Original-Research: ATOSS Software SE (von NuWays AG): BUY

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 148

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Final FY25 reinforces quality compounder profile, Chg.

Yesterday's publication of ATOSS' FY25 annual report once again confirmed

the exceptional quality of the business model and the structural strengths

underpinning its long-term growth story. While the release contained no

major surprises after the preliminary figures in January, it provides

additional insight into the drivers behind ATOSS' recurring revenue engine

and its expanding AI-enabled platform.

FY25 marked another record year with group sales up 10.9% yoy to EUR 189m,

while EBIT reached EUR 68.1m, corresponding to a 36% margin and thus exceeding

the already lifted target of 34%. Recurring revenues (Cloud & Subscriptions

+ Maintenance) rose 18% yoy to EUR 132m and now account for 70% of total

sales. At the same time, Cloud & Subscription revenues expanded by 28% yoy

to EUR 92.7m and represent almost half of group revenues. These figures

clearly highlight the continued success of ATOSS' transition toward a highly

scalable SaaS-based model.

Beyond the headline numbers, the report particularly underscores the

strength of ATOSS' recurring growth mechanics. Cloud ARR increased 28% yoy

to EUR 101m, while the cloud order backlog rose 27% yoy to EUR 109m, providing a

high level of revenue visibility entering FY26. Importantly, this growth is

not only driven by new and migrated customer wins (60%) but also by

consistent upselling within the installed base (40%), reflecting the

company's effective land-and-expand strategy and the mission-critical nature

of its WFM solutions.

Another key takeaway is the increasing role of AI within the ATOSS platform.

The company continues to integrate AI-driven functionality across

forecasting, scheduling and workforce analytics processes, thereby further

enhancing the value proposition of its software suite. In our view, this

development strengthens ATOSS' competitive positioning, as intelligent

automation and predictive planning capabilities are becoming increasingly

important differentiators in WFM solutions.

Despite ongoing investments into sales capacity, international expansion and

AI development, ATOSS continues to deliver best-in-class profitability. The

scalable SaaS model, combined with strong pricing power and disciplined cost

management, enables EBIT margins comfortably in the mid-30% range (FY26e:

34.7%). At the same time, the company's strong balance sheet remains a key

strategic asset, with liquidity of more than EUR 120m providing ample

flexibility for organic investments, dividends and potential bolt-on

acquisitions.

Overall, the FY25 annual report once again reinforces our view that ATOSS

represents a rare combination of structural growth, exceptional margins and

high earnings visibility. With its expanding recurring revenue base, growing

AI capabilities and strong balance sheet, the company remains one of the

highest quality software compounders in the European market.

We therefore reiterate BUY with a new EUR 148 PT (old: EUR 152) based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=d114b51373e7674cf50f40b714130da3

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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2289274 11.03.2026 CET/CEST

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