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Original-Research: ATOSS Software SE - from NuWays AG
29.10.2026 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to ATOSS Software SE
Company Name: ATOSS Software SE
ISIN: DE0005104400
Reason for the research: Update
Recommendation: BUY
Target price: EUR 134
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Margin lever pulled harder than expected; guidance upgraded; chg.
ATOSS released Q3 figures on Friday that were mixed on sales but outstanding
on profitability. The EBIT margin guidance upgrade we had flagged as a real
option in our preview materialised, but the step was larger than we and
eCons expected. In detail:
Q3 sales grew 11.3% yoy to EUR 52.6m (eNuW: EUR 53.3m). Cloud & Subscriptions
kept its strong pace, up 26% yoy to EUR 29.5m (eNuW: +25%). The shortfall came
from the non-recurring side. Perpetual licence sales halved yoy to EUR 0.9m,
while consulting stayed flat at EUR 10.2m. As a result, the recurring share
rose further to c. 74%. Underlying KPIs remain solid: Cloud ARR grew 25% yoy
to EUR 119m and net retention stood at 112% (ASES: 116%). Order momentum,
however, slowed against a strong comparable base as growth in Cloud &
Subscription order backlog decelerated to 8% yoy (H1: 14%). FY FY27,
management eyes for new ACV growth of 3-7%.
Margin was the clear highlight. Q3 EBIT jumped 22.6% yoy to EUR 21.1m (eNuW: EUR
18.4m; eCons: EUR 18.6m), implying a margin of 40.0%, up 3.6pp yoy, putting
the 9M margin at 36.8%. The drivers are structural with headcount flat yoy,
as ATOSS uses natural attrition in R&D and G&A while rolling out AI tools
across development, sales and customer service. Sales capacity is being
upskilled rather than expanded. All cost ratios came in well below budget,
with S&M at 18.0% of sales vs a planned 20.3%.
Guidance upgraded, as expected. As flagged in our preview, management lifted
the FY26 EBIT margin target, but by 3pp to c. 37% (old: >=34%; eNuW old:
34.9%). On sales, management sees the lower end of the EUR 210-215m range,
solely due to weaker perpetual licences, while recurring continues to
outperform, which is in our view the more important read. The implied Q4
margin of c. 37-38% compares with 40% in both Q4 25 and Q3 26, so the new
target again looks beatable, in our view (eNuW new: 37.8%).
Looking ahead. For FY27, management now expects sales at the lower end of
the EUR 235-245m range, citing lower perpetual and consulting revenues. On
margin, CFO Leiber indicated 36-37% as possible, well above the formal >=35%
target, with long-term potential above 40%. Importantly, the quality of
revenues keeps improving as visible in the continuously strong NRR, also
supporting margins. In our view, the slightly lower top line is therefore a
fair trade-off: what ATOSS loses in low-margin and one-off revenues, it more
than makes up for in profitability and visibility.
Action. We lift our FY26e EBIT and raise our margin estimates for the coming
years, reflecting the structural efficiency gains from flat headcount and
AI-driven process optimisation, as well as the upgraded guidance. At the
same time, we trim our sales estimates slightly to account for the faster
decline in perpetual licences and lower consulting revenues, while our
recurring revenue forecasts remain largely unchanged. Overall, the print
confirms ATOSS as a structural margin story with strong cash generation.
Reiterate BUY, PT EUR 134 based on DCF.
You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=61f8843f4ce11859ee785019b953adce
For additional information visit our website:
https://www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
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