This report does not constitute a rating action. Applied's revenue increased about 13% in the first half of fiscal 2025 (ended June 30, 2025), primarily due to growth in its Subscription and Support and Transaction based segments of about 15% and 8%, respectively. This growth was largely due to price increases, increased demand from its existing customers, and new logo wins. The company benefits from its mission-critical platform and resilient end-market base. Therefore, even in the event of a downturn, we expect Applied would remain largely insulated, as evidenced by its outperformance during the COVID-19 pandemic and annual revenue growth of more than 10% in each of the last seven years. We expect revenue will increase 10%-12% in fiscal 2025
