Sage Group vs Zoho: Revenue, Profit and Business Model
Sage Group had ~$3.3B of annual revenue in FY2025 and ~$487.1M of net income. Zoho had ~$1.4B of annual revenue in FY2025 and ~$370.2M of net income.
Latest financial snapshot
Sage Group
- Latest annual revenue
- ~$3.3B (FY2025)
- Net income
- ~$487.1M
- Net margin
- 14.7%
- Revenue growth
- +8.0% a year, FY2021–FY2025
Zoho
- Latest annual revenue
- ~$1.4B (FY2025)
- Net income
- ~$370.2M
- Net margin
- 25.9%
- Revenue growth
- +18.9% a year, FY2023–FY2025
Financial summary
Sage Group
Sage moved from one-off desktop licences to subscriptions over the past decade. That shift lowered reported growth for a few years but left the group with a highly recurring revenue base. In FY25 (year to 30 September 2025), underlying total revenue grew 10% to ~$3.32 billion (£2,513 million), annualised recurring revenue rose 11% to ~$3.4 billion (£2,574 million), underlying operating profit rose 17% to ~$792 million (£600 million), and the margin widened by 1.5 points to 23.9%. Underlying basic EPS rose 18% to 43.2p. Sage paid a full-year dividend of 21.85p and announced a buyback of up to $396 million (£300 million). In the first half of FY26, revenue rose 11% to ~$1.8 billion (£1,363 million), underlying operating profit rose 15%, and the interim dividend was raised 8%. Nine-month FY26 revenue was ~$2.72 billion (£2,062 million), up 11%. Full-year FY26 results are expected in November 2026. The Sage Group plc is a massive British multinational enterprise software company, sustaining a market valuation typically over $10 billion and acting as the UK's second-largest technology company.
Zoho
Zoho files its accounts with India's Registrar of Companies. Revenue from operations rose from ~$1.01 billion (₹8,703.6 crore) in FY23 to ~$1.21 billion (₹10,456 crore) in FY24 and ~$1.43 billion (₹12,313 crore) in FY25 (fiscal years end 31 March). Net profit was ~$329 million (₹2,836 crore) in FY23, ~$383 million (₹3,299 crore) in FY24 and ~$370 million (₹3,191 crore) in FY25. The company does not publish quarterly results. Hurun's 2024 India 500 list valued Zoho at about $12 billion (₹1,03,760 crore), ranking it among India's most valuable unlisted companies; this is an outside estimate, not a transaction price.
Revenue and profit by year
Sage Group
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$3.3B | ~$487.1M | 14.7% | +7.8% | Source |
| FY2024 | ~$3.1B | ~$426.4M | 13.9% | +6.8% | Source |
| FY2023 | ~$2.9B | ~$278.5M | 9.7% | +12.2% | Source |
| FY2022 | ~$2.6B | ~$343.2M | 13.4% | +5.5% | Source |
| FY2021 | ~$2.4B | ~$376.2M | 15.4% | — | Source |
Zoho
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$1.4B | ~$370.2M | 25.9% | +17.8% | Source |
| FY2024 | ~$1.2B | ~$382.7M | 31.6% | +20.1% | Source |
| FY2023 | ~$1B | ~$329M | 32.6% | — | Source |
Where the revenue comes from
Sage Group
- Recurring Revenue
97% (FY25)
About $3.22 billion (GBP 2,436 million) of about $3.32 billion (GBP 2,513 million) in FY25, with software subscriptions making up about 83% of the group.
- Professional Services and Licences
~3% (FY25)
The remaining about $102 million (GBP 77 million) came mostly from professional services and licences.
Zoho
- Zoho suite57
Cloud business applications including Zoho One, CRM, finance, Workplace, HR and support tools; ~$818 million (₹7,051 crore) in FY25.
- ManageEngine39
IT management and security software for IT departments; ~$564 million (₹4,863 crore) in FY25.
- Services3
Sale of services; ~$46.3 million (₹399 crore) in FY25.
Business model and strategy
Sage Group
How it makes money
Sage makes money mainly from software subscriptions. In FY25, recurring revenue was ~$3.22 billion (£2,436 million), or 97% of the ~$3.32 billion (£2,513 million) total, and software subscription revenue made up about 83% of the group. The remaining ~$102 million (£77 million) came mostly from professional services and licences.
Growth strategy
Sage's growth strategy has three parts: sell Sage Intacct to more mid-sized companies, especially businesses outgrowing QuickBooks, and in new countries; add AI features through Sage Copilot and AI agents that customers can pay more for; and move remaining desktop users to cloud-connected subscriptions. Bolt-on acquisitions, such as Lockstep (2022) and Brightpearl (2022), add workflow and commerce capabilities.
Competitive advantage
Sage's edge rests on local compliance and switching costs. Each country Sage serves has its own tax, payroll and e-invoicing rules, and Sage has built that compliance into its products over four decades, for example supporting HMRC's Making Tax Digital rules in the UK.
Zoho
How it makes money
Zoho sells software subscriptions and licences directly to businesses of all sizes. In FY25 the Zoho suite, which covers CRM, finance, collaboration, HR, support and the Zoho One bundle, brought in ~$818 million (₹7,051 crore), or 57% of revenue. ManageEngine, which sells IT service management, endpoint, identity and network monitoring tools to IT teams, brought in ~$564 million (₹4,863 crore) (39%).
Growth strategy
Zoho grows mainly through organic product development. It adds new applications to its suite, sells upgrades to Zoho One, expands ManageEngine's cloud offerings, and opens local data centres to meet data residency rules in markets such as the UAE. It also invests in hiring and training outside large cities, including offices in rural Tamil Nadu.
Competitive advantage
Zoho's main advantages are its ownership structure and its integrated product line. With no outside investors, management can fund long R&D projects from operating cash flow. Its applications share a common platform and identity layer, which lets Zoho sell them together through Zoho One at a lower combined price than a stack of separate vendors.
Questions about Sage Group vs Zoho
Which company has higher revenue — The Sage Group plc or Zoho?
The Sage Group plc had ~$3.3B (FY2025), while Zoho had ~$1.4B (FY2025). By latest annual revenue, The Sage Group plc is the larger business, with Zoho showing a smaller revenue base.
What is the market cap of The Sage Group plc vs Zoho?
The Sage Group plc has a market capitalisation of $11.5B. A public market cap figure for Zoho was not available (it may be privately held).
How does revenue per employee compare for The Sage Group plc and Zoho?
The Sage Group plc has $276k / employee in revenue per employee, while Zoho has $75k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do The Sage Group plc and Zoho make money?
The Sage Group plc and Zoho generate revenue in fundamentally different ways. The Sage Group plc: Sage makes money mainly from software subscriptions. Zoho: Zoho sells software subscriptions and licences directly to businesses of all sizes.
Is The Sage Group plc bigger than Zoho?
By last reported revenue, The Sage Group plc (~$3.3B (FY2025)) is the larger company compared to Zoho (~$1.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Sage Group vs Zoho overview