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 134
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Strong Q2 order momentum creates strong visibility; chg.
Friday's Q2/H1 figures once again underlined the strength of ATOSS' recurring revenue engine, while management also provided confidence into FY27e backed by buoyant Q2 order intake. In detail:
Q2 sales increased 13.0% to € 51.8m (eNuW: € 51.6m), driven by continued strong momentum in Cloud & Subscriptions (+25.9% to € 28.7m; eNuW: € 28.5m). On the other hand, sales from legacy licenses continued to shrink, down 21.9% yoy, a drag that is self-inflicted and part of the ongoing cloud-shift. In fact, perpetual license sales now account for barely 2% of quarterly sales. Accordingly, the share of recurring revenues (Cloud & Subscriptions + Maintenance) is up another 2.5pp and now makes up almost 74% of total.
Order momentum was the highlight of the release. In Q2 alone, ATOSS added € 6.4m of Cloud & Subscription order backlog, 56% more than in the same quarter last year. With New ACV still flat in Q1, this makes the second quarter the clear inflection point in order intake. At the same time, backlog coverage of Cloud ARR improved 2pp yoy to 106%, providing a strong indicator for continued ARR growth in the quarters to come. The qualitative evidence backs this up, as ATOSS was able to gain significant new logos both domestic and internationally, especially in the healthcare and semiconductor space.
Margin risk skewed to the upside. Q2 EBIT improved 18.9% yoy to € 18.1m (eNuW: € 17.9m), implying a margin of 34.9%. Next to cloud scaling becoming increasingly visible, the base of this lies in disciplined cost management, as all cost ratios remained below budget. On this basis, the already upgraded EBIT margin target of ≥34% (H1: 35.1%) appears very conservative, especially when looking at the historic margin seasonality that sees H2 3.9pp ahead of H1 on average since 2020. Management seems to share this view, stating on the call that it rather sees the margin at 35% while explicitly refraining from lifting the outlook at this stage. That said, another guidance hike alongside the Q3 figures is clearly in the cards, in our view.
While the FY26 outlook remained unchanged, management upgraded the FY27 margin target, now eyeing for ≥35% (vs ≥33). Next to the order data, this is another key takeaway from the release, as it is indicates that cloud scaling and the efficiency gains from process optimisation and digitalisation are absorbing AI build-out without a dip, making this an impressive structural statement.
Overall, the print confirms the case as a high-quality compounder with strong visibility into further ARR acceleration. Reiterate BUY, PT € 134 based on DCF.
 
You can download the research here: atoss-software-se-2026-07-27-previewreview-en-5c661
For additional information visit our website: https://www.nuways-ag.com/research
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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