Sage Group Plc · LSE:SGE
Sage — FY2025 Earnings Presentation
42 slides from Sage's earnings presentation, Nov 19, 2025
Slide 1: Sage Full-Year Results
Sage Full-Year Results For the period ended 30 September 2025 19 November 2025
Slide 2: Important notice
Important notice The following presentation is being made only to, and is only directed at, persons to whom such factors include, among others: inherent difficulty in predicting customer behaviour; customers presentation may lawfully be communicated (“relevant persons”). Any person who is not a rele
Slide 3: Steve Hare, CEO
Steve Hare CEO • Overview • Financial review and outlook • Strategic update • Q&A
Slide 4: Continued strong performance
Continued strong performance Durable • Double-digit ARR growth for the fourth consecutive year. growth • Disciplined cost control driving operating profit, margin and EPS expansion. Accelerating • AI-powered platform helping customers save time and make smarter decisions. innovation • Delivering the
Slide 5: Jonathan Howell, CFO
Jonathan Howell CFO • Overview • Financial review and outlook • Strategic update • Q&A
Slide 6: Trajectory of profitable growth
Trajectory of profitable growth Underlying total revenue (£bn) Underlying operating profit (£bn) Underlying basic EPS (pence) 10% 3-year CAGR 18% 3-year CAGR 21% 3-year CAGR 2.5 0.6 43.2 2.3 0.5 36.7 2.1 1.9 0.4 29.9 0.4 24.5 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 To aid compara
Slide 7: Strong financial performance
Strong financial performance Revenue growth Operating margin Basic EPS growth Cash conversion 10% 23.9% 18% 110% FY24: 9% FY24: 22.4% FY24: 23% FY24: 123% Unless otherwise stated, all references in this presentation to revenue, profit and margin are on an underlying basis. Please note that tables ma
Slide 8: Robust ARR growth
Robust ARR growth +11% +10% 2,574 ARR growth 11% 2,329 +1% 101% £m FY24: 11% Renewal by value 101% FY24 Existing customers¹ Renewal by value New customers² FY25 FY24: 101% underlying ARR underlying ARR 1. Growth from existing customers including upsell, cross-sell and pricing, net of churn. 2. Inclu
Slide 9: Efficient growth driving earnings
Efficient growth driving earnings Underlying FY25 FY24 Change Organic change Total revenue £2,513m £2,290m +10% +9% Recurring revenue £2,436m £2,215m +10% +9% Operating profit £600m £513m +17% +16% Operating profit margin % 23.9% 22.4% +1.5 ppts +1.5 ppts EBITDA £694m £605m +15% EBITDA margin % 27.6
Slide 10: Continued cloud expansion
Continued cloud expansion Sage Business Cloud Cloud native Subscription revenue growth revenue growth penetration 13% 23% 83% FY24: 16% FY24: 23% FY24: 82% © 2025 The Sage Group plc, or its licensors. All rights reserved. Page 10
Slide 11: North America: continued strength
North America: continued strength US Underlying total revenue (£m) • Significant further growth in Sage Intacct. • Strength in both new and existing customer revenues 1,138 +12% across key industry verticals. 1,018 141 +11% 127 • Supported by growth in Sage 200, Sage 50 and Sage X3. Canada 997 +12%
Slide 12: UKIA: accelerating
UKIA: accelerating UK & Ireland Underlying total revenue (£m) • Sage Intacct continues to scale rapidly, driven by accelerating new customer acquisition. • Small business solutions, including Sage Accounting and 729 +9% 668 Sage 50, delivered good levels of growth. 175 +7% 163 • Further growth in Sa
Slide 13: Europe: broad-based growth
Europe: broad-based growth France Underlying total revenue (£m) • Strong performance in Sage X3 and Sage 200, alongside HR and payroll solutions. • Good early traction in Sage Intacct. 646 +7% 604 155 +6% Iberia 146 167 +10% • Strong performance in Sage 200 and Sage 50, together 152 with the acquisi
Slide 14: Investment driving growth and margin
Investment driving growth and margin ARR growth and operating margin Sales and Marketing: £1,003m FY24: £911m 40% Underlying (as % of total revenue) +11% +11% ARR growth Research and Development: £379m FY24: £346m 15% (as % of total revenue) Underlying 23.9% operating 22.4% margin General and Admini
Slide 15: Continuing EPS growth
Continuing EPS growth Underlying basic EPS 43.2p growth 36.7p 18% 17% Underlying WANOS £45m growth ETR 24% 978m FY24 Underlying Net finance Income Share FY25 underlying operating costs tax issues/ underlying basic EPS profit buybacks basic EPS ETR = Effective Tax Rate WANOS = Weighted Average Number
Slide 16: Strong cash generation
Strong cash generation +26 110% +46 Underlying 660 +44 cash conversion 600 -56 517 -143 Underlying Depreciation, Share based Working Capex Operating Interest, Free cash flow operating amortisation payments capital cash flow tax and other profit and other Figures in £m See appendix for definitions ©
Slide 17: Robust financial position
Robust financial position Cash and liquidity Net debt Net debt leverage £1.0bn £1.2bn 1.7x • Net debt leverage within medium term target range of 1-2x. • Announced a further share buyback programme of up to £300m. • Significant capacity for future capital priorities to support organic and inorganic
Slide 18: Outlook
Outlook In FY26, we expect: • Organic total revenue growth to be 9% or above. • Operating margins to continue trending upwards in FY26 and beyond. Bango Sage customer Bango Sage customer © 2025 The Sage Group plc, or its licensors. All rights reserved. Page 18
Slide 19: Steve Hare, CEO
Steve Hare CEO • Overview • Financial review and outlook • Strategic update • Q&A
Slide 20: Strategic framework for growth
Strategic framework for growth Purpose To knock down barriers so everyone can thrive Ambition To create the world’s most trusted and thriving network for SMBs, powered by AI Connect Grow Deliver Strategy Connecting SMBs through our Winning new customers and Delivering productivity and trusted and th
Slide 21: Meeting the needs of our customers
Meeting the needs of our customers SMBs continue to prove resilient Reporting profitability gains despite cost pressures. But they are facing barriers Such as weak productivity and late payments. Sage provides integrated solutions To automate processes, speed up cash flows and deliver insights. LA O
Slide 22: Sage Platform: our foundation for AI at scale
Sage Platform: our foundation for AI at scale RED INFRASTRUCTUR SHA E Sage Ai Factory EC O • 40,000 models in ES Sage Specialist tools and infrastructure production, generating IC SY Customers RV that automates AI model training, ST products (SMBs and Accountants) SE 3.5bn predictions EM powering Sa
Slide 23: The pillars of Sage's AI proposition
The pillars of Sage’s AI proposition Sage Copilot Sage Ai AI Agents The experience layer The intelligence engine The doers The primary customer-facing identity for The layer of proprietary AI services that Specialist, autonomous agents that get work Sage Ai. powers Sage Copilot and AI Agents. done b
Slide 24: Connect
Strategic focus area Connect Connecting SMBs through our trusted and thriving network Progress update • Grew Accounts Payable & Accounts Receivable automation. o AP monthly transaction value tripled to $2.3bn. • Launched e-invoicing portal in France. • Acquired Fyle for expense management capabiliti
Slide 25: Grow
Strategic focus area Grow Winning new customers and “ delighting our existing ones Progress update • Scaling Sage Intacct across the Group, with over 20% ARR growth in the US and c.50% outside the US. Sage X3 has streamlined our and control at every stage. “ operations, facilitating accessibility •
Slide 26: Deliver
Strategic focus area Deliver Delivering productivity and “ insights driven by AI Progress update During a typical week, Sage Copilot • Expanded Sage Copilot to products across our markets: o Sage Accounting, Sage 50, Sage Active, Sage for can save 12 to 14 hours, which for our team is a huge amount
Slide 27: Delivering for our stakeholders
Delivering for our stakeholders Customers Partners Colleagues Society Shareholders • Focused on customer • Launched AI Developer • Fostering a high- • Helping entrepreneurs • Driving sustainable excellence. Solutions. performance culture. to scale and grow. growth in shareholder • Championing SMBs •
Slide 28: Creating value through efficient growth
Creating value through efficient growth Clear Differentiated Resilient strategic focus and diversified financial model Aligned with customer AI-powered platform, global High-quality recurring revenue needs and shareholder products and geographic reach, model, with growth driving both expectations wi
Slide 29: Key messages
Key messages Durable Accelerating Focused growth innovation execution © 2025 The Sage Group plc, or its licensors. All rights reserved. Page 29
Slide 30: Q&A
Q&A • Overview • Financial review and outlook • Strategic update • Q&A © 2025 The Sage Group plc, or its licensors. All rights reserved.
Slide 31: Appendix
Appendix @
Slide 32: Scaling Sage Copilot in FY25 and beyond
Scaling Sage Copilot in FY25 and beyond OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Sage Copilot Sage Copilot Sage Copilot Sage Copilot MTD for Income Finance Intelligence (beta) in Sage (beta) in Sage available in Sage available in X3 Tax Agent (UK) Agent for Sage Active (Europe) Intacc
Slide 33: Sage Business Cloud portfolio
Sage Business Cloud portfolio Cloud Connected Cloud Native Accounting and Financials People and Payroll Mid-sized • Sage 200 • Sage Intacct • Sage HR • Sage X3 • Sage X3 • Sage People businesses Small • Sage 50 • Sage Active • Sage HR businesses • Sage 50 Payroll • Sage Accounting • Sage Payroll Sag
Slide 34: Capital allocation
Capital allocation 4. Consider 3. Grow the 1. Organic returning 2. M&A dividend investment surplus over time capital Strong and stable financial position Broad range of 1.0x–2.0x net debt to underlying EBITDA over the medium term, with flexibility to move outside this range as business needs require
Slide 35: Bridge from underlying to organic
Bridge from underlying to organic ARR Recurring revenue Total revenue Operating profit £m FY25 FY24 Growth FY25 FY24 Growth FY25 FY24 Growth FY25 FY24 Growth Underlying 2,574 2,329 +11% 2,436 2,215 +10% 2,513 2,290 +10% 600 513 +17% Acquisitions1 (14) - (7) 6 (7) 6 - 2 Disposals - - - - - - - - Orga
Slide 36: Cloud and subscription revenue mix
Cloud and subscription revenue mix Cloud revenue mix Subscription revenue mix Organic Organic £m FY25 FY24 Change £m FY25 FY24 Change change change Cloud native 885 718 +23% +21% Subscription 2,093 1,876 +12% +11% Cloud connected 1,198 1,119 +7% +7% Other recurring revenue 343 339 +1% +1% Sage Busin
Slide 37: Cloud mix over time
Cloud mix over time 20% 20% 20% 18% 18% 17% 17% 24% 21% 27% 26% 25% 36% 33% 38% 37% 46% 45% 44% 42% 53% 50% 55% 54% 63% 48% 48% 48% 48% 49% 49% 49% 49% 47% 47% 48% 46% 44% 42% 42% 42% 41% 39% 40% 40% 37% 33% 34% 35% 27% 34% 34% 35% 35% 28% 28% 30% 31% 31% 31% 27% 27% 20% 21% 22% 23% 15% 15% 16% 17%
Slide 38: Strategic contribution from M&A
Strategic contribution from M&A Acquisitions completed in FY26 YTD US Unified HR, payroll, talent engagement and workforce management system Acquisitions completed in FY25 Spain Mobile workforce management solution for field-based sales teams US/India AI-enabled expense management platform for SMBs
Slide 39: Sustainability highlights
Sustainability highlights Protect the Planet Tech for Good Human by Design Pledged to get to net zero by 2040 and Supporting SMBs and communities Championing inclusive, progressive and to halve emissions by 2030. through our trusted network. healthy working environments. • Achieved CDP rating of ‘A’
Slide 40: Glossary
Glossary Measure/description Underlying (revenue and profit) measures Organic (revenue and profit) measures Underlying measures are adjusted to exclude items which in management’s In addition to the adjustments made for Underlying measures, Organic measures: judgement need to be disclosed separately
Slide 41: Glossary
Glossary Measure/description Underlying Cash Flow from Operations Renewal Rate by Value Underlying Cash Flow from Operations is Underlying Operating Profit adjusted for The ARR from renewals, migrations, upsell, and cross-sell of active customers at non-cash items, net capital expenditure (excluding
Slide 42: About Sage
About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relati