Temenos Ag · SIX:TEMN

Temenos — Q3 2025 Earnings Presentation

39 slides from Temenos's earnings presentation, Oct 28, 2025

  1. Slide 1: Copyright © 2025 Temenos

    Copyright © 2025 Temenos 1

  2. Slide 2: Business Update and Financial Results

    Business Update and Financial Results Takis Spiliopoulos, Interim CEO & Chief Financial Officer 28 October 2025 Quarter ended, 30 September 2025 Copyright © 2025 Temenos Copyright © 2025 Temenos 2

  3. Slide 3: Disclaimer

    Disclaimer Our presentation and this document may contain forward-looking statements relating to the future of the business and financial performance of Temenos AG. Any statements we make about our expectations, plans and prospects for the Company, including any guidance on the Company’s financial p

  4. Slide 4: Non-IFRS information

    Non-IFRS information In its presentation and in this document, the Company may present and discuss non-IFRS measures. Readers are cautioned that non-IFRS measures are subject to inherent limitations. Non-IFRS measures are not based on any comprehensive set of accounting rules or principles and shoul

  5. Slide 5: Agenda

    Agenda CEO update Operational and financial update Appendix 5 Copyright © 2025 Temenos 55

  6. Slide 6: Q3-25 highlights

    Q3-25 highlights Strong Q3-25 performance across all key metrics Sales environment remained stable, no disruption from US bank credit concerns in the quarter Good number of new logos signed and strong traction with existing customers AI-powered product launches gaining traction with clients, in part

  7. Slide 7: Q3-25 deal wins

    Q3-25 deal wins Customer announcements • Tier 1 Middle East bank expanded into new • Tier 3 ASEAN bank extended their core geography on Temenos core banking banking relationship with Temenos • Already running Temenos core banking in • Upgrading core banking platform and moving domestic market to the

  8. Slide 8: Q3-25 customer success

    Q3-25 customer success Customer success • Fundbank, a global bank specializing in banking for asset management, went live on Temenos SaaS for US expansion • Full suite of services across core banking, digital, payments and analytics • Selected Temenos for US expertise, scalability, and SaaS capabili

  9. Slide 9: New payment innovation - Money Movement & Management

    New payment innovation - Money Movement & Management Single, pre-integrated platform providing payments, accounts, risk, and treasury modules AI-powered services, including automated payment repair, fraud detection, and copilot tools Enables the rapid set up of a new money movement business Deployab

  10. Slide 10: Recent recognition

    Recent recognition Winners announced Dec 3 World’s Best One of the Overall & Bank FINALIST: Best Great Place To Core Banking World’s Deposit Core Banking Work® in 15 Solution Top Fintech System countries Transformation Companies Winner Copyright © 2025 Temenos 10

  11. Slide 11: Strategy execution update

    Strategy execution update Product & technology Progress investment Ongoing hiring of talent across the R&D organization globally Go To Market US banks leveraging the Orlando innovation hub investment On track to increase sales headcount across regions 50% by year-end Customer lifecycle Ongoing inves

  12. Slide 12: Agenda

    Agenda CEO update Operational and financial update Appendix 12 Copyright © 2025 Temenos 1212

  13. Slide 13: Strong Q3-25 revenue growth

    Strong Q3-25 revenue growth +10% +11% 99 259 90 231 Q3-24 (proforma) Q3-25 Q3-24 (proforma) Q3-25 Subscription and SaaS Total Revenue Strong growth driven by broad based demand across new and existing customers Note: growth rates are non-IFRS c.c.. Proforma excludes Multifonds. The sale of Multifond

  14. Slide 14: Strong growth in profit

    Strong growth in profit +36% +41% 85 0.93 62 0.66 Q3-24 (proforma) Q3-25 Q3-24 (proforma) Q3-25 Non-IFRS EBIT Non-IFRS EPS Strong EBIT growth driven by operating leverage, premium maintenance and cost efficiencies gains Note: non-IFRS EBIT growth rates are c.c., non-IFRS EPS growth rates are reporte

  15. Slide 15: ARR increasing as a percentage of product revenue (proforma)

    ARR increasing as a percentage of product revenue (proforma) Q3-25 ARR equal to 88% of LTM product revenue vs. 87% in Q3-24 919 845 811 721 Q3-25 ARR LTM Q3-25 Product Revenue Q3-24 ARR LTM Q3-24 Product Revenue Note: Figures are non-IFRS and in constant currencies. Proforma excludes Multifonds. The

  16. Slide 16: Proforma ARR and non-IFRS income statement – operating

    Proforma ARR and non-IFRS income statement – operating Q3-25 YTD proforma ARR (USDm) Q3-25 Q3-24 Y-o-Y Y-o-Y c.c. (proforma) reported ARR 811.0 721.4 12% 11% Q3-25 Q3-24 Y-o-Y Y-o-Y c.c. Q3-25 YTD Q3-24 YTD Y-o-Y Y-o-Y c.c. Income statement (USDm) reported reported Subscription and SaaS 99.2 89.5 11

  17. Slide 17: Non-IFRS income statement – non-operating

    Non-IFRS income statement – non-operating Proforma Reported Q3-25 Q3-24 Y-o-Y Q3-25 Q3-24 Y-o-Y In USDm, except EPS (proforma) reported reported EBIT 84.6 62.0 36% 84.6 71.3 19% Net finance charge (1.3) (5.4) (76%) (1.3) (5.4) (76%) FX gain / (loss) (1.8) 4.6 (138%) (1.8) 4.6 (138%) Tax (17.4) (13.7

  18. Slide 18: Free cash flow growing double-digit (proforma)

    Free cash flow growing double-digit (proforma) +30% 29 23 Q3-24 Q3-25 FCF Free cash flow growth of 13% YTD Note: Figures are non-IFRS. Proforma excludes Multifonds from prior quarters. The sale of Multifonds was completed in Q2-25. Copyright © 2025 Temenos 18

  19. Slide 19: Group liquidity (reported)

    Group liquidity (reported) USDm (7) (18) 305 61 (148) 184 (10) (886) (702) Cash on Operating Cash Tax Capex Share Buyback Interest, FX & Leases Cash on Borrowings Reported Net Debt Balance Sheet Balance Sheet (30/06/25) (30/09/25) Leverage at 1.4x at end of Q3-25 Note: Net debt is reported Copyright

  20. Slide 20: Debt, leverage and capital allocation

    Debt, leverage and capital allocation Completed share buyback for total of CHF 250m in August 2025, representing 5.5% of registered share capital (press release available here) These shares will be proposed for cancellation at the 2026 AGM on May 13th, 2026 Reported net debt of USD 702m as of 30 Sep

  21. Slide 21: FY-25 guidance raised (non-IFRS, proforma)

    FY-25 guidance raised (non-IFRS, proforma) • FY-25 guidance raised; excludes any contribution from Multifonds • FY-24 proforma also excludes any contribution from Multifonds and is constant currency New FY-25 guidance FY-24 proforma (USD, c.c.) ARR (c.c.) At least 12% growth (no change) 773m Subscri

  22. Slide 22: Reconfirming FY-28 targets (non-IFRS)

    Reconfirming FY-28 targets (non-IFRS) • FY-28 targets excluding any contribution from Multifonds • FY-24 proforma also excludes contribution from Multifonds and is constant currency Updated Implied CAGR FY-24 proforma (USD, c.c.) FY-28 targets (USD) (unchanged from Nov-24 CMD) ARR >1.2bn 773m 13% EB

  23. Slide 23: Agenda

    Agenda CEO update Operational and financial update Appendix 23 Copyright © 2025 Temenos 2323

  24. Slide 24: Like-for-like proforma revenue and costs

    Like-for-like proforma revenue and costs • Q3-25 LFL non-IFRS revenue up 11% • Q3-25 LFL non-IFRS costs up 2% • Q3-25 LFL non-IFRS product revenue up 12% • Q3-25 LFL non-IFRS product costs up 1% LFL non-IFRS Services revenue LFL non-IFRS Product revenue LFL non-IFRS Services cost LFL non-IFRS Produc

  25. Slide 25: FX and other assumptions underlying FY-25 guidance

    FX and other assumptions underlying FY-25 guidance In preparing the FY-25 guidance, the Company has assumed the following FX rates: EUR to USD exchange rate of 1.17 GBP to USD exchange rate of 1.35; and USD to CHF exchange rate of 0.79 The Company has also assumed the following for FY-25 guidance: •

  26. Slide 26: FX exposure

    FX exposure % of total USD EUR GBP CHF INR RON Other Subscription and SaaS 70% 19% 2% 2% 0% 0% 7% Maintenance 78% 14% 2% 1% 0% 0% 5% Services 50% 29% 5% 7% 0% 0% 9% Revenues 71% 18% 2% 2% 0% 0% 7% Non-IFRS costs 31% 13% 10% 5% 17% 2% 22% Non-IFRS EBIT 147% 28% (13)% (4)% (32)% (3)% (23)% NB. All % a

  27. Slide 27: Quarterly proforma ARR and FCF

    Quarterly proforma ARR and FCF ARR, USD m Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 ARR 683.5 703.7 721.4 749.5 741.4 790.6 811.0 FCF, USD m Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FCF 43.5 60.6 22.5 96.6 48.8 65.3 29.3 Copyright © 2025 Temenos 27

  28. Slide 28: Total software licensing revenue breakdown by geography

    Total software licensing revenue breakdown by geography Q3-25 (proforma) 22% 32% APAC Europe MEA Americas 23% 23% Copyright © 2025 Temenos 28

  29. Slide 29: Q3-25 go-lives

    Q3-25 go-lives Customer success 85 go-lives in Q3-25 Total of 236 go-lives YTD Copyright © 2025 Temenos 29

  30. Slide 30: DSOs

    DSOs 160 160 160 152 153 151 152 146 147 140 136 133 134 120 100 80 60 40 20 0 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-24 Q1-25 Q2-25 Q3-25 Proforma Proforma Proforma Proforma DSOs at 152 at Q3-25 (Q3-25 proforma* DSOs at 160) Note: Proforma view excludes Multifonds revenue and receivables Copy

  31. Slide 31: Balance sheet – leverage

    Balance sheet – leverage Leverage ratios 2.0x 1.8x 1.5x 1.4x 1.4x 1.4x 1.3x 1.3x 1.2x 1.0x 0.5x 0.0x Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Note: Includes Multifonds EBITDA Copyright © 2025 Temenos 31

  32. Slide 32: Capitalization of development costs (proforma)

    Capitalization of development costs (proforma) USDm Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Cap’ dev’ costs (19.3) (17.1) (17.4) (16.5) (70.3) Amortisation 14.8 14.3 16.1 14.8 60.0 Net cap’ dev’ (4.6) (2.7) (1.3) (1.7) (10.3) Proforma, USDm Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Cap’ dev’ costs (15.4) (15.0) (15.3) Am

  33. Slide 33: Reconciliation from IFRS to non-IFRS

    IFRS revenue measure + Deferred revenue write-down = Non-IFRS revenue measure Reconciliation IFRS profit measure from IFRS to +/- +/- Share-based payments and related social charges Deferred revenue write down non-IFRS +/- Discontinued activities +/- Gain/loss from sale of business +/- Amortisation

  34. Slide 34: Accounting elements not included in non-IFRS guidance

    Accounting elements not included in non-IFRS guidance Below are the accounting elements not included in the FY-25 non-IFRS guidance: FY-25 estimated share-based payments charge of c.5% of revenue FY-25 estimated amortisation of acquired intangibles of USD 45m FY-25 estimated restructuring / M&A rela

  35. Slide 35: Earnings Reconciliation – IFRS to non-IFRS (reported)

    Earnings Reconciliation – IFRS to non-IFRS (reported) 3 Months Ending 30 Sep 3 Months Ending 30 Sep In USDm, except EPS 2025 2025 2024 2024 IFRS Non-IFRS adj. Non-IFRS IFRS Non-IFRS adj. Non-IFRS Subscription and SaaS 99.2 99.2 96.4 96.4 Maintenance 125.5 125.5 116.9 116.9 Services 33.8 33.8 33.6 33

  36. Slide 36: Net earnings reconciliation IFRS to non-IFRS

    Net earnings reconciliation IFRS to non-IFRS In USDm, except EPS Q3-25 Q3-24 IFRS net earnings 44.4 30.8 Share-based payments 9.6 10.7 Amortisation of acquired intangibles 10.6 10.5 Restructuring / M&A related costs 4.3 3.9 Fair value change on financial instruments 0.0 4.2 Taxation (4.7) (5.7) Net

  37. Slide 37: Proforma & Reported ARR and non-IFRS income statement – operating

    Proforma & Reported ARR and non-IFRS income statement – operating Q3-25 proforma Q3-25 reported (excluding Multifonds) Q3-25 Q3-24 Y-o-Y Y-o-Y c.c. Q3-25 Q3-24 Y-o-Y Y-o-Y c.c. ARR (USDm) reported reported ARR 811.0 721.4 12% 11% 811.0 760.9 7% 5% Q3-25 Q3-24 Y-o-Y Y-o-Y c.c. Q3-25 Q3-24 Y-o-Y Y-o-Y

  38. Slide 38: Non-IFRS definitions

    Other Non-IFRS definitions Proforma (excluding Multifonds) Income statement line items and free cash flow adjusted to remove any contribution from Multifonds which closed in Q2-25. Constant currencies Prior year results adjusted for currency movement Non-IFRS adjustments Like-for-like (LFL) Share-ba

  39. Slide 39: Thank you

    Thank you temenos.com Copyright © 2025 Temenos 39

Temenos — Q3 2025 Earnings Presentation on 6ix