Sage Group plc, the Newcastle-based FTSE 100 global software business, said on Wednesday its total revenue increased 9% to £1.862 billion in the nine months to June 30, 2025.

Sage is a provider of accounting, finance, HR and payroll technology for small and medium-sized businesses around the world.

“In North America, revenue grew by 11% to £846m, with a strong performance from Sage Intacct together with continuing growth in Sage 200 and Sage 50,” said the Newcastle firm.

“In the UKIA region, revenue increased by 9% to £539m, as Sage Intacct continues to scale rapidly, supported by ongoing growth in small business solutions (including Sage Accounting), Sage 50 and Sage 200.

“In Europe, revenue grew by 7% to £477m, with good growth across our accounting, HR and payroll solutions.

“Sage Business Cloud revenue increased by 13% to £1,538m, driven by balanced growth from both new and existing customers, including cloud native revenue growth of 22% to £645m (Q3 24 YTD: £528m).

“Recurring revenue grew by 10% to £1,805m (Q3 24 YTD: £1,645m), reflecting continued momentum in Annualised Recurring Revenue (ARR) during the period. Software subscription revenue grew by 11% to £1,549m (Q3 24 YTD: £1,390m) resulting in subscription penetration of 83% (Q3 24 YTD: 82%).

“In the third quarter, total revenue increased by 9% to £620m (Q3 24: £567m), driven by continuing growth across the Sage Business Cloud portfolio.

“On an organic basis (excluding the impact of M&A), total revenue increased by 9% in the first nine months of the year to £1,858m (Q3 24 YTD: £1,705m), while recurring revenue increased by 9% to £1,802m (Q3 24 YTD: £1,649m) …

“Sterling strengthened against the US dollar and other international currencies compared with the prior period, leading to an exchange rate headwind.”

Sage chief financial officer Jonathan Howell said: “Sage has performed well in the first nine months of the year, in line with our expectations, delivering good levels of growth despite ongoing macroeconomic uncertainty.

“Accordingly, we reiterate our guidance for the full year, as set out in our half year results announcement.

“Our cloud and AI-powered solutions are driving success for our customers and confidence in our strategy, as we focus on the continued delivery of sustained, efficient growth.”