

Here, we have some good progress, good momentum. We have also some large and very strong Bluebeam channel partners who are now testing to sell HCSS, not only in North America, but also interestingly testing it now internationally.

We are going to see what are now the results of that, but we are trying to do it obviously in location and region where we do not need yet to do too much localization efforts. We see already some good, early, positive traction, especially in the UK, in Australia, New Zealand.

We are now testing it even in Latin America, where HCSS, for example, has almost kind of no presence at all for the moment, which could be brand new market for them. Overall, if you look at Q3 and as already mentioned before, HCSS had a very strong performance as planned, and we are very happy with the results.

The integration is going extremely well. More importantly, as I also stated in the presentation, there is a very strong cultural fit between the HCSS team and the Nemetschek team, which is they have a very strong customer first.

If you talk to HCSS customers or if you can go even online, you can see that really what is making a huge difference on HCSS is not only, of course, the state-of-the-art product and quality of the solutions, but very, very highly strong customer support, customer intimacy, which is top of class.

That's great. Thank you, Yves.

If I could just double-click just on the first question. On the Design transition, is it that fewer customers this quarter are choosing multi-year contracts, but they are still shifting, they're just choosing annual deals instead?

Or is that more gradual pace kind of the underlying pace of customers choosing to stay on maintenance deals? Because I guess both of those things can cause a slight slowdown in growth.

George, it's the latter. There is almost no change on the multi-year in this quarter versus previous quarter.

Maybe a slight, very slight deviation, but it has nothing to do with that. The main reason is the fact that we have less existing maintenance customers moving to subscription, and on 12 months.

It has nothing to do between the 12 months and 36 months, is that here it is a more and more gradual pace, which is still going on. For the full year, it is as we planned.

Remember when we were announcing in March our guidance for fiscal year 2026, we said, "Oh, Design, we believe that H1 will be weaker, and H2 stronger." In fact, it's the opposite.

We said that it would be volatile, and we cannot predict exactly, quarter by quarter, month per month, region per region exactly how many customers are really going to move from maintenance to subscription. In fact, H1 was much stronger than expected, and Q3 a slightly more moderated pace.

Overall, year-to-date, it is as we planned, and we strongly believe that for the full year, it will be still as we planned.

Very clear. Thank you very much, Yves.

Hi. Thank you for taking my questions.

Two from my side, if I may. Firstly, on the Media segment, growth headwinds that you have seen are persisting, and as you look beyond next quarter, what has to happen for the growth to be better than what we have seen in previous two years?

Given uncertainty here and avenues for growth outside, how strategic you see Media segment for the group? Then I have a follow-up question as well.

Thanks, Balajee. I think, clearly, for the moment, it's a disappointing situation, very challenging market conditions for media and entertainment, where we see contraction within existing customers.

We are not losing customers, and existing logos are still there, and we are even winning new logos. The main issue is the fact that when we have renewals, they are renewing with less users.

That's, for the moment, not linked to AI, but more linked to the fact that you have a very strong cost reduction in the media and entertainment space, you have consolidation, you have longer sales cycles than anticipated. This is why, as you also know, we decided to really diversify much more our Maxon businesses with, first of all, having now more presence in AEC with this architectural visualization solution with Redshift, which we first deployed now on Vectorworks, and recently in Q3, now it's available also on Revit from Autodesk.

It's also now available since a few weeks on Archicad from Graphisoft, and we are planning also to have architectural visualization from Redshift also available on other third-party authoring tools next year. Of course, we need time for this new revenue to be materialized.

The good news is that, of course, it is high-growth because it's coming from, of course, nothing. The market growth in architectural visualization is very strong double digits.

We strongly believe that we can have a good market share over time. Obviously, we're not going to see that the first couple of quarters, let's say, of next year.

It will need time. Therefore, for Q4, we are not expecting big change, unfortunately, for the media performance.

For next year, we will disclose the guidance more in March, but you should assume that we should have higher growth, but still the next few months will be probably similar type of performance.

Understood. Clear.

Can I ask my follow-up question as well? You have reiterated your 2026 growth outlook of 14% to 15% on organic basis.

That still leaves implied decent range for fourth quarter of 11% to 15% growth. Could you share color on how should we think of growth in the fourth quarter, given base comp would be somewhat tougher than third quarter, and at the same time, Media and Manage segment, you see remaining subdued as well?

Would it be fair to expect growth would be more likely in lower half to midpoint of the guidance range?

Maybe let me take that one. As we have reiterated, as you say, our full-year guidance in the 14% to 15%, and that's absolutely fully confirmed.

I think what you're saying, as Yves just alluded to, we don't expect Media to pick up, to say, rather stable versus Q3 in Q4. As Yves was alluding to Design, that's a little bit depending also on the pace of the subscription transformation, SSA to subscription.

That's why, and we continue to expect a strong Build growth. Of course, that is going down in line with plan.

We know that they have been overperforming also in the year. If you say so, we still confirm the full range, right, of 14% to 15%.

As you say, you need to consider all these different impacts when you put yourself into that range. I would say depending on how they play out, we will be somewhere in the range, but it will be in the range.

Understood. Thank you.

Great, thanks for taking my question. Can you or can we just go back to the Design division again?

You said that the transition to subscription was slower than your expectations. Can you just identify what went wrong in the quarter or what was slower?

Was that customers rejecting pricing plans on subscription and you've then got to tweak those to Q4? Were you just doing less marketing in the quarter?

Why do you think it ended up being slower than expected? Then just as a follow-up, is this, I think it was closer to 6% organic growth in Q3, is that an indication of the underlying growth potential of this business without the added upside from the transition to subscription?

Or were there other factors in the quarter that are holding that growth rate back? Thank you.

Thank you very much, Charles, for your questions. I think we need to be very clear there.

I wouldn't necessarily say that something went wrong in the quarter for Design at all, and it's solely due to the effect that when we go from SSA, service and maintenance contract, that's the only thing we are now transitioning into subscription. It's not about new subscription or whatever.

It's really when we are transforming all our existing SSA service maintenance contracts into subscription. As under IFRS, you also have a revenue impact out of that, as you have a higher revenue recognition when you record the subscription contract.

Has nothing to do with multi-year contracts, just an IFRS accounting effect in there. As Yves alluded to, we cannot really steer when in different markets the customers will actually move over to subscription.

We are moving in all markets, of course, with all our clients, and you can say that the larger clients, the clients are more keen or maybe in less conservative markets, they jump on it quicker, and then it, to say, takes longer for some customer groups to really make the move over to subscription. It's not a mistake, that's what we say, it's just the pace of how quickly they move over, and that's the impact we see in Q3.

It has nothing to do with pricing or anything else. It's really this pace of how quickly the customers that are customers and will remain customers when they go from their service maintenance contract to a subscription contract.

As I say, very much impacting what kind of customer, in the Design segment, we have plenty of very small customers. That's why, depending on market, depending on customer flavor, to say, that might vary a bit.

Perhaps what we saw is that the ones that are more inclined moved over earlier, and now, to say, they are the ones that need a little bit more time to move over. That's a part of the subscription transformation that we had generally foreseen, but so to say, as we have always said, that's where there is volatility between the quarters that we cannot really steer.

I think that's important. The second thing is that you should also not forget that we are now moving to subscription in the Design segment, and generally, you have a revenue impact, a negative revenue impact, when you move over to subscription.

I don't want to talk about what many other competitors have seen and shown, but when you move over, you normally have a substantially lower growth. The market is still growing, right, in a still a nice way.

That's why when we are through the subscription phase, we also expect, to say, as we have said, we have guided the Nemetschek Group to be in the mid-teens over the next years, and of course, Design will contribute to that. We'll still be in '26 and '27 is impacted by the subscription transformation.

Just as a follow-up there, I think Yves said high single digit. Just for a clarification, was that for Q4 in Design, or was that a full-year comment he was making there?

That's the full year. As we have guided for

Thank you.

Thank you.

Yes, hi guys. Thanks very much for taking my questions.

I've got two, please. Firstly, just on Media, can you just give a little bit more information, please, on what proportion of divisional revenues these new non-media animation solutions are within Maxon, and what sort of growth rates are they growing at?

Just so we can understand when this will potentially help growth to improve, because I think this time last year, you talked about how revenues from freelance customers were in decline, but actually the revenues from large media customers were growing at something like double-digit growth. It feels like now both the freelance and the large customers are facing challenges, we kind of need these non-media solutions to accelerate growth, unless I'm missing something.

Just any color on their size and growth within the mix would be very helpful, please. Then, I guess, looking beyond the noise of this quarter in terms of the subscription transition and the impact of the Media division, if I look at the organic trajectory in 2027, if we assume high-single-digit growth in Design, something like 20% to 21% in Build, mid-single-digit in Manage, and something like flat for Media, obviously there's a range of outcomes there, with some sensitivity, that implies organic growth potentially below 14%, which, I guess, most people would define the mid-teens that you talk about more like 14%, 15%, 16%.

I guess, is below 14% a realistic pathway to think about, or is there something missing from that revenue build to get us closer to mid-teens?

Thanks, Joe. First, on your media question, so as we launched earlier really this year now this architectural visualization business.

The revenue is not material enough yet. It is just starting.

We are also now pushing, and we're starting to make some specific campaigns these months also to existing Nemetschek BIM authoring tool architecture so that they can use free of charge for some period Redshift solution. We're starting it first with Vectorworks now.

We will do it also with Archicad, and of course, later also with Allplan. By the time, as I stated also, that we will see, significant more revenue, tangible revenue coming from these businesses, which are not media-related, but more AEC, it will take some time, and probably more visible towards mid of next year, probably more from H2 2027.

Now, we will also launch beginning of next year this digital twin solution for Maxon, which also will not be related to media and entertainment, but more to e-commerce. This is also something that will not suddenly in Q1 have a big bump in revenue, because we'll just launch it potentially sometime in Q1, probably revenue will be more also more visible towards the end of next year.

If you look at next year, yes, Media will have a slight acceleration and will have growth. Now, we will tell you more in details in March what is our expectation for such growth and what would be the level of such growth expectation for Media for 2027.

Then, if you look at the 2027 topic, well, look, we will talk about that in March. What we always said is that will be an average mid-teen growth over the next few years.

Clearly, 2027 will be still a year where Design will be in the middle of the transition to subscription. We are still committing for an average mid-teen growth organically at constant currency over the next few years for the Nemetschek Group.

Understood. Thank you.

Hi. Thank you for taking my questions.

I have one on the Max packages that you announced for Allplan and Archicad. How do you see these packages positioned versus what your competitors are offering?

Maybe are they primarily intended to maintain the competitiveness of your offerings, or do you also expect the additional functionality to generate incremental revenue over time? Then I have another question on Germany.

Your 9 months domestic revenue figure implies quite a strong slowdown in Germany in Q3. Could you explain what drove this?

Thank you.

Thanks, Nicolas. On the Max solution and the monetization, let's start with Allplan Max.

Allplan Max has many different solutions, they are not priced exactly the same way. For example, if you take Steel Genie on SDS2, for steel detail design, this is brand-new solution where people will pay around $10,000 for this AI Steel Genie solution.

That's clearly a big uplift on revenue. Then there are some features within Allplan Max where we will say, "Okay, you're paying now currently your Allplan subscription, and thanks to this Allplan subscription, you have already some AI features part of it, including some credits, and people then will use it.

Then when they will have used these credits, they will need to buy a new added-value package, AI package, which will add additional AI value-added services with some additional credit." We are moving here to a more consumption model in addition to the subscription.

It's clearly a hybrid pricing model, which is combining so this subscription license that they pay today for Allplan Max, but now Allplan Max monetization will come more and more as an uplift coming from consumption pricing, using credits and additional added-value packages. The credit will not be sold standalone.

The credit will be part of a package which is bringing added-value AI services.

The second question on Germany, I can take that one. The slowdown in Germany is less market-related, has more to do with the effect that we've said it before in Design, where there was this slower pace or more gradual pace in the SSA service maintenance contract to subscription.

That's impacting that, because that's also one of the markets where we are strongly and also shifting from service contracts to subscription. The German sentiment in general, I think if you look at that, is I would say it's not better and it's not worse than what I've seen.

You can look at as to say consumer price indexes and also confidence indexes in Germany is actually improving a little bit. On the other hand, you can see spending also improving a little bit, but that's more on the civil infrastructure side, less.

You can see it's still that residential, etc. is still very, very impacted.

The permit side, you can see that there was a slight uptick during summer that got a bit stalled, also due to interest rates, etc. You can still see a slight positive trend, but that's nothing we would say that's really changing the German market.

It's less a means on any direction on the market, whether positive or negative, more to do, to say, how we record revenues and so to say the progress and the pace in our subscription transition in Design, which was stronger, as we said, in the first half-year and now slower and more gradual in Q3. That's why you see the deviation.

Hi. Thanks for taking my question.

This is more on Design. Now, the guidance that has been said, it's a higher-single-digit growth for the full year.

Now, it can mean a wide range of outcomes for 4Q. Just wanted to understand what exactly is the expectation as of now on the trajectory in the fourth quarter versus the third quarter, given third quarter landed at about 6.5%.

Then what does it mean for the next year in terms of there will be a balancing impact in terms of there will be subscription transition there, there will be an impact. Anything else to be mindful of when thinking about growth in Design next year as we are almost about to exit the year 2026?

Clearly, as stated, Deepshikha, sorry, we have this gradual pace in Q3. Now, we see that for Q4, there should be a continuing pace of move in a positive way.

Clearly, when we look at next year, we will be still in the middle of this transition of subscription. Obviously, now we have around year-to-date, 65% of our revenue is now on subscription and SaaS for Design.

We believe that, clearly by the end of next year, most of the revenue will be then therefore on subscription and SaaS for Design. We may still have some part of the revenue, but a very small piece, which would still migrate in 2028.

Clearly, the big still year of transition should be for 2027. Overall, as I stated, for the full year, we are still expecting this higher single-digit growth for Design.

Q4 will, of course, depend on how the graduation of migration of legacy customers is going, but so far, it is as we expected.

Thank you.

Thank you. A couple for me.

Firstly, Louise, I think year-to-date you've spent €120 million on acquisitions. It was about 73 in the first half, just under 50 this quarter.

You also seem to reverse a €12 million investment in the associate from Q2. Clearly, there's a lot of fees related to HCSS.

I think in the P&L, it's sort of high-teens millions. Can you sort of expand on that nearly €50 million of spend in the quarter?

Okay. Hi, Michael.

Yes, of course. As we have said before, there are acquisition effects through the full year, smaller ones.

There's also what's fallen into the quarter of Q3 is some effects from the HCSS again. That's the balance sheet effects of the HCSS transaction that you can see there.

That's the parts of cash that are technical purchase price that you can see in the deviation in Q3. We didn't have any other acquisitions in Q3.

Okay. The P&L is €18 million, and the cash is nearly 50.

Yeah. We have around 450 debt, the rest is equity, and the parts of the cash are linked to the technical purchase price, it's only HCSS effects.

There is no other acquisition in Q3.

Okay. I was going to ask about HCSS.

If I add up the goodwill, the intangibles increase, and net debt, it's about €2.6 billion, and that's about 35 times their 2025 EBITDA. I think when you announced the deal, it was sort of 20 times plus.

Am I missing anything there?

No, I don't think that you're missing anything in general there, to say. It's a little bit you have to look at US dollar and euros when you look at the numbers.

The total value is around $2 billion. We have $1.3 billion of goodwill.

Not sure I didn't note the numbers that you said, but

But 9 900 million of acquired intangibles and 400 of debt, it's about 2.6.

Exactly. We have $2 billion total value, US dollar.

1 1.3 is goodwill, and the purchase price to goodwill is around 65%. So

Actually, I was going to ask on the purchase intangibles, the 800 million. You haven't created a deferred tax liability against that, which is odd.

When you bought GoCanvas, you did. Whenever you buy something, there's a difference in cash and P&L taxes.

I know you mentioned something about complex tax structure where you're not showing in the P&L the tax they pay.

Exactly. That's a very good catch, Michael.

We have booked 900 million intangibles. Yes, we have not booked any deferred tax liabilities yet.

That's part of the additions that will come throughout the year. It is complex, but it's complex by design, I would say, right?

It's due to the structure where we have set up, to say, full structure with LLCs and holding companies of it. You are absolutely right.

There will be deferred tax liabilities as well that we will book throughout the year, but we haven't done it yet because that calculation is not ready yet. The other complexity that I was referring to before is the consolidation is a transparent structure from an income tax perspective in the US.

That means that the taxes flow through in the operating business and are paid on a holdco level, both by us and the minority shareholder in the two different holdco structures. That's not unusual, but it's a little bit more complex that you need to make sure that you allocate the tax expenses.

That's why also see that we have a slightly lower effective tax rate in the Q3, and you will see that going forward, because we only allocate 72% of the tax expenses, whilst we are consolidated 100% of the business. That's a bit unusual if you're not acquainted with this transparent tax structures, but that's the reason behind it.

At an operational level, how can you get synergies from the business if it's got to have a separate tax structure? Because Thoma Bravo is paying separately from you.

I really struggle to how you could pull the business together and

No. No, no, the business is fully consolidated.

Has nothing to do with that. It's just that the taxes are paid on a holdco structure.

The legal structure is completely different, to say, than the business steering of the business. That's just the pure tax payments that are made on the holdco level.

Exactly. We run the whole business as an integrated business.

No difference to that. It's just that it lands in two holdco companies that are LLCs, and that leads to this transparent tax structure, but no implications on operating, steering, or synergies in the business at all.

Helpful. Then I appreciate taking up lots of time, but Yves, just a final one.

There's a comment there about reorganization in the Design business and costs related to that. You said it was just sort of a bit of lumpiness and reorganizing a business going into a very important Q4.

Can you explain what's changed?

As for many years now, we are working on more efficiency toward our overall group structure, where we consolidated more brands together. If you look at Allplan, now we put all our engineering brands within the Allplan umbrella, which is SCIA, Frilo, SDS2.

Now we also put RISA there. We have also Precast there.

We have Manufacture, which is our design for manufacturing solution, and also Precast. Now, if you look at the pure architectural world, we also beginning of or just an end of Q3, in fact, we started also to consolidate more our pure BIM authoring tools for architecture together, especially when you have Vectorworks and Graphisoft, combining more and more go-to-market, more and more engineering.

Of course, when you do all this work of more efficiency, and therefore also you end up with some synergy on the cost side, which also are reflected with some redundancy costs, because a lot of these costs and headcount are also in Europe. Overall, it is a small number.

It is a very low number,

yeah. Thank you.

Hi, good afternoon, and thanks for having my question. Just to come back on the pace of migrations in the Design division, sounds perhaps like you have somewhat limited visibility on that.

Perhaps you could just share some color, what your discussions with your customers or with channel partners, what are you learning from them? How much of this is under your control to influence the pace of those migrations?

Have you or are you taking any actions currently to influence that? I guess if we think about your planning assumptions and sensitivity analysis from here, what's your best guess at the sort of forward-looking pace of migrations versus the kind of trailing pace of migrations?

Should it be faster or slower? Therefore, is there scope for the pace of that to decelerate further, or is this the sort of the trough of what you would expect?

Thank you.

No, thanks, Ben. I think, I stated clearly, year-to-date, we are exactly as we planned.

We had much more success and an overperformance of a number of people we migrated from maintenance to subscription at the beginning of the year in H1. Now we have a more gradual space.

When we talk to customers, etc., of course, it's depending on the markets. We have markets where the migration is almost done completely, or like 90%, especially Anglo-Saxon-speaking markets, where they are more accustomed to subscription move.

Obviously, you have other markets which we did not start so much, which is like Japan, especially when you look at Vectorworks, where they're still even a little bit on perpetual license, but now they're stopping that. Then if you look at our large brands, Graphisoft and Allplan, a big part of course also of the existing customer base is in DACH, Central Europe, where here, we can see that we had a very strong acceleration of move to subscription with customers which are in mid-size plus.

Of course, now that you have also a longer tail of 1, 2, 3 seats type of customers, it is, first of all, taking more effort for the resellers. If you look at Graphisoft, a big, big part of Graphisoft business is indirect, is done by resellers, it is taking quite a lot of effort to migrate all these customers.

Of course, they are also, and we are together with them, also putting some incentives and some specific campaigns to migrate them. Of course, we have to be very careful, because at the end of the day, these are existing customers.

The likelihood that they churn is in general low. We don't want to do something too stupid also and too aggressive, which is going to impact either our profitability or potential ongoing revenue by just saying, "Okay, I want absolutely now to migrate this customer now, and I'm going to do something which is too aggressive."

At the end of the day, yes, this may then potentially impact the revenue growth that we anticipated, but we are here to look at the mid-long term growth of our business, and we have to be extremely careful that we are not too aggressive in our marketing campaign or pricing campaign, but of course, we are putting in place some campaigns to incentivize now this longer tail of existing customers to move from maintenance to subscription. Overall, it is as planned year-to-date.

It is a more gradual pace. Now we have to see how Q4 is going.

October is going definitely the right direction, but as always, in Q4, especially for Design, December is a very important renewal month, we have to see.

Very helpful. Thank you.

Yes, good afternoon. Thanks for taking my question.

I have a quick one. While the overall group guidance remains fully confirmed thanks to the outstanding performance in the Build segment, what specific structural countermeasures are you taking in the Manage and Media segment?

Do you view the soft demand and customer caution in these areas as temporary or as structural market shifts? You mentioned the issue that there are renewals with less users, and could there be something that persists for longer?

That's my question.

Thanks, Armin. On Manage and Operate, here, we have a mixed balance.

Clearly, the performance, if you look at Spacewell, which is linked to workspace management and energy management software, here the demand is very strong, very strong, and we had a very good quarter. It is the biggest part of our Operate and Manage business.

Unfortunately, it has been counterbalanced more with the Crem business, which is linked to property management software for the German market. Spacewell is more global, very European, but multi-countries, etc., where Crem is solely focusing on ERP solution for property management for Germany.

Here, challenging market, weaker performance, and therefore overall, the overall growth was not as expected. Also Crem is transitioning to subscription.

They have both hiccups: the fact that the market is more challenging property management for Germany, and also that they're transitioning to subscription. Overall, if you look at Operate and Manage, we see that this is clearly a business which can come to double-digit growth, especially with Crem when they will have finished their move to subscription, and the fact that clearly Spacewell is going stronger, double-digit growth more and more.

This can be clearly division at double-digit growth. On Media, as I stated, it is more difficult, and this is why Maxon, we are pushing for more diversification, first of all, in AEC with ArchViz, this Redshift solution for architecture, where we do not expect big revenue short-term, but probably we should see clearly an better impact in the second half of next year with AEC for Maxon.

Then, of course, also, as already stated, we're planning to launch next year this digital twin solution, which is linked to e-commerce and web store type of customers for Maxon, which should hopefully also see some additional new revenue streams, which will compensate the weakened media business. On Maxon's side, as stated before, we expect clearly a slight acceleration next year and coming back to growth, but we have to see now the balance between what is a core business of media, which is not performing, versus the new businesses between digital twin and AEC, which will take time, of course, to come up to significant numbers.

Understood. Thank you.

Thanks, everyone, for attending. We are looking forward to catch up in the next quarterly call, if you have any follow-up questions, please do not hesitate to contact me or Patrick.

Thank you once again for attending. Have a nice day.

Bye-bye.

Thank you. Bye-bye.

Thank you. Bye-bye.