Search Icon
Search Icon
Sage investor relations | Financial information | Financial performance

Financial performance

Watch Steve Hare introduce our Half Year 2026 results.

Investment case

Building sustainable shareholder value

Our scale and experience form the foundations for our sustainable growth, and are core to Sage’s investment case.

Diversified and differentiated

  • Serving a wide range of SMBs across diverse geographies, with deep expertise across financials, payroll and HR.
  • Broad ecosystem of partners, accountants, resellers and independent software vendors (ISVs) who enrich and expand the reach of our offering.
  • Solutions backed by business advice and human customer support.

17 countries

Focused on AI and innovation

  • Expanding global cloud solutions across our markets, led by Sage Intacct.
  • Scaling and leveraging our AI-powered platform to transform the workflows of SMBs.
  • Launching AI agents to deliver enhanced levels of automation for customers.
  • Boosting productivity for SMBs by streamlining processes and delivering trusted business insights.

£379m R&D spend 
in FY25


Delivering efficient, sustainable growth

  • Focused on scaling the business, with growth creating headroom to increase investment and expand margins.
  • Growth supported by favourable SMB drivers including the need to raise productivity through digitalisation and compliance.
  • Strong commitment to sustainability supporting the long-term performance of Sage.

ARR growth 11% 
in FY25

Robust financial model

  • High-quality revenue base which is over 97% recurring, with 83% from software subscription.
  • Highly cash generative, low capital intensity business, with underlying cash conversion consistenly over 100%.
  • Organic and inorganic investment balanced with dividends and additional capital returns to shareholders where appropriate.

Cash conversion 110%
in FY25

Positioned to win in an AI world

Sage's structural advantages.

Embedded in mission critical workflows

Sage operates the system of record for finance, HR and payroll, where accuracy and compliance are non-negotiable.

Proprietary data and deep domain expertise

Our AI is trained on billions of real financial transactions, enabling superior performance. 

Building AI you can trust

Our solutions are designed for assurance, providing governed outcomes that are transparent and verifiable.

Powerful ecosystem and distribution

Network of partners, including accountants, developers and resellers, extends our reach and deepens customer relationships.

A summary of our recent financial performance and strategic KPIs.


  FY25  FY24  FY23
Alternative performance measures
      
Underlying total revenue £2,513m £2,290m  £2,094m
Underlying total revenue growth
 10%
 9%
 10%
Underlying recurring revenue
 £2,436m
 £2,215m
 £2,011m
Underlying recurring revenue growth
 10%
 10% 12%
Recurring revenue penetration
 97%
 97% 96%
Underlying operating margin
 23.90%
22.40% 20.30%
Underlying basic EPS 43.2p
 36.7p
 29.9p
Underlying cash conversion
 110%
 123% 116%
Statutory measures
      
Revenue £2,513m
 £2,332m
 £2,184m
Operating profit £530m
 £452m
 £315m
Operating profit margin
 21.1%
 19.4%
 14.4%
Basic EPS 37.7p
 32.1p
 20.7p
Dividend per share
 21.85p
 20.45p 19.3p


  FY25
 FY24 FY23
Annualised recurring revenue (ARR) growth 11%
 11% 11%
Renewal rate by value
 101%
 101%
 102%
Subscription penetration
 83%
 82% 79%

To aid comparability, underlying measures for FY23 and FY24 have been retranslated at FY25 exchange rates.

Definitions of Sage’s Alternative Performance Measures and KPIs can be found on pages 261-262 of Sage’s FY25 Annual Report and Accounts.

Explore further

Investor centre

Read more

Annual report

Read more