Sage delivered another good performance in FY25. Strong, broad-based revenue growth and significant margin expansion reflect our focus on strategic execution, our resilient business model, and continuing investment in our products, our platform and our people.

We are excited by the pace of technological change. AI is opening up new possibilities for businesses and creating a significant opportunity for Sage, enabling us to enhance and accelerate the benefits our software provides. Sage Copilot is already creating value, helping customers make smarter decisions and be more productive, while our launch of AI agents is delivering the next wave of intelligent solutions.

With our global platform, trusted brand and focused innovation strategy, Sage is exceptionally well positioned to support small and mid-sized businesses as they adopt AI-enabled services. This drives confidence in our ability to deliver strong, sustainable growth and long-term value for all stakeholders.

Underlying Financial APMs1	FY25	FY242	Change	Organic change
Annualised Recurring Revenue (ARR)	£2,574m	£2,329m	+11%	+10%
Underlying Total Revenue	£2,513m	£2,290m	+10%	+9%
Underlying Operating Profit	£600m	£513m	+17%	+16%
% Underlying Operating Profit Margin	23.9%	22.4%	+1.5 ppts	+1.5 ppts
Underlying EBITDA	£694m	£605m	+15%
% Underlying EBITDA Margin	27.6%	26.4%	+1.2 ppts
Underlying Basic EPS (p)	43.2p	36.7p	+18%
Underlying Cash Conversion	110%	123%	-13 ppts
Statutory Measures	FY25	FY24	Change
Revenue	£2,513m	£2,332m	+8%
Operating Profit	£530m	£452m	+17%
% Operating Profit Margin	21.1%	19.4%	+1.7 ppts
Basic EPS (p)	37.7p	32.1p	+18%
Dividend Per Share (p)	21.85p	20.45p	+7%

Please note that tables may not cast and change percentages may not calculate precisely due to rounding.

Financial highlights   

• Underlying total revenue increased by 10% to £2,513m, reflecting our high-quality subscription-based recurring revenue model.
• Underlying operating profit grew by 17% to £600m, driving a strong margin increase of 150 basis points to 23.9%, with disciplined cost management  supporting ongoing investment.
• Underlying EBITDA increased by 15% to £694m, with margin increasing by 120 basis points to 27.6%.
• Statutory operating profit increased by 17% to £530m reflecting growth in underlying operating profit together with lower acquisition-related expenses.
• Underlying basic EPS increased by 18% to 43.2p, whilst statutory basic EPS also increased by 18% to 37.7p.
• Strong cash performance, with underlying cash conversion of 110%, reflecting continued growth in subscription revenue and good working capital management.
• Robust balance sheet, with £1.0bn of cash and available liquidity; net debt to underlying EBITDA of 1.7x.

Shareholder returns

• Proposed final dividend of 14.4p, increasing the full year dividend by 7% to 21.85p, in line with our progressive policy.
• Share buyback programme of up to £300m announced separately today, reflecting Sage’s strong cash generation, robust financial position, and the Board’s confidence in Sage’s future prospects.

Strategic and operational highlights

• Underlying annualised recurring revenue (ARR) up 11% to £2,574m, with growth across all regions balanced between new and existing customers.
• Renewal rate by value of 101% (FY24: 101%), reflecting strong retention rates and a good level of sales to existing customers.
• Sage Business Cloud revenue increased by 13% to £2,083m (FY24: £1,837m), including cloud native revenue growth of 23% to £885m (FY24: £718m).
• Subscription penetration increased to 83% (FY24: 82%) driven by growth in subscription revenue of 12% to £2,093m (FY24: £1,876m).
• Strong growth across our cloud products, particularly Sage Intacct, supported by continued investment in our customer proposition and go-to-market capabilities.
• Leveraging the Sage Platform to enhance our portfolio of integrated solutions across finance, HR and payroll, supported by the acquisitions of ForceManager, Fyle and Criterion³.
• Scaled the availability and usage of Sage Copilot across core products including Sage Intacct, Sage X3, Sage Accounting and Sage 50, while introducing intelligent AI agents across our platform.

Outlook

In FY26, we expect organic total revenue growth to be 9% or above. Operating margins are expected to continue trending upwards in FY26 and beyond, as we focus on efficiently scaling the Group.

About Sage

Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses (SMBs) served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitalising business processes and relationships with customers, suppliers, employees, banks and governments, our AI-powered platform connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.