Tear Sheet: Cloud Software Group Holdings Inc.

This report does not constitute a rating action. Cloud Software?s debt to EBITDA will rise toward 6.5x in fiscal 2026, from about 5.5x as of Nov. 30, 2025. Upfront revenue recognition from multi-year contracts contributed to a significant increase in the company?s EBITDA over the past 1-2 years, which we expect to normalize in 2026. We expect Cloud Software?s reported revenue to decline materially in fiscal 2026 as annual recurring revenue (ARR) base exceeds reported revenue, though we view ARR and net retention above 100% as better indicators of its performance. For example, in fiscal 2025 the company?s revenue decreased about 3% (excluding ShareFile) while its ARR increased about 3% organically to about $4.4 billion. We expect reduced cash restructuring

...Rating Component Scores Foreign currency issuer credit rating B/Stable/-- Local currency issuer credit rating B/Stable/-- Business risk Satisfactory Country risk Low Industry risk Intermediate Competitive position Satisfactory Financial risk Highly Leveraged Cash flow/leverage Highly Leveraged Anchor b+ Modifiers Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy FS-6 (no impact) Liquidity Adequate (no impact) Management and governance Moderately Negative (no impact) Comparable rating analysis Negative (-1 notch) Stand-alone credit profile b...

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