The Sage Group (SGE) Q3 2025 TU earnings summary

Executive summary

• Achieved 9% total revenue growth to £1,862m for the nine months ended 30 June 2025, in line with expectations amid macroeconomic uncertainty.

• Strong performance across all regions, with North America up 11%, UKIA up 9%, and Europe up 7%.

• Sage Business Cloud revenue grew 13% to £1,538m, with cloud-native revenue up 22% to £645m.

• Recurring revenue increased 10% to £1,805m, with subscription penetration rising to 83%.

• Cloud and AI-powered solutions continue to drive customer success and strategic confidence.

Financial highlights

• Q3 standalone total revenue rose 9% to £620m.

• Organic total revenue for the first nine months increased 9% year-over-year to £1,858m.

• Software subscription revenue increased 11% to £1,549m, with subscription penetration at 83%.

• Sage Business Cloud revenue rose 13% to £1,538m; cloud native revenue up 22% to £645m.

• Recurring revenue up 9% to £1,802m on an organic basis.

Outlook and guidance

• Full-year organic total revenue growth expected at 9% or above, with guidance reiterated.

• Operating margins projected to trend upwards in FY2025 and beyond.

• Confident in guidance despite a stronger Q4 comparison ahead.

• Continued focus on delivering sustained, efficient growth despite macroeconomic headwinds.