Why Subscription Revenue Is Once Again the New Gold on the Stock Market – And What It Means for SAP, Aspermont, and Netflix

SAP: Between Technological Realignment and Market Skepticism

SAP has fundamentally restructured its commercial foundation in recent years. Instead of one-time software license sales, the company is increasingly relying on recurring revenue streams. This is a strategic move that sustainably improves the quality of revenue. The billing model has become more flexible as a result. Customers can choose between fixed-term contracts with automatic renewal, license-based models, and usage-based pay-per-use options. Usage-based billing, in particular, is changing the dynamics because revenue now correlates more closely with actual usage intensity. For investors, this means greater revenue predictability and stronger customer loyalty, as data and processes are increasingly embedded in the SAP infrastructure.

Recent initiatives show that SAP is further refining its strategic direction. At the Sapphire conference, the company presented the concept of the "autonomous enterprise," a platform that increasingly executes business processes autonomously. The partnerships with Anthropic, Google Cloud, and Microsoft underscore the ecosystem approach, while the acquisitions of Dremio and Prior Labs strengthen the data foundation for AI applications. The recently obtained security clearance for the cloud infrastructure also expands its scope of use in sensitive environments. The EUR 3.5 billion Eurobond issuance provides the group with the financial flexibility to consistently drive this transformation forward.

Operational performance remains robust. Cloud revenue climbed 27% on a currency-adjusted basis, and the order backlog is also growing at a double-digit rate. Nevertheless, the stock is trading well below its annual highs. Market skepticism stems from two sources. First, rising AI infrastructure costs are weighing on the margin outlook; second, the structural shift from a license-based to a subscription-based business model is temporarily dampening revenue momentum. The upcoming quarterly results will show whether the AI push is already translating into cash-generating subscriptions. The stock is currently trading at EUR 135.96.

Aspermont: From a Traditional Publisher to a Data Powerhouse

The core of Aspermont remains its digital subscription business, and for good reason. With 4,000 corporate customers in over 150 countries and an impressive 100% customer retention rate, this is where the company's true strength lies. Particularly noteworthy is that the subscription model has recorded growth in recurring revenue for 39 consecutive quarters.

Average revenue per user has risen by 17% annually since 2016. This is a testament to the company's pricing power in this niche. This solid foundation not only generates reliable cash flows but also finances the strategic shift toward becoming a data-driven service provider.

In addition to its core business, two areas are gaining momentum. The in-house marketing agency Nexus has already generated more revenue in the first half of 2026 than in the entire previous year, with a 41% increase in revenue in the non-subscription segment. Even more crucial for long-term value growth, however, is the development of the data intelligence division. Mining IQ is systematically tapping into the content archive that has grown over 190 years. Early enterprise customers such as Rio Tinto are already validating the model. The mining giant paid approximately AUD 550,000 for this service. The product roadmap is in place. The platform is now in active development mode, marking a shift from the planning phase to the implementation phase.

The first-half figures show a clear trend. Operating cash flow improved sequentially by AUD 1.5 million, and management expects positive liquidity starting in the third quarter. The recent capital measure of the stock split and the streamlining of the shareholder structure position the company for institutional investors. GBC analysts see substantial potential here and have set a price target of AUD 5.00. They attribute this to the increasing monetization of the data platform, rising average revenues, and growing margin strength. The combination of a resilient core business and a clearly defined growth path makes Aspermont an attractive candidate for investors with a medium-term focus. The share is currently trading at around AUD 1.62.

Netflix: Subscription Model with an Ad-Driven Boost

By 2026, Netflix has refined its subscription model into a precise management tool. The three-tier structure, comprising an ad-supported entry-level plan, an ad-free Standard plan, and a Premium plan, caters to different willingness-to-pay levels without limiting the platform's reach. The ability to cancel monthly lowers the barrier to entry, while ad revenue establishes a second, high-margin revenue stream. The additional fees for shared accounts transform previously tolerated behaviour into additional revenue. This system ensures reach while simultaneously increasing average revenue per user. This is a smart move that expands the classic subscription model to include an ad-based component.

The latest quarterly figures look quite solid. Revenue of USD 12.25 billion was reported. Earnings per share came in at USD 1.23. In addition, free cash flow of USD 5.1 billion was generated. Management is sticking to its full-year revenue forecast of USD 50.7 to USD 51.7 billion, with an operating margin of 31.5%. However, the real driver is the advertising business. The ad-supported tier surpassed 250 million active users—a threefold increase within two years. Advertising revenue is expected to double to USD 3 billion by 2026, with over 4,000 advertisers. This development is structurally transforming the revenue model and making the platform less dependent on pure subscription growth rates.

With a price-to-earnings (P/E) ratio of around 23, Netflix is trading at a relatively low valuation. Although the price-to-sales (P/S) ratio is above the industry average, the combination of strong cash flow, a USD 25 billion share buyback program, and the growing advertising segment justifies a premium. The strategic realignment toward AI-driven production efficiency and selective expansion into live events addresses content costs and creates new marketing opportunities. The failed Warner acquisition turned out to be a blessing. A USD 2.8 billion termination fee and the avoidance of integration risks strengthen the balance sheet. Currently, one share costs around USD 73.81.

The return to subscription revenue is not old hat—it is the new currency on the stock market. SAP is rebuilding its foundation with a bold cloud transformation, but it still needs to prove its margin strength. Aspermont is the hidden gem that benefits from its unrivaled foundation, with 39 quarters of growth and a new data platform. Netflix, on the other hand, has supplemented its traditional subscription model with an ad-supported boost, thereby tapping into a new revenue stream. Investors seeking revenue stability today will find three very different yet promising approaches among these companies.