Business
74Software : 2026 Interim Financial Report
74Software : 2026 Interim Financial
About this update from 74software
2026 Interim Financial Report Contents 01. Half - yea r 1 management report Statutory Auditorsʼ 33 report on the interim Key events in the first half of 2026 2 74Software reports strong H1 2026 results and raises full- 2 year guidances financial statements 02. Business Highlights 2 H1 2026 Operational Performance 3 H1 2026 Net Profit 5 Financial position at 30 June 2026 5 Share buy-backs 6 Change in the workforce 6 2026 Targets & Ambitions 6 Main risks and uncertainties for the second half of 2026 6 Events after the reporting period 6 Glossary - Alternative Performance Measures 7 Condensed interim 9 consolidated financial statements Declaration 34 by the person responsible for the interim financial report Consolidated income statement 10 Consolidated statement of comprehensive income 10 Consolidated statement of financial position 11 Consolidated statement of changes in equity 12 Consolidated statement of cash flows 13 Notes to the condensed consolidated financial statements 14 01 Haṯf - year management report Key events in the first half of 2026 2 Share buy-backs 6 74Software reports strong H1 2026 results and raises full-year guidances 2 Change in the workforce 6 2026 fiargets & Ambitions 6 Business Highlights 2 H1 2026 Operational Performance 3 H1 2026 Net Profit 5 Financial position at 30 June 2026 5 Main risks and uncertainties 6 for the second half of 2026 Events after the reporting period 6 Glossary - Alternative 7 Performance Measures Interim Financial Report 2026 ◼ 74Software 1 Key events in the first half of 2026 The key events in the first half of 2026 were as follows: Group H1 2026 revenue of €367.0m, up 8.6% organically and 6.7% in total; Strong H1 across both brands - Axway up 11.7% to €174.6m and SBS up 5.9% to €193.3m; Marked improvement in margin on operating activities, up 317bps to 15.2% of revenue (€55.7m); ARR increased year-on-year by 11.2% at Axway and 8.9% at SBS, further strengthening recurring revenues. 74Software reports strong H1 2026 results and raises full-year guidances H1 2026 H1 2025 Change / Ratio €m €m Revenue 367.0 337.8 Organic growth: 8.6% Product revenue 304.1 274.4 Organic growth: 10.8% o/w Recurring revenue 277.6 252.4 91.3% of Product revenue ARR at period-end - Axway 288.7 259.7 11.2% YoY at constant FX ARR at period-end - SBS 252.8 232.1 8.9% YoY at constant FX Profit on operating activities 55.7 41.3 Margin: 15.2% Net profit 27.4 5.8 Net margin: 7.5% Unlevered free cash flow 32.8 76.4 8.9% of revenue Net debt at period-end 181.3 191.8 Down €10.5m YoY; leverage: 1.39x Patrick Donovan, Chief Executive Officer, declared: "74Software delivered a strong first half of 2026, combining sustained organic growth with significant margin expansion. This performance reflects the resilience of our installed base, the enduring importance of our mission-critical software and disciplined execution across both Axway and SBS. As AI adoption moves from experimentation to industrialization, the ability to connect, govern and secure critical systems and data becomes increasingly important. This reinforces the strategic relevance of our portfolio and creates further expansion opportunities within our customer base. Based on our H1 execution and improved full-year visibility, we are raising our 2026 objectives while maintaining our focus on disciplined delivery and our 2028 ambitions." Business Highlights 74Software delivered strong growth across both brands in H1 2026, together with a significant improvement in profitability, underpinned by growth in subscriptions and licenses. The Group continued to strengthen its capabilities while maintaining disciplined capital allocation and preserving flexibility for selective M&A. Axway delivered a strong first half, supported by Managed File Transfer, sustained momentum in the Americas and continued progress on its offer roadmap. Within MFT, the new Axway Workbench offer strengthened the portfolio by providing unified visibility and operational control across complex file-transfer environments. API Management also gained traction, notably through Amplify Fusion, Axway's unified integration offering combining API management, iPaaS and B2B/MFT capabilities, which recorded 48 wins year-to-date across modernization and extension use cases. The AI Gateway also strengthened the API Management business line by addressing the secure governance of enterprise AI usage. SBS maintained solid momentum as banks continued to modernize core platforms, lending operations and digital channels. Amplitude, one of SBS's integrated core banking offerings, recorded 11 signatures in H1, with particularly strong activity in Africa. Modular Products also gained further traction, including three new digital engagement signatures, while Financing Products benefited from sustained activity in the UK. SBS AI Foundation was officially launched in early July, with its first client already live. The new offering combines a governed data layer connected to SBS's product portfolio with an AI platform supporting use cases designed to augment bankers' day-to-day operations. AI-enriched versions of all key solutions are expected from early 2027. Across both brands, artificial intelligence is being embedded where 74Software has durable advantages: governed connectivity, trusted data, domain-specific workflows and production-grade control. Axway enables enterprises to connect models and agents securely to existing systems while maintaining control over their interactions. SBS, meanwhile, is embedding AI into regulated banking processes built on structured data and established business logic. The Group's opportunity lies in enabling the industrialization of AI usage through integration, governance, observability and auditable workflows. This positioning is becoming increasingly relevant as customers move from isolated pilots toward scaled production deployments. The Group enters the second half of 2026 with greater visibility, supported by strong first-half execution and a structurally higher recurring revenue base. Quarterly performance will continue to reflect renewal cycles and contract phasing inherent to the software model, while the continued expansion of subscription revenue is enhancing predictability, as reflected in ARR growth across both brands. H1 2026 Operational Performance Revenue by Portfolio Brand €m / % H1 2026 H1 2025 H1 2025 Restated Total Growth Organic Growth Axway Scope 174.6 160.8 156.3 8.6% 11.7% SBS Scope 193.3 184.2 182.5 5.0% 5.9% Consolidation -0.9 -1.0 -1.0 -3.7% -3.7% 74SOFTWARE 367.0 344.0 337.8 6.7% 8.6% H1 2026 revenue reached €367.0 million, up 8.6% organically, with Axway up 11.7% and SBS up 5.9%. Currency movements had a negative impact of €6.2 million, mainly reflecting the stronger euro against the US dollar and British pound. Revenue by Type €m / % H1 2026 H1 2025 H1 2025 Restated Total Growth Organic Growth Product revenue 304.1 280.0 274.4 8.6% 10.8% Recurring revenue 277.6 258.0 252.4 7.6% 10.0% o/w Maintenance & Support 77.1 91.5 89.7 -15.7% -14.1% o/w Customer-managed Subscription 124.4 97.7 95.7 27.3% 30.0% o/w Upfront Revenue 72.8 56.4 55.2 29.1% 31.9% o/w Recurring 51.6 41.3 40.5 24.9% 27.6% o/w Own-managed Subscription 76.1 68.7 67.0 10.7% 13.5% Licenses revenue 26.5 22.1 22.0 19.9% 20.6% Services revenue 62.9 64.0 63.5 -1.6% -0.8% TOTAL REVENUE 367.0 344.0 337.8 6.7% 8.6% Product revenue reached €304.1 million, up 10.8% organically and representing 82.9% of total revenue. Recurring revenue increased 10.0% organically to €277.6 million, equivalent to 91.3% of Product revenue. Axway's Product revenue reached €157.2 million, up 13.0% organically, driven by continued recurring revenue growth and sustained demand across the MFT and API Management product lines. SBS's Product revenue reached €147.8 million, up 8.5% organically, supported by solid momentum across its main business lines, notably Integrated Products, Financing Products, and Modular Products. Services revenue declined slightly to €62.9 million from €64.0 million in H1 2025, as the Group continued to focus on higher-value services supporting delivery and product adoption. Services represented 17.1% of Group revenue, down from 18.6%. ARR by Product Line 14% 15% 19% 43% 20% 42% H1'25 24% 23% 18% 20% 27% 26% H1'25 12% 42% 13% 42% H1'26 Managed File Transfer B2B Integration API Management Specialised Products H1'26 Financing Products Modular Products Integrated Products Banking Components On June 30, 2026, Axway ARR amounted to €288.7 million, up 11.2% at constant exchange rates, led by strong growth in APIM, up 18.9%, and Managed File Transfer, up 13.5%. SBS ARR Profit on Operating Activities reached €252.8 million, up 8.9% at constant exchange rates, driven by Modular Products (+13.7%), Financing Products (+12.7%) and Integrated Products (+10.5%). H1 2026 H1 2025 Change €m % of Rev. €m % of Rev. €m Basis Points Product revenue 304.1 82.9% 280.0 81.4% +24.0 +144 Services revenue 62.9 17.1% 64.0 18.6% -1.0 -144 Total revenue 367.0 344.0 +23.0 Total costs of revenue 120.2 115.9 +4.3 Gross profit 246.8 67.2% 228.1 66.3% +18.7 +95 o/w product gross profit 236.4 77.7% 217.9 77.8% +18.5 -6 o/w services gross profit 10.4 16.6% 10.2 15.9% +0.2 +63 Operating expenses 154.3 42.0% 156.0 45.4% -1.8 -332 o/w research & development 90.5 24.7% 93.2 27.1% -2.7 -243 o/w sales & marketing 63.7 17.4% 62.8 18.3% +0.9 -89 Brand Contribution 92.5 25.2% 72.1 20.9% +20.5 +427 o/w general & administrative 36.9 10.0% 30.8 8.9% +6.1 +110 Profit on operating activities 55.7 15.2% 41.3 12.0% +14.4 +317 Net Capitalisation of R&D 6.7 1.8% 8.4 2.4% -1.6 -60 in % of gross R&D 6.9% 8.2% -132 In H1 2026, profit on operating activities increased by 34.8% to €55.7 million, lifting the margin by 3.2 points to 15.2%, compared with €41.3 million and 12.0% in H1 2025. This strong operating leverage was supported by revenue growth, a more favorable product mix and disciplined cost and resource management. Gross profit increased by 8.2% to €246.8 million, with the gross margin expanding to 67.2%, compared with 66.3% in H1 2025. Research & Development decreased by €2.7 million while Sales & Marketing expenses grew marginally, resulting in a strong increase in brand contribution to €92.5 million, representing 25.2% of revenue, compared with €72.1 million and 20.9% in H1 2025. Centrally managed G&A expenses increased to €36.9 million, compared with €30.8 million in the prior year period. This increase to 10.0% of revenue was driven by investments in Group capabilities, increased bonus accruals based on higher H1 profitability, as well as timing effects expected to normalize over the full year. H1 2026 Net Profit Net profit more than quadrupled year-on-year, driven by higher profit on operating activities, lower other operating charges and an improved financial result. H1 2026 H1 2025 Change €m % of Rev. €m % of Rev. €m Basis points PROFIT ON OPERATING ACTIVITIES 55.7 15.2% 41.3 12.0% 14.4 +317 Share-based expenses -4.5 -6.7 2.1 Amortisation of allocated intangibles -5.9 -6.2 0.2 PROFIT FROM RECURRING OPERATIONS 45.2 12.3% 28.4 8.3% 16.8 +405 Other operating income and expenses -1.2 -8.9 7.7 OPERATING PROFIT 43.9 12.0% 19.5 5.7% 24.4 +630 Cost of financial debt -6.6 -9.0 2.5 Other financial income and expenses -2.8 -2.2 -0.6 Income tax expenses -7.1 -2.5 -4.7 NET PROFIT 27.4 7.5% 5.8 1.7% 21.6 +577 Earnings per share €0.94 €0.20 €0.74 Profit from recurring operations reached €45.2 million, representing 12.3% of revenue, compared with €28.4 million and 8.3% in H1 2025. Share-based expenses decreased to €4.5 million from €6.7 million, reflecting the absence of the one-off adjustment to social-security provisions that affected the prior-year period following the change in French law. Other operating income and expenses represented a net charge of €1.2 million, compared with a net charge of €8.9 million in H1 2025. The charge for H1 2026 is mainly related to integration expenses, while the prior year included significant restructuring charges. As a result, operating profit reached €43.9 million, or 12.0% of revenue, compared with €19.5 million and 5.7% in the prior-year period. After a net financial expense of €9.4 million and an income tax charge of €7.1 million, net profit increased to €27.4 million, representing 7.5% of revenue, compared with €5.8 million and 1.7% in H1 2025. Earnings per share reached €0.94, compared with €0.20 in the prior year period. Financial position at 30 June 2026 As of June 30, 2026, 74Software maintained a strong financial position, using its cash generation to further reduce net debt while repurchasing shares. Unlevered free cash flow amounted to €32.8 million, representing 8.9% of revenue, compared with €76.4 million and 22.2% in H1 2025. The year-on-year decrease mainly reflected the swing from a €55.0 million working-capital inflow in H1 2025 to a €7.8 million outflow in H1 2026, driven by strong growth in customer-managed subscriptions, an unfavorable year-on-year factoring effect and a more balanced seasonal pattern of revenue and collections, resulting in a shift in cash generation from H1 to H2. Excluding working-capital movements, operating cash flow increased to €61.8 million from €34.6 million, reflecting stronger underlying operating performance. Net debt was reduced to €181.3 million, from €193.0 million on December 31, 2025. The Group's leverage ratio improved to 1.39x on June 30, 2026, compared with 1.71x on December 31, 2025, on a comparable basis under the revised definition introduced following the April 2026 refinancing. Equity increased to €577.1 million and net debt declined to 23.9% of total capital from 27.2% on June 30, 2025. Together with the Group's growing recurring revenue base and improving profitability, the Group's stronger financial profile supports greater visibility in international capital markets. 74Software continues to explore alternatives to improve trading liquidity in its shares. Over the first six months of 2026, average daily trading volumes on Euronext Paris more than doubled compared with the same period in 2025. Share buy-backs As announced with its FY 2025 results, 74Software intends to repurchase up to 800,000 shares during 2026 to cover its employee long-term incentive plans. On June 30, 2026, the Group had repurchased 421,052 shares for €14.1 million, at a weighted average price of €33.43 per share, leaving up to 378,948 additional shares available for potential repurchase during the remainder of the year. Change in the workforce On June 30, 2026, the Group employed 4,527 full-time equivalents, compared with 4,679 on June 30, 2025 and 4,571 at December 31, 2025. This evolution reflects continued resource discipline across both brands, while preserving the capabilities required for customer delivery, product development and strategic execution. Investment remained focused on cloud, automation, AI-related initiatives and selected customer-facing expertise. 2026 fiargets & Ambitions Considering the strong H1 revenue growth, significant margin expansion and increased visibility provided by its recurring revenue base, 74Software is raising its 2026 guidance. 2026 Guidance and Medium-term ambition FY 2026 Updated Guidance at constant exchange rates Medium-term ambition Organic revenue growth: 3% to 5% 4% to 6% Margin on operating activities: 15% to 17% 16% to 18% Unlevered free cash flow: around 10% of revenue (unchanged) Revenue close to €800m and margin on operating activities ~ 20% by end-2028 €1bn revenue ambition over the medium term, including selective acquisitions Main risks and uncertainties for the second half of 2026 The level and nature of the risks to which the Group is exposed are unchanged on the risk factors presented on pages 41 to 56 of the 2025 Universal Registration Document. Events after the reporting period Between 1 July 2026 and the date of the Board of Directors' meeting held on 23 July 2026, there were no other significant events likely to impact the financial statements. Glossary - Alternative Performance Measures Axway ARR: Annual Recurring Revenue - Expected annual billing amounts from all active maintenance and subscription agreements. Brand Contribution: Contribution to profit on operating activities generated by Axway and SBS before centrally managed general and administrative expenses. SBS ARR: Annual Recurring Revenue - Monthly recurring revenue (MRR) for the last month of the reporting period multiplied by 12. Where contracts are affected by seasonality or contracted volume-based elements, the last 12 months of revenue are aggregated in determining ARR. Expected recurring revenue from contracts signed but not yet active is not included in ARR. NPS: Net Promoter Score - Customer satisfaction and recommendation indicator for a company. Organic growth: Growth in revenue between the period under review and the prior period, restated for consolidation scope and exchange rate impacts. Profit on operating activities: Profit from recurring operations adjusted for the non-cash share-based payment expense, as well as the amortization of allocated intangible assets. Proforma: Proforma measures assume the acquisition of SBS happened at the beginning of the respective reporting period. Restated revenue: Revenue for the prior year, adjusted for the consolidation scope and exchange rates of the current year. Unlevered free cash flow: Free cash flow before exceptional items and before net interest expense. 02 Condensed interim consoṯidated financiaṯ statements Consolidated income statement 10 Consolidated statement of cash 13 flows Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity 10 Notes to the condensed 14 consolidated financial statements 11 12 Interim Financial Report 2026 ◼ 74Software 9 Consolidated income statement (in thousands of euros) Notes H1 2026 H1 2025 Revenue 3 and 4 366,989 343,987 Employee costs 5.1 -218,453 -209,477 External expenses 6 -75,033 -78,627 Taxes and duties -3,957 -5,788 Depreciation and amortisation, provisions and impairment -14,310 -11,189 Other current operating income and expenses 429 2,378 Profit on operating activities 55,665 41,285 As a % of revenue 15.2% 12.0% Share-based payment expense 7 -4,526 -6,652 Amortisation of allocated intangible assets -5,945 -6,190 Profit from recurring operations 45,193 28,443 As a % of revenue 12.3% 8.3% Other operating income and expenses 8 -1,244 -8,902 Operating profit 43,950 19,541 As a % of revenue 12.0% 5.7% Cost of net financial debt 9.1 -6,568 -9,029 Other financial income and expenses 9.2 -2,848 -2,219 Income tax expense 10 -7,141 -2,477 Profit for the year from continuing operations 27,393 5,816 Profit for the year 27,393 5,816 As a % of revenue 7.5% 1.7% of which attributable to non-controlling interests 11 20 of which attributable to owners of the Company 27,382 5,796 Net income per share - attributable to owners of the Company (in euros) Notes H1 2026 H1 2025 Basic earnings per share 11 0.94 0.20 Diluted earnings per share 11 0.91 0.19 Consolidated statement of comprehensive income (in thousands of euros) H1 2026 H1 2025 Consolidated profit for the year 27,393 5,816 Other comprehensive income: Actuarial gains and losses on pension plans 2,084 -602 Tax impact -558 156 Sub-total items that will not be reclassified subsequently to profit or loss 1,526 -447 Share attributable to non-controlling interests 7 -4 Translation adjustments 3,862 -26,068 Change in fair value of foreign exchange derivative instruments 715 -2,710 Tax effects on foreign exchange derivative instruments -181 684 Sub-total items that may not be reclassified subsequently to profit or loss 4,404 -28,098 Total other comprehensive income, net of tax 5,929 -28,545 TOTAL COMPREHENSIVE INCOME 33,322 -22,729 of which attributable to non-controlling interests 18 17 OF WHICH ATTRIBUTABLE TO OWNERS OF THE COMPANY 33,304 -22,745 Consolidated statement of financial position 6ээс*э (in thousands of euros) Notes 30/06/2026 31/12/2025 Goodwill 12.1 527,766 523,196 Intangible assets 134,213 133,507 Property, plant and equipment 21,656 20,093 Lease right-of-use assets 13.1 45,666 49,834 Non-current financial and other assets 17,004 17,672 Deferred tax assets 34,443 34,279 Non-current assets 780,747 778,581 Inventories and work in progress 8,076 6,872 Trade receivables and related accounts 14 308,729 279,881 Other current receivables 94,997 97,110 Cash and cash equivalents 16 65,168 49,075 Current assets 476,970 432,938 TOTAL ASSETS 1,257,717 1,211,519 Eqsi*y ank ṯiadiṯi*iсэ (in thousands of euros) Notes 30/06/2026 31/12/2025 Share capital 59,492 59,492 Capital reserves 223,714 223,714 Consolidated and other reserves 266,485 229,471 Profit (loss) for the period 27,382 40,751 Equity - share attributable to owners of the Company 577,074 553,429 Non-controlling interests 67 55 TOTAL EQUITY 15 577,141 553,484 Financial debt - long-term portion 16 and 17 199,395 226,869 Lease liabilities - long-term portion 13.2 42,246 47,251 Deferred tax liabilities 30,135 30,047 Retirement benefits and similar commitments 31,344 32,569 Other non-current liabilities including long-term provisions 5,938 6,153 Non-current liabilities 309,058 342,889 Financial debt - short-term portion 16 and 17 47,109 15,204 Lease liabilities - short-term portion 13.2 11,587 10,606 Trade accounts payable 29,286 32,747 Deferred income 18 143,951 95,431 Other current liabilities 19 139,585 161,158 Current liabilities 371,518 315,146 TOTAL LIABILITIES 680,576 658,035 TOTAL EQUITY AND LIABILITIES 1,257,717 1,211,519 Consolidated statement of changes in equity (in thousands of euros) Share capital Capital reserves Treasury shares Reserves and consolidated profit Other comprehensive income Attributable to: owners of the non-controlling Company interests Total AT 30/06/2025 59,492 223,714 -11,062 223,275 17,245 512,665 116 512,781 Capital transactions - - - - - - - - Share-based payments - - - 2,084 - 2,084 - 2,084 Transactions in treasury shares - - -91 -238 - -329 - -329 Ordinary dividends - - - - - - - - Changes in scope of consolidation - - - - - - - - Other movements - - - 49 39 89 -60 28 Transactions with shareholders - - -91 1,896 39 1,844 -60 1,783 Profit for the period - - - 34,955 - 34,955 -9 34,946 Other comprehensive income - - - - 3,965 3,965 9 3,974 Total comprehensive income for the period - - - 34,955 3,965 38,920 -1 38,920 AT 31/12/2025 59,492 223,714 -11,153 260,126 21,249 553,429 55 553,484 Capital transactions - - - - - - - - Share-based payments - - - 4,158 - 4,158 - 4,158 Transactions in treasury shares - - -9,050 -5,052 - -14,102 - -14,102 Ordinary dividends - - - - - - - - Changes in scope of consolidation - - - - - - - - Other movements - - - 297 -12 285 -6 279 Transactions with shareholders - - -9,050 -597 -12 -9,659 -6 -9,665 Profit for the period - - - 27,382 - 27,382 11 27,393 Other comprehensive income - - - - 5,922 5,922 7 5,929 Total comprehensive income for the period - - - 27,382 5,922 33,304 18 33,322 AT 30/06/2026 59,492 223,714 -20,203 286,911 27,160 577,074 67 577,141 Consolidated statement of cash flows (in thousands of euros) Notes H1 2026 H1 2025 Consolidated profit (including share attributable to non-controlling interests) 27,393 5,816 Net charges to depreciation, amortisation and provisions 18,395 16,694 Unrealised gains and losses relating to changes in fair value -199 1,634 Share-based payment expense 7 4,155 4,497 Gains and losses on disposal 1,447 455 Cash from operations after cost of net financial debt and tax 51,191 29,096 Cost of net financial debt 9.1 6,568 9,029 Income tax expense (including deferred tax) 10 7,141 2,477 Cash from operations before cost of net financial debt and tax (A) 64,900 40,602 Tax paid (B) -3,150 -5,962 Changes to operating working capital requirements (including liabilities related to employee benefits) (C) -7,812 55,000 Net cash from operating activities (D) = (A + B + C) 53,938 89,640 Purchases of intangible assets and PP&E -13,085 -14,849 Proceeds from sale of intangible assets and PP&E 19 -7 Impact of changes in the scope of consolidation 12 - - Change in loans and advances granted -467 94 Other cash flows from investing activities 490 589 Net cash from (used in) investing activities (E) -13,043 -14,173 Proceeds from the exercise of stock options - - Purchases and proceeds from disposal of treasury shares 7 -14,113 -2,489 Dividends paid to shareholders of the parent company - - Proceeds from borrowings 16 234,008 - Repayment of borrowings 16 -240,374 -42,296 Change in lease liabilities 13 -8,698 -7,281 Net interest paid (including finance leases) -5,375 -7,799 Other cash flows relating to financing activities -519 1,798 Net cash from (used in) financing activities (F) -35,073 -58,067 Effect of foreign exchange rate changes (G) 359 -1,359 Effect of changes in accounting policy (G) - 172 Net change in cash and cash equivalents (D + E + F + G) 6,182 16,212 Opening cash position 48,260 40,381 Closing cash position 54,441 56,593 The closing cash position is equal to Cash and cash equivalents less bank overdrafts. Notes to the condensed consolidated financial statements Contents Contents 14 Note 1 Accounting policies 15 Note 2 Key events and scope of consolidation 16 Notes to the consolidated income statement 17 Note 3 Segment reporting 17 Note 4 Revenue 19 Note 5 Employee costs 20 Note 6 Purchases and external expenses 21 Note 7 Share-based and similar payment expenses 21 Note 8 Other operating income and expenses 22 Note 9 Financial income and expense 22 Notes to the consolidated statement of financial 24 position Note 12 Goodwill 24 Note 13 Leases 25 Note 14 Trade receivables and related accounts 25 Note 15 Equity 26 Note 16 Financial debt - Net debt 27 Note 17 Change in net debt 28 Note 18 Current deferred income 29 Note 19 Other current liabilities 30 Other information 31 Note 10 Income tax expense 23 Note 20 Related-party transactions 31 Note 11 Earnings per share 23 Note 21 Off-balance-sheet commitments and contingent liabilities 31 Note 22 Exceptional events and legal disputes 32 Note 23 Events after the reporting period 32 Note 1 Accounting policies The condensed interim consolidated financial statements for the half-year ended 30 June 2026, together with the accompanying notes, were prepared under the responsibility of the Board of Directors and approved at its meeting of 23 July 2026. Basis of preparation of the condensed interim consolidated financial statements The consolidated financial statements for the half-year ended 30 June 2026 were prepared in accordance with IAS 34, Interim Financial Reporting, the IFRS published by the IASB (International Accounting Standards Board) and adopted by the European Union. This standard is available on the European Commission website: http://ec.europa.eu/finance/company-reporting/ifrs-financial-statements/index_en.htm The accounting policies underlying the preparation of the condensed interim consolidated financial statements for the half year ended 30 June 2026 are identical to those adopted for the consolidated financial statements for the year ended 31 December 2025 and described in Chapter 5, Note 1 of the 2025 Universal Registration Document filed on 24 March 2026 with the French Financial Markets Authority (AMF) under no. D. 26-0134 and available on the Company's website at https://www.74software.com/investor-relations , except for the new standards and interpretations applicable from 1 January 2026 and presented in Note 1.2. These condensed interim consolidated financial statements are presented in thousands of euros, unless indicated otherwise. Application of new standards and interpretations The new standards, amendments to existing standards and interpretations adopted by the European Union and of mandatory application in fiscal years beginning on or after 1 January 2026 consist of the amendments to IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments. These amendments have no impact on the condensed interim consolidated financial statements and no disclosures are therefore provided in the notes to the consolidated financial statements. Impact of IFRS 18, "Presentation and disclosure in financial statements" IFRS 18, Presentation and Disclosure in Financial Statements , was published by the IASB in April 2024 and will replace IAS 1 and introduce a new structure for the income statement based on standardised categories (Operating, Investing, Financing), as well as enhanced guidance governing the use of Management Performance Measures (MPMs). The standard will be of mandatory application from 1 January 2027. The Group does not intend to early adopt the standard at this stage. In H1 2026, the Group continued the work launched in 2025 to assess the consequences of this standard on the presentation of its consolidated financial statements, focusing primarily on: the future structure of the consolidated income statement; the identification of potential reclassifications between the Operating, Investment and Financing categories; the analysis of performance measures likely to be classified as MPM; the impacts on the Statement of cash flows additional disclosures to be provided in the notes. At this stage, the analyses conducted confirm that the main expected effects concern the presentation of the financial statements and required disclosures, with no expected impact on the Group's economic performance, financial position or equity. The work carried out during the half year identified certain items currently presented in net financial income that will need to be classified in the Operating category. These items relate in particular to research tax credit financing costs, certain foreign exchange effects related to operating activities and other financial income and expenses directly related to the Group's current operations. In addition, pursuant to IFRS 18, share-based payment expenses (IFRS 2), amortisation of intangible assets recognised in business combinations, and other operating income and expenses would continue to be included in operating income. The Group is also continuing work on the performance measures used in its financial reporting. Several measures currently monitored by Management are being analysed in light of IFRS 18 provisions relating to Management Performance Measures (MPM). No final decision has been made at this stage on which measures will be presented as MPMs when the standard is first applied. Where applicable, these measures will be formally defined and reconciled with corresponding IFRS subtotals. Lastly, the Group continues to assess the potential consequences of the standard on the presentation of the Statement of cash flows and the disclosures to be provided in the notes. Note 2 Key events and scope of consolidation Strengthening and refinancing of Group borrowings 2.f.f TEU CW ank TEU MfiT pmogmammcs On 5 March 2026, the Group established its first public negotiable debt programmes, comprising: a Negotiable European Commercial Paper (NEU CP) programme with a maximum amount of €200 million; a Negotiable European Medium Term Note (NEU MTN) programme with a maximum amount of €100 million. Both programmes were established in accordance with French regulations applicable to negotiable debt securities and are registered with the Bank of France, allowing the Group to access short- and medium-term debt markets. This transaction forms part of the Group's strategy to diversify its financing sources and aims to strengthen its financial flexibility and its ability to access capital markets. Rcfimnancmng ofi dank dommowmngs On 22 April 2026, the Group finalised the refinancing of its syndicated bank borrowings. This involved the repayment of existing financing: a €125 million revolving credit facility ("RCF") maturing in 2027; an €80 million Term Loan B maturing in 2027; a €120 million amortising Term Loan A maturing in 2029. These facilities were refinanced through: a new €180 million revolving credit facility, maturing in 2031, with two extension options; a new €230 million amortising term loan, maturing in 2031. The refinancing was executed with the Group's existing banking pool and the participation of a new relationship bank. Following this transaction, the average maturity of the Group's financial debt increased significantly from approximately 1.6 years to 4.5 years. The refinancing was also accompanied by an update to the Group's banking documentation, including particularly: the harmonisation of the conditions applicable to the various financing facilities; greater flexibility for external growth transactions; a revised leverage ratio definition aligned with current market practice. Pursuant to IFRS 9, the Group analysed this transaction and concluded that it constituted an extinguishment of existing financial liabilities followed by the recognition of new financial liabilities. Accordingly: the refinanced borrowings were derecognised; the unamortised transaction costs associated with the refinanced borrowings were immediately expensed to net financial income; the costs directly attributable to the new financing were recognised as a deduction from the relevant financial liabilities and will be amortised over the term of the financing in accordance with the amortised cost method. The impact of extinguishing the existing financing is presented in other financial expenses (see Note 9.2). At 30 June 2026, the Group complies with all applicable financial covenants and has significant headroom compared to the contractual thresholds provided for in the banking documentation. Changes in the scope of consolidation a. Dcconsoṯmka"ck cn"m"mcs Field Solutions Limited in the United Kingdom was liquidated in the first half of 2026. d. Tcwṯy-consoṯmka"ck cn"m"mcs No entities entered the scope of consolidation in the first half of 2026. Notes to the consolidated income statement Note 3 Segment reporting Pursuant to IFRS 8, the operating segments correspond to the components of the Group whose results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated and assess its performance. The Group adapted its management model from 1 January to further strengthen the accountability of the brand leadership teams. In this context, the Chief Operating Decision Maker now primarily assesses operating sector performance based on the Brand Contribution. Brand Contribution corresponds to the net profit generated by each brand after taking into account gross profit, research and development expenses and marketing expenses directly attributable to the relevant brand, but before Group general and administrative expenses. General and administrative expenses are monitored separately at Corporate level and are no longer allocated to the brands. The Group's two operating segments remain Axway and SBS. The information presented below reflects the performance measures used by the CODM to manage the Group's operations. Revenue by business line 6xway (in thousands of euros) H1 2026 H1 2025 Product revenue 157,226 90.1% 143,286 89.1% Recurring revenue 152,313 87.2% 141,591 88.1% o/w Maintenance & support 17,941 10.3% 27,248 16.9% o/w Customer-managed Subscription 103,151 59.1% 86,981 54.1% o/w Upfront Revenue 62,222 35.6% 51,800 32.2% o/w Recurring Revenue 40,929 23.4% 35,181 21.9% o/w Own-managed Subscription 31,222 17.9% 27,362 17.0% License revenue 4,913 2.8% 1,696 1.1% Services revenue 17,369 9.9% 17,484 10.9% TOTAL AXWAY REVENUE 174,595 100% 160,771 100% In H1 2026, Customer-Managed Subscription contracts generated upfront revenue of €62.2 million recognised on the signature of these contracts, up 20.1% on the first half of 2025 (€51.8 million). SBS (in thousands of euros) H1 2026 H1 2025 Product revenue 147,752 76.4% 137,702 74.8% Recurring revenue 126,201 65.3% 117,323 63.7% o/w Maintenance & support 59,151 30.6% 64,231 34.9% o/w Customer-managed Subscription 22,211 11.5% 11,720 6.4% o/w Upfront Revenue 10,570 5.5% 4,600 2.5% o/w Recurring Revenue 11,641 6.0% 7,120 3.9% o/w Own-managed Subscription 44,838 23.2% 41,372 22.5% License revenue 21,551 11.1% 20,379 11.1% Services revenue 45,566 23.6% 46,474 25.2% TOTAL SBS REVENUE 193,318 100% 184,176 100% 7hSofi"wamc (in millions of euros) H1 2026 H1 2025 Group adjust- 74S Axway SBS ments published Group adjust- 74S Axway SBS ments published Product revenue 157 148 -1 304 143 138 -1 280 Recurring revenue 152 126 -1 278 142 117 -1 258 o/w Maintenance & support 18 59 - 77 27 64 - 91 o/w Customer-managed Subscription 103 22 -1 124 87 12 - 99 o/w Upfront Revenue 62 11 - 73 52 5 - 56 o/w Recurring Revenue 41 12 -1 52 35 7 -1 41 o/w Own-managed Subscription 31 45 - 76 27 41 -1 68 License revenue 5 22 - 26 2 20 - 22 Services revenue 17 46 - 63 17 46 - 64 TOTAL 74SOFTWARE REVENUE 175 193 -1 367 161 184 -1 344 The Group's main clients do not account for more than 10% of revenue individually. 74Software's dependency on its main clients is low. Revenue by region 6xway (in thousands of euros) H1 2026 H1 2025 Europe 85,220 48.8% 78,150 48.6% of which France 41,412 23.7% 35,666 22.2% of which UK 7,195 4.1% 6,869 4.3% Americas 74,230 42.5% 67,040 41.7% of which United States 67,952 38.9% 60,800 37.8% Middle East & Africa 3,278 1.9% 2,702 1.7% Asia & Pacific 11,868 6.8% 12,878 8.0% TOTAL AXWAY REVENUE 174,595 100% 160,771 100% SBS (in thousands of euros) H1 2026 H1 2025 Europe 138,546 71.7% 130,911 71.1% of which France 64,296 33.3% 64,673 35.1% of which UK 45,481 23.5% 39,918 21.7% Americas 5,103 2.6% 6,270 3.4% of which United States 4,468 2.3% 5,243 2.8% Middle East & Africa 44,211 22.9% 40,430 22.0% Asia & Pacific 5,458 2.8% 6,565 3.6% TOTAL SBS REVENUE 193,318 100% 184,176 100% 7hSofi"wamc (in millions of euros) H1 2026 H1 2025 Axway SBS Group adjustments 74S published Axway SBS Group adjustments 74S published Europe of which France of which UK Americas of which United States Middle East & Africa Asia & Pacific TOTAL AXWAY & SBS REVENUE 85 139 -1 223 78 131 -1 208 41 64 -1 105 36 65 -1 99 7 45 - 53 7 40 - 47 74 5 - 79 67 6 - 73 68 4 - 72 61 5 - 67 3 44 - 47 3 40 - 43 12 5 - 17 13 7 - 19 175 193 -1 367 161 184 -1 344 Segment results 6xway (in thousands of euros) H1 2026 H1 2025 Revenue 174,595 100% 160,771 100% Gross profit 135,160 77.4% 120,478 74.9% Brand contribution 62,238 35.6% 44,833 27.9% SBS (in thousands of euros) H1 2026 H1 2025 Revenue 193,318 100% 184,176 100% Gross profit 111,627 57.7% 107,579 58.4% Brand contribution 30,295 15.7% 27,220 14.8% 7hSofi"wamc (in millions of euros) H1 2026 H1 2025 Axway SBS Corporate 74S published Axway SBS Corporate 74S published Revenue 175 193 -1 367 161 184 -1 344 Gross profit 135 112 - 247 120 108 - 228 Brand contribution 62 30 - 93 45 27 - 72 Corporate expenses -37 -37 -31 -31 PROFIT ON OPERATING ACTIVITIES 56 41 Note 4 Revenue Revenue by business line The breakdown by business line is presented in Note 3.1 "Revenue by business line". Revenue by geographical area The breakdown by region is presented in Note 3.2 "Revenue by region". Note 5 Employee costs Breakdown of employee costs (in thousands of euros) H1 2026 H1 2025 Salaries 167,793 162,470 Social security contributions 53,380 50,298 Research tax credits -5,087 -4,383 Employee profit-sharing 1,856 952 Net expense for post-employment and similar benefit obligations 510 140 TOTAL EMPLOYEE COSTS 218,453 209,477 Employee costs represent 59.5% of H1 2026 revenue, down on H1 2025 (60.9%). They increased 6.9% at constant exchange rates. The average number of employees decreased from 4,710 at 30 June 2025 to 4,547 at 30 June 2026. Research tax credits total €5.1 million at 30 June 2026, up €0.7 million, and comprise €2.4 million for Axway and €2.7 million for SBS. Axway expensed Research & Development expenditure of €29.8 million in H1 2026 (17.1% of revenue), compared to €32.6 million in H1 2025 (20.3% of revenue). SBS R&D expenditure totalled €60.7 million (31.4% of revenue), compared to €60.6 million in H1 2025 (32.9% of revenue). For the entire Group scope, R&D expenditure totalled €90.5 million, representing 24.7% of first-half revenue. Finally, SBS capitalised development expenses of €8.8 million in H1 2026, compared to €9.2 million in H1 2025. Workforce Number of employees at 30 June H1 2026 H1 2025 Europe 2,903 3,001 of which France 1,453 1,498 of which UK 435 470 Americas 340 370 of which United States 318 328 Middle East & Africa 446 439 Asia & Pacific 838 869 of which India 800 822 TOTAL 4,527 4,679 Average number of employees H1 2026 H1 2025 Europe 2,933 3,036 of which France 1,466 1,493 of which UK 451 490 Americas 350 369 of which United States 325 343 Middle East & Africa 434 438 Asia & Pacific 830 867 of which India 792 814 TOTAL 4,547 4,710 Note 6 Purchases and external expenses (in thousands of euros) H1 2026 H1 2025 Purchases of subcontracting services 31,026 35,146 Purchases not for inventory of equipment and supplies 903 1,955 Purchases and change in stock of merchandise 1,898 2,163 TOTAL PURCHASES 33,826 39,264 SBS purchases totalled €19.9 million in the first half of 2026, down year-on-year in line with the scheduled gradual termination of subcontracting contracts with Sopra Stéria Group as part of the integration of SBS. Axway purchases totalled €13.9 million and are stable on the first half of 2025. Purchases of subcontracting services mainly comprise cloud hosting costs supporting the growth of the Subscription activity. (in thousands of euros) H1 2026 H1 2025 Rent and rental charges 10,764 11,967 Lease expenses - IFRS 16 adjustment -7,272 -7,699 Maintenance and repairs 11,917 8,455 External personnel 155 468 Remuneration of intermediaries and fees 6,578 4,760 Advertising and public relations 2,708 3,473 Travel and entertainment 7,406 7,062 Telecommunications 915 874 Sundry 8,037 10,002 TOTAL EXTERNAL EXPENSES 41,207 39,363 Note 7 Share-based and similar payment expenses A new free share grant plan was set up by the Group in H1 2026. On 25 February 2026, the Board of Directors approved the "LTI PLAN ONE" plan involving the grant of 340,600 shares, including 49,000 shares to the Chief Executive Officer, Patrick Donovan, and the Deputy Chief Executive Officer, Eric Bierry. The plan will vest between February 2026 and March 2029 and includes presence and performance conditions. The features of other current plans are described in Note 5.4 of Chapter 5 "Consolidated financial statements" of the 2025 Universal Registration Document. Expenses relating to free performance share grant plans totalled €4.5 million in H1 2026, including employer social security contributions of €0.4 million. The decrease in employer social security contributions (-€1.8 million) is mainly due to the higher social security contribution rate in France and the change in the share price observed at 30 June 2025. The April 2023 "LTI PLAN WINNING" free share grant plan was settled on 31 March 2026, with the presentation of 267,167 treasury shares to the Axway Leadership team, members of the Executive Committee and other individuals considered key for the Group. 30,000 treasury shares were presented to the Chief Executive Officer, Patrick Donovan. Note 8 Other operating income and expenses (in thousands of euros) H1 2026 H1 2025 Expenses related to business combinations (fees, commission, etc.) 88 190 Net restructuring and reorganisation costs -65 8,863 Other operating income and expenses 1,221 -152 TOTAL 1,244 8,902 In the first half of 2026, 74Software performed material non-current transactions representing a total expense of €1.2 million and primarily comprising Workday Cloud implementation costs. Note 9 Financial income and expense Cost of net financial debt (in thousands of euros) H1 2026 H1 2025 Income from cash management -322 -160 Interest expense 5,519 -7,384 Cost of net financial debt 5,196 7,544 Net interest on lease liabilities 1,371 1,486 TOTAL COST OF NET FINANCIAL DEBT 6,568 9,029 On 22 April 2026, the Group refinanced its bank borrowings with the arrangement of new credit facilities to replace existing financing. Following an analysis, the Group concluded that this transaction constituted an extinguishment of existing financial liabilities within the meaning of IFRS 9, followed by the recognition of new financial liabilities. The unamortised transaction costs associated with the refinanced borrowings were immediately expensed to net financial income under "Other financial expenses". The costs directly attributable to the implementation of the new financing facilities were recognised as a deduction from the relevant financial liabilities and will be amortised over the term of the financing in accordance with the amortised cost method. The Group cost of net financial debt primarily reflects interest on bank financing and lease liabilities, as well as income generated by cash investments. In addition, the discounting of the DXchange earn-out represented a financial expense of €0.1 million in the period. Other financial income and expenses (in thousands of euros) H1 2026 H1 2025 Foreign exchange gains and losses -2,136 1,229 Reversal of provisions 340 5 Other financial income -87 -179 Total foreign exchange gains/losses and other financial income -1,883 1,056 Charges to provisions 153 -0 Discounting of retirement benefit commitments 502 448 Other financial expenses 4,077 715 Total other financial expense 4,732 1,163 TOTAL OTHER FINANCIAL INCOME & EXPENSES 2,848 2,219 Other financial expenses mainly comprise unamortised transaction costs associated with the financing repaid early as part of the bank refinancing secured on 22 April 2026, expensed during the period (€3.0 million). They also include research tax credit financing costs of €0.6 million in H1 2026. Note 10 Income tax expense (in thousands of euros) H1 2026 H1 2025 Current tax 7,361 1,885 Deferred tax -221 592 TOTAL INCOME TAX EXPENSE 7,141 2,477 The Group effective tax rate is 20.68% in H1 2026, compared to 29.87% in H1 2025 and 23.07% in fiscal year 2025. Deferred tax assets relating to tax losses carried forward are recognised if it is probable that future taxable profits will be available to enable their offset. At 30 June 2026, capitalised tax losses are similar in amount to 31 December 2025. 74Software SA Tax losses recognised in France are capitalised in the amount of €89.0 million, representing a total deferred tax asset of €23.0 million. Axway Inc. Tax losses recognised in the United States are capitalised in the amount of €81.8 million (US$93.1 million), representing a total deferred tax asset of €17.2 million. SBS Software SA At 30 June 2026, no deferred tax assets are recognised in respect of SBS Software SA tax losses. Other subsidiaries The Group did not capitalise any additional tax losses at 30 June 2026 compared to 31 December 2025. International tax reform - Pillar 2 74Software Group falls within the scope of the OECD Pillar 2 rules to introduce a minimum level of taxation of 15% in each jurisdiction. 74Software Group is impacted by this tax reform through its holding company Sopra GMT whose consolidated revenue exceeds €750 million. Five jurisdictions (United States, Ireland, Luxembourg, Tunisia and Switzerland) did not meet the "Safe Harbour" tests for fiscal year 2024, and a detailed GloBE income calculation was therefore performed for these jurisdictions. The calculations based on 2024 data were finalised at 30 June 2026 and did not reveal any significant top-up tax for the Group. Based on the analyses performed at 30 June 2026, the Group has not identified any significant Pillar 2 impact on its consolidated financial statements. In accordance with the amendments to IAS 12, the Group applied the mandatory temporary exception to the accounting for deferred taxes arising from Pillar 2. No deferred tax is therefore recognised in respect of these rules. Note 11 Earnings per share (in euros) H1 2026 H1 2025 Net income - attributable to owners of the Company 27,381,891 5,795,908 Weighted average number of ordinary shares outstanding 29,746,194 29,746,194 Weighted average number of treasury shares 676,882 559,874 Weighted average number of ordinary shares outstanding 29,069,312 29,186,320 BASIC EARNINGS PER SHARE 0.94 0.20 (in euros) H1 2026 H1 2025 Net income - attributable to owners of the Company 27,381,891 5,795,908 Weighted average number of ordinary shares outstanding 29,069,312 29,186,320 Weighted average number of securities taken into account in respect of dilutive items 892,749 861,366 Weighted average number of shares taken into account to calculate diluted earnings per share 29,962,061 30,047,686 DILUTED EARNINGS PER SHARE 0.91 0.19 Notes to the consolidated statement of financial position Note 12 Goodwill Changes in goodwill Movements in the first half of the year were as follows: (in thousands of euros) 01/01/2026 Adjustments on business Translation Other Acquisitions combinations Disposals Impairment adjustments movements 30/06/2026 Axway 287,742 - - - - 4,569 - 292,312 SBS 235,454 - - - - - - 235,454 TOTAL 523,196 - - - - 4,569 - 527,766 Impairment tests In accordance with IAS 36, the Group has considered the latest economic information available at the interim reporting date. Uncertainties related to US trade tensions and tariff policy could indirectly impact some of the markets where the Group operates. At this stage, no specific indications of impairment loss have been identified for the Group's cash-generating units (CGUs) in relation to these tariff risks. Nevertheless, the Group is closely monitoring developments in the political and economic environment and reserves the right to reassess the recoverable amount of its assets in the event of a significant change in macroeconomic conditions during the second half of the year. At 30 June 2026, the revenue and operating financial performance of each of these CGUs are in line with Management expectations. In the absence of any indication of impairment loss in the first half of 2026, the Group did not perform any impairment tests at 30 June 2026. At 30 June 2026, the Group's market capitalisation on NYSE Euronext was €1,059 million (i.e. €1,038 million after 2% estimated disposal costs), above the Group's consolidated equity of €577 million at the same date. It is recalled that impairment tests conducted at 31 December 2025 using a discounted cash flow approach produced the following valuations: Axway CGU: €1,035 million; SBS CGU: €605 million. Sensitivity analyses were performed assuming a change in the WACC of ±1%, instead of the usual change of ±0.5%. These alternative scenarios did not lead to the recognition of an impairment loss on intangible assets. Note 13 Leases Lease right-of-use asset by category (in thousands of euros) Leased properties Leased vehicles Leased IT facilities Total Gross value 31 December 2025 74,643 8,393 8,570 91,605 Change in scope of consolidation - - - - Acquisitions 1,537 633 1,011 3,181 Disposals - assets scrapped -2,084 -1,082 - -3,166 Other movements - 41 - 41 Translation adjustments 464 -4 - 460 30 JUNE 2026 74,559 7,981 9,581 92,121 Depreciation 31 December 2025 -29,521 -4,619 -7,632 -41,771 Change in scope of consolidation - - - - Charges -4,254 -996 -705 -5,955 Disposals - assets scrapped 521 1,024 - 1,545 Other movements - 38 - 38 Translation adjustments -311 - - -312 30 JUNE 2026 -33,565 -4,553 -8,337 -46,455 Net value 31 December 2025 45,122 3,774 938 49,834 30 JUNE 2026 40,994 3,428 1,244 45,666 Debt maturity of lease liabilities (in thousands of euros) Carrying amount Current Non-current Breakdown of non-current liabilities 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years More than 5 years LEASE LIABILITIES 53,833 11,587 42,246 10,167 8,291 6,869 6,668 10,251 Note 14 firade receivables and related accounts (in thousands of euros) 30/06/2026 31/12/2025 Trade receivables and related accounts 103,454 118,713 Provision for doubtful receivables -17,315 -14,743 Trade receivables - net value 86,140 103,970 Customer contract assets 222,589 175,911 TOTAL TRADE RECEIVABLES AND RELATED ACCOUNTS 308,729 279,881 DSO (Days Sales Outstanding) calculated based on total "Trade receivables and related accounts" is 145 days at 30 June 2026, up on the end of 2025 (135 days). Axway's DSO is 175 days. DSO is high due to the "Customer-Managed" business model, where 50% of the contract is recognised immediately ("upfront fees") while collection is spread over the contract's multi-year term. It is important to note that Axway's receivables schedule shows a high level of collection. The decrease in Trade Receivables was due to more favourable seasonality of collections during the half year. SBS's DSO is 117 days at 30 June 2026, mainly due to a different invoicing model from that used by Axway, less exposed to Customer-Managed contracts. Factoring agreement covering trade receivables At 30 June 2026, assigned trade receivables totalled €15 million, representing a 6-day reduction in DSO. At 30 June 2025, assigned trade receivables totalled €12.5 million. Ma"smm"y ofi "makc mcccmuadṯcs Maturity of Axway trade receivables Of which: not Of which: not impaired at the reporting date but past due as follows (in thousands of euros) Carrying amount past due at the reporting date less than 30 days between 30 and 60 days between 61 and 90 days between 91 and 180 days between 181 and 360 days more than 360 days Trade receivables 39,431 23,198 7,169 3,754 1,209 2,893 478 731 Maturity of SBS trade receivables Of which: not Of which: not impaired at the reporting date but past due as follows (in thousands of euros) Carrying amount past due at the reporting date less than 30 days between 30 and 60 days between 61 and 90 days between 91 and 180 days between 181 and 360 days more than 360 days Trade receivables 64,023 24,361 3,796 7,979 2,461 11,033 1,619 12,774 A material share of receivables past due more than one year concern customers in the Middle-East and Africa region where recovery periods are historically longer, mainly due to administrative constraints and foreign exchange restrictions in some countries. These receivables are closely monitored and are not considered to be impaired as long as their recovery is judged probable. Note 15 Equity Changes in the share capital At 31 December 2025, the share capital stood at €59,492,388, and comprised 29,746,194 fully paid-up shares with a par value of €2.00 each. At 30 June 2026, the share capital stood at €59,492,388, and comprised 29,746,194 fully paid-up shares with a par value of €2.00 each. Dividends The 74Software SA General Meeting held on 19 May 2026 to approve the 2025 financial statements, decided not to distribute a dividend. Transactions in treasury shares At 30 June 2026, treasury shares with a value of €20.4 million are deducted from consolidated equity. They comprise 663,477 shares, including 649,002 shares acquired by 74Software for delivery as share-based payments and 14,475 shares held under the market-making agreement. Note 16 Financial debt - Net debt Cost of net financial debt Net debt is €181.3 million at 30 June 2026, compared to €193.0 million at 31 December 2025 and breaks down as follows: (in thousands of euros) Current Non- current 30/06/2026 31/12/2025 Bank borrowings 30,854 198,237 229,091 238,335 Other financial debt 15,431 1,159 16,590 2,985 Bank overdrafts 101 - 101 43 Financial debt 46,385 199,396 245,781 241,363 Cash equivalents -21,172 - -21,172 -6,130 Cash -43,273 - -43,273 -42,236 NET DEBT -18,060 199,396 181,336 192,997 Rcconcmṯma"mon wm"h "hc S"a"cmcn" ofi cash fiṯows Opening bank borrowings 238,335 284,897 Cash flow movements 234,008 - -240,374 -47,461 Non-cash movements -2,878 900 Closing bank borrowings 229,091 238,335 Proceeds from borrowings Repayment of borrowings f6.f.f Bank dommowmngs The refinancing of bank borrowings is presented in Note 2.1.2 "Refinancing of bank borrowings". At 30 June 2026, bank borrowings total €229.1 million. f6.f.2 Rcuoṯumng Cmckm" Facmṯm"y (RCF) The refinancing of bank borrowings is presented in Note 2.1.2 "Refinancing of bank borrowings". At 30 June 2026, €180 million of the multi-currency revolving credit facility (RCF) remained available, representing a utilisation rate of zero. f6.f.3 TEU Commcmcmaṯ Wapcm (TEU CW) ank TEU Mckmsm ficmm To"c (MfiT) pmogmammcs The set-up of the public negotiable debt programmes is presented in Note 2.1.1 NEU CP and NEU MTN programmes. At 30 June 2026, the Group has one €10 million NEU CP programme outstanding. f6.f.h Fmnancmaṯ kcd" mcṯa"mng "o "hc camn-os" In addition, the Group recognised a debt of €2.4 million in respect of the variable earn-out payable to the seller of DXchange in India. Banking covenants The financial covenants are met at 30 June 2026. Following the refinancing secured on 22 April 2026, financial covenants are calculated in accordance with the definitions set out in the new banking documentation. The ratios presented at 31 December 2025 are not, therefore, directly comparable with the ratios at 30 June 2026. (in thousands of euros) 30/06/2026 31/12/2025 Net debt 181,336 192,997 R1 < 3.00 Consolidated EBITDA 130,789 100,417 Leverage Ratio: Net debt Consolidated EBITDA 1.39 1.92 Net debt 181,336 192,997 R3 < 1.00 Equity 577,141 553,484 Gearing Ratio: Net debt Equity 0.31 0.35 Relevant debt outstandings total €230 million and no objective evidence suggests that the Group will be unable to comply with the covenants. Two financial ratios, calculated using the published consolidated financial statements, on a 12-month sliding basis, must be met under the covenants: "net debt/consolidated EBITDA" ratio below 3.00 throughout the term of the loan; "net debt/equity" ratio below 1.00 throughout the term of the loan; Net debt for the purposes of calculating these ratios does not include IFRS 16 lease liabilities; 74Software consolidated EBITDA is calculated over twelve rolling months. Financial risk management: interest rate risk The Group hedges part of its interest rate risk on its Term Loan by entering into a series of caps and floors designated as cash flow hedges. At 30 June 2026, 74Software had hedged a nominal amount of €70 million, with a fair value impact of €0.3 million, recorded in other comprehensive income. Note 17 Change in net debt (in thousands of euros) 30/06/2026 31/12/2025 NET DEBT AT THE BEGINNING OF THE PERIOD (A) 192,997 250,308 Cash from operations after cost of net financial debt and tax 51,191 82,545 Cost of net financial debt 6,568 16,675 Income tax expense (including deferred tax) 7,141 12,227 Cash from operations before cost of net financial debt and tax 64,900 111,447 Income taxes paid -3,150 -11,583 Changes in working capital requirements -7,812 11,001 Net cash from operating activities 53,938 110,864 Change related to investing activity -13,066 -26,806 Lease payments -8,698 -14,763 Net interest paid -5,375 -13,947 Available net cash flow 26,799 55,348 Impact of changes in the scope of consolidation - 20 Financial investments -467 -523 Dividends - - Share capital increase for cash - - Purchase and proceeds from disposal of treasury shares -14,113 -2,531 Other changes -916 5,902 TOTAL NET CHANGE DURING THE PERIOD (B) 11,302 58,217 Impact of changes in exchange rates 359 -906 NET DEBT AT THE END OF THE PERIOD (A - B) 181,336 192,997 Unlevered FCF 74Software 74Software (in thousands of euros) 30/06/2026 31/12/2025 Available net cash flow 26,799 55,348 Net interest paid 5,375 13,947 Reorganisation and restructuring costs paid 617 11,141 Unlevered FCF 32,791 80,437 The Group reported a strong performance in H1 2026, combining EBITDA of €69.2 million with an increase in working capital requirements (WCR) of €7.8 million. The change in Axway WCR represented a net cash outflow of €10.0 million, a deterioration of €35.6 million year-on-year. The change in SBS WCR represented a net cash inflow of €2.2 million, down on the H1 2025 inflow of €29.4 million. The collection of subscription invoices is spread over a longer period than for maintenance invoices which follow the calendar year. Cash inflows are traditionally higher in the first half of the year than the second half. This is due to the collection of invoices for the renewal of maintenance and subscription contracts generating significant cash inflows at the beginning of the year. The trade receivables factoring programme and tax credit financing facility helped optimise WCR in the amount of €15.0 million and €5.1 million, respectively, in line with 30 June 2025 (€12.5 million and €4.3 million) . Axway free cash flow (FCF) amounted to €19.9 million, down on €44.1 million in H1 2025. SBS FCF is €6.9 million at 30 June 2026, compared to €15.6 million one year previously. No dividends were paid during the period. Taking into account net interest paid (€5.4 million) and restructuring costs (€0.6 million), 74Software generated unlevered free cash flow of €32.8 million in H1 2026, representing 8.9% of revenue. The Group expects Unlevered FCF of around 10% of revenue at 31 December 2026. Net debt was €181.3 million at 30 June 2026. Note 18 Current deferred income (in thousands of euros) 30/06/2026 31/12/2025 Customer contract liabilities 143,951 95,431 TOTAL CURRENT CUSTOMER CONTRACT LIABILITIES 143,951 95,431 Current deferred income, representing customer contract liabilities, is presented in Note 7.6 to the 2025 Universal Registration Document. Movements reflect: the recognition of prior-year deferred income in revenue; the transfer of prior-year non-current deferred income to current deferred income; the emergence of new liabilities as a result of services invoiced but not yet fulfilled. To avoid the overstatement of asset and liability accounts, deferred income concerning trigger events after 1 January (1 January 2026 for this period) and the corresponding trade receivables not settled at the previous reporting date (31 December 2025) were offset in the balance sheet at 31 December 2025. There was no offset at 30 June. Some current customer contract liabilities at 31 December 2025 were recognised in revenue in the first half of 2026. Compared to 31 December 2025, current deferred income increased mainly due to the reverse offsetting of deferred income at 30 June 2026 and the signature of Axway Managed subscription contracts. In addition, SBS's business model, comprising a significant share of Maintenance activity, ensures significant advance customer cash receipts during the first half of 2026. Note 19 Other current liabilities (in thousands of euros) 30/06/2026 31/12/2025 Amounts payable on non-current assets 61 -12 Advances and payments on account received for orders 493 81 Employee-related liabilities 78,645 95,777 Tax-related liabilities 35,318 31,993 Income tax 16,261 23,789 Other liabilities 8,808 9,530 TOTAL OTHER CURRENT LIABILITIES 139,585 161,158 The decrease in Employee-related liabilities is due to the seasonal nature of commission and bonuses provided at 31 December 2025, which exceed those provided at 30 June 2026. Other information Note 20 Related-party transactions Agreements entered into with parties related to the 74Sotware Group were identified in Chapter 4.2 "Regulated agreements and assessment of everyday transactions" in 74Software's 2025 Universal Registration Document, filed with the French Financial Markets Authority (AMF) on 24 March 2026, under no. D. 26-0134 and available on the Company's website at https://www.74software.com/investor-relations . The 74Software 2025 Universal Registration Document also includes the Statutory Auditors' report on regulated agreements. To date, excluding those agreements described in the 2025 Universal Registration Document, to the best of the Company's knowledge, there were no new 74Software Group related-party agreements in H1 2026 likely to have a material impact on the Company's financial position or results during the period. Note 21 Off-balance-sheet commitments and contingent liabilities The Revolving Credit Facility is a confirmed liquidity line NEU CP and NEU MTN programme On 5 March 2026, the Group established Negotiable European Commercial Paper (NEU CP) and Negotiable European Medium Term Note (NEU MTN) programmes, allowing the Group to access short- and medium-term capital markets. https://www.74software.com/NEUCP_NEU MTN The following amounts are the authorised issue ceilings for these programmes and are not necessarily the amounts issued at the period end. €200 million short-term NEU CP programme; €100 million medium-term NEU MTN programme. Refinancing On 22 April 2026, the Group agreed new bank documentation as part of the refinancing of its financial debt. https://www.74software.com/refinancing The main financing facilities available at 30 June 2026 are: a new €180 million revolving credit facility, maturing in 2031, with two extension options; and a new €230 million amortising term loan, maturing in 2031. available to the Group and may be used to finance general business needs, external growth transactions and temporary cash requirements. All of these arrangements contribute to diversifying the Group's sources of financing and strengthening its financial flexibility. Financial covenants The new bank facilities are subject to compliance with customary market financial commitments. Two financial ratios must be met under these covenants: "net debt/consolidated EBITDA" ratio below 3.00 throughout the term of the loan; "net debt/equity" ratio below 1.0 throughout the term of the loan; At 30 June 2026, the Group complies with all applicable financial commitments and has significant headroom compared to contractual thresholds. With the exception of these agreements, commitments have not significantly changed since 31 December 2025. Note 22 Exceptional events and legal disputes To the best of the Group's knowledge, and notwithstanding the information provided herein, at the date of this report, no disputes or litigation known or ongoing are likely to have a significant negative impact on the Group's financial position. Note 23 Events after the reporting period There were no significant events likely to impact the financial statements between 1 July 2026 and the Board of Directors' meeting on 23 July 2026. Statutory Auditorsʼ report on the interim financial statements This is a translation into English of the Statutory Auditors' report on the interim financial statements of the Company issued in French and it is provided solely for the convenience of English-speaking users. This report should be read in conjunction and construed in accordance with French law and professional auditing standards applicable in France. To the Shareholders, In compliance with the assignment entrusted to us by your General Meeting and pursuant to Article L. 451-1-2 III of the French Monetary and Financial Code ( code monétaire et financier ), we have: conducted a limited review of the accompanying condensed interim consolidated financial statements of 74Software for the period from 1 January to 30 June 2026; verified the information provided in the half-year management report. These condensed interim consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our limited review. Conclusion on the financial statements We conducted our limited review in accordance with the professional standards applicable in France. A limited review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Based on our limited review, nothing has come to our attention that causes us to believe that these condensed interim consolidated financial statements are not prepared in all material respects in accordance with IAS 34, as adopted by the European Union applicable to interim financial information. Specific verification We have also verified the information presented in the half-year management report commenting on the condensed interim consolidated financial statements that were the subject of our limited review. We have no matters to report as to its fair presentation and consistency with the condensed interim consolidated financial statements. The Statutory Auditors Forvis Mazars SA Levallois-Perret, 28 July 2026 ACA Nexia Paris, 28 July 2026 Jérôme Neyret Partner Olivier Juramie Partner Declaration by the person responsible for the interim financial report "I declare that, to the best of my knowledge, the condensed interim consolidated financial statements for the half-year ended have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial position, and profit or loss of the 74Software Group and of all the entities included in the scope of consolidation, and that this Interim financial report provides a fair review of the significant events that occurred in the first six months of the fiscal year and their impact on the financial statements, and of the main transactions between related parties, as well as a description of the main risks and uncertainties for the remaining six months of the fiscal year." Paris La Défense, 28 July 2026 Patrick Donovan Chief Executive Officer 74Software Société Anonyme with a share capital of €59,492,388 Registered office: PAE Les Glaisins, Annecy-le-Vieux, 74940 Annecy France 433 977 980 R.C.S. Annecy France Design and production: Ruban Blanc https://www.rubanblanc.fr Photo credits: Getty Images Mission-Critical Software for a Data-Driven World 74Software is home for leading brands with mission-critical enterprise applications and infrastructure software serving a growing range of markets and geographies - each with their own identities and value propositions. FRANCE Tour Trinity 1 bis Place de La Défense 92400 Courbevoie - France Tel. +33 (0) 1.47.17.24.24 USA 16220 N Scottsdale Road, Suite 500 Scottsdale, AZ 85254 Tel: +1.480.627.1800 WWW.74SOFTWARE.COM