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Good day, and thank you for standing by. Welcome to Planisware First Half 2026 Results. Please be advised that today's conference is being recorded.

I would now like to turn the conference over to your speaker, Loic Sautour. Sir, please go ahead.

Good morning, and thank you for attending our call on Planisware H1 2026 results. This is Loic Sautour speaking. I will share this presentation with Stephanie Pardo, our CFO.

As usual, I will start with our key messages and our commercial and our operational highlights. Stephanie will then take you through the financials in more detail. And I will come back at the end on the update for our 2026 objectives.

Starting now with the key highlights of this publication. H1 2026 confirmed the strength of Planisware growth trajectory. Revenue reached EUR 106.1 million, up 10.8% in current currency and 14.8% in constant currency, led by the continued success of our SaaS operation and by the implementation of recently signed new contracts.

Importantly, growth accelerated again in the second quarter, with Q2 up 16% in constant currency after 13.6% in Q1, a fourth consecutive quarter of acceleration since the low point of Q2 2025. This reflects solid commercial traction with both new logos and existing clients and continued strong demand for advanced solutions that brings greater visibility, agility and control to complex project environment. Our AI-powered capabilities keep reinforcing our differentiation and our bookings and commercial pipeline remain robust.

On profitability, adjusted EBITDA reached EUR 38.2 million, up 11.4%, representing 36% of revenue and a circa 20 basis point improvement year-on-year. This was achieved despite a less favorable mix effect than usual linked to the high implementation workload, and while we maintain high hiring level to support future growth. Cash generation was again strong with adjusted free cash flow up 25.3% year-on-year to EUR 41.2 million, a cash conversion rate of 107.8%, above our circa 80% objective and reflecting a particularly good collection of invoices in the first half of the year coming all with the typical seasonality in our SaaS businesses. This further reinforces the strength of our balance sheet.

For the period, operating profit reached EUR 30.7 million, up 30.4%, and profit for the period grew 32% to EUR 28.6 million. Building on this strong first half and our continued commercial momentum, we are raising our 2026 objectives while remaining attentive to a still volatile and uncertain geopolitical macroeconomic environment, and I will come back on the detail at the end of the presentation.

Now on this slide, I'd like to provide some color on our H1 2026 commercial momentum. First, this momentum is broad-based. It's not concentrated. We recorded more than 40 notable wins in H1 2026, spanning across our key geographies in Europe, North America and APAC, and well diversified as well in terms of industries from life sciences and pharma to energy and utilities, as well as aerospace and defense, manufacturing, financial services, among many others. This diversification is a real strength.

Our growth does not depend on any single geography, sector or deal. Secondly, both engines are supporting the strong bookings, new logos and the installed base. We are winning new customers while continuing to expand within the existing account. And the third point, we are winning against the competition. Across these deals, we are consistently displacing legacy and point-solution competitors. Customers are choosing Planisware for end-to-end capabilities, depth and a trusted, proven and sound long-term partnership. And on the fourth point, land, expand and scale with blue-chip names.

We cross-sell into our installed base, which is the expansion runway inside historical accounts, several wins carrying very large enterprise footprint. The commercial momentum built over recent quarters has clearly continued into 2026. Demand remains strong across our markets from new prospects and existing clients alike as organizations seek greater visibility, agility and control over their project portfolios, which is exactly what gives us confidence in the strength of the pipeline for the second half of the year. Stephanie will further comment in detail later.

But on this slide, I'd like to illustrate how our revenue mix continues to evolve. Recurring revenue made of our SaaS operation and the maintenance of perpetual licenses represented 91% of total revenue compared to 92% in H1 2025. The slight 1 point decrease is simply the mechanical effect of the very strong growth in implementation this semester. In absolute terms, recurring revenue grew by plus 12.6% in constant currency. Our SaaS model itself represented 82% of total revenue and remains the engine of our growth. Non-recurring revenue accounted for the remaining circa 9%, on which perpetual licenses were only around 1%, reflecting our continued shift away from the perpetual model.

Turning to our geographic performance. All key regions contributed to growth in H1 2026. Europe, representing 50% of group revenue, was the main growth contributor, up 17% with all key European countries contributing and a decent balance between existing customers and new logos. North America grew a healthy 13.4%, led mostly by new logos. It represented 42% of total revenue and contributed 39% of total growth. APAC and rest of the world grew 10.2%, driven by strong commercial momentum, in particular in Australia, Japan and UAE, although impacted by a significant reduction in revenue from one larger Asian governmental digital agency. The region represented 8% of total revenue.

By pillar, the growth remained concentrated in our 2 largest industry growth pillars. Product Development and Innovation remained our principal pillar at 54% of total revenue and 69% of total growth, with a strong 19.4% increase resulting from both new customer wins and expansion with existing customers. Project Control and Engineering represented 25% of total revenue and 39% of total growth, with a plus 25.2% increase that was very broad-based across countries. IT Governance and Digital Transformation represented 15% of revenue and grew by 1.6%, driven primarily by a new logo in the banking industry in North America and offsetting a lower contribution from the installed base. Finally, Project Business Automation, our latest pillar, represented only 5% of total revenue, impacted by revenue erosion from the existing customer base and limited new customer acquisition.

Now let me turn to Stephanie, so that she can further detail the financial performance.

Thank you, Loic. And I will start with the revenue, which reached EUR 106.1 million in H1 '26, up 10.8% in current currencies and up 14.8% in constant currencies. The EUR 3.8 million exchange rate effect was mostly related to the depreciation of the U.S. dollar and to a lesser extent, the Japanese yen versus the euro, and was largely concentrated in Q1 for EUR 3 million. As usual, the following analysis refers to the growth in constant currencies, applying H1 '25 average exchange rates.

Let me spend a moment on the sequential evolution of our quarterly growth. Since the low point reached in Q2 '25, our revenue growth has accelerated for 4 consecutive quarters. In H1 '26 was up by 30.6% in constant currencies and Q2 accelerated further to 16%. This confirms the recovery in commercial momentum that began in the second half of '25 when the sales cycle stabilized and we recorded an unprecedented level of new logo signatures, including previously delayed opportunities. The signatures are now translating into revenue through new desk subscriptions, implementation, and onboarding support, and we expect this acceleration to continue.

Our recurring revenue grew by 20.6%, led by our SaaS model, up 14.6% and in particular by SaaS & Hosting with a solid growth of 20.7%. This growth is driven equally by new logos and existing customers. Support activities, evolutive and subscription support, grew by 6.3% combined over the semester, accelerating from 2% in Q1 to 9.2% in Q2, as we supported the deployment of new logos implemented earlier in the year. Maintenance was down by 3%, in line with our shift from perpetual model to SaaS.

Non-recurring revenue grew strongly, up 41.9%, although trends varied across revenue streams. Perpetual licenses were down by 31.5%, reflecting the continued shift to our SaaS. Implementation revenue increased by 69.1%, driven by an exceptional number of initial implementations following record logo wins in late '25 and early '26.

Just to say the bit, we delivered over the semester approximately twice as many initial implementations of new logos generated more than EUR 50,000 in H1 '26 compared to H1 '25. This intense onboarding activity temporarily reduced our ability to upsell historical customers and has an impact on the revenue mix, but it lays the foundation for the future recurring revenue. As many of these initial implementations are now being completed, we expect the growth of implementation to normalize in H2, while the teams will then be able to refocus on evolutive support. It would then drive the rebalancing between new and existing customers in H2 and lead to a significantly higher Net Retention Rate compared to the first half of the year.

Turning to gross profit. Cost of sales reached EUR 28.5 million, up 20.9% and represented 26.9% of revenue, broadly stable year-on-year. Exceptional high implementation workload, our lowest margin revenue stream weighed on the revenue mix. However, this impact was offset by continued operational efficiencies and scale benefits. As a result, gross profit reached EUR 77.6 million, up 10.8%, representing a gross margin of 73.1%, essentially stable compared to 73.2% in H1 '25.

The next slide provides a breakdown of our operating expenses, which totaled EUR 46.9 million in H1 '26, up 9.1% year-on-year, with an overall cost structure remaining broadly consistent with prior periods. R&D expenses reached EUR 12.8 million, representing 12% of revenue compared with 11.7% in H1 '25, an increase of 30 basis points. Our R&D organization continued to benefit from the internal deployment of AI tools, which enhance productivity and support our product leadership across our unified platform.

Capitalized development costs amounted to EUR 2 million, up 40.2% from EUR 1.4 million a year earlier. Sales and marketing expenses reached EUR 19.5 million, representing 18.4% of revenue versus 18.2% in H1 2025, an increase of 20 basis points. Expenses increased by EUR 2.1 million or 11.8%, primarily reflecting marketing investments supporting the launch of our newly released offerings. And finally, G&A amounted to EUR 14.6 million and represented 13.8% of the revenue compared with 14% in H1 2025. This included EUR 0.2 million of foreign exchange loss compared to EUR 0.9 in H1 2025. Excluding this foreign exchange impact, G&A expenses decreased by 40 basis points as a percentage of revenue, reflecting the continued benefit of scale as the company grows. As a result, adjusted EBITDA reached EUR 38.2 million, up 11.4% compared to H1 2025, representing an increase of EUR 3.9 million.

Adjusted EBITDA margin improved approximately by 20 basis points, representing 36% of revenue compared to 35.8% in H1 2025. This improvement reflects the translation of revenue growth into profits, supported by a continued disciplined approach to cost, despite less favorable mix effects resulting from the exceptionally high level of implementation activity during the term.

Moving to cash generation, which was again strong. Adjusted free cash flow reached EUR 41.2 million, up 25.3% year-on-year, and represented a cash conversion rate of 107.8% of adjusted EBITDA. This is well above our circa 80% objective, and broadly in line with the usual seasonality of the first half when we collect a large part of our SaaS subscription bill at the beginning of the year. We continue to consider a circa 80% as the normative annual cash conversion rate for the coming years.

Looking at the detail of the conversion from adjusted EBITDA to adjusted free cash flow. Change in working capital was strongly positive at EUR 16 million, reflecting the growth of subscription contracts billed in advance of the service rendered, together with a particular good collection of invoices in the first half. Capital expenditures amounted to EUR 6.2 million, represented 5.8% of the revenue, significantly above our usual level around circa 2%. This increase was mainly driven by the opening of new data centers, early purchase to anticipate rising RAM prices and mitigate potential delivery delays, higher capitalized development costs related to our new product, and EUR 1.5 million of renovation costs at our headquarters. These additional spending were concentrated in the first half. We expect capital expenditure to normalize at circa 3% of the revenue in H2 2026.

Tax paid amounted to EUR 6.8 million, slightly lower than the EUR 7.5 million in H1 2025, which has been impacted by payment related to 2024. Together, these elements delivered an adjusted free cash flow of EUR 41.2 million and a cash conversion rate of 107.8%. The strong cash generation, together with the EUR 24.5 million dividend paid and the EUR 10 million share buyback executed during the first half of the year, growth of net cash position to EUR 204.5 million at the end of June, up 12.3% compared to EUR 195.6 million at the end of December '25 and EUR 102 million end of June '25.

As a reminder, apart from lease liabilities related to our offices and data center facilities, which amounted to EUR 18.2 million versus EUR 17.6 million at end of December '25 and EUR 17.9 million end of June '25, Planisware has no financial debt.

I will now hand back to Loic, to conclude with our 2026 objectives.

Awesome. Thank you, Stephanie. Before we open the floor to questions, let me come back on our objective. Well, it goes without saying that the global environment remains particularly volatile and difficult to anticipate. This being said, given our strong start of the year, given our continued commercial momentum and our solid commercial pipeline, we are raising our 2026 objective with revenue growth of at least 13% in constant currency, raised from the previous low double-digit target, and adjusted EBITDA margin of at least the fiscal year 2025 level, which was 37.4%, raised from the previous circa 37% of revenue and a cash conversion rate of circa 80%, unchanged, which we continue to consider normative for the coming years.

Thank you for your attention. Stephanie and I are now happy to take your questions.

[Operator Instructions] Thank you. And the questions come from the line of Jarrod Chisholm from UBS.

Just one on the revenue growth guidance. What assumptions are factored into your raised guidance range? Could you talk to some of the expectations by pillar, geography and industry vertical? And then the second one, just on capital management and some of your plans for capital allocation. I mean, what are your plans there? You've got a record strong cash balance on hand of over EUR 200 million. Just some of your expectations there would be helpful.

Then maybe just some added color as a third question, just on the IT and DT pillar. If you could provide some more detail on the lower revenue growth contribution from existing accounts there and just the dynamics that you're experiencing there, that would be helpful.

For our growth guidance, as you know, a lot of our activities, especially for new logos happens across the summer. So we are guiding at at least 13%, knowing that we are very active in this summer, but it's really at the tail end of the summer that we'll have a good read about the situation. The commercial momentum is across the board. It's across the different pillars. And maybe more importantly, it's across all of the geographies. And so as we commented, we have a very, very strong pipeline and that is the reason why we have raised the guidance to at least 13% now, which we feel confident with.

On the capital allocation, no update. We keep our dividend policy and the Board is assessing timing, a need to return cash to shareholders at some time, but no change.

The third question was about the IT and Digital Transformation pillar. So as we commented, this pillar does not necessarily show with the numbers. It has performed well, especially in the bank and insurance sector. But it was offset, as we commented, by a governmental agency, a very large reduction. But it remains a pillar in which the competitive environment is very much in our favor and where we have a very good expectation for the future.

The next questions come from the line of Ines Mao from BNP Paribas.

I have 2 questions. If we set aside implementation momentum, how would you quantify new logo signing in Q2 versus last year? And could you just indicate the blend of new logos versus contract renewals?

My second question is on the CapEx. So you highlight kind of a one-off increase in CapEx in Q2 for data centers. If demand continues to be strong in H2 onwards, do you foresee additional infrastructure requirements? Or would the current rollout be sufficient for the rest of 2026 and '27 onwards?

Implementation in Q2 this year has been really strong. It has been really strong due to an unprecedented level of signature of new logos, new customers at the tail end of 2025 and the beginning of 2026, which actually continued in Q2 2026. If we compare that to the level of Q2 2025, this was our historical low point, where the level of signature back then was not very strong. So the performance this year has been excellent.

And about CapEx, so we have the CapEx related to H1 and H2. And so as Loic explained, we expect capital expenditures to normalize at 3% of revenue in H2. And we expect on a full year 2026 CapEx ratio approximately between 4% to 5%, which will be a little bit above that for the full year.

So I assume it's just enough for the surge in demand currently, plus potential more demand in '26 and '27. There would be no need to open new data centers or to lease new ones?

No. And we have made some anticipated purchase at the beginning of 2026, in order to anticipate price increase and be prepared for that.

We are now going to proceed with our next question. And the question comes from the line of Carla Courthial from Bank of America.

Could you please discuss your AI products portfolio in terms of release time lines and commercial model? And would you say it will contribute to the top line in H2? Or will it be too early for that to happen?

Well, our AI portfolio, actually, we've been providing AI features for many years. And we've provided -- actually, we have customers largely using our AI capabilities, more specifically our AI agent. As a matter of fact, we have had at our Exchange where our customers come and meet several of our key customers presenting their successes with our AI capabilities. And we are continuously expanding on those AI capabilities by now bringing to market a new product called Prisma, which is a reasoning agent. I mean, we're definitely a defining leader in AI capabilities in project and portfolio management.

Now in terms of contribution, many if not all, of our clients are using our AI capabilities to some extent. Not just the AI capabilities, because it's totally embedded into our AI unified platform. And so it contributes extensively to our commercial success at the moment because it's truly a differentiator compared to the legacy solutions that you can find out there in project and portfolio management of the current competitor that we have. So without necessarily giving some numbers, it is helping and participating extensively to our commercial success and to our revenue at the moment.

We are now going to proceed with our next question. And the questions come from the line of Gustav Froberg from Berenberg.

I have a couple. Firstly, just on the phasing of revenues, could you help us understand a bit how to think about the phasing of revenues across the different line items that you have? Obviously, implementation very strong now. But how should we sort of view that with respect to filtering into SaaS & Hosting, evolutive support, et cetera, over the next couple of quarters? And as a side question there, you've grown 14.8% in the first half this year. You're guiding for more than 13%. Is there anything to read into the difference between 13% and 14.8% for now? That's question one.

Question two, on the two pillars that did not contribute as much in H1. Is there anything you can do there to boost that growth again or is that simply a timing question? And then lastly, I wanted to ask about some of the products that you launched at Exchange recently and the sort of unbundling of your portfolio, if you like. How has that been received by the market and your customers?

Thank you, Gustav, for the questions. The first question about the different line item. Well, as you've noticed, the implementation is very, very strong in this first half of the year, largely fueled by the signature of new customers, new logos that we had the need to implement during this time of the year. It's great news. It's great news because with the way we upsell and cross-sell at our customers, with the way we set up the partnership with them and we expand with them, those implementation will translate into expansion at those customers with our ability to support them leveraging the capabilities that we have. If we look at the different line item, you will notice as well that the SaaS & Hosting line item actually has been really strong, because as we commented, our revenue growth came from new customer, which we see because of the implementation, but also from existing customer where we continued to expand largely.

The second question was about the revenue growth. Yes, we grew 14.8% in the first half, and we are guiding 13%, as we commented. The global environment remains volatile. We're guiding to at least 13%. So we feel it's a right level to guide at the moment. A lot is happening now. A lot will happen across the summer where we will have a better read on the advancement of our strong pipeline, and we will further comment when the time is right about that.

The question about the pillars, as I commented before, the numbers are not necessarily reflecting the reality. First of all, those pillars are fairly small. So some changes in the numbers, in the core numbers may show some changes in percentage that are not necessarily reflecting exactly what's happening. And as I commented, the IT and Digital Transformation pillar remain a very strong pillar for us. It's not necessarily seen in the numbers, because the outstanding traction that we have currently, in the bank and insurance sector, has been offset by a governmental agency, a very large reduction. And so the PBA is a pillar that has a lot of potential and future as well. It did suffer some of the cushion and -- especially in the service industry, which is an industry that has been impacted, and that's what we've seen in the growth of our pillars.

And finally, around the product portfolio. What we've launched, our reasoning agent that we have launched in June, has been extremely well received by the market and by our customers. It's extremely well received because it's really completely part of our unified platform, our AI-powered unified platform. It has a lot of potential. There is a lot of need that our customers are seeing. And this was extremely well-received. It being said, it's not yet necessarily translating directly into numbers. It contributes to facilitate our commercial success. But this is our overall unified platform that is making the revenue growth that we are seeing.

[Operator Instructions] We are now going to proceed with our next question. The questions come from the line of Nicolas Thorez from ODDO BHF.

Just one question on my side. It's actually a follow-up on Prisma. But Loic, can you maybe comment a bit more on the monetization that you expect on Prisma? Is it possible to provide us with some granularity on how Prisma will be monetized within your, let's say, existing pricing and packaging strategy? And a follow up on what you just said, but can you comment a bit more on what has been the customer reaction since the June announcements? And have you seen some customer interest convert into actual commitments or commercial opportunities yet?

Prisma is a new product, and as a new product, it comes with a fee. And the fee of Prisma is on a per user and per consumption fee with different levels of fees, going up to an unlimited level of Prisma. Prisma has a lot of capabilities. Prisma can really do a lot to bring value to our customers. And Prisma is being priced just to take a very small piece of the value that it will bring to our customers.

On the commercial success that we commented, so we introduced Prisma in June with the beta launch in September. And so we are actively discussing with our existing customers about the potential and how to leverage this potential. And so it contributes to our commercial success in the sense that it really showcases how we are leading in this industry with AI capabilities. It really showcases how we have the best capabilities to be the long-term, proven, financially sound partner of our customers. And it showcased all of that, and there is a lot of discussion that are ongoing at the moment to leverage it.

There are no further questions at this time. So I'll now hand back to you for closing remarks. Thank you.

Well, thank you. Thank you for attending. And as usual, please contact Benoit d'Amecourt if you have further questions or would like to further discuss what we have commented today. Thank you. Have a great day.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.

Good day, and thank you for standing by. Welcome to Planisware Q1 2026 Revenue Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Loic Sautour, Planisware's CEO. Sir, please go ahead.

Good morning, and thank you for attending our call on Planisware's Q1 2026 revenue. This is Loic Sautour speaking. Exceptionally, I will share this presentation with Benoit d'Amecourt, our Head of Investor Relations because -- before we begin, I'd like to share a piece of wonderful news with you all. Stephanie Pardo, Planisware's CFO, who I usually share this presentation with recently welcomed a new born baby, and she is taking some very well-deserved time to be with her family during this precious moment.

On behalf of the entire Planisware team we send her, her baby and her family, our warmest congratulations and we definitely look forward to welcoming her back when the time is right. Following our presentation, we will open the floor for your questions.

So starting now with the key highlights of this publication. I am pleased to report a strong start to the year with revenue up 13.6% year-on-year in constant currency, leading to a EUR 51 million reported figure. This performance is in line with our planned trajectory to achieve low double-digit revenue growth in constant currencies for the full year. This is also in line with the planned acceleration toward historical growth level and initiated mid-2025 after having been heavily impacted by the U.S. tariff and the related high uncertainty that affected our customers and prospects.

Revenue growth in Q1 has been particularly driven by new implementation, which grew very strongly, even at an even higher level than in Q4 last year, which already benefited from the onboarding of many new customers. The current new implementation workload that we have to deliver is nothing like anything we've ever experienced before reflecting an unprecedented level of new logo signatures, which we achieved at the end of 2025 and at the start of this year. To deliver this as fast as possible and to be in a position to start upselling these new accounts and to fully benefit from the full SaaS & Hosting revenue, we postponed when possible our Evolutive support task to free up resources to this implementation.

While it mechanically impacts the Evolutive support revenue evolution, our ability to catch this up later and the benefit to have these new customers happily moving to [indiscernible] clearly a net positive. Third, we continue to shape the future of strategic portfolio management with our latest AI-powered capabilities. It's now available to our customers across our unified platform. This is generating strong client interest and reinforcing our competitive differentiation. We keep investing to ensure our platform remains at the forefront of what organization needs to make better and faster decisions in complex environment. The introduction of our latest AI-powered capabilities keeps driving a strong demand from both existing and new clients for advanced PPM and SPM solution that provide visibility and agility in a volatile environment. This translates in a still growing pipeline even after the high level of signature that we recently achieved.

At this time of the year and given the current global environment, which still has some uncertainties, we remain confident yet cautious in confirming our low double-digit revenue growth objectives for the year, along with our profitability and cash conversion targets.

On this slide, I'd like to illustrate the continuation of our geographic expansion. In Q1, we opened 2 new offices in key markets to get closer to our clients and to accelerate local growth. In Italy, the opening of a direct local presence in Roma is making a significant step in reinforcing our commitment to one of the region's most dynamic industrial markets where we already have active clients in life sciences and energy, 2 of Planisware [indiscernible] vertical. Italy represents a high potential market for Planisware, driven by a strong industrial base, internationally active groups and increasing demand for more structured government of investment and transformation program.

The new local presence will enable Planisware to work more closely with Italian clients, supporting both private and public sector organization in aligning strategy, execution and financial performance. In Vienna, the opening of our Austrian office marks a strategic step in deepening our presence across the DACH region and building a gateway into Central European market. Austria is on to a strong base of internationally active industrial group in energy, automotive supply chain, engineering and life sciences. That's where demand for structured portfolio governance is accelerating. With several major clients already at quarter or regionally managed from Vienna, this local presence will allow us to serve them with greater proximity and to capture new opportunities in a market that represents significant potential for Planisware.

Now let me talk about what we call exchange. Every year, we gather the key project portfolio stakeholders from our clients to foster a collaborative environment. This is not just an opportunity for us to connect with our customers. It's also for our customers to connect with each other. This event is very well named and it truly embodies the spirit of exchange, the platform for sharing knowledge, experiences and innovation. Our clients are our best ambassadors, spreading the word of mouth and sharing their exceptional success stories with Planisware.

This year, we held our North American Exchange in Denver, gathering about 200 customers from across our global community. It's a testament to the strength of our relationship and the relevance of our platform. It was a tremendous success with an incredible attendance. The energy and enthusiasm was so high as we came together to share best practices, to celebrate successes and to discuss emerging market trends. The team of this discussion was maximizing value and velocity with SPM, AI and power metrics.

Once again, this session provided hands-on experience, allowing our clients to see firsthand the innovative solutions we are developing to meet their needs. And one of the highlights of the conference was the live demos showcasing our latest features and in particular, our AI-powered unified platform, coupled with incredible customer success testimonial. Several of our top customers such as PepsiCo or Pfizer shared their ROI stories showcasing their use of Planisware AI's capabilities. We will hold the European 2026 [indiscernible] in Paris mid-June.

Now these events consistently accelerate the expansion conversation that drives our net retention rate and that I would like to develop on the next slide. At Planisware, landing new customers is only the very beginning of the story. Indeed, more than just getting new customers, we are able to systematically expand usage of our SaaS platform and thus, our revenue beyond the initial purchase, emphasized by a strong retention rate on our recurring revenue.

Now this slide illustrates the success of our land-and-expand strategy. When new clients come with an initial software purchase, we use our Evolutive support offering to help those clients to better leverage the Planisware capabilities to leverage new modules, upselling, fostering adoption and expansion across their organization. Thus we are able to drive a much more significant SaaS revenue expansion, thanks to this Evolutive support. Dollars spent by clients in Evolutive support services translate into further spend in SaaS. This creates a virtual circle of increased SaaS usage and recurring revenue far beyond the initial purchase.

Now this phase can last from 1 to 5 years depending on client needs and sometimes it lasts for decades. But expanding is not the end of the story either. At Planisware, we have proven our ability to retain our customers over a very long period of time, maximizing the lifetime value of our relationship with them as they standardize the workflow on our platform, fueling the cross-sell to other departments or other pillars.

Now this slide clearly illustrates the fundamental quality of our business model, the sustained and consistent expansion of revenue across our customer base over time. Looking at revenue contribution by customer cohort. You can see that our most established cohort continues to grow at a healthy CAGR. This reflects the stickiness of our platform as shown by the particularly of churn rate, the depth of value we deliver to clients and the long-term nature of our relationship with an average tenure of 11 years for our top 20 customers.

Importantly, our most recent cohorts are already demonstrating strong growth trajectory. This gives us confidence in the long-term revenue expansion potential of the contracts signed in recent quarters, including the significant volume of new contracts signed last year and that are currently being implemented.

I will now leave the floor to Benoit to detail the Q1 revenue evolution by [ activities trends ].

Thank you, Loic, and good morning to all. As usual, in order to effect the underlying performance of the company independently from exchange rate fluctuations, I will focus my comments on revenue evolution in constant currencies, which means applying Q1 '25 exchange rate to Q1 2026 revenue figures. FX effect was almost fully led to the U.S. dollar, 10% year-on-year depreciation versus the euro, which accounted for EUR 2.6 million out of the EUR 3 million of total FX effect. The rest came mostly from the Japanese yen, 13% year-on-year depreciation versus the euro.

Q1 2026 marked a further step in our growth acceleration, significantly fueled by the new logos signed over the last month. Together, they contributed to circa 60% of Q1 recurring revenue growth. As a comparison, they contributed to only circa 30% of recurring revenue growth in the entire year 2025. In the meantime, expansion of historical customers continued to be a strong contributor to growth, representing circa 40% of recurring revenue growth in Q1 2026. All in all, recurring revenue reached EUR 46.3 million in Q1 2026, up by 11.5%.

As usual, the key driver of revenue performance is our SaaS model, which represented 82% of total revenue and grew by EUR 5 million or 13.2% fueled by new customer wins as well as continued expansion within our large installed. The standout was SaaS & Hosting, which posted a solid 20.5% increase reaccelerating towards historical growth levels. This reflects the flow-through of recent contract signings into live SaaS deployment. North America was clearly the main contributor to that growth with the onboarding of new customers such as General Motors, Regeneron, [ Desjardins ] coupled with upsells to existing customers such as TE Connectivity, Eli Lilly or Ford.

Europe also grew nicely with new customers such as GE Vernova in France, Aumovio in Germany as well as the migration to SaaS of an important customer in Switzerland.

Support activities also in recurring revenue grew by 3%, including 4.8% growth in Evolutive support. As explained by Loic, this lower performance than usual is intentional as we prioritize initial implementation for new logos and reallocated support resources accordingly. We expect support growth to normalize once these implementations are completed as it remains particularly necessary in these times where our clients further rely on Planisware to adapt fast to the upturn context and to embrace the new AI capabilities of our platform.

The second growth driver in this past quarter was clearly implementation. We surged 64.8% as we ramp up the deployment of the large volumes of contracts signed at the end of 2025 and early 2026. To provide some color on these volumes, we noted that we worked in Q1 on 29 implementations generating at least EUR 50,000 each versus 17 in Q1 2025. It represents a 70% increase in number of meaningful deployments. This implementation momentum is a strong leading indicator of future recurring SaaS and Evolutive support revenue as customers complete deployment and enter production. We expect this pattern to persist at least in Q2 and part of H2, depending on the level of additional new logos signed in the coming months and our ability to deliver fast Implementation.

On the other hand, perpetual licenses, which represented less than 1% of our total revenue in Q1 declined by 49.1% or minus EUR 0.4 million in the quarter. This is fully consistent with the end of our SaaS transition as already reflected in 2025 figures with perpetual licenses down by 21%. Fewer perpetual licenses sold drives mechanically less revenue in maintenance. As a result, maintenance revenue was down by 1.5% in Q1 or minus EUR 0.1 million.

On the next slide, let's see how these evolutions are shaping our revenue. The outstanding Q1 performance in implementation prioritized Evolutive support, slightly reduced the weight of the recurring revenue, even if it remains at a strong 91% level.

Going forward, we expect to continue to drive revenue mix towards more and more recurring and profitability led by the faster growth of our highly profitable SaaS operations. Indeed, the SaaS model represented 82% of total Q1 revenue, while it was 81% for the entire year 2025. Within the SaaS model of Planisware, the SaaS & Hosting revenue line itself represented 51% of total revenue in Q1. This is the first quarter ever it exceeds half of the total revenue. On the opposite, the nonrecurring revenue represented only 9% of total revenue with the very strong growth of implementation compensated by the declining weight of perpetual licenses lower than 1% of total revenue in Q1.

I now give the mic back to Loic for closing remarks and reminder of the guidance.

Thank you, Benoit. Now let me turn to our outlook for 2026. Considering the strong start of the year, our continued commercial momentum and a solid pipeline on one hand. And a global environment that remains particularly volatile and uncertain, especially with U.S. dynamics that are very difficult to anticipate. On the other hand, Planisware confirms all its 2026 objectives. We are targeting a low double-digit revenue growth in constant currency. We remain committed to an adjusted EBITDA margin of approximately 37% of revenue and a cash conversion rate of approximately 80%.

We will continue to invest for long-term growth while maintaining the strong profitability profile and best-in-class cash-conversion that defines our business model. We are confident in the resilience of our recurring revenue model, and we continue to execute with discipline across our 3 strategic priorities: geographical expansion, continuous innovation, and financial rigor.

In summary, Q1 2026 showed that Planisware can do growing SaaS revenue, onboarding an unprecedented cohort of new clients and doing so while maintaining the operational and financial discipline that define the group. It also confirms that the growth acceleration we initiated after the low point of Q2 2025, is on track proven by strong implementation momentum and the reacceleration of SaaS & Hosting. Our commercial teams remain highly active. AI capabilities are reinforcing our competitive positioning, and we confirm all our 2026 objectives.

Now thank you for your attention. Benoit and I are now happy to take your questions.

[Operator Instructions] We will now take the first question from the line of Jarrod Chisholm from UBS.

Please forward my congratulations to Stephanie. That's great news. My first question is just around the commercial momentum. Did you see any elongation of the sales cycles in the first quarter as you saw this time last year during spikes of geopolitical uncertainty. And if you didn't, could you explain why you think that, that might be the case this time around?

My second question is just on what you have baked in for the remainder of the year in your guidance ambitions based on what you've reported in the first quarter and then your current pipeline and expected wins. And then any detail around revenue performance by pillar and geography would also be interesting.

Okay. So to -- for the first part of your question about the commercial elongation, I mean, clearly, there is an uncertain world at the moment that we see but it's nothing like what we've seen in the first quarter and last year -- first quarter and beginning of second quarter last year. Why -- I think it has to go back to what we are doing. The need to properly manage projects and portfolios of projects that are absolutely necessary to reposition an organization, to adopt changing world to adapt to the need of AI in digital transformation.

So there are projects everywhere. And so some companies, what was interesting last year is that our customers were very well positioned to address the challenging time that was ahead of them. The one that were not customers that couldn't have an eye on their project and on their portfolio was the one that got caught last year not having the type of solution that we do. And so I think this year that the impact is not as much because of that.

In terms of our -- what we've baked into our guidance, we remain optimistic, yet cautious because it's hard to read the current geopolitical environment and its evolution and the impact on the year.

Now in terms of revenue by geographies and industries. Clearly, we've seen a very strong reacceleration in North America stronger than what we've seen in the rest of the world followed by Europe which has been strong as well, but not as much. And Europe is a bit diverse, depending on the country. And maybe it's -- we've had some -- in terms of growth, we've had some impact in Japan last year, which is still growing, but not at the same rate.

And in terms of industries, we've got a very good traction in everything that is digital transformation and industries like banking and insurance and financial services have been growing very strongly. And after our core market continues to have very strong support in life science, automotive and energy. Energy was particularly strong at the beginning of the year.

We will now take the next question from the line of Frederic Boulan from Bank of America.

If I can maybe follow up on the first question around anything in particular you want to point out from a phasing standpoint after Q1 from -- as you mentioned, a strong start from a revenue standpoint.

Secondly, you mentioned in February that some IT budgets have been consumed by AI initiatives at some of your clients and that impacted deal flow. Is it still a factor? Or you see clients increasingly moving ahead with Planisware?

And then thirdly, any comments around your margin? I know it's not a margin quarter, but guidance of 37%. Last year, you were a bit higher than that. Any specific moving parts to call out that limit operating leverage in 2026.

Fred, I'm very sorry. Can you repeat the first part of your question?

Yes. Yes, my question was after Q1 revenue growth, any specific phasing items you want to call out for the rest of the year. So when we look at the next few quarters, considering your full year guidance.

Yes. I mean, clearly we had a very, very strong start of Q1, particularly strong due to the high level of signature that we commented at the tail end of 2025. And what has been very interesting is that the level of signature did continue at the beginning of the year. So in terms of profile, we do expect that it's a high profile in this Q1. And the normal cadence that we have in normal yields mean that it's usually a strong start and a strong finish. So that's what we have baked into our guidance.

About the comment that we've made in February about the -- some of the IT budget being consumed by AI was for the earlier part of 2025, where we noticed that our customers had some budgets consumed towards what we called anything AI. They wanted to do anything AI, which was not necessarily tied to some business objective, business goal, business value that were identified.

What we are noticing today is that we are back to having customers wanting to leverage AI, but demonstrating value, showcasing values, which is much more aligned with what we are bringing to them. As I commented earlier, we have had some real customer use cases where they showed the outstanding value that they were getting from Planisware using Planisware AI capabilities. And that is exactly what people want now is to see how does that translate into their operation, how can they benefit from it? How can they get the value? And how can they ensure that everything is adopted properly so that they can maximize this value.

So now what we are seeing, especially with our Evolutive support is like more and more customers want to benefit from those AI capabilities that we have. So we have enough outstanding level of demand at the moment around those AI capabilities.

Yes. And maybe, Fred, on your question on margin and the margin guidance. So it implies more or less stability of our profitability in 2026 compared to 2025. You know that the main driver of our growth improvement is coming from the revenue mix implementation, which is clearly driving the growth this year is not the most profitable lines of our revenue, clearly not. So it compensates -- I mean the profitability improvement that we plan for 2026 is not at the level of what we delivered in 2025 and 2024 due to the weight of implementation, but the revenue mix is still working on, and there is no reason to improve our profitability. So this guidance may be considered as a bit cautious.

[Operator Instructions] Make sense. Thank you. We will now take the next question from the line of Hugo Paternoster from Kepler Cheuvreux.

Gentlemen, can you hear me well?

Hear very well.

I will limit myself to 3 questions. And the first one is trying to have a bit of color on the mix between your products, between Enterprise and Orchestra. How is it evolving in terms of momentum by customer? What are you seeing at the moment?

The second question would be on the market. Where are you seeing your competition now in terms of market share, do you think you take market share versus Planview, ServiceNow, and [ Atlassian ]. Just wonder how are you seeing that?

And the last question is mainly on the implementation and the implementation work. You basically showed a strong start in Q1. If I understood well, you expected to last at least until Q3. How will you manage the potential bottleneck? And will it imply, I don't know, more recruitment for this year? That would be my 3 questions.

Yes. Thank you for the question. In terms of our mix of product, as we previously shared, the enterprise in terms of revenue is much larger than Orchestra. Orchestra had mid-market relation solution in terms of revenue is much lesser. The rule of thumb that we have, it's more like the average customer size when they are on a single product is 1 to 10 of rule of thumb. And that mix is staying in that level.

In terms of market share, what's very interesting at the moment is that if you look at the different solution out there, AI is really helping us to push into early retirement some of the legacy providers that were still used out there. So the type of solution that we provide are extremely sticky and there are some variable solutions that are still out there that now are being forced to be replaced. So we have a momentum coming from there. And in terms of positioning with our competition, not necessarily going into detail with the name you mentioned. But clearly, our platform approach, our unified platform approach in which we have deeply embedded AI algorithm is a competitive advantage that we constantly showcase and that is being seen by our -- during our sales cycle by our customers, but by our prospects as well.

And finally, in terms of implementation, you're right that we had a very, very strong start, which is great because those new logos that we are getting now are really gasoline for the future. And you're right that it does put some constraints in our -- in how we deliver that. That's why we prioritize some of our delivery [indiscernible] from Evolutive support to implementation. In order to address the bottleneck, we have 2 actions that we are currently undertaking. The first one is, yes, to hire more and to continue to hire for the long term. And the second one is to further leverage our network of short parties, companies that we work with that we are that we are -- on which we are expanding as well.

We will now take the next question from the line of Clement Bassat from BNP.

Basically, the first one was already addressed about the bottleneck between implementation and abilities to growth. However, I have a question about AI, some SaaS editor are deploying AI agents to perform some easy task like [ cloud cohort ]. And I guess AI today is mostly predictive and generative to help your clients. So I'm wondering if you intend to invest in AI agents, which are, from my view, the main risk for SaaS editor.

Yes, thank you for the question because it does allow me to clarify that actually Planisware has deployed and rolled out AI all purpose agent. As a matter of fact, what we have seen at our exchange is not only that it's a capability that we have brought to our customers for quite some time already. But what we've given in exchange is the return of experience of our customers leveraging Planisware AI agent. And it's not capabilities that we are planning to deliver. It's capabilities that we have delivered on which we have a real customer, real use case that have rolled out those capabilities and that are using those capabilities every day across the organization.

We will now take the next question from the line of Gustav Froberg from Berenberg.

I just have 2, please. The first is on your pipeline. I know you mentioned that pipeline still remains full despite all the signings at the beginning of the year. But do you have any more color for us in terms of how that pipeline has progressed into Q2 and what visibility you have on new leads, et cetera, on the top of the funnel.

And then a second question around implementation and bottlenecks there. Do you see any room for or potential for the company to use your own AI solutions or any other kind of AI capabilities to really enhance your implementation and to speed up some of the processes there? That's it.

Yes. Thank you. You're right. So the pipeline did and see itself a little bit at the tail end of 2025 positively, very positively when opportunities turn into those new customers that we've commented. And at the beginning of the year, this year, the pipeline did replenish itself with some new opportunities that are moving across the pipeline similarly as what we've commented previously, the smaller opportunities have a tendency to move faster, and we do have some large opportunities that are currently worked in this pipeline and that are progressing at a normal pace.

In terms of implementation, you're absolutely right that we leverage our AI more and more. It's changing so rapidly in the capability of what we can do. And we have -- in terms of implementation, what we constantly want to do is shorten the time to value for our customers. And you're absolutely right that we do already leverage our own AI capabilities to accelerate implementation time to make them faster, and this trend will absolutely continue in the future.

[Operator Instructions] Our next question comes from the line of Nicolas Thorez from ODDO BHF.

Just only one quick question. Sorry if I missed some part of the presentation. But on recurring revenue expectation for 2026, given the strong order intake over the last months and the growth in professional services, should we mechanically expect a further acceleration in SaaS & Hosting revenue as implementation progress and projects go live? Or do you see growth remaining broadly in line with the Q1 2026 growth rate? Maybe to put it another way, do you think the growth in SaaS in Q1 already fully reflect the strong level of signings at the end of 2025? Or should we expect a gradual buildup over the year?

No, I think overall, when we sign new logos, then they -- and we start seeing revenue soon after. And so the revenue growth that we see comes from some new logos, but also a lot about upsell and cross-sell. So the level that you see in Q1 is a level that we should expect to remain in the coming quarters as well coming from additional new logos but primarily coming from upsell and cross-sell of the previous implementation that we've seen historically. And as we demonstrated earlier from the core presentation that we've done that is coming from all of our historical customers, given the extremely low churn rate that we have less than 2% that continues to fuel this growth.

There are no further questions at this time. I would now like to turn the conference back to Loic Sautour and Benoit d'Amecourt for closing remarks.

Yes. Thank you very much. Thank you for your attendance. Very happy to see you later on the road. And as usual, I am available for any follow-up questions, do not hesitate to contact me. Thank you, and have a good day.

Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Good day, and thank you for standing by. Welcome to Planisware Full Year 2025 Results Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Loic Sautour. Please sir, go ahead.

Good morning, and thank you for attending our call on 2025 annual results of Planisware. This is Loic Sautour speaking. And as usual, I will share this presentation with Stephanie Pardo, our CFO. I would like to start with the key messages of this publication. In 2025, despite a particularly challenging economic and geopolitical backdrop, we continue to execute our strategic road map, expanding geographically, accelerating innovation and maintaining a strict financial discipline. This translated into continued market share gain and a resilient plus 10.3% revenue growth in constant currency, in line with our circa 10% objective. Our growth was led by plus 14.4% in Planisware's SaaS Model. It materialized the sequential growth acceleration quarter after quarter since the lowest point we had reached in Q2 2025.

While after several quarters marked by limited visibility and elongated customer decision cycle, mainly on the back of the U.S. tariff, the market condition improved towards the end, resulting in renewed commercial momentum and a strong level of signature. Our rigorous execution also enabled us to deliver a significant 220 basis points profitability improvement. This was driven by revenue growth as well as by the structurally positive scalability and mix effects. It also came from further operational efficiencies coming in part from the internal deployment of AI tools. Our EBITDA margin came at 37.4%, significantly higher than the objective of circa 35%, which we had raised in July 2025 to circa 36%. This outstanding performance also contributed to the high cash generation with adjusted FCS up by 9% to EUR 59 million. It represented a cash conversion rate fully in line with the circa 80% annual objective we had.

Even after having paid EUR 22 million of dividends and spent EUR 10 million in share buyback this past year, this leaves us with a very strong financial situation at year-end with a net cash position of EUR 196 million without any financial debt. Profit for the period reached EUR 50 million, up 17% year-on-year, representing earnings per share reaching EUR 0.71. In line with the historical distribution policy of Planisware, a dividend of EUR 0.36 per share, representing 16.1% year-on-year increase and a 50% payout ratio will be proposed to the next shareholder meeting. With a solid financial profile and a clear competitive edge, we are continuing to invest to deliver increasing value to our customers. We believe these dynamics, including accelerating innovation cycle and strengthen commercial traction, reinforces our ability to progressively reaccelerate our top line growth towards our historical mid- to high teens level over the midterm.

As early as this year, it should translate into a stronger revenue growth combined with high profitability and cash generation. Now looking back at 2025, I would like to spend some time on the sequential evolution of our quarterly growth. We started the year with a decent growth in Q1 at 14.3% in constant currency, while our revenue growth had already started to slow down in the second half of 2024. We were still benefiting at the time from the expansion phase of new customers, which we have secured the previous years, in particular, from 2023 and the start of 2024. On the booking side, however, where we were already impacted by elongated sales cycle related to political concern in France, difficulties in some of our key verticals such as automotive, the U.S. tariff storm really started to check the economic world and the signing difficulties became much more sensitive.

We think these new logos for a few quarters in a row started to have a double impact on our revenue. First, we were not getting as much revenue as planned from the new SaaS subscription implementation and onboarding support of those new logos. And additionally, we started to lack potential upselling of those missing new customers. This materialized in the slower growth rate that we've seen in the subsequent quarter. As the sales cycle progressively stabilized after the summer with an unprecedented level of new logo signature, which included the delayed opportunities, it fueled our year-end revenue growth acceleration, which we do expect to continue in 2026. I would like now to deep dive in the economics behind the 12.8% growth in constant currency that we recorded in 2025 in our recurring revenue.

In the context I was describing, the new logos contributed to 24% of 2025 recurring revenue growth in constant currency. Considering the strong bookings at the end of 2025, we expect the new logos to contribute much more significantly to 2026 revenue growth. So the main contributor to the total revenue growth were the existing customers. Altogether, thanks to upsell and cross-sell and encompassing a very limiting churn rate at 1.4%, they contributed to 76% of 2025 recurring revenue growth in constant currency. This is well reflected in the robust 110% net retention rate. Talking about churn, I would like just to stop a moment on this decreasing churn rate from an already very low level. Clearly, I interpret this as a testimony of the criticality of our solutions for our customers, in particular, at the time when they are facing their own checkups.

Now on this slide, let me illustrate how all of this continues to positively shape our revenue mix towards more and more recurrent and profitability. Over the year, recurring revenue made of our SaaS operation and maintenance of perpetual licenses represented 91% of total revenue, 200 basis points higher than in 2024 and even 460 basis points higher than in 2023. The SaaS model itself represents 81% of total revenue, while it was 78% in 2024 and 74% in 2023. On the opposite, the nonrecurring revenue represented only 9% of the total revenue, of which perpetual license were close to 3%. Now let me take just a few minutes to talk about how AI is changing what we do and how our AI unified platform is now pivotal to this change. Well, we've made the choice many years back to have a single platform to develop all of our products. Having a single platform is proving now to be a very strong competitive advantage.

If you look at our direct competitors, we are uniquely positioned. Many of our competitors have grown by acquisition. So they lack this ability to bring AI to many of their customers as they only continue to invest in their core historical product. Between them and the legacy providers that are now deprecated, we shine. You have to realize that in each sales cycle now, we are showcasing our AI capabilities, and we make the difference as we appear to be the defining leader in AI capabilities for strategic portfolio and project management. AI is also a catalyst for our own product development, leveraging our platform. It allows us to accelerate our development. As a matter of fact, we have changed our major release cycle to now be quarterly to ensure our clients are keeping up with the fast-growing capabilities we are bringing to them.

Accelerating our development also means it will allow us to launch new additional products in the future. Now in this platform, we leverage an all-purpose agent. This agent has an increasing adoption by our customers as more and more users want to work with natural languages. This agent easily allows data manipulation, simulation, reporting, all of the decision support. In the end, we see the casual users that are now coming to Planisware because Planisware is becoming more accessible and is less and less perceived as an expert tool. It directly translates to better decision-making, faster decision. When -- for our customers, when you have to arbitrate amongst projects, among resource allocation, when you need to bring agility in your strategy, in today's current world, speed is essential. Our agent is bringing to our customers this qualitative visibility, which allows them to focus on their core business and properly manage and deliver their project on time, on budget, on scope, on quality.

With our agent, we are augmenting the usage of Planisware, and we see a deeper adoption of Planisware. Seats are still required as they warrant a robust security framework and ensure the highest data confidentiality, which is mandatory when you work on a portfolio of projects globally. Our agent leverages large language models to operate. We can work with the one from OpenAI, Gemini, Anthropic, Mistral. Planisware does not aim to develop large language model. The main large language model providers are massively investing in developing their infrastructure. And since they pretty much all operate the same way, it becomes a commodity. Very often, actually, we piggyback on our customers' LLM mainly for our customer security concerns, but we also provide pay-as-you-go LLM more for our mid-market offering.

We've made these choices because there are so much investment in LLMs now that we benefit from the price war that it is generating. It turns out to be very cost effective. And like this, we don't have to invest in pricing infrastructure, which may become obsolete very quickly. We also have implemented the model context protocol to enable agentic workflow. It can be used as a server or as a client. It's really our clients who now have the option, if they decide to do so on a case-by-case basis to enable Planisware MCP server. It allows external agents to work with the Planisware data, but also for Planisware to work with other solutions when they support the MCP protocol. All in all, this is also augmenting the overall usage of Planisware. And why? Because Planisware is the single source of truth. It is a structured transactional system of record for portfolios of projects where data quality is warranted.

If you look at the future, we believe that -- our agent is geared to evolve towards an hybrid agent where it combines effective data visualization with natural language. Pure language interaction is not sufficient. It's good to start. But when you add the data visualization Planisware provide, it's used to properly handle the decision-making on large amount of data to allow simulation on this data set, and we really see hybrid agent to be even more effective. All of that is really an opportunity for us because our direct competitors are not there, and they are not going as fast as us. Now before letting Stephanie for further detail our financials, I'd like to present our 2026 objective. While the global environment remains particularly uncertain, especially with the U.S. dynamics, which is very difficult to anticipate, we enter 2026 with confidence supported by the strong recent commercial momentum and our solid commercial pipeline.

We believe these dynamics, including the accelerating innovation cycle and the strengthened commercial traction would translate into a stronger revenue growth combined with high profitability and cash generation. In this context, Planisware 2026 objectives are a low double-digit revenue growth in constant currencies, circa 37% adjusted EBITDA margin and circa 80% cash conversion rate. Now Stephanie, let me turn to you so that you can further elaborate on our financials.

Thank you, Louis. So I will start my presentation with revenue, which reached EUR 198 million in 2025, up by 7.9% in constant currencies, up [indiscernible] in constant currency. The exchange rate effect was mainly related to the depreciation of the U.S. dollar than the euro and to a lesser extent, from Japanese yen depreciation. As usual, in order to reflect the underlying performance of the company independently from exchange rate fluctuations, the following analysis refers to revenue evolution in constant currencies. That means applying 2024 average exchange rate to 2025 revenue figures. Loic already provided some insights on the recurring revenue at 12.8% growth, led by the SaaS model, up by 14.4%.

In details, SaaS and hosting activities were up by 16.7%, thanks to contracts secured with new customers as well as continued expansion with the installed base. Revenue of support activities intrinsically related to Planisware SaaS offering grew by 10.2%. Annual licenses strong revenue growth of 69% was mostly related to licenses sold to a German regional transport infrastructure authority and to a U.S. specialty materials player. Finally, maintenance revenue was slightly up, plus 1.1% in the context of the group's shift from its prior perpetual license model to a SaaS model. Looking now at the nonrecurring revenue, the 10.1% decrease in '25 was mostly related to fewer perpetual licenses sold in the context of the group's shift to SaaS. As a result, the line decrease reached minus 21.3% and perpetual licenses represented less than 3% of the total group revenue in '25.

In parallel, our continued effort to deliver shorter implementations and bring value faster to customers continue to drive the planned revenue decline in implementation for which revenue was down by 3.7% in '25 despite a strong plus 14.2% in Q4, driven by the implementation of recent new logos onboarding. In 2025, all key geographies contributed to Planisware revenue growth. Representing 49% of total revenue in '25, Europe was the main contributor to the group revenue growth, plus 10.8% or plus EUR 9.4 million with a significant acceleration in H2 '25 at plus 12.8%. This growth was very much led by significant upsell and cross-sell with industrial and manufacturing customers. Nonrecurring activities in Europe was slightly up in '25 with implementation offsetting perpetual licenses decline related to a more demanding comparative basis in '24. North America represented 43% of total revenue in '25 and was up by 10.5%. After having faced elegant customer decision-making processes, North America recorded particularly strong bookings at the end of the year with significant new customer wins.

Over the year, circa 30% of the revenue growth came from new logos, in particular, the one signed of 2024. Upsell and cross-sell with existing customers was also high even if the NRR was a bit impacted by some downsells on accounting slowing down the expansion phase and related evolutive support spending. Finally, it is worth mentioning that reduced number of perpetual licenses sold in '25 at the group level mostly impacted North America. Finally, APAC and Rest of the World represented 8% of total revenue in '25 and grew by 6.1% over the year with contrasted performance between the 2 semesters of the year. After a strong H1 '25, plus 20.4%, driven by the continued strong commercial momentum in Singapore and Middle East, revenue evolution was impacted in H2 with a sharp decrease of 5.7% in revenue made with Japanese customers impacted by U.S. tariffs, in particular, in the automotive industry.

Over the year, the Japanese downsell compensated the upsell and cross-sell done with other existing customers and resulted with a lower NRR. On the positive side, the commercial dynamic remains very strong in this region, globally speaking, and new customers significantly contributed to growth and present significant room for future expansion. Regarding the revenue evolution by pillar now, the largest one remains the main contributors to the group's revenue growth in 2025. Product development and innovation, the historical pillar of Planisware represented 53% of total revenue and contributed to 57% of the 2025 group revenue growth with plus 10.9% resulting from both new customer wins and expansion of offerings to existing customers.

Over the year, 28% of PD&I growth came from new logos, in particular, the ones signed end of 2024 in verticals such as automotive and life science. In parallel, PD&I and NR was broadly in line with the group average. Project controls and engineering continued to ramp up by supporting many production teams in industries with sophisticated products, plants and infrastructure. In '25, it represented 22% of total revenue and contributed to almost half of group revenue growth, thanks to a strong 24.3% growth. That growth was mostly related -- was mostly led by the significant level of upselling with new customers from all the regions and to a lesser extent, to the contribution of new business. IT governance and digital transformation represented 17% of 2025 total revenue and grew by 5.4%, fueled by continued cross-sell to Planisware clients needing to accelerate their digital transformation as well as new logos landing.

Over the year, while the recurring revenue was significantly growing in the IT pillar, nonrecurring business declined. Considering the strong recent booking in the IT pillar, we expect growth to significantly reaccelerate as soon as H1 '26. Finally, Project Business Automation represented 7% of 2025 total revenue and posted a revenue decline by 14.6% in '25, impacted in the second half of the year by downsell and fewer new logos in services industry, coupled with the base effect related to a large perpetual license sold in PBA in 2024.

Turning now to gross profit. I'm proud of the continued disciplined approach to expenses implemented in the group and with the 110 basis points of gross margin improvement posted last year, leading to a gross margin of 73.8% of the revenue. Over the last year, it represents a 260 basis point improvement. This performance was driven by the business mix evolution that I just detailed and in particular, thanks to the growth of the SaaS and hosting line, the most profitable stream of revenue. The next slide presents the repartition of our operating expenses, which is quite much consistent with the one observed during the previous period. In 2025, OpEx reached EUR 85 million and represented 43% of the group revenue, 130 basis points less than in 2024. Every line contributed to this cost reduction.

R&D expenses consisting primarily of staff expenses directly associated with R&D teams as well as amortization of capitalized cost development and the benefits from the French research tax credit. R&D expenses reached EUR 22.3 million and represented 11.3% of revenue, which is less 80 basis points compared to 12.1% in 2024. Planisware maintains a high level of R&D spending, which benefits from deployment of AI tools, boosting R&D efficiency and Planisware's ability to leverage its R&D efforts to provide faster innovative products and software solution and its unique unified platform to expand its offering portfolio and promote its offering in the project management market.

In 2025, capitalized costs amounted to EUR 3.1 million, which is 23.4% compared to EUR 2.5 million in 2024, reaching EUR 35.4 million in 2025. Sales and marketing expenses increased by 6.1% compared to 2024, led in particular by the increase in employee-related costs in the sales force and marketing team. Sales and marketing expenses represented 17.9% of '25 revenue, 30 basis points less compared to 18.2% in 2024. These costs are expected to increase in the future as Planisware plans on strengthening its leading position in the market. Finally, represented 14% of revenue in '25. General and administrative expenses reached EUR 27.6 million, including EUR 0.9 million in foreign exchange losses versus EUR 0.2 million gains in 2024. Adjusted of the foreign exchange gain losses, general and administrative expenses represented a minus 70 basis points year-on-year decrease compared to revenue. Planisware expects that as the company continues to scale up in the future, G&A will continue to decrease as a percentage of revenue.

Let's move now to adjusted EBITDA. As a result of the gross margin improvement and lower OpEx levels, adjusted EBITDA margin reached 37.4% of revenue, a year-on-year improvement by 220 basis points. Over the two last year, this represents 400 basis points improvement. In absolute value, adjusted EBITDA reached EUR 74.1 million, up by 14.7% year-on-year. Moving now to cash generation, which has been strong with EUR 59.3 million adjusted free cash flow, up by 8.7% year-on-year. At 80.1%, the conversion of adjusted EBITDA to adjusted FCF was fully in line with our circa 80% 2025 objective that we consider to be the normative conversion rate we expect to have in the coming years. Looking at the detail of the conversion of EBITDA, change in working capital was positive by EUR 2.5 million, and it's in line with the structural, slightly positive change in working capital expected every year, thanks to the growth of subscription contracts, bill in advance for service rendered.

The CapEx, which amounted to EUR 6.1 million represented [indiscernible] of the revenue, in line with the usual 3% CapEx spending and with the expected level for the coming years also. Finally, tax paid increased reflects higher 2025 income tax prepayments in France with regard to the prior year increased taxable profit. These elements lead to an adjusted FCF up by 9% to EUR 59 million, representing a cash conversion rate of 80.1%, fully in line with the circa 80% annual objective.

So this cash generation over the year, coupled with the prepayment in April of the dividend 2024 results and the EUR 10 million share buyback program executed last September, October led to a solid cash position of EUR 196 million at the end of the year, 11% higher than a year before. I remind you that except lease liabilities related to office and data center facilities, which amounted to EUR 17.6 million and small amount of bank overdraft, Planisware does not have any financial debt. Finally, in this context of strong financial performance and subject to the approval by the shareholders' meeting, the group will pay a dividend representing 50% of its profit for the period, in line with the historical dividend distribution policy. This would represent EUR 25.2 million or EUR 0.36 per share. This concludes our presentation, and we are now ready for Q&A. Thank you.

[Operator Instructions] We will now take the first question coming from the line of Jarrod Chisholm from UBS.

My first one is on AI. I appreciate the comments that you made in the prepared remarks. But I was just wondering if you could provide some more color on what your customer conversations have been like on the topic of AI, what features customers are using or what are they asking, I guess, your forward deployed engineers for? And do you expect to see customers building their own project management software tools within the next 3 to 5 years?

Yes. Thank you for the question. Yes, AI is definitely top of mind for ourselves and for our customers. What's really important, what matters is for AI, like anything, for AI to be adopted. So the discussion that we have with our customers is to bring to them qualitative and value in the AI that we bring to our customers. So that's the first point. So we have actually a customer advisory group on AI, where we interact with our customers to ensure that we bring strong value. So that's very important. That's point number one.

Point number two is about adopting AI. Clearly, when you are at Planisware, you look at our product development, at our R&D, it's going so fast now that has to trickle down to our customers. The rate of adoption of AI capabilities for our customers is maybe the limiting factor in today's context. That's why our evolutive support is actually very key. It's very key because not only we bring AI capabilities to our customers, but we ensure with evolutive support, which is really backed in our offering that our customers can benefit from the value that we bring to them with AI.

Now in regards to do we expect our customers to build their own solution, quite frankly, this is not the direction that it is taking because that's not their core competency. When you have to build -- I mean you got to imagine that we are building about strategic portfolio and project management that are global rollout with high security, security certification everywhere on our infrastructure. That's not the core competency of our customers. They are industrial that are working, developing, focusing on their market, which is not to develop solutions. So that is not the direction that it is taking.

We will now take the next question from the line of Fred Boulan from Bank of America.

So firstly, if I can stay on the [AI SIM] first around your pricing model. Can you just recap a little bit the mix of type of pricing, what's linked to number of users versus consumption or price-based pricing? And how do you see this evolving going forward? On the kind of all-purpose agent monetization, how does that fit in your overall pricing? And then second question around costs and margins. So if we look at your 2026 guidance, so strong increase in 2025. Your guidance implies a margin reduction in '26. Can you talk about some of the moving parts? I mean you mentioned G&A, continued to scale up there, gross margin. But can you talk about the different moving parts in 2026 and beyond? It looks quite prudent to assume a margin compression considering the rollout of AI internally.

Yes. I'll take the first part of the question, Fred. So in regard to our pricing model, we price largely by seats. I mean there are a few different flavors on different topics, but let's say, it's largely by user by seats. The all purpose agents still require seats because the seats is what warrant who can access the data, what kind of data can be accessed. There is a lot of confidentiality around the data that we are manipulating. So the impact that we expect AI to have on our pricing model it's not there. It's what we expect the impact that we do expect is that what we see is more and more seats are needed. So we do expect AI to actually increase our revenue as more casual users are now leveraging the Planisware solution that brings more users. As I was mentioning, Planisware is less perceived as an expert system, an expert tool now. So that brings more users and how we expect that it will benefit us.

And on the margin in 2026, so we have a stronger reacceleration of people-based activities. As you saw, implementation was lower in 2025. So implementation and support are less profitable. So that will impact, of course, the margin of 2026. And on the other side, the mix effect is still contributing with SaaS, which is growing faster with the compared to the other lines. And AI also will help to increase the margin. So it's a mix of all these effects. So that's why we think we will be at this kind of level of adjusted EBITDA.

We will now take the next question from the line of Hugo Paternoster from Kepler Cheuvreux.

I would have 3 questions, if I may. And the first one is on the Q4 acceleration. Just wanted to have a view on how much of the Q4 acceleration reflects an improvement in demand versus a backlog conversion delay from H1? This is the first question. The second question relates to the sales cycle decision. As you noticed any meaningful shortening in terms of sales cycle decision versus the mid-2025? And where do we stand compared to the historical norm? And the last one is mainly a follow-up on the AI. Just wanted to see how concretely is your AI strategy influence your win rate versus your competitor? And are you seeing meaningful like, I would say, uplift in conversion rate of velocity?

Yes. So the first question on the Q4 acceleration. The Q4 acceleration came from 2 things. The elongated decision cycle came to fruition. We started to see that at the tail end of Q3, actually was commented at the time about that. Clearly, in our pipeline, there were some opportunities that translated and positively delivered at the end of -- towards the end of Q3. And what continued to happen in Q4 is that the larger opportunities did materialize in Q4. So there were the ongoing opportunities plus the backlog. So clearly, there have been an acceleration.

The third part of your question, I will address now is about how is AI influencing our win rate. It's largely influencing our win rate. As I mentioned, if you look at our competitors, they are different tools. They are very fragmented. And that's where our platform allows us to bring strong AI capabilities that are delivering proven value. We have customers talking about the proven value that our AI brings to them. And so it clearly influenced our win rate. It's actually -- we showcased our AI now in every sales cycle because it is key to the decision-making of our customers because they want to go with the modern platform that has all of this AI and today's SaaS. You have some legacy providers that are -- clearly that are not investing in their solution any longer.

And so there is also a lot of replacement of those legacy providers that we also have started to see in Q4. We have really converted some large customers that were on some legacy providers and AI help. Concerning the sales cycle decision, it's true it's elongated in 2025. The way our sales cycle are evolving, it's a bit too early to tell for 2026, we are still on sales cycles that are a bit long or not. We have a clear visibility on that as typically, our sales cycle are on a -- on a yearly basis. So now we are really fueling our pipe, and it's a bit too early to comment on the sales cycle.

We will now take the next question from the line of Pavan Daswani from Citi.

I've also got a couple. Maybe firstly, good to see the strong momentum towards the end of the year. How should we think about the ramp timing in 2026? And how much of the 2026 guidance is already baked in from these wins? And then secondly, on NRR, I appreciate that the full year number was impacted by the weaker H1 sales environment. Could you give us a sense of the exit rate for NRR in Q4? And in the past, you've targeted over 120% under the old definition. Is that still the target? And when do you expect to get back there?

Okay. So yes, as part of the 2026 guidance, we have obviously baked in the new logo wins that we have secured at the tail end of 2025. That is part of what is shaping our '26 guidance. In terms of NRR, so the NRR has been impacted as well by the longer decision-making cycle in terms of cross-sell and upsell. So as we anticipate to go towards -- more toward our historical growth, we do expect the NRR to go back to a stronger level. We will comment at the time when we expect this to happen. Clearly, the -- if you look at our total revenue growth, it's largely coming from existing customers. And so the NRR is quite in sync with this overall top line revenue growth.

We will now take the next question from the line of Ben Castillo-Bernaus from BNP.

Just coming back on that net retention rate, looking at that very helpful Slide 6 in your presentation. Can you just help us unpack a little bit on the new methodology, net retention rates declining by 700 basis points. Where are you seeing more renewal pressure? Why do you think it's happening? And then secondly, if I interpret your message on the growth mix for 2026, I think you said more would come from the net new logos next year. Is it fair to assume, therefore, that net retention rates could decline further in 2026? And what's that scope for that to recover eventually? And as you just mentioned, to help drive that revenue reacceleration in the outer years?

Yes. The net retention rate, we've we actually aligned our net retention rate to be very consistent with what we've seen being done by others. And so we have included in our net retention rate, the churn, which was not necessarily the case in the previous definition. So it makes it a little bit easier to compare. In terms of gross mix, NRR is on our recurring portion of our revenue. And so we do expect the NRR to actually grow compared to where it is at the moment.

Now in terms of the total revenue contribution, the new logos that we have signed towards the end of 2025 will contribute to the nonrecurring part, especially in terms of implementation to the nonrecurring part of our revenue. So clearly, with the of new logos that we have signed, we do expect the nonrecurring portion of our revenue to specifically implementation to grow. And yet the NR for the recurring portion of our revenue will continue as well.

We will now take the next question from the line of Gustav Froberg from Berenberg.

Just 3, if I may. The first is again on AI, and you're talking about sort of usage of the product using AI and that you think you'll see more users, in fact, use the sort of AI tools that you baked into your product. But do you see then that as this evolves over time and adoption of AI evolves over time that you'll be shifting away from a recurring sort of monthly type fee and more towards a consumption-based nonrecurring type revenue model, which is based more on consumption? That's my first question.

Second is around pipeline build in Q3. You've said it's strong or looking healthy. Could you maybe tell us a little bit more about what's going on in terms of building pipeline and filling the top of the funnel? For the rest of the year in the first quarter or at least the first part of it? And then last one, just on absolute revenue additions by quarter. So to get to double digit -- low double-digit constant currency growth, you need to add roughly the same amount of revenues that you did in Q4 every single quarter. How do you look at that sort of EUR 5 million constant currency growth in Q4? Can we build on that? And what are you doing to build on that EUR 5 million number? And by how much can you build on that EUR 5 million number as we progress toward 2026?

Okay. So in terms of the AI, the use of our product with AI and your question about the monthly recurring revenue, the revenue come from what we sell. And it's obvious, yes, but what we sell is done in a competitive environment. And so today, we have to price in order to be competitive. And so in terms of our pricing structure, we are aligned with -- in terms of the structure, right? We are aligned with what the competition is doing because that needs to be readable for our customers.

So we definitely have some work done on a consumption base, but today, when we talk to our customer or potential customer or prospects, we have to talk the same language as what our competition is talking about. And today, it's primarily around seats. In terms of the pipeline, the pipeline is actually looking quite healthy at the moment, given our seasonality in [indiscernible], as you know, we have a lot of [indiscernible] happened more towards the midyear.

We'll have to see. But today, we see a strong need. We see a strong need for the solution that we bring. The properly managing and strategically managing portfolio of projects, those projects that are reshaping the change of the company that we are working with is really more than ever. So the demand is high. On the digital transformation pillar, the demand is high because all of those AI projects also have to be managed. So that is also fueling some of the demand. As Stephanie mentioned, we do expect this pillar to actually be a large contributor to our growth in the future. And so with all of that, yes, we do expect in terms of revenue for the future, we do expect that every quarter of 2026, we will continue to expand compared to the Q4 2025 that we have had.

We will now take the next question from the line of Clement Bassat from Portzamparc BNP Paribas.

Basically, I have 3. So I'm still wondering why you maintain a guidance of 10%, why you expect revenue growth acceleration in 2026 from new customers. So it means you expect lower sell-up or cross-sell. And basically, what are the main headwinds that you make you so cautious in your current customers? And the second question, for the implementation of the new logo, you are going to hire people or allocate people from your support or maybe an integrator, so this new business will increase your needs in IT infrastructure. So what is your capabilities today, knowing that RAM is too expensive. So do you expect an impact on your CapEx and on your SaaS gross margin where the [indiscernible] is located?

Yes. Thank you, Clement, for the question. Good question. So in terms of our guidance, we factored in the current environment and some uncertainties that is coming from the current environment. And so we want to be -- I mean, we are optimistic, but we want to be cautious into what we are spending in terms of guidance. So we have been disappointed in 2025 when we actually had to cut our guidance because of those elongation of the cycle that we had commented. And so we don't want to put ourselves into a position to be disappointed again. So that's why in our guidance, we factor in what we have learned from 2025 and a word of caution because of some uncertainties that we are seeing the economic environment, the geopolitical environment is maybe not as stable as what we've seen many years back.

And concerning the new logos and the implementation, yes, you're right that it does require some implementation effort that we do. So we do allocate some of our people. We do allocate right, some of our folks from support in order to deliver the implementation of those new logos because there are a lot of implementation going on at the moment. And we do work with integrators to also facilitate this when necessary. But really, what our customers want is this expertise that we have being the expert in ensuring the value of what we are bringing to them. So we are still working closely with our customers.

When it comes to the IT infrastructure, so one of the key competitive advantage that we have is that we operate our own infrastructure, right? We operate our own infrastructure. We have our own servers. They are geographically positioned in different countries so that we ensure data sovereignty for our clients where they are located. We continue to invest. It's largely aligned actually with our plan, our investment plan. The comment on the RAM is actually very good because we actually did secure in advance in 2025, some RAM in anticipation of the growth that we would be seeing. So we don't expect a major impact in -- additional major impact in 2026. As a matter of fact, we've been proactive on the RAM front specifically.

We will now take the next question from the line of Julien Onillon from Marex.

I got 3 questions. The first, could you come back a bit on the decline of the revenue in Business Project Automation, considering that you're supposed to be starting in a way -- supposed to be very resilient. What happened, why we have this decline and what we could expect for this year? Second question will be on the IT governance and digital transformation. The growth was slowing down. We have already seen that effectively with the IT spending somehow to be lower during the market.

What do you expect for next year -- for this year, I would say? And finally, I just would like to come back a bit on AI, of course, is a big topic. I understand that you are obviously hoping that AI will democratize in a way your products and increase the number of seats with your clients. But in the same time, you may also see your clients to be more efficient and therefore, to reduce the number of employees in IT services, for instance, they have in IT. Do you are worried that R&D teams will be reduced or for your customers and therefore, less seats will be allocated directly to your product because there's less employee at the end of the day?

Okay. First part of the question, the decline in PBA. PBA is largely for -- when the projects are sold. So it's largely about service organizations. Clearly, the service industries have had a tough 2025. And so we've seen some reduction because clearly, in those industries, it has been a difficult time. For IT governance and digital transformation, well, we do expect -- we had some -- what happened in 2025 is that a lot of the IT budget has been consumed by some AI initiatives. So AI initiative did not necessarily bring the expected value that they had hoped. So it was more like a competition of mind space within the IT organization that we had to face because a lot of the CIOs and their team, they were focusing on AI and not necessarily looking into how to properly deliver their project.

What we've seen towards the tail end of 2025 is that people came back and with the need to work on their portfolio to work on their projects. And because of the level of signature that we have seen at the end of 2025, that's why we do expect an acceleration in our digital transformation pillar. Are we worried that AI is going to bring less seats? Again, we are commenting 2025 on what we're seeing now. What we're seeing now is that AI is increasing the usage of Planisware and it's increasing the number of seats. And today, our pricing is largely seat based, as I commented before. That is today.

Now clearly, Planisware bring value, and we've worked on value-based model. We are ready for value-based model in our -- how we monetize Planisware. That's not what we're offering now. But we are not necessarily worried because we know for a fact that we are bringing value to our customers. We are allowing our customers to take their strategic decision to shape the strategy that they are delivering. And we'll still have some users or we still have some people. We do expect that taking the strategic decision will not necessarily be done by agents. And so we do expect we'll continue to be able to monetize that. And if it's not seat-based, it's going to be value-based, but the monetization will remain.

We will now take the next question from the line of Nicolas Thorez from ODDO BHF.

I will try to be brief. I have 3 questions. One quick follow-up on AI on your services revenue this time. If we believe that AI will accelerate integration or reduce the customization complexities, how should we think about the impact on your services revenue and evolutive support over time? I mean, will it make evolutive support less critical to customize the software, meaning that we should expect this to have a kind of impact on this revenue stream in the long run?

Second question is on bookings. Thank you for the previous comments. But can you just give us an idea of the level of bookings compared to the same period last year? And third question is on capital allocation. But given the, let's say, the recent share price evolution, do you -- are you considering some share buyback on top of the EUR 10 million that you've made in 2025. I mean just curious to know if the current market conditions would push you to be a bit more opportunistic or is the priority still to preserve the liquidity?

In regard to AI and our service revenue, mainly for initial implementation, for us, we have always been wanting to reduce the implementation time and cost for our customers. We really want to shorten the time to value for our customers. So AI and the AI capabilities that we have in Planisware are really helping us to bring this value faster, accelerate our implementation. It's quite impressive actually what we are doing now on things that were taking some time before and that actually can be delivered very, very quickly, whether it's to build some data visualization, whether it's actually to build some connectors, it's actually improving there. In terms of evolutive support, clearly, AI has a positive impact as well for our customers because it allowed us to accelerate things. But evolutive support is not just about rolling out a feature.

Evolutive support is ensuring that we support the customer to leverage more and more value of what we have in Planisware. So AI is an opportunity there as well because what matters -- everybody talks about AI, but what matters for our customers is not to just pick some AI and do something with it. It's to ensure that they use AI, they properly use AI to reach the right conclusion on quality -- qualitative data that is properly structured. The data quality remains very, very important.

So our evolutive support is today, we package, as you know, in our evolutive support, we package some offering with best practices, know-how. And so today, our AI evolution support that we actually bring to our customers is actually it's very popular to say the least because everybody wants to have those benefits from AI. In terms of bookings, yes, the bookings were strong. I don't necessarily want to comment much. I mean, clearly, if -- to give you some rough order of magnitude, the booking Q4 2025 were about double what it has been the previous year. Just to give you some color, it has been strong, very strong. And in terms of capital allocation?

Yes. So in terms of capital allocation, as you know, we did a share buyback in September and October to serve the program for share compensation for our employees. So yes, this is something which would be possible, share buyback. We already discussed that among different Board members, but we need to arbitrate between the dividend, the liquidity of the shares and so on. So the current price makes this option really attractive. So this is something we could do to return cash to shareholders. So yes, this is something that is possible.

There are no further questions at this time. I would like to hand back over to the speakers for closing remarks.

Well, thank you very much for attending this call. If you have any questions, please reach out to Benoit d'Amecourt, and we'll be happy to take them. Thank you, and have a good day.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Welcome, and thank you for joining the Planisware Third Quarter 2025 Revenue Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Loic Sautour, CEO of Planisware. Please go ahead, sir.

Good morning, and thank you for attending our call on Q3 2025 revenue of Planisware. This is Loic Sautour speaking. And as usual, I will share this presentation with Stephanie Pardo, our CFO. I would like to start with the key messages of this. Q3 2025 revenue amounted to close to EUR 50 million, up by 9% year-on-year in constant currency. It leads to a 10.3% year-to-date revenue growth in constant currency. While this is in line with our revenue objective for the year, it remains below the historical levels of growth delivered by Planisware as our clients and prospects are facing several macro headwinds.

The first one, which I commented in previous publication has been a challenging and unclear economic and geopolitical environment, limiting visibility for our customers and our prospects. This lack of visibility has driven longer decision-making cycles and delays in the start of projects. The second macro headwind come from the fact that IT budgets have been under pressure due to aggressive price increase applied by many SaaS vendors. And the third one comes from erratic AI investment driven by some sort of formal mindset, which further strain IT budgets and mind space.

All in all, it limited our ability over the last several quarters to secure new logos and in turn to upsell, particularly in evolutive support services. Yet, we are beginning to see signs of improvement on all of these topics. On the first one, the concerns around a potential slowdown and discussion around tariffs have been less and less of a reason for delaying strategic move. On the second one, our moderated price increase policy is seen as a testimony of our positioning as a trusted long-term partner for our clients, and it creates room for replacement opportunities. And finally, the seriousness of our AI strategy based on true and unique value creation is making a competitive difference.

This improving background brought a strong level of contract signature for both new logos and existing clients in the past several weeks. Now this commercial success will have a limited effect on the year-end performance, but it makes us cautiously optimistic in our ability to reaccelerate commercial momentum and continue delivering value to our customers through our AI-powered SaaS platform. On this slide, I would like to comment on our recent commercial activity, which has been particularly dynamic for both new logos and existing clients. Actually, we signed twice more new logos in Q3 2025 than in Q3 2024.

The level of signature of the last 3 months was even higher than the 6 prior months, so H1 2025 and higher than Q4 2024, while, as you know, Q4 is always the highest quarter in terms of signature for Planisware. The strong level of signatures in the past weeks makes us cautiously optimistic in our ability to reaccelerate commercial momentum and continue delivering value to our customers through our AI-powered SaaS platform. I'll dive deeper with 3 examples out of this list. Take for example, Regeneron Pharmaceuticals. It's an American biotechnology company, making close to $50 billion yearly revenue. This commercial win is a typical PD&I landing in a company needing to gain visibility and flexibility in the way they manage their portfolio of R&D projects and to align it with our strategic priorities. This signature was expected quarters ago.

So it is a good example of Planisware finally signing new logos after a much longer sales cycle than what we used to have in the past. Take another example with Amgen. It's a typical cross-sell where the client is standardizing on Planisware to expand its usage into project control and engineering, and they continue to harvest value leveraging our product development and innovation pillar offering. And lastly, [ tac Atex ]. It's a significant win, demonstrating the effectiveness of our geographic expansion as it has been signed by our newly opened Brussels office.

Speaking of offices, I'm happy to announce our continued expansion in Asia Pacific with the opening of an office and 2 new data centers in Australia. This dual initiative marks an important step in Planisware international development strategy and consolidates our presence in the Asia Pacific region, where we already have a strong foothold in Singapore, Japan and more recently South Korea. The Australian market, which is particularly dynamic in the industrial, health care, energy and utilities sectors represent a major opportunity for Planisware.

The company already has numerous references in various sectors, including Coles, one of Australia leading retailer; Cochlear, the world leader in hearing implants; Breville, an iconic brand and high-end household appliances, which is present in more than 70 countries; [ offsec water ] or Sunwater, 2 major public players in water management and distribution in Queensland. Between 2020 and 2024, Planisware recorded an average annual growth of 33% in this region, driven by growing demand for integrated project management and digital transformation solution.

Now the opening of this office will strengthen our tie with our existing customer, accelerate our local business development and support Australian companies in managing their strategic projects in the context of increased innovation and digitalization. At the same time, we are opening 2 new data centers with the aim of offering our Australian customers optimal performances and total data sovereignty in accordance with the most demanding security standards applicable to Australian operation.

I will now turn to Stephanie to comment in more detail the financial performance of our Q3.

Thank you, Loic, and good morning to all. As usual, I will comment the building blocks of our growth. The total reported revenue reached EUR 49.6 million in Q3, up by EUR 2.7 million year-on-year and represented a reported growth of plus 5.7%. This reported growth encompasses a negative FX effect for EUR 1.5 million mostly related to the depreciation of the U.S. dollar versus the euro. After the H1 performance, it leads to a year-to-date revenue of EUR 145.4 million, up by EUR 11.8 million year-on-year, representing a reported growth of plus 8.8%. This reported growth encompasses a negative FX effect for EUR 1.9 million here again mostly related to the depreciation of the euro versus the U.S. dollar in Q2.

In order to [ retract ] underlying performance of the company, the value for exchange rate fluctuations, I will not focus my comments on the revenue evolution in constant currencies, which means applying 2024 average exchange rate to 2025 revenue figures. Same constant currencies, Q3 total revenue growth reached EUR 51.2 million or plus 9% over the quarter. For the first 9 months of the year, the total revenue in constant currencies reached EUR 147.4 million, up by 10.3%.

The recurring part of the revenue represented 91% of total year-to-date revenue and was up by 13.9%. As expected, the key driver of this performance remains our SaaS model, which represented 81% of the total year-to-date revenue and grew by EUR 15.8 million or plus 15.2%, fueled by new customer wins as well as continued expansion with our large installed base. Our SaaS model is made of SaaS and hosting revenue up by 17.6%, and it produces support up by 11.9% together.

Still in the recurring part of the revenue profile is maintenance activity of the perpetual licenses, which is the legacy from the former business model of Planisware before its SaaS started transformation 2 years ago. This activity reported a slight growth of 3.2% since the start of the year related to the strong demand for licenses in 2024 from customers with specific on-premise needs, in particular in the defense industry.

I now move to the nonrecurring part of the revenue, which represented only 9% of the total year-to-date revenue, driven by a decrease by 16.7%. Despite several extensions and upgrades since the start of the year and in particular, in Q3, to customers with specific on-premise needs, the 25.5% year-to-date decrease in perpetual licenses is as already explained to a particularly strong 2024 comparison base.

Finally, implementation performance structurally under pressure due to the continuous focus of Planisware to deliver short-term implementation and faster delivery to customers also suffered since the start of 2025 from the lack of new logo signatures since H2 2024. The combination of the 2 resulted in an 11.1% year-to-date revenue decrease.

I now give the mic back to Loic to complete today's presentation.

Thank you, Stephanie. Well, before we move on to your questions, let me close with a reminder of our objective for the year that we confirmed today. The revenue growth is expected at circa 10% in constant currencies, our adjusted EBITDA at circa 36% of revenue and our free cash flow conversion target of around 80% of adjusted EBITDA. We remain confident in the resilience of our model and the strength of our client relationship and in our ability to resume growth momentum as market condition stabilizes.

Thank you very much for your attention. we're now ready to your questions.

[Operator Instructions] The first question is from Pavan Daswani, Citi.

I've got a couple, if I may. Firstly, it's great to hear about the strong deal signings in Q3. Could you maybe talk about the trends by vertical and really where this is driven by and some of -- where some of the kind of the positive signs are and maybe some of the verticals that are a bit more laggards and kind of the recovery? And then secondly, on the guidance, could you maybe outline your assumptions for the guidance in terms of those early recovery signs at the moment?

Okay. Well, the strong deal signings by vertical, if there is one industry that is outstanding at the moment is definitely the energy sector is the one that is driving up quite nicely. On the opposite side, in the automotive sector is maybe one industry that has been more like driving down and has been impacted. And the second question, I'm sorry, Pavan?

It's on the guidance, just trying to understand the assumptions for the guidance given those kind of positive trends.

Well, so as we commented in terms of guidance, the impact of this positive trend, there won't be much impact in this fiscal year. As you know, due to our SaaS model and SaaS operation, the impact will come a bit later. There will be a little bit of an impact, but it's not going to be significant on this current year.

The next question is from Gustav Froberg, Berenberg.

I also have a few. The first one is on the strength we saw in perpetual licenses in Q3. Could you give us some color on how we should interpret that strength? Is it a sign of commercial momentum picking up again or any kind of pull-forward effects? That would be my first question. Second question is around AI. Could you share more color on your AI uptake with clients? You mentioned that you have a purposeful strategy in place. So what's going on, on that front? What are clients buying? Why are they buying it? And what are the alternatives? And last one, you also mentioned erratic AI buying by clients as a headwind to the business. Could you talk us through how you see that trending into the third and fourth quarter and maybe what your clients have been buying as opposed to buying from you.

Yes. Thank you for the question. Well, the perpetual licenses, if you look year-to-date, still remain actually way lower than what it was in the previous year. So as you know, the perpetual licenses, depending on where they land, they may have an impact on the given quarter. But if you look at the overall full year, it remains actually quite a small line for Planisware. Year-to-date, we are at EUR 4.5 million, which is quite below. It's true that on this specific quarter, there was a very strong quarter last year in Q2. And this year, we have actually a strong quarter in Q3 compared to the previous year.

For AI, what we commented about the erratic headwind is what we've seen and it's on investment and mindset, what we've seen a lot of IT organizations that wanted to do anything with AI more like at the beginning of the year. We don't necessarily see the value or having some value in mind. And what we see more and more is that AI now needs to deliver some value. It's not just some spend that they need to do. And that is quite actually serving us because, as you know, we've have had an AI strategy for a very long time. And we are continuously bringing some AI capabilities in our offering, continuously helping, assisting our user in taking decision, in being more effective.

So clearly, what we see when we work with our customer, we've been focusing on value and this help that we bring to the customer. Some of that is clearly embedded in our solution and some other capabilities that we do monetize on some specific capabilities.

The next question is from Ben Castillo, BNP Paribas.

A couple for me, please. I guess, firstly, good to hear your comments around some stabilization or even improvement in recent weeks. What do you think has been the catalyst for that? And if you look into Q4, do you think there's much scope here for customers to sort of have a bit of a budget flush if there's been a budget that's not been spent earlier this year now to come through in Q4. And then secondly, could you maybe help us with how you're thinking about 2026. You said cautiously optimistic on reacceleration of momentum. Is your base case at this point that revenue growth can therefore reaccelerate next year.

Yes. Well, the catalyst, as we commented in the past, First, there have been some elongation in the decision-making processes to bring solution, the solution that we offer. But at the end of the day, the need for what we do is definitely there. The need to properly manage projects and to properly manage portfolios of projects, to have the visibility on those projects that are transforming an organization are really vital for those type of organizations. So the need didn't go away. There have been elongation of the sales cycle, maybe a little bit less of an investment because I was commenting the mind space was being used by something else and the budget, some budget as well. But the need is there, and that's why there has been some projects that were delayed that now are coming back to surface.

And the reason why we are cautiously optimistic is because we've seen a very good level of signature in the last several weeks. And we do believe that this level of signature will continue in Q4, but we want to remain cautious. We want to remain cautious because there have been some uncertainties that we need to take into consideration. So that's why we are cautiously optimistic. We see the need. We see our clients have this need. We've been able to secure new logos and several expansion in the last few weeks.

We do believe that it's looking promising. So to your question about 2026, then it will really depend on our exit at the end of 2026, which we -- as I commented, the level of signature. And that's why we -- I'll say that again, but we remain cautiously optimistic for 2026 as well.

The next question is from Victor Cheng Bank of America.

A couple have been asked, but maybe if I kind of double tap on the AI bit, I mean you talked about AI needing to deliver value and some erratic investment. But at the same time, it seems like a lot of the companies out there are still doubling down on it and then relocating some of the IT budget towards that. So kind of what makes you think that maybe some of the investment in AI has peaked and kind of realizing that the need to spend in other areas as well. And then maybe from your solutions, look at your solutions as well, what are you seeing in terms of how many customers are leveraging the AI solutions or the AI features that you have? And do you feel like you need to spend more as well to continue to develop your AI features.

Well, how many customers are leveraging -- we have really baked AI within our solution and our platform. So all of our customers are leveraging AI without necessarily knowing it. We have a lot of health assistance that comes to our users that come from the AI capabilities that we have when it comes to data quality or those type of things that is really helping the end user and the data quality, the data consistency that we bring. Where we've seen that -- what we see from our customers now is that when we go with some specific AI capabilities and they are things like looking into doing prediction, for example, as you know, doing a project is a lot about planning the future, doing prediction. And that is based on what you know how to do, which is quite often based on historical data that you have.

So when we go specifically with that type of AI module and showcase that to our customers, now more than ever, they are largely interested in those type of features. But it needs -- we need and it needs to show the value. They don't take it just because it's spelled AI any longer. They take it because it's a true help. It's a true add into how they operate our solution. And that's what the demand now is to see the value before they spend money.

The next question is from Nicolas Thorez, ODDO BHF.

I have 2. The first one is to come back on the weakness of the support in Q3 and, let's say, the potential drivers of growth for the end of the year. It will be helpful to know if you anticipate a rebound in your support activities in the next quarter in Q4, speaking about diverse support. And do you think the year-end is going to be somewhat dependent on signing of perpetual licenses. And maybe could you give us an idea of what we can expect in terms of annual licenses as well going into Q4. And second question, it's a follow-up to the question of Ben about the growth that we could expect in 2026. I know that you're not giving guidance yet. But given what you have described in terms of recent signings and your positive developments in Q3, just curious to know if you are still comfortable with consensus expectations of double-digit growth in 2026 at this stage.

Okay. So the evolutive support in Q3, which has a slow growth that comes really from the elongation of the sales cycle previously. As you know, after an initial implementation, the evolutive support kicks in. And when there has been a lesser amount of implementation back then, then that had an impact on the evolutive support.

So do we expect a rebound as we sign new logos, we implement and we will implement fast our solution in order to switch throughout evolutive support to help our customer to continue to grow and leverage the statical with the SaaS then mechanically a rebound will come with additional new logos.

In terms of the annual license, so if you just look at Q3 over Q3, the annual license shows some strong growth. I'm sorry, I was commenting about perpetual license. So in terms of perpetual license, the Q3 shows a strong growth compared to Q3 last year. But year-to-date, it's not the case. As you know, the perpetual license, they land where they land and they have actually a significant impact. It still remains like a fairly small line for Planisware, a small line that we want to maintain because it's serving some specific purpose for some customers.

Do we expect some additional perpetual license in Q4? Yes. There is sometimes a budget flush that happened. It was commented previously. It's much less predictable for when exactly they land. In terms of the annual licenses, so it's -- as you know, it's a new line of revenue that we introduced last year. We do expect this line of revenue to improve. But it has a little bit of the same effect that we would see on the perpetual licenses depending on where it will land as well. It may impact the quarter and just some slight delay or acceleration will move things around. As for 2026, yes, we commented, again, we're very confident in our model. We are very confident in our competitive positioning in the talent that we have in the company. And so we do expect that we will go back to the level of growth that we've seen in the recent past years.

As you mentioned, it's too early to give guidance for 2026. It will be dependent on the level of signature that we will be doing in the coming weeks.

[Operator Instructions] The next question is a follow-up from Gustav, Berenberg.

Just a quick follow-up for me. You mentioned you've been quite cautious on price increases this year, perhaps not putting up prices as much as you could have done. Is this a strategy you intend to change going into next year, perhaps following some of your peers in terms of prices and price changes? Or do you intend to keep your pricing strategy flat versus '25.

Yes. Thank you for the question. Well, as you know, we bake into our price increase essentially inflation. And the reason why we do that is because we are a long-term partner to our customers. We believe it serves our purpose on the long term. We've seen many of our customers and actually some prospects as well that were taken in a bad situation where they have some very large price increase. And that's not something that we want to do. We are here for the long term. We are here for the long term with our customers.

So in the foreseeable future, we are expecting to stick to our inflation-based policy in order to grow and harvest the result of this partnership that we do with our customers.

The next question is from Clement Bassat from Portzamparc.

Just 2 I have in mind that 1/3 of your SaaS revenue comes from new logo and 2/3 from your current clients. And I'm wondering what is the new ratio today. And also with little growth on the evolutive support, how will you fuel the growth of the SaaS in the upcoming quarter? Should we expect a hard landing single digit on the SaaS? Or you are confident about the recent signature that will offset this effect with the SaaS still above 15%.

Yes. Yes, we are quite confident on the growth in our SaaS. The elongation of the different cycle is impacting both new logos as well as existing logos as well. And so it's true, it's quite visible on the evolutive support line this quarter. And again, what drives some optimism here and -- but yet we remain cautious is the new logos that we're securing at the moment. And they will -- they will start with implementation and then they will drive some evolutive support as well.

The next question is Ben Castillo from BNP Paribas.

Just one quick follow-up. I just wondered on net retention rates. Can you help us out with how they're trending over the last 12 months. Obviously, in the past, it's very strong, kind of over 120%. Just wondering how that's trended in the last few quarters.

Yes. So like the overall revenue and that I commented earlier because the growth is coming from new logo and existing logos, but the growth has actually been a bit lower, the net retention rate has also gone a bit lower as well because of the same thing, the delay of the decisions are impacting the net retention rate as well. Now what is good to look at as well is the churn rate. And the churn rate remained extremely good. This is really due to the fact that our solutions are mission-critical for what our customers do. And so even in an environment that can be a bit tense, our churn rate has remained really, really well positioned.

Gentlemen, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.

Well, thank you for attending. And please follow up with Benoit d'Amecourt if you have any additional questions. Thank you.

Thank you.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.