SoftwareONE (SWON) H1 2025 earnings summary

Executive summary

• The combination with Crayon created a global leader in software and cloud services, with integration progressing on schedule and CHF 11 million run-rate cost synergies achieved by end-August 2025.

• H1 2025 saw revenue declines due to Microsoft incentive changes and North American go-to-market issues, but cost control and early synergy capture improved EBITDA margins.

• Both companies are focused on transitioning customers from Enterprise Agreements to Cloud Solution Provider (CSP) models, which offer higher margins.

• Combined 2025 outlook confirms stable profitability and a return to growth in H2 2025, with a positive start to Q3.

• Strategic focus areas include CSP conversion, AI enablement, FinOps, and cybersecurity to drive future growth.

Financial highlights

• Group revenue declined 4.9% YoY in constant currency to CHF 487.7 million in H1 2025, mainly due to NORAM challenges and Microsoft incentive changes.

• Adjusted EBITDA for H1 2025 was CHF 114.7 million, margin up 0.5 percentage points to 23.5%; reported EBITDA CHF 85 million, margin up 1.9 percentage points to 17.5%.

• Net working capital improved by CHF 400.6 million year-over-year, aided by expanded non-recourse factoring.

• Cash and cash equivalents at June 30 were CHF 655.1 million; net cash position was CHF 36.2 million.

• Profit for the period was CHF 9.9 million, down from CHF 27.9 million in H1 2024.

Outlook and guidance

• Full-year 2025 outlook expects flat revenue growth in constant currency and adjusted EBITDA margin above 20% for the combined company.

• Return to growth anticipated in H2 2025, supported by easing Microsoft incentive headwinds and positive Q3 trends.

• From 2026, anticipate accelerated growth and enhanced profitability as cost and revenue synergies are realized.

• Dividend payout ratio targeted at 30-50% of adjusted profit for the year.

• Full 2026 guidance and midterm targets to be provided with FY 2025 results.