Planisware SAS (PLNW) Earnings Call Transcript & Summary

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.