28 Segment reporting
For management purposes, SoftwareOne is organized by geographical areas, with seven operating segments:
- DACH (Germany, Austria and Switzerland)
- WEMEA (Western Europe, including Middle East and Africa)
- Nordics (Northern Europe)
- CEE (Central and Eastern Europe)
- NORAM (USA, Canada)
- LATAM (Latin America)
- APAC (Asia Pacific)
Since the Crayon acquisition, the Co-CEO’s have been the Chief Operating Decision Makers (CODM). They assess each of the operating segments separately for the purpose of evaluating performance and allocating resources. Revenue and adjusted EBITDA are the key performance indicators used by SoftwareOne for internal management and monitoring purposes. The group allocates revenue and expenses to regions based on the end customer’s headquarter domicile since the region is responsible for the global client relationship. There are no intersegment revenues. Different average exchange rates are used in management reporting than for group consolidation purposes.
The Crayon acquisition has led to changes in the internal reporting and how the group monitors the performance on a regional level due to a decrease in the level of detailed cost allocation across the organization. As a result, the segment reporting for 2025 has changed compared to prior year. It presents revenue, third party service delivery costs, personnel expenses, other operating expenses net (after operating income) and EBITDA, rather than the previous year’s breakdown of revenue, directly attributable delivery costs, and indirectly attributable selling, general and administrative costs (SG&A). The group’s financing (including finance income and finance expenses) and income taxes are managed on a group basis and are not allocated to the reportable segments.
The segment totals are reconciled to the figures reported in the consolidated income statement (“Total” column) as follows:
- "Removal Crayon H1" eliminates the income statement of Crayon group for the first half of 2025. The segment reporting includes Crayon for the full 12 months, comparable with pro-forma presentation, rather than a six-month period.
- "Group" includes the group cost centers and shared services costs.
- "FX & Consolidation" eliminates the effect of using differing average foreign exchange rates in the segment reporting and consolidation effects.
- “Other” includes other reconciling items that are not allocated to the segments and group in internal reporting. They consist of costs affecting comparability in operating expenses such as Crayon transaction and integration costs, other integration costs as well as M&A and earn-out expenses, restructuring expenses for the SoftwareOne's cost reduction programs, other non-recurring items which mainly relate to expenses for the strategic review and income from the release of provisions and an adjustment for the upfront recognition of multi-year licensing contracts in which the end customer has the right to change the software reseller during the contract term. Additionally, the column “Other” includes an adjustment for differences in accounting policies of IFRS 16 that are not reflected in the segments, an allocation of internal delivery costs to transition from the internal to the external reporting structure and, to a limited extent, minor reconciliation items.
Segment disclosure 2025
in CHF million | DACH | WEMEA | Nordics | CEE | NORAM | LATAM | APAC | Total segments | Removal Crayon H1 | Group | FX & Consoli- dation | Other | Total |
Revenue | 346.7 | 317.2 | 211.9 | 77.9 | 175.3 | 89.8 | 267.7 | 1,486.5 | –270.5 | 33.2 | –1.4 | –4.4 | 1,243.4 |
Third-party service delivery costs | –8.4 | –15.0 | –5.5 | –8.3 | –4.0 | –6.0 | –18.6 | –65.8 | 10.0 | –0.4 | 2.0 | 0.5 | –53.7 |
Personnel expenses | –174.5 | –184.2 | –121.9 | –37.8 | –114.6 | –65.9 | –139.7 | –838.6 | 189.8 | –89.4 | –3.9 | –38.0 | –780.1 |
Operating expenses, net (after operating income) | –28.1 | –18.9 | –17.6 | –18.9 | –29.4 | –12.8 | –22.5 | –148.2 | 35.7 | –80.4 | 3.4 | –12.5 | –202.0 |
EBITDA1) | 135.7 | 99.1 | 66.9 | 12.9 | 27.3 | 5.1 | 86.9 | 433.9 | –35.0 | –137.0 | 0.1 | –54.4 | 207.6 |
1)EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortization.
The most relevant reconciliation items in the “Other” column were related to adjustments for items affecting comparability in operating expenses and further accounting-related adjustments:
in CHF million | Integration, M&A and earn-out costs | Crayon transaction costs | Crayon integration costs | Cost reduction programs | Other non-recurring items2) | IFRS 15 upfront revenue recognition | IFRS 16 leases | Remaining | Total Other |
Revenue | - | - | –0.4 | - | - | –2.8 | - | –1.2 | –4.4 |
Third-party service delivery costs | - | - | - | - | - | - | - | 0.5 | 0.5 |
Personnel expenses | –4.6 | –0.8 | –11.8 | –17.0 | - | - | - | –3.8 | –38.0 |
Operating expenses, net (after operating income) | 0.8 | –22.0 | –13.3 | –2.2 | 4.9 | 0.1 | 22.7 | –3.5 | –12.5 |
EBITDA1) | –3.8 | –22.8 | –25.5 | –19.2 | 4.9 | –2.7 | 22.7 | –8.0 | –54.4 |
1)EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortization.
2)Other non-recurring items include income of CHF 4.7 million released legal provisions, recorded as other operating income.
Segment disclosure 2024
in CHF million | DACH | rEMEA23 | NORAM | LATAM | APAC3 | Total segments | Group | FX & Consoli- dation | Other | Total |
Revenue | 301.1 | 303.9 | 145.9 | 100.3 | 159.0 | 1,010.2 | 7.3 | –0.1 | –2.0 | 1,015.4 |
Third-party service delivery costs | –9.9 | –9.8 | –4.2 | –5.2 | –11.3 | –40.4 | - | 0.1 | 0.1 | –40.2 |
Personnel expenses | –142.2 | –163.3 | –74.9 | –71.8 | –81.9 | –534.1 | –63.9 | –0.8 | –58.4 | –657.2 |
Operating expenses, net (after operating income) | –19.2 | –41.3 | –26.6 | –15.5 | –9.1 | –111.7 | –56.1 | 0.7 | –34.9 | –202.0 |
EBITDA1) | 129.8 | 89.5 | 40.2 | 7.8 | 56.7 | 324.0 | –112.7 | –0.1 | –95.2 | 116.0 |
1)EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortization.
2)WEMEA, Nordics and CEE reported under segment rEMEA in 2024, refer to note 2 Changes to segment reporting and goodwill allocation.
2)Middle East subregion was moved from APAC to WEMEA, prior year figures were restated. Refer to note 2 Changes to segment reporting and goodwill allocation.
The most relevant reconciliation items in the “Other” column were related to adjustments for items affecting comparability in operating expenses and further accounting-related adjustments:
in CHF million | Integration, M&A and earn-out expenses | Restruc- turing expenses2) | Restruc- turing MTWO business | Other non-recurring items | Additional bad debt expenses3) | IFRS 15 upfront revenue recognition | IFRS 16 leases | Remaining | Total Other |
Revenue | - | - | –2.1 | - | 0.6 | - | –0.5 | –2.0 | |
Third-party service delivery costs | - | - | - | - | - | - | - | 0.1 | 0.1 |
Personnel expenses | –11.6 | –43.2 | –2.6 | - | - | - | - | –1.0 | –58.4 |
Operating expenses, net (after operating income) | –1.8 | –23.2 | –2.8 | –14.6 | –6.0 | - | 17.0 | –3.5 | –34.9 |
EBITDA1) | –13.4 | –66.4 | –7.5 | –14.6 | –6.0 | 0.6 | 17.0 | –4.9 | –95.2 |
1)EBITDA from segment reporting reconciled to earnings before net financial items, taxes, depreciation and amortization.
2)Restructuring expenses include costs associated with the operational excellence and go-to-market initiative.
3)Expenses relate to overdue receivables over 180 days outstanding and under legal dispute, with success rate of collection by SoftwareOne taken down to zero.
Additional geographical information
Germany, the US, Switzerland and Norway are the main geographical markets for SoftwareOne in 2025 and represent approximately 39% of revenue. In 2024, Germany, the United States, Switzerland, and the Netherlands have been the leading markets, accounting for 46% of total revenue.
Revenue is reported based on the end customer’s headquarter domicile:
2025 | ||||||
in CHF million | Germany | US | Switzerland | Norway | Other countries | Total |
Revenue (IFRS reported) | 219.3 | 129.1 | 81.9 | 60.8 | 752.3 | 1,243.4 |
Non-current assets | 10.6 | 20.8 | 162.1 | 121.1 | 1,711.7 | 2,026.3 |
2024 | ||||||
in CHF million | Germany | US | Switzerland | Netherlands | Other countries | Total |
Revenue (IFRS reported) | 189.7 | 128.8 | 85.6 | 65.6 | 545.7 | 1,015.4 |
Non-current assets | 9.2 | 42.1 | 156.4 | 11.9 | 509.4 | 729.0 |
SoftwareOne generated 35% of total revenues with our customer Microsoft (prior year: 33%). The revenue derives from all segments. Microsoft is our only customer aggregating more than 10% of our total revenues.
Non-current assets for this purpose consist of tangible, intangible assets, right-of-use assets, and investments in associated companies and are allocated based on the location of the group company.