Good morning and thank you for attending our call on 2025 annual result of Planisware. This is Loïc 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 roadmap, 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 SaaS model. It materialized the sequential growth acceleration quarter after quarter since the lowest point we had reached in Q2 2025. Well, 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 toward 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 which we had raised in July 2025 to circa 36%. This outstanding performance also contributed to the high cash generation with adjusted SDS up by 9% to 59 million euros. It represented a cash conversion rate fully in line with the circa 80% annual objective we had. Even after having paid 22 million euros of dividends and spent $10 million in share buried back this past year. This leaves us with a very strong financial situation at the end with a net cash position of 196 million euros without any financial debts. Profit for the period reached 50 million euros of 17% year-on-year, representing earnings per share reaching 71 euro cents. In line with the historical distribution policy of PlanetSquare, a dividend of 0.36 euros 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 re-accelerate our top-line growth toward our historical mid-to-high teams level over the mid-term. 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 had secured the previous years, in particular from 2023 and the start of 2024. On the booking side, however, when 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 US tariff storm, really started to check the economic world and the signing difficulties became much more sensitive. Missing 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 toward more and more recurrent and profitability. Over the year, recurring revenue made of our SaaS operation and maintenance of capital 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 non-recurring revenue represented only 9% of the total revenue, of which per-fetro 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 product. 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 are 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, 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 decisions and so forth. 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 decisions. For our customers, when you have to arbitrate amongst projects, amongst 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. CITS 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, Anthropik, Mistral. Planisware does not aim to develop large language models. The main large language models 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 offerings. 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 the 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 visualizations that Nishwa provides, it's used to properly handle the decision-making on large amounts 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 further detail our financial, 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 this dynamics, including the accelerating innovation cycle and the strengthen commercial traction, would translate into a stronger revenue growth combined with high profitability and cash generation. In this context, Planisware 2026 objectives are loadable digital revenue growth in constant currencies, circa 37 percent adjusted EBITDA margin, and circa 80 percent cash conversion rate. Now, Stephanie, let me turn to you so that you can further elaborate on our financials.
Thank you, Loïc. So I will start my presentation with revenue, which reached 198 million euros in 2025, by 7.9% in current currencies, and plus 10.2% in constant currencies. The exchange rate effect was mainly related to the depreciation of the US dollar, down to the euro, and to a lesser extent from Japanese yen depreciation. As usual, in order to reflect on the underlying performance of the company independently from exchange rate situations, 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 SAS model up by 14.4%. In detail, SAS and hosting activities were up by 16.7% thanks to contract secure with new customers as well as continued expansion with the install date. Revenue of support activities intrinsically related to Planiswa's offering grew by 10.3%. Annual licenses strong revenue growth of 59% 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 SAS model. Looking now at the non-recruiting revenue, the 10.1% decrease in 25 was mostly related to fewer perpetual licenses sold in the context of the group shift to SAS. As a result, the line decreases reached minus 21.3%, and perpetual licenses represented less than 2% 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 banned by 3.7% in 2025, despite a strong plus 14.2% in Q4, driven by the implementation of recent new logos on boardings. In 2025, all key geographies contributed to plan to our revenue growth. Representing 49% of total revenue in 2025, Europe was the main contributor to the growth of new growth, plus 10.8%, or plus 9.4 million, with a significant acceleration in H225 at plus 12.8%. This growth was very much led by significant upsell and cross-sell with industrial and manufacturing customers. Non-recurient activities in Europe were slightly up in 2025, with implementation of setting 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 a logistic customer's 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 signs of 2024. Upsell and cross-sell with existing customers was also high even if the NRA was a bit impacted by some themselves on accounting slowing down their impact 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 2025 and grew by 6.1% over the year, with contrasted performance between the two semesters of the year. After a strong H1 in 2025 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 55.7% in revenue made with Japanese customers impacted by U.S. areas, in particular in the automotive industry. Over the years, the Japanese downsell compensated the off-sell and cross-sell done with other existing customers and resulted with a lower NRL. 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 pillars now, the largest one remains the main contributor 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 lab science. In parallel, PD&I NRR was broadly in line with the group average. Project Controls and Engineering continued to render by supporting many production fields in industries with sophisticated products, plants, and infrastructure. In 2025, it represented 23% of total revenue and contributed to almost half of group revenue growth, thanks to a strong 24.3% growth. That growth was mostly led by a significant level of selling with customers from all the regions and to a lesser extent to the contribution of new customers. IT, governance, and digital transformation represented 17% of 2025 total revenue and grew by 5.4%, fueled by continuous cross-sells to planning for 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, non-recurring business declined. Considering the strong recent booking in the IT pillar, we expect growth to significantly re-accelerate as soon as H126. Finally, project business automation represented 7% of 2025 total revenue and posted a revenue decline by 14.6% in 2025 impacted in the second half of the year by doncel 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 discipline approach to expenses implemented in the group and with the 110 basis points of gross margin improvements posted last year, leading to a gross margin of 73.8% of the revenue. Over the two last years, 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 operating expenses, which is quite much consistent with the one observed during the previous period. In 2025, OPEX reached 85 million euros 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 reserve tax credit. R&D expenses, which is 22.3 million, and represented 11.3% of revenue, which is 80 basis points compared to 12.1% in 2024. Planetware maintains a high level of R&D spending, which benefits from deployment of AI tools, boosting R&D efficiency, and Planetware's ability to leverage its R&D efforts to provide faster, innovative products and software solutions, and its unique unified platform to expand its offering portfolio and promote its offering in the project management market in 2025 capitalized cost amounted to 3.1 million which is 23.4 percent compared to 2.5 million in 2024 reaching 35.4 million in 2025 sales and marketing expenses increased by 6.1%, compared to a 2024 led in particular by the increase in the 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 2025, general administrative expenses, which is $27.6 million, including a $0.9 million in foreign exchange losses versus $0.2 million gains in 2024. Adjective of these foreign exchange gain losses, general administrative expenses represented a minus 70 basis points year-on-year decrease compared to revenue. Stanislaw expects that as a company continues to scale up in the future, GNA will continue to decrease at the percentage of revenue. Let's move now to adjusted EBDA. As a result of the growth margin improvement and lower OPEX levels, adjusted EBDA margin reaches 37.4% of revenue, a year-on-year improvement by 220 basis points over the two last years, which represents 400 basis points improvement. In absolute value, adjusted EBDA reached 74.1 million euros, up by 14.7 year-on-year. Moving now to cash generation, which has been strong with 59.3 million adjusted free cash show, up by 8.7% year-on-year. At 80.1%, the conversion of adjusted EBDA 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 EBDA, change in working capital was positive by 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 built in advance for service renders. The capex was amounted to 6.1 million represented 3.1% of the revenue, in line with the usual 3% capex pending and with the expected level for the coming years also. Finally, tax paid reflects higher 2025 income tax repayments in France with regard to the prior year increased taxable profits. These elements lead to an adjusted FCS up by 9% to €59 million, representing a cash conversion rate of 80.1%, fully in line with the circa 80% annual objective. So this care generation over the years, coupled with the prepayment in April of the Dividend 2024 results and the €10 million share buyback program executed last September-October, led to a solid cash position of 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 17.6 million, a small amount of bank overdraft, planning squad doesn't 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 to present in 50% of its profit for the barriers in line with the historical dividend distribution policy. This would represent 25.2 million or 0.36 euros per share. This concludes our presentation and we are now ready for Q&A. Thank you. Thank you.
Operator
As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To register your question, please press star one and one again. We will now take the first question. Coming from the line of Jarrod Chisholm from UBS, please go ahead.
Good morning, Loic and team. 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 colour 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 three to five years yeah thank you thank you for the question yes ai is definitely a top of mind um for for for for ourselves and for our customers um
what's really important what what matters is for ai like anything for ai uh to 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 look at our product development, 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've got to imagine that we are dealing about strategic portfolio and project management that are global rollout with high security, security certification everywhere on our infrastructure. That's not the competency of our customers. They are industrial that are working, developing, focusing on their market, which is not to developed solutions. So that is not the direction that it is taking.
So I'll jump back in the queue.
Operator
Thank you. We will now take the next question from the line of Frederic Boulin from Bank of America. Please go ahead.
Good morning, Loic and Stefanie. So, firstly, if I can stay on the AI scene first around your pricing model, can you just recap a little bit the mix of type of pricing, what's linked to a number of users versus consumption or platform-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 2026. Can you talk about some of the moving parts? I mean, you mentioned G&A, continued scale up there, gross margin, but you can talk about the different moving parts in 2026 and beyond. looks quite prudent to assume a margin compression considering the the rollout of AI internally. Thank you.
Yeah I'll take the first part of the question Fred. So in regard to our pricing model the 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 agent still requires 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 The impact that we expect AI to have on our pricing model, it's not there. 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 that's how we expect that it will benefit us.
And on the margin, in 2026, so we have a stronger acceleration, you know, 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 mixed effect is still contributing with SAS, which is going faster compared to the order 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 IPC debita.
Operator
Thank you. We will now take the next question from the line of Hugo Paternoster from Capelet-Sévrier. Please go ahead.
Yes, good morning. Thank you for the presentation. I will have three 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. Has you noticed any meaningful shortening in terms of sales cycle decision versus the mid-2025, and where do we stand compared to the high historical norm? And the last one is mainly a follow-up on the AI. I just wanted to see how completely is your AI strategy influence your win rate versus your competitor, and are you seeing meaningful, like I would say, at least in conversion rate or velocity?
Yeah, so the first question on the Q4 acceleration, the Q4 acceleration came from two things. The elongated decision cycle came to fruition. We started to see that at the tail end of Q3, actually what commented at the time about that. Clearly, in our pipeline, there were some opportunities that were translated and positively delivered toward 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 would address now is about how is AI influencing our win 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 influences our win rate. It's actually – we showcase 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 itself. 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 is evolving, it's a bit too early to tell for 2026. We're still on sales cycles that are a bit long or not. We have a clear visibility on that as, you know, typically our sales cycle, are on a based on a yearly basis so now we are really fueling our pipe and it's a bit too early to comment on now on the same cycle okay fair enough thank you very much thank you we will now take the next question from the line of Pavan Dashwani from Citi.
Operator
Please go ahead.
Thanks. Morning, Oik and Stephanie, and thanks for taking my questions. 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, 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 targets and when do you expect to get back there okay so yes as part of the 2026 guidance we have obviously baked in the 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-sale and up-sale. So as we as we anticipate to go toward more toward our historical growth, we do expect the NRR or to go back to a stronger level. We will comment at the time when we expect this to happen. Clearly, 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.
Operator
Thank you. We will now take the next question from the line of Ben Castillo-Bernaus from BNP Paribas. Please go ahead.
Hi, good morning. Thanks for having my question. Just coming back on that net retention rate, looking at that very helpful slide six in your presentation. Can you just help us unpack a little bit on the new methodology, net retention rates declining by 700 basis points? you know 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 you know to help drive that revenue reacceleration in the outer years thank Yeah, the net retention rate, we actually align 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 a 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, the NRR is on our recurring portion of our revenue. And so we do expect the NRR to actually compare to where it is at the moment. Now, in terms of the total revenue contribution, the new logos that we have signed toward the end of 2025 will contribute to the non-recurring part, especially in terms of implementation, to the non-recurring part of our revenue. So clearly, with the new logo that we have signed, we do expect the non-recurring portion of our revenue to specifically implementation to grow. And yet, the NRA for the recurring portion of our revenue will continue as well.
Thank you. we will now take the next question from the line of Gustave from Berenberg please go ahead good morning thank you for taking my questions as well just three 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 the sort of AI tools that you've baked into product um 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 non-recurring 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 parts of it? And then last one, just on absolute revenue additions by quarter. So to get to double digits, low double digits, constant currency growth, you need to add roughly the same amount of revenues that you did in Q4 every single quarter. and how how do you look at that sort of five million constant currency growth in Q4 and can we build on that and what what are you doing to build on that 5 million number and by how much can you build on that 5 million number as we progress through 2026 thank you okay so in terms of the AI the use of our product with AI and the question about the monthly recurring revenue.
The revenue comes 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 the 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. uh at the moment given our seasonality including um as you know we we have a lot of closing up and more toward the the mid-year um we'll have to see but today we we 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 shaping the change of the company that we are working with is really here more than ever. So the demand is high. On the digital transformation pillar, the demand is high because all of the 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, we do expect in terms of revenue for the future, We do expect that every quarter of 2026 yet will continue to expand compared to the Q4 2025 that we have had. Thank you.
Operator
We will now take the next question from the line of Clement Bassard from Portsmouth Park, BNP Paribas. Please go ahead.
Hello. Good morning. Thank you for taking my questions. basically i have three so i'm still wondering why you maintain a guidance of 10 percent what you expect revenue growth acceleration in 2026 from new customers so it means you expect lower setup or cross-sell and basically what are the main headwinds you make you so cautious in your current customers and 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 so expensive so do you expect an impact on your capex and uh on your sas gross margin where the the if your it is located um yes thank you for the question it's a good question so the 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're optimistic, but we want to be cautious into what we're outstanding 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 world of question because of some uncertainties that we are seeing you know the economic environment the geopolitical environment is maybe not as stable as what we've seen many many years back and concerning the the new logos and the implementation yeah you're right that it does require some implementation effort that we do. So we do allocate some of our people. We do allocate 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 going to give 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. And 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 additional major impact in 2026. As a matter of fact, we've been proactive on the RAM front specifically.
All right. thank you thank you we will now take the next question from the line of Julian only long from Marek's please go ahead yes hi good morning I got three questions the first could you come back a bit on on the decline of the revenue in business project automations considering that you're supposed to be starting in a way is supposed to be very resilient what happened why we have this this cloud and what we could expect for for this year uh second question will be on the it governance and digital transformations uh the growth was slowing down uh we have already seen that effectively with the the it um you know spending somehow to be to be lower in during the market what did you expect for for next year for this year i would say and finally just like come back a bit on ai of course the big topic um i understand that you are obviously hoping that AI will democratize in a way your product 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 worry that IND teams will be reduced for your customers and therefore less seats will be allocated directly to your product because there is less employee at the end of the day okay first part of the question the decline in pba um the 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 the 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 seem to work at this end of 2025 is that people came back with the need to work on their portfolio, to work on their project. 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. Sure. Are we worried that AI is going to bring less seats? Again, we are recommending 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 as I commented before. That is today. Now, clearly, Planisquare brings value, and we've worked on value-based model. We are ready for value-based model in how we monetize Planisquare. 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 CIS-based, it's going to be value-based, but the modernization will remain.
Operator
Thank you. Thank you. We will now take the next question. From the line of Nicolas Torres from Odo BHF, please go ahead.
Yes, good morning. Thank you, Loïc. Thank you, Stephanie, for the presentation. I will try to be brief. I have three 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 complexity, 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 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 on capital allocation. But given, let's say, the recent share price evolution, are you considering some share buyback on top of the 10 million that you've made in 2025? I mean, just curious to know if the current market conditions could push you to be a bit more optimistic or is the priority still to preserve the liquidity? Thank you.
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 capability 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, things that we're taking some time before, and that actually can be delivered very quickly, whether it's to build some data visualization, and 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 allows 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 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 offerings with best practices, know-how. And so today our AI evolutive support that we actually bring to our customers, of this actually, it's very popular, to say the least, because everybody wants to have those benefits from AI. In terms of bookings, yeah, the bookings were strong. I don't necessarily want to comment much. um i mean clearly if uh to give you some uh rough order of magnitude of magnitude the the booking q4 2025 uh where uh about double uh what it has been uh the previous year just to give you some colors uh it has been strong um uh very strong and in terms of capital allocation yes so So in terms of capital allocation, as you know, we did the share buyback in September
or October to serve the program for share compensation for 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 funds. So the current price makes this option really attractive. So this is something we could do to return cash to shareholders. So yeah, this is something that is possible.
Operator
Thank you. 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 question, please reach out to Benoît D'Amécourt, and we'll be happy to take them. Thank you. Have a good day.
