REG - Sage Group PLC (The) - Trading update for the 3 months ended 31 Dec 2025

SageAnnouncement

Today 07:00

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RNS Number : 4380Q  Sage Group PLC (The)  27 January 2026

 

The Sage Group plc

Trading update for the three months ended 31 December 2025

 

The Sage Group plc (FTSE: SGE), a leader in accounting, financial, HR and
payroll technology for small and mid-sized businesses, today issues a trading
update for the three months ended 31 December 2025 i .

Jacqui Cartin, Chief Financial Officer, commented:

"Sage delivered a strong start to FY26, with Q1 organic revenue growth
accelerating to 10%, supported by the continued execution of our growth
strategy. We are investing in innovation across our AI-powered platform,
helping small and mid-sized businesses solve their day-to-day challenges and
work more productively. We reiterate our full-year guidance, as set out in our
FY25 results announcement, and remain focused on driving efficient,
sustainable growth and long-term value for all stakeholders."

 Underlying Revenue Performance ii      Q1 26   Q1 25   % Growth  Organic

% Growth

 Total Revenue                          £674m   £610m   +10%      +10%
      of which Sage Business Cloud      £574m   £500m   +15%      +14%

 Total Revenue by Region
 North America                          £304m   £268m   +13%      +12%
 UKIA                                   £194m   £177m   +10%      +10%
 Europe                                 £176m   £165m   +7%       +7%

Total revenue increased by 10% to £674m in the first quarter, with all
regions performing well.

In North America, revenue increased by 13% to £304m, with a strong
performance from Sage Intacct together with continued growth in Sage 200 and
Sage 50. In the UKIA region, revenue grew by 10% to £194m, driven by the
rapid scaling of Sage Intacct alongside continued growth in small business
solutions, including Sage Accounting and Sage 50. In Europe, revenue increased
by 7% to £176m, with good growth across our accounting, HR and payroll
solutions.

Sage Business Cloud revenue increased by 15% to £574m, driven by balanced
growth from both new and existing customers, including cloud native revenue
growth of 24% to £253m (Q1 25: £205m).

Recurring revenue grew by 10% to £655m (Q1 25: £593m), reflecting continued
momentum in Annualised Recurring Revenue (ARR) during the quarter. Software
subscription revenue grew by 12% to £568m (Q1 25: £507m) resulting in
subscription penetration of 84% (Q1 25: 83%).

On an organic basis (excluding the impact of M&A), total revenue increased
by 10% to £673m (Q1 25: £612m), while recurring revenue increased by 10% to
£654m (Q1 25: £594m).

Foreign exchange

Sterling strengthened against the US dollar and weakened against the Euro,
leading to a broadly neutral exchange rate impact at the Group level.

Analyst and investor conference call

Steve Hare, Chief Executive Officer, and Jacqui Cartin, Chief Financial
Officer, will hold a webcast and conference call today at 8.30am UK time. The
webcast can be accessed via the following link:
https://edge.media-server.com/mmc/p/kzk8bxor
(https://edge.media-server.com/mmc/p/kzk8bxor)  To join the conference call,
please register via:

https://register-conf.media-server.com/register/BI19edc6b6c5a944038f431d023f7ebc63
(https://register-conf.media-server.com/register/BI19edc6b6c5a944038f431d023f7ebc63)

 

Enquiries

Sage +44 (0) 7341 479956

Jacqui Cartin, Chief Financial Officer

James Sandford, Investor Relations

David Ginivan, Corporate PR

FGS Global +44 (0) 20 7251 3801

Conor McClafferty

Sophia Johnston

About Sage

Sage exists to knock down barriers so everyone can thrive, starting with the
millions of small and mid-sized businesses (SMBs) served by us, our partners
and accountants. Customers trust our finance, HR and payroll software to make
work and money flow. By digitalising business processes and relationships with
customers, suppliers, employees, banks and governments, our AI-powered
platform connects SMBs, removing friction and delivering insights. Knocking
down barriers also means we use our time, technology and experience to tackle
digital inequality, economic inequality and the climate crisis.

 i  All figures are on an underlying basis unless otherwise stated.

 ii  Underlying and organic results are presented on a constant currency
basis, while organic growth also excludes the impact of M&A. Underlying
and organic measures are defined on page 261 of Sage's FY25 Annual Report.

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