This article first appeared on GuruFocus .
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Revenue Growth:11% year-on-year increase in Q1 2026.
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Cloud Business Growth:27% increase in cloud business revenue.
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EBIT Margin:Achieved 35%, above full-year guidance.
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Software Revenue:Grew by 13% year-on-year, accounting for 74% of total revenues.
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Cloud and Subscription Revenue:Increased by 27% year-on-year, representing 53% of total revenues.
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Consulting Revenue:Increased by 11% year-on-year.
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Hardware Revenue:Declined by 24%.
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Total ARR:Increased by 17% to EUR 148.1 million.
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Cloud and Subscription ARR:Increased by 27% to EUR 109.8 million.
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Net Retention Rate:Approximately 112% for Q1 2026.
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Operating Cash Flow:Increased from EUR 20 million in Q1 2025 to EUR 39 million in Q1 2026.
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Total Liquidity:EUR 162 million at the end of Q1 2026.
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Headcount:862 employees at the end of Q1 2026.
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Release Date: April 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ATOSS Software SE ( FRA:AOF ) reported an 11% year-on-year revenue growth in Q1 2026, driven by a 27% increase in their cloud business.
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The company achieved an EBIT margin of 35%, surpassing their full-year guidance, supported by AI efficiency initiatives and revaluation of long-term incentive programs.
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The healthcare sector showed strong momentum, with notable new customer acquisition, including the Berlin Charite hospital.
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ATOSS Software SE's AI initiatives are contributing to higher operational leverage and a more scalable cost structure, enhancing productivity.
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The company maintains a strong liquidity position, with total liquidity increasing to EUR 162 million at the end of Q1 2026.
Negative Points
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There was a certain level of caution in the market from March onwards, driven by macroeconomic and geopolitical uncertainties.
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New ACV in Q1 remained at the prior year level, indicating challenges in converting pipeline opportunities.
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Maintenance revenues declined by around 3% due to the ongoing shift towards cloud services.
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Hardware revenues saw a significant decline of 24%, although it constitutes a small fraction of the overall revenue base.
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The SMB segment showed disappointing performance, possibly reflecting increased uncertainty among smaller customers.
Q & A Highlights
Q: Are there any differences in the impact of geopolitical and macroeconomic weaknesses between international and DACH (Germany, Austria, Switzerland) markets, and how do these affect new versus existing customers? A: Christof Leiber, CFO, noted that while the pipeline remains robust, conversion rates have been affected by macroeconomic uncertainties, particularly in manufacturing. There is no significant difference between DACH and international markets, although international operations are more limited. The DACH region saw positive development in new logos, with 50% of new ACV coming from new customers, up from 30% last year. However, SMBs showed more uncertainty compared to enterprises.
Q: Given the flat incremental backlog added in Q1, should we expect the lower half of the revenue guidance range for 2026? A: Christof Leiber explained that the company is on track with its projections and expects to be in the middle of the revenue guidance range of EUR 210 million to EUR 215 million. The cloud and subscription orders are sufficient for the upper end of the range, but perpetual licenses are falling short, impacting the overall revenue.
Q: How much did the re-evaluation of the long-term incentive program contribute to the EBIT margin in Q1? A: The re-evaluation of the long-term incentive program contributed roughly one full percentage point to the EBIT margin, according to Christof Leiber.
Q: How much of the cloud business growth was driven by migrations from existing maintenance customers, and what is the outlook for cloud migrations in 2026? A: Christof Leiber stated that approximately one-third of the new ARR in Q1, around EUR 4 million, came from migrations. The decline in maintenance revenue by 3% year-on-year reflects this shift. The company expects a stronger wave of migrations as customers realize the benefits of AI features available only on the cloud.
Q: Are cloud migrations correlated with SAP migrations, or do customers migrate independently? A: Christof Leiber mentioned that while the partnership with SAP is strong, particularly with new logos, the correlation with SAP migrations on the cloud side is not explicitly detailed. The partnership provides value, especially in healthcare and other sectors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
