SoftwareONE (SWON) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 marked a return to growth, with revenue up 46.0% year-over-year, driven by the consolidation of Crayon from July 2025 and successful cost control initiatives.

• Adjusted EBITDA increased to CHF 65.2 million, with margin improving to 19.0%, reflecting realized cost synergies and integration benefits.

• CHF 21 million in run-rate cost synergies achieved by early November, progressing toward CHF 80–100 million target by end of 2026.

• The organization is fully integrated, leveraging combined capabilities and focusing on cross-sell, upsell, and operational efficiency.

• A €1.5 billion Microsoft framework agreement was secured with the German Federal Ministry of the Interior, enhancing strategic positioning.

Financial highlights

• Q3 2025 IFRS reported revenue reached CHF 343.2 million, up 46.0% year-over-year; year-to-date revenue was CHF 829.8 million, up 8.6%.

• Reported EBITDA for Q3 2025 was CHF 42.0 million (12.2% margin), up 237.5% year-over-year; adjusted EBITDA was CHF 65.2 million (19.0% margin).

• Cost synergies and strict cost control contributed to improved profitability.

• FX negatively impacted revenue by 6.1 percentage points in Q3 2025.

• Adjusted EBITDA margin on a like-for-like basis increased by up to 2.9 percentage points year-over-year.

Outlook and guidance

• FY 2025 outlook confirmed: flat revenue growth in constant currency and adjusted EBITDA margin above 20%.

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

• Q4 2025 expected to benefit from CSP acceleration, NORAM turnaround, and reduced impact from Microsoft incentive changes.

• No further negative impact from Microsoft incentive changes expected in 2026.