Sage Group Plc · LSE:SGE
Sage — The Sage Group — H1 2026 Earnings Presentation
44 slides from Sage's earnings presentation, May 21, 2026
Slide 1: Sage Half-Year Results
Sage Half-Year Results For the period ended 31 March 2026 21 May 2026
Slide 2: Important notice
Important notice The following presentation is being made only to, and is only directed at, persons to whom such environment in which the Company will operate in the future. Such risks, uncertainties and other presentation may lawfully be communicated (“relevant persons”). Any person who is not a re
Slide 3: Overview: Financial review and outlook, Strategic update, Q&A
Steve Hare Overview Financial review and outlook CEO Strategic update Q&A © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 3
Slide 4: Accelerating growth through AI
Accelerating growth through AI Strong growth More valuable Growing market and execution through AI opportunity • Double-digit revenue growth, • Embedding trusted • Addressing more tasks and accelerated renewal rate and intelligence directly into extending further into finance strong customer adds. c
Slide 5: Positioned to win in an AI world
Positioned to win in an AI world Sage’s structural advantages Embedded in Proprietary data Building AI you Powerful mission-critical and deep domain can trust ecosystem and workflows expertise distribution Sage operates the Our AI is trained on Our solutions are Network of partners, system of record
Slide 6: Overview: Financial review and outlook, Strategic update, Q&A
Jacqui Cartin Overview Financial review and outlook CFO Strategic update Q&A © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 6
Slide 7: Strong financial performance
Strong financial performance Revenue growth Operating margin Basic EPS growth Cash conversion 11% 23.9% 16% 116% H1 25: 9% H1 25: 23.1% H1 25: 17% H1 25: 115% Unless otherwise stated, all references in this presentation to revenue, profit and margin are on an underlying basis. Please note that table
Slide 8: Robust ARR growth
Robust ARR growth +11% +9% 2,727 2,453 +2% 102% Renewal by value £m 102% H1 25: 101% ARR growth 11% H1 25 Existing customers¹ Renewal by value New customers² H1 26 H1 25: 11% underlying ARR underlying ARR 1. Growth from existing customers including upsell, cross-sell and pricing, net of churn. 2. In
Slide 9: Efficient growth driving earnings
Efficient growth driving earnings Underlying H1 26 H1 25 Change Organic change Total revenue £1,363m £1,231m +11% +10% Recurring revenue £1,323m £1,192m +11% +10% Operating profit £326m £285m +15% +14% Operating profit margin % 23.9% 23.1% +0.8 ppts +0.9 ppts EBITDA £375m £331m +14% EBITDA margin %
Slide 10: Continued cloud expansion
Continued cloud expansion Sage Business Cloud Cloud native Subscription revenue growth revenue growth penetration 15% 25% 84% H1 25: 13% H1 25: 22% H1 25: 83% © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 10
Slide 11: Growth across all regions
Growth across all regions North America UKIA Europe 14% 10% 7% revenue growth revenue growth revenue growth 45% of revenue 29% of revenue 26% of revenue © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 11
Slide 12: North America: accelerating growth
North America: accelerating growth US Underlying total revenue (£m) • Strong momentum in Sage Intacct across verticals including not-for-profit, construction and financial services. 616 +14% 540 75 +9% • Deeper adoption of functionality including AI-powered 68 modules such as Accounts Payable Automa
Slide 13: UKIA: sustained momentum
UKIA: sustained momentum UK & Ireland Underlying total revenue (£m) • Sage Intacct continues to perform strongly, especially through our partner channel. 395 +10% • Strong growth in Sage 50, driven by bundling of additional 360 capabilities including Sage Copilot. 98 +10% 89 • Further growth in Sage
Slide 14: Europe: continued progress
Europe: continued progress France Underlying total revenue (£m) • Strong performance in Sage X3 and Sage 200, underpinned by strong customer demand. 352 +7% 331 • Sage Intacct gaining traction. 83 +4% 81 Iberia 93 85 +9% • Strong growth led by Sage 200 and Sage’s solutions for accountants. 165 176 +
Slide 15: Investment driving growth and margin
Investment driving growth and margin ARR growth and operating margin Sales and Marketing: £542m H1 25: £488m 40% (as % of total revenue) Underlying +11% +11% ARR growth Research and Development: £208m H1 25: £190m 15% (as % of total revenue) Underlying 23.1% 23.9% operating margin General and Admini
Slide 16: Continuing EPS growth
Continuing EPS growth Underlying 23.7p basic EPS growth 20.5p 16% 15% Underlying WANOS £31m growth ETR 24% 946m H1 25 Underlying Net finance Income Share H1 26 underlying operating costs tax issues/ underlying basic EPS profit buybacks basic EPS ETR = Effective Tax Rate WANOS = Weighted Average Numb
Slide 17: Strong cash generation
Strong cash generation +26 116% 378 Underlying +25 -22 cash conversion +23 326 241 -137 Underlying Depreciation, Share based Working Capex Operating Interest, Free cash flow operating amortisation payments capital cash flow tax and other profit and other Figures in £m. See appendix for definitions.
Slide 18: Robust financial position
Robust financial position Cash and liquidity Net debt Net debt leverage £1.1bn £1.5bn 2.0x Broad range of 1.0x-2.0x net debt to underlying EBITDA over medium term with flexibility to move outside this range if business needs require See appendix for definitions © 2026 The Sage Group plc, or its lice
Slide 19: Active capital allocation
Active capital allocation R&D spend (£m) M&A1 (£m) Dividends (pence) Share buybacks2 (£m) £208m in H1 26 £53m in H1 26 8% year-on-year increase £353m in H1 26 208 55 53 7.5 8.1 8.05 350 353 190 190 7.0 6.95 7.45 310 306 300 171 171 293 36 H1 24 H1 25 H1 26 H1 24 H1 25 H1 26 H1 24 H1 25 H1 26 H1 24 H
Slide 20: Outlook
Outlook Building on strong momentum, we now expect: • Organic revenue growth in FY26 to be above 9%. • Operating margins to continue trending upwards in FY26 and beyond, as we focus on efficiently scaling the Group. Bango Sage customer Cornwall Insight Sage customer © 2026 The Sage Group plc, or its
Slide 21: Overview: Financial review and outlook, Strategic update, Q&A
Steve Hare Overview Financial review and outlook CEO Strategic update Q&A © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 21
Slide 22: Long history of AI innovation
Long history of AI innovation 2018 2020 2022 2024 2026 Sage AI Real-time Sage Sage Copilot Close AI Agents Labs Outlier Intelligent Copilot Search Agent launched Detection Time Help Predictive Generative Agentic Sustained AI investment over nearly a decade, steadily increasing customer value across
Slide 23: Meeting the needs of our customers
Meeting the needs of our customers Our strategy is to build AI you can trust SMBs want reliable, trusted technology Confidence Outputs are explainable and verifiable 70% of finance leaders would reject an AI Control system that cannot Agents operate within customer-defined guardrails and with human
Slide 24: Sage Intacct at the New York Yankees
I was proud to share how Sage Intacct helps give our finance team at the New York Yankees the clarity and insight we need to move faster and make better decisions. Scott Krug SVP and CFO, New York Yankees TM/© 2026 MLB © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 24
Slide 25: Sage Platform: AI at the core
Sage Platform: AI at the core frastructu red In re Sha Ec os e Ai Factory Sag ys es • Platform supports rapid innovation Sage te c ialist tools and Spec uct vi Customers m and consistent AI deployment. Products str ure tha er infra Co t automates AI cS lla el training mod nti Sa bor ge Age • Intelli
Slide 26: Enabling agentic workflows
Enabling agentic workflows Close Agent Assurance Agent Accounts Payable Agent Accelerates invoice processing, Accelerates month-end close Proactively monitors data in real-time approvals and reconciliation Over 500 customers, following Identified 6 million potential Processing over $3.3 billion of l
Slide 27: Scaling our ecosystem
Scaling our ecosystem Building our agentic ecosystem • Launched Sage AI Gateway and AI Developer Solutions • Supports revenue sharing and consumption-based pricing What really stands out is the Accelerating deployments introduction of capabilities like • Embedding AI into implementations in partners
Slide 28: Driving revenue growth
Driving revenue growth Expanding our market opportunity Enhancing value for customers Building an agentic intelligence layer Mid-market highlights Making our products more powerful and productive Strong Sage Intacct performance ARR up > 20% in the US and c.50% internationally Sage X3 growth c.15% ac
Slide 29: Transforming our operations
Transforming our operations Through AI and automation R&D 160,000 hours saved in the last six months Faster innovation Reinvested into faster product delivery Sales Improved lead quality and conversion Higher-quality growth Saving time for go-to-market teams Customer support 70% resolution rate Bett
Slide 30: Creating value through efficient growth
Creating value through efficient growth Clear strategic Mission-critical Resilient focus solutions financial model Strong brand, global Committed to meeting High-quality recurring products, broad geographic customers’ needs with revenue model, delivering reach and deep domain trusted AI centred on s
Slide 31: Key messages
Key messages Strong growth More valuable Growing market and execution through AI opportunity © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 31
Slide 32: Q&A Overview
Q&A Overview Financial review and outlook Strategic update Q&A © 2026 The Sage Group plc, or its licensors. All rights reserved. Page 32
Slide 33: Appendix
Appendix
Slide 34: Strategic framework for growth
Strategic framework for growth Purpose To knock down barriers so everyone can thrive Ambition To create the world’s most trusted and thriving network for SMBs, powered by AI Connect Grow Deliver Strategy Connecting SMBs through our Winning new customers and Delivering productivity and trusted and th
Slide 35: Scaling Sage AI – key announcements
Scaling Sage AI – key announcements FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY 2025 2026 Sage Copilot Sage Copilot MTD for Income Finance Sage Copilot Sage Intacct and available in Sage available in X3 Tax Agent (UK) Intelligence available in HCM Agent Accounting (UK) launched A
Slide 36: Sage Business Cloud portfolio
Sage Business Cloud portfolio Cloud Connected Cloud Native Accounting and Financials People and Payroll Mid-sized • Sage 200 • Sage Intacct • Sage HCM businesses • Sage X3 • Sage X3 • Sage People Small • Sage 50 • Sage Active • Sage HR businesses • Sage 50 Payroll • Sage Accounting • Sage Payroll Sa
Slide 37: Bridge from underlying to organic
Bridge from underlying to organic ARR Recurring revenue Total revenue Operating profit £m H1 26 H1 25 Growth H1 26 H1 25 Growth H1 26 H1 25 Growth H1 26 H1 25 Growth Underlying 2,727 2,453 +11% 1,323 1,192 +11% 1,363 1,231 +11% 326 285 +15% Acquisitions1 (6) 8 (2) 3 (3) 4 (1) - Disposals - - - - - -
Slide 38: Cloud and subscription revenue mix
Cloud and subscription revenue mix Cloud revenue mix Subscription revenue mix Organic Organic £m H1 26 H1 25 Change £m H1 26 H1 25 Change change change Cloud native 518 416 +25% +23% Subscription 1,150 1,022 +12% +12% Cloud connected 643 595 +8% +8% Other recurring revenue 173 170 +2% +2% Sage Busin
Slide 39: Cloud mix over time
Cloud mix over time 17% 17% 15% 15% 21% 20% 20% 20% 18% 18% 27% 26% 25% 24% 33% 36% 33% 38% 37% 36% 46% 45% 46% 44% 42% 45% 44% 53% 50% 50% 54% 53% 55% 54% 55% 48% 47% 48% 48% 48% 48% 49% 49% 49% 49% 46% 47% 47% 48% 44% 42% 44% 42% 42% 39% 40% 39% 40% 41% 40% 40% 37% 33% 34% 33% 35% 37% 34% 35% 35%
Slide 40: Strategic contribution from M&A
Strategic contribution from M&A Acquisitions completed in FY26 YTD US Unified HR, payroll, talent engagement and workforce management system France Specialist in digitalisation and invoicing automation solutions US AI-powered financial data migration platform Acquisitions completed in FY25 Spain Mob
Slide 41: Sustainability highlights
Sustainability highlights Protect the planet Tech for good Human by design Pledged to get to net zero by 2040 Supporting SMBs and communities Championing inclusive, progressive and to halve emissions by 2030. through our trusted network. and healthy working environments. • Maintained CDP ‘A’ rating
Slide 42: Glossary
Glossary Measure/description Underlying (revenue and profit) measures Organic (revenue and profit) measures Underlying measures are adjusted to exclude items which in management’s In addition to the adjustments made for Underlying measures, Organic measures: judgement need to be disclosed separately
Slide 43: Glossary
Glossary Measure/description Underlying Cash Flow from Operations Renewal Rate by Value Underlying Cash Flow from Operations is Underlying Operating Profit adjusted for The ARR from renewals, migrations, upsell, and cross-sell of active customers at non-cash items, net capital expenditure (excluding
Slide 44: About Sage
About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses 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 rela