Sage Group plc (LON:SGE), a leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, has issued a trading update for the nine months ended 30 June 2025[i].
Jonathan Howell, Chief Financial Officer, commented:
“Sage has performed well in the first nine months of the year, in line with our expectations, delivering good levels of growth despite ongoing macroeconomic uncertainty. Accordingly, we reiterate our guidance for the full year, as set out in our half year results announcement. Our cloud and AI-powered solutions are driving success for our customers and confidence in our strategy, as we focus on the continued delivery of sustained, efficient growth.”
| Underlying Revenue Performance[ii] | Q3 25 YTD | Q3 24 YTD | % Growth | Organic % Growth |
| Total Revenue | £1,862m | £1,701m | +9% | +9% |
| of which Sage Business Cloud | £1,538m | £1,359m | +13% | +12% |
| Total Revenue by Region | ||||
| North America | £846m | £761m | +11% | +11% |
| UKIA | £539m | £495m | +9% | +9% |
| Europe | £477m | £444m | +7% | +6% |
Total revenue increased by 9% to £1,862m in the first nine months of the year, as Sage continues to drive growth in all regions.
In North America, revenue grew by 11% to £846m, with a strong performance from Sage Intacct together with continuing growth in Sage 200 and Sage 50. In the UKIA region, revenue increased by 9% to £539m, as Sage Intacct continues to scale rapidly, supported by ongoing growth in small business solutions (including Sage Accounting), Sage 50 and Sage 200. In Europe, revenue grew by 7% to £477m, with good growth across our accounting, HR and payroll solutions.
Sage Business Cloud revenue increased by 13% to £1,538m, driven by balanced growth from both new and existing customers, including cloud native revenue growth of 22% to £645m (Q3 24 YTD: £528m).
Recurring revenue grew by 10% to £1,805m (Q3 24 YTD: £1,645m), reflecting continued momentum in Annualised Recurring Revenue (ARR) during the period. Software subscription revenue grew by 11% to £1,549m (Q3 24 YTD: £1,390m) resulting in subscription penetration of 83% (Q3 24 YTD: 82%).
In the third quarter, total revenue increased by 9% to £620m (Q3 24: £567m), driven by continuing growth across the Sage Business Cloud portfolio.
On an organic basis (excluding the impact of M&A), total revenue increased by 9% in the first nine months of the year to £1,858m (Q3 24 YTD: £1,705m), while recurring revenue increased by 9% to £1,802m (Q3 24 YTD: £1,649m).
Foreign exchange
Sterling strengthened against the US dollar and other international currencies compared with the prior period, leading to an exchange rate headwind.
Analyst and investor conference call
Jonathan Howell will host a webcast and conference call today at 8.30am UK time. The webcast can be accessed via https://edge.media-server.com/mmc/p/24mjrmpf. To join the conference call, please register via https://register-conf.media-server.com/register/BI020d52621d70415f8ec7572165e377dd.
