Revenue decline driven by Marketplace
Software & Cloud Marketplace
Key figures – Software & Cloud Marketplace
CHFm |
H1 2025 |
H1 2024 |
% Δ (CCY) |
Q2 2025 |
Q2 2024 |
% Δ (CCY) |
|
|
|
|
|
|
|
Revenue |
246.0 |
285.8 |
(11.2)% |
135.0 |
160.2 |
(11.1)% |
Contribution margin |
216.0 |
252.5 |
(11.7)% |
120.0 |
144.3 |
(12.3)% |
Contribution margin (% of revenue) |
87.8% |
88.4% |
-
|
88.9% |
90.1% |
-
|
Adjusted EBITDA |
131.5 |
143.3 |
(5.1)% |
77.8 |
85.4 |
(4.4)% |
Adjusted EBITDA margin (% of revenue) |
53.4% |
50.2% |
-
|
57.7% |
53.3% |
-
|
Revenue in Software & Cloud Marketplace declined 11.2% YoY ccy to CHF 246.0 million in H1 2025, compared to CHF 285.8 million in the prior year, driven by weakness in the Microsoft transactional business as a result of changed incentives for enterprise agreements, partially offset by growth in other ISVs. Revenue declined 11.1% YoY ccy in Q2 2025, following weakness in June as expected.
Gross billings in the Microsoft business, including both direct and indirect billings on a gross basis, amounted to CHF 10.9 billion in H1 2025, down 2.0% YoY ccy compared to H1 2024. In Q2 2025, Microsoft billings decreased 9.2% YoY ccy to CHF 6.5 billion3, driven by Microsoft taking certain large customers direct and pro-active measures by SoftwareOne to pivot towards more profitable business given incentive reductions on enterprise agreements.
SoftwareOne added approximately 200,000 new Copilot users during Q2 2025 to over 1 million users at 30 June 2025, driven by the high level of renewals in Q2. In addition, there were 117 new services engagements in Q2 2025, totalling to 397 for H1 2025.
With over 43 thousand active clients and 84 thousand cloud subscriptions, LTM gross sales to 30 June 2025 on Marketplace Platform increased to CHF 980 million, up 19% YoY compared to prior year.
Contribution margin was CHF 216.0 million in H1 2025, down 11.7% YoY ccy, reflecting a margin of 87.8%, compared to CHF 252.5 million in H1 2024.
Adjusted EBITDA declined by 5.1% YoY ccy to CHF 131.5 million in H1 2025, compared to CHF 143.3 million in the prior year period. The adjusted EBITDA margin increased to 53.4%, compared to 50.2% in the prior year.
3 Sourced from SoftwareOne (due to changes in Microsoft reporting)
Software & Cloud Services
Key figures – Software & Cloud Services
CHFm |
H1 2025 |
H1 2024 |
% Δ (CCY) |
Q2 2025 |
Q2 2024 |
% Δ (CCY) |
|
|
|
|
|
|
|
Revenue |
241.7 |
244.2 |
2.4% |
120.5 |
122.8 |
4.6% |
Contribution margin |
107.4 |
106.8 |
3.5% |
55.6 |
55.6 |
5.5% |
Contribution margin (% of revenue) |
44.4% |
43.7%
|
- |
46.1% |
45.3% |
-
|
Adjusted EBITDA |
20.9 |
17.8 |
20.7% |
12.5 |
13.4 |
(2.2)% |
Adjusted EBITDA margin (% of revenue) |
8.6% |
7.3%
|
- |
10.4% |
10.9% |
-
|
Software & Cloud Services delivered revenue growth of 2.4% YoY ccy to CHF 241.7 million in H1 2025, compared to CHF 244.2 million in the prior year. Revenue grew 4.6% YoY ccy in Q2 2025 driven by Application Services and Digital Workplace. Excluding NORAM, revenue was up 8.8% YoY ccy in Q2 2025.
Focus on cross-selling continued with 75% of LTM (to 30 June 2025) revenue generated by c. 16.2k clients purchasing both software and services, up from 16.1k a year ago.
Revenue in Essentials4 was up 3% YoY ccy in H1 2025, driven by clients continuing to transition from enterprise agreements to the Microsoft CSP model, partially offset by lower AWS Essentials revenue in the period. In Q2 2025, revenue was up 5% YoY ccy.
Contribution margin increased to CHF 107.4 million in H1 2025, with a sector-leading margin of 44.4%, up from 43.7% in the prior year driven by continued optimization of the delivery network.
Adjusted EBITDA was CHF 20.9 million in H1 2025, compared to CHF 17.8 million in the prior year. The margin was 8.6%, up from 7.3% in the prior year, driven by a higher contribution margin and lower SG&A expenses.
4 Formerly referred to as XSimples; includes Microsoft 365, Azure and AWS Essentials