Channel sales fuel SoftwareOne Q1 revenue boom

Rising demand for cloud services drove the VAR’s momentum across all regions

Swiss VAR SoftwareOne reported a strong start to 2026, with Q1 momentum driven not only by its blockbuster buyout of Crayon but also by global demand for cloud services.

Group revenue jumped 64.7 per cent year-on-year to CHF 387.7m (£366.7m) in Q1, primarily reflecting the acquisition.

The company confirmed last month the Crayon brand has now been fully transitioned into SoftwareOne.

On a combined like-for-like basis, turnover increased 12.9 per cent, supported by a high volume of three-year Microsoft Cloud Service Provider (CSP) agreements and early renewals linked to the vendor’s upcoming price increases.

The performance came despite a 6.1 per cent foreign exchange headwind during the quarter.

Adjusted EBITDA rose 32.8 per cent year-on-year in constant currency to CHF 79.4m.

Channel sales soar as cloud demand accelerates

Turnover from software and cloud channel sales leapt 37.3 per cent to CHF 153.8m in Q1, driven by performance in APAC and NORAM, followed by India.

Software and cloud services revenue grew 14.9 per cent year-on-year, while software and cloud direct sales increased 5.8 per cent.

Geographical breakdown

In the DACH region, the Swiss organisation’s revenue increased 8.4 per cent to CHF 86.8m, driven by accelerating Enterprise Agreement (EA) to CSP conversions, particularly in Germany and Switzerland.

Microsoft-related business was a key contributor, with demand from public sector organisations remaining resilient.

Earnings in WEMEA rose 11.1 per cent year-on-year, again supported by Microsoft-related activity across both direct and channel operations.

The Nordics grew 32.7 per cent to CHF 68.4m, led by strength in the direct business alongside a material contribution from services.

Central and Eastern Europe (CEE) improved 18.2 per cent year-on-year in constant currency to CHF 19.3m, with software and cloud direct and services both posting double-digit growth.

APAC, NORAM and LATAM also delivered growth during the quarter, rising 18.4 per cent, ten per cent and 9.4 per cent respectively.

“Revenue growth of 12.9 per cent, with contributions from every business line and region, reflects the strategy we have been executing over the past year and gives us confidence in the trajectory of the combined business,” said Raphael Erb and Melissa Mulholland, co-CEOs of SoftwareOne.

“We are particularly encouraged by progress in North America, where recent actions are beginning to deliver more consistent results.”

FY26 outlook

Following this quarter’s performance, SoftwareOne now expects mid-single-digit to high-single-digit year-on-year revenue growth in constant currency on a combined like-for-like basis.

The company also forecasts an adjusted EBITDA margin above 23 per cent on the same basis.

Moving forward, the company said its 2026 growth expectations reflect the ongoing shift away from traditional licensing models towards cloud-based subscription and consumption-driven services, alongside continued multi-vendor expansion.

Growth in services is expected to be supported by customer demand to optimise cloud environments, manage software estates and extract enhanced value from data and AI initiatives.