ATOSS Software SE reported first-quarter 2026 results that combined healthy top-line growth with an improved profit margin, driven in part by accelerating cloud revenue and a higher share of recurring sales.
Sales in Q1 reached €51.4m, up 11% from €46.3m a year earlier and narrowly below the FactSet consensus estimate of €52.0m. The cloud business expanded notably, with cloud revenues climbing 27% to €27.0m from €21.4m in Q1 2025. Software sales accounted for 74% of total revenues for the quarter.
Recurring revenue remained a significant portion of the mix: combined revenues from cloud usage and maintenance equalled 71% of total sales in Q1, compared with 68% in the prior-year period. The firm also reported growth in annualised recurring metrics - cloud ARR from current usage fees rose 27% to €109.8m, while total ARR, which includes both cloud usage fees and maintenance revenues, increased 16% to €152.5m.
Profitability improved as EBIT rose 17% to €18.2m from €15.6m, producing an EBIT margin of 35.3% versus 34.0% a year earlier. The reported EBIT exceeded the FactSet consensus estimate of €16.4m by 11%. The company attributed the margin outperformance to disciplined cost management plus efficiency gains stemming from process optimisations and digitalisation.
On backlog metrics, the cloud order backlog - defined as revenues from contractually committed cloud usage fees due within the next 12 months - grew 23% to €114.3m from €92.8m in Q1 2025, supporting near-term revenue visibility.
For the full year 2026, ATOSS reiterated its sales guidance at roughly €215m and raised its target for the EBIT margin to at least 34%, up from the previous floor of 32%. Independent analysts polled by FactSet expect 2026 sales of €215m and an EBIT margin of 33.6%.
Liquidity at the end of the quarter was strong, with cash and cash equivalents of €162.1m, up from €131.9m a year earlier. The company intends to recommend a dividend of €2.28 per share - a total distribution of €36.3m - for shareholder approval at the annual general meeting.
Contextual notes
The results reflect a continued shift toward recurring cloud revenue and improved operational leverage. Management cited targeted cost controls and digital process improvements as key drivers behind the margin gain.