Sage, the leader in accounting, financial, HR and payroll technology for SMEs has reported strong first-half results for FY2025, with ARR up 11 per cent to £2.5bn.
The Newcastle-based FinTech’s total underlying revenue has also increased by 9 per cent to £1.2bn, which it has attributed to its subscription-based recurring revenue model.
Underlying operating profit also rose, this time by 16 per cent to £288m, whilst it also reported growth in subscription revenue and a strong retention rate.
“Sage delivered strong results in the first half of the year, extending our track record of broad-based growth and significant margin expansion,” said Steve Hare, CEO of Sage.
“Our performance reflects the strength of our accounting, HR and payroll solutions, underpinned by ongoing investment in our network platform.
“We continue to focus on innovation, transforming customer workflows through AI-powered services.
“Just one year after launch, Sage Copilot is delivering enhanced productivity and insights to thousands of customers across our portfolio, whilst paving the way for the next generation of AI accounting, powered by agentic workflows.
“Amid a more volatile and uncertain macroeconomic environment, Sage remains resilient and diversified.
“Small and mid-sized businesses continue to adopt digital technologies to become more productive and efficient. I am confident that our proven strategy will deliver further long-term value to all our stakeholders.”