Temenos (SIX Swiss: TEMN) Q2 2026 Earnings Call

0:00 Ladies and gentlemen, welcome to the Temenos Q2 twenty twenty six Results Conference Call and Live Webcast. I am Moira, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The

0:26 conference must not be recorded At this time, it's my pleasure to hand over to Takis Piliopoulos, CEO and Interim CFO. Please go ahead. Good afternoon, good evening. Thank you for joining our Q2 'twenty six results call. As usual, I will talk you through our key performance and operational highlights for the quarter before updating you on our financial performance. Starting on slide six, we had a strong start to the quarter and a stable sales environment throughout. However, we saw a small number of mainly large and new logo deals timed out at the end of the quarter. Most of these deals were in Europe. Importantly, none of these deals have been lost.

1:14 We have also been able to sign the majority of the slipped subscription and SaaS revenue in the first three weeks of Q3 'twenty six, which confirms the confidence we have in our pipeline conversion. These deals include one of the largest banks in Central And Eastern Europe, as well as a Tier one European bank. With a robust start to the third quarter and very good visibility, driven by a strong pipeline of large and new logo deals, we have given explicit guidance for Q3 twenty twenty six with subscription and expected to grow at least 30% year on year. We have also reconfirmed our 2026 guidance and 2028 targets. APAC performed particularly well this quarter, signing a large new logo in the ASEAN region, as well as multiple deals with existing customers.

2:08 We also saw good momentum in The U. S, signing a deal with a regional bank to migrate to Temenos core banking on SaaS.

2:16 We had another strong quarter of premium maintenance signings, which helped drive our profitability along with strong operational leverage in the business. We continue to execute on our strategic road map, making investments across the business, particularly in core banking expertise and our media and U. S. Development teams.

2:39 We also closed the acquisition of Additive, strengthening our wealth proposition and accelerating AI driven orchestration in line with the product roadmap we presented at the Capital Markets Day. Temenos clients across all tiers, especially tier ones and twos, have shown strong interest for the additive wealth offering. Lastly, our free cash flow continues to perform very well with strong double digit growth this quarter.

3:10 Moving to Slide seven, we signed a number of key deals in Q2 'twenty six, and I'd like to highlight a couple of these. As I mentioned, in APAC, we signed a large deal with a new logo for core and digital in both the bank and its digital subsidiary to help them enhance the digital experience for their customers and to accelerate product innovation.

3:33 We also extended our partnership with a number of existing clients, including a tier one bank in Japan, who are using our platform to accelerate their speed to market. In Europe, we extended our SaaS partnership with a digital subsidiary of a major European bank, and in North America, we signed a deal to migrate a client to our SaaS core banking for retail lending.

3:58 These are just a handful of the deals we signed in the quarter and demonstrate the breadth and depth of our global client base and the increasing demand for our market leading products.

4:12 Turning to slide eight, we continue to focus on maximizing the value we deliver to our clients. Al Raji is the world's largest Islamic bank with over 20,000,000 customers and more than $260,000,000,000 in assets based in Saudi with a growing young and digital first population seeking innovative and personalized banking services. Al Raghi is a long standing client of Temenos who values our deep Islamic banking expertise,

4:43 proven capabilities, and established presence in the region. We migrated them across more than 500 branches to the latest Temenos core banking platform, enabling them to significantly reduce product launch cycles from weeks and months to days. They now have a strong foundation for continuous innovation and to provide next generation digital banking experiences.

5:13 Turning to slide nine. At TCF, we also announced that QuestBank in Canada has gone live on Temenos SaaS. This was another encouraging milestone for our North America business. QuestBank, part of Questrade Financial Group, is launching Canada's U. S. Digital bank to challenge the incumbents in the market, and needed a highly scalable core banking platform that enables them to launch products fast with real time data and strong regulatory compliance to support their growth. The core platform was implemented in nine months with new deposit and lending products, and the existing mortgages business moved across to the Temenos core. It is another example of the depth and breadth of our business, where we are partnering across all tiers of banks, from fintechs getting new banking licenses to building composable core modules with the world's largest banks.

6:14 Moving to slide 10. We have made good progress on our product road map with a number of announcements at TCF, our client forum, in May. We launched composable retail deposits and composable retail lending as part of progressing lever B of our corporate strategy, which focuses on building out composable core solutions for the world's largest banks.

6:39 These two new cloud native core banking solutions allow banks to modernize their deposits and lending operations incrementally, rather than undertaking a full core replacement. This enable banks to modernize critical revenue generating businesses in a phased and cost effective manner.

7:00 The solutions can be deployed independently, integrate with existing technology environments through APIs, and help banks accelerate innovation while reducing the risk and disruption typically associated with large scale transformation programs.

7:19 And turning to the next slide, we also announced the launch of Intelligent Core and Intelligent Digital. This is the next step in our AI product roadmap, extending AI across both core and digital banking. We are working with our clients to address some of the largest pain points in banking technology, applying AI to the install, run, and upgrade life cycle, enabling faster deployments, greater automation, and simplified upgrades. We announced several AgenSci AI capabilities at TCF, including co pilots for workbench, Payments, FCM, and Wealth, as well as Conversational Studio for Digital.

8:05 Together, these demonstrate how we are converting decades of banking expertise into practical AI capabilities.

8:15 The launches are a key part of a broader strategy to embed AI across our entire product portfolio, further differentiating our offering and directly supporting our clients' growth.

8:29 Moving to slide 12. Temenos continues to be recognized as the market leader in the core banking space. This is now our twenty first year as the global leader in core banking in the IBS sales league table, and we ranked first in 15 categories overall. I was pleased to see us ranked first in nearly every region and second in North America, where we continue to focus on expanding our footprint in The U. S. We also won the world's best core banking solution award from Euromoney, another demonstration of the strength of our core banking product.

9:12 Now on slide 13, we announced the acquisition of Additive in June and closed the transaction on July 17. This acquisition accelerates our product roadmap, in particular for mass affluent, as well as giving us strong AI orchestration capabilities for complex journeys.

9:31 Overall, there are three key drivers for this acquisition. Firstly, it extends our reach into the mass affluent segment, where we already had ambitions to expand. Additive's market leading mass affluent offering enables wealth managers to provide personalized advice at scale and significantly shortens delivery cycles. It gives us an immediate footprint and offering in this fast growing market. Secondly, additives gives us strong foundation to build out complex retail and corporate journeys in the future, in particular for credit origination, and accelerates our ability to offer a state of the art digital onboarding and origination solution to our client base.

10:20 And lastly, it complements our AI strategy with purpose built AI enabled experience and orchestration. We are working with the Additive team to build out more AI use cases across their orchestration platform over time. The founder led team will continue to run Additive on a stand alone basis for the foreseeable future. On Slide 14, we continue to make good progress on our strategic execution priorities. Our product road map is progressing well, as we have already shown, and we are investing across the business. I was pleased to welcome Brian Duval, our new president North America, who joins from SSMC and previously FIS.

11:08 He brings a wealth of experience and deep knowledge of The U. S. Core banking market. Rodrigo Silva is moving to President LATAM to focus on growing our business in key markets in that region, in particular Brazil, where we see a very significant opportunity. On the product side, we closed another round of key role hires in our India and U. S. Teams, and we have continued to roll out AI tools across the business as part of our AI strategy. I will now run through our Q2 twenty six financial highlights focusing on constant currency non IFRS financials. On Slide 16, we delivered another quarter of double digit ARR growth despite the slipped deals in the quarter, helped by our premium maintenance signings and a good level of SaaS ACV signings.

12:04 Product revenue declined marginally year on year, but grew a healthy 6% in H1 twenty twenty six, also helped by the strength of our premium maintenance signings and our strong performance in Q1. Turning to slide 17, subscription and sales declined 13% in Q2 'twenty six and four percent in H1 'twenty six due to the slipped deals. As I mentioned before, importantly, none of these deals were lost, and the majority of the slipped subscription and sales revenue was already signed in the first three weeks of Q3 twenty twenty six. Total revenue grew 1% in the quarter and 6% in H1 twenty twenty six, with maintenance and services revenue growth offsetting the impact from subscription and SaaS.

12:54 Now on Slide 18, non IFRS EBIT grew 4% in Q2 twenty twenty six and 10% in H1 twenty twenty six, and non IFRS EPS grew 7% in the quarter and 12% in H1 twenty twenty six. Our cost base was broadly flat in the quarter and up 4% in H1 twenty twenty six, with an increase in fixed costs offset by lower variable cost accruals. We continue to hire and invest in the business. However, strong premium maintenance signings and operational leverage mean we are still able to deliver strong growth in profitability. Now let me highlight a few items on Slide 19. ARR grew 11% to reach $881,000,000 by quarter end, despite the ongoing headwind from the BNPL customer and the lower subscription and SaaS revenue, giving us strong visibility on future recurring revenue and cash flow.

13:56 Maintenance again grew double digit, up 12% in the quarter, largely due to the strength of premium maintenance signings. We now guide for maintenance growth of 8% for the full year, slightly up from 7% to 8% previously, as we now continue to take a prudent view on the continued demand for premium maintenance across our customer base. On profitability, our EBIT margin improved by one percentage point to 41.3% year on year, reflecting strong operating leverage. Our margin will normalize in H2 twenty twenty six with ongoing investment in the business and greater variable cost accruals that we typically see in the second half of the year.

14:45 Moving to non operating items on Slide 20. Net profit was up 2% in the quarter and EPS grew 7%. This was achieved despite an increase in net finance charges and taxes, partially offset by FX, with our tax rate this quarter marginally higher than the expected full year tax rate of 19% to 21%. We canceled additional shares after the AGM in May from the twenty twenty five buybacks, which also benefited EPS. On Slide 21, we generated free cash flow of $74,000,000 in the quarter, up 14% year on year, driven by strong ARR growth, solid EBIT to cash conversion and our disciplined approach to capital allocation.

15:33 This remains a key metric for us given our move to a subscription license model in 2022. On Slide 22, we have the changes in group liquidity in the quarter. We generated $127,000,000 of operating cash in the quarter, paid $118,000,000 in dividends and bought back $10,000,000 of shares in our latest buyback, which ended in April. We ended the quarter with a leverage at 1.4 times, within our target range of one to 1.5 times. Turning to Slide 23, few comments on our debt, leverage and capital allocation. We completed our share buyback program for a total of CHF 100,000,000 in April 2026, with shares representing 1.9% of registered capital purchase.

16:26 We also canceled approximately 4,000,000 shares purchased in the 2025 share buyback after our AGM in May, and our reported net debt stood at $691,000,000 at quarter end. I would also flag that we expect our leverage to be within our target range of one to 1.5 times by year end, including the acquisition of Additive. Next, we have reconfirmed our 2026 guidance, which is non IFRS and in constant currency, except EPS and free cash flow, which are reported. The acquisition of Additive is expected to be marginally accretive to ARR and subscription and SaaS and neutral on EBIT, EPS and free cash flow.

17:11 The 2026 guidance includes the headwind from the termination of the BNPL client in 2025, which we have given on the slide. There will be no further headwind from this beyond 2026. We have also given guidance for Q3 twenty twenty six. Given we already signed the majority of the slipped subscription and SaaS revenue from Q2 twenty twenty six, We expect subscription and SaaS revenue growth of at least 30% in the quarter. And lastly, we have reconfirmed our 2028 targets based on our strong first year of execution, confidence in our strategic positioning, good visibility, and continued conversion of our pipeline. Operator, can you please open up for questions?

18:03 We will now begin the question and answer session. The first question comes from the line of Frederic Boulanque from Bank of America. Please go ahead. Thank you. Good evening, Takis. Frederic Boulan, Bank of America.

18:48 If I can start maybe with the pretty vast differences we've seen momentum between the different regions. And if you can spend a bit of time on what's driving that, in particular, when we look at the strong performance in Asia versus The US or Europe, I mean, is it, you know, different competitive dynamics, difference in product portfolio, or simply, you know, macro or sales cycle considerations? Thank you. Hi, Fred. Yeah, let me address this. We, I mean, we had a strong start to the quarter and overall a stable sales environment, you know, across all regions throughout the quarter. But it was really a number of larger deals and new logos, which were enclosed in the final weeks of June, and this is mainly in Europe. Now as you are aware, you know, sales cycles are twelve to eighteen months for core solutions, which can make precise timing of closing the deal quite difficult, especially for larger and new new logo deals.

19:57 The majority of the slipped subscription and sales revenue already signed in the first three weeks, including one of the largest banks in Central And Eastern Europe and a tier one European bank. So, again, I need to highlight that no deals have been lost. We're, you know, I think we we have been awarded everywhere selected vendor status, so we expect to send a reminder of the slip deals in the next few weeks. And this is what's giving us the very good visibility into a strong Q3 and why we have guided, you know, for at least 30% subscription and SaaS growth and have reiterated the '26 guidance. From a regional perspective, yes, APAC, you know, had a good quarter, also thanks to larger deals. I think The Americas, which includes both North and LatAm, I think there was more a difficult comparison base, which we didn't manage to lap.

21:06 Remember, we had a large Brazilian deal in q two twenty six. The US performed, you know, or North America performed largely as expected. Middle East, you know, can always be volatile, but, you know, no issues there. And Europe, clearly, we had an accumulation of especially larger deals and new logos, which we timed out. So I wouldn't read anything specific into the regional performances. Thank you very much. The next question comes from the line of Josh Madden from Autonomous Research. Please go ahead. Hi, good evening.

21:53 Two questions from me. You said that you've already signed the majority of the slip deals in 3Q twenty six. Does the at least 30% subscription SaaS revenue guidance for 3Q twenty six assume that you signed the remainder of the slip deals? What happens if you don't sign the remainder of the slip deals? And then also, you've mentioned that it's mostly Europe slippage. So the deals that were timed out in Europe, is there a lengthening of the European bank decision cycle, some macro regulatory factors, competitive dynamics? I mean, what's driving the slippage, and why is it mostly in Europe? Thank you. Yeah. Let me take this. Now on, I think, the slip deals, yes, we expect everything to be signed in q three.

22:47 And we've already seen, you know, good traction. Else, you know, you wouldn't qualify them as slip deals. So, yes. The on your second question, I think with larger and especially also new logos, it's about understanding, you know, the procurement process. And if you deal with a bank for the first time, you know, this can bring up surprises, especially towards the end of the quarter. So we we didn't see anything specific lengthening. It was really about understanding in full, you know, the approval processes, the procurement processes. And as we had you know, this is always the tricky part to get from how long does it take to get from being awarded the selected vendor, I. E. Winning the deals to get through, you know, terms and conditions, procurement.

23:44 With a new logo, it's always difficult to time. So nothing what we have seen in terms of lengthening sales cycles, anything specific. Thank you. The next question comes from Mark Hyatt from Morgan Stanley. Please go ahead. Hi, Douglas. Thanks for taking my question. Quick one on maintenance, please. Growth was very strong again in Q2. I know you've called out premium maintenance in your prepared remarks, but if you could give us a bit of a breakdown of the drivers of what's driving that result, that would be really helpful. And previously, you've said that maintenance growth, I think, should moderate going forward from the high levels we saw last year.

24:33 So is the strength that you've seen in the first half year consistent with that expectation? Or has that been stronger than expected? And if you could give any color in terms of how we should think about that in the second half, that would be really helpful. Yes. Hi, Mark. Happy to take that one. Maintenance growth of 12% clearly was strong, and, you know, we expected high single digit, you know, low double digit, so it came out a bit better and clearly shows the continued strong momentum. However, and this is important to highlight, you know, this is, you know, customers also getting real value for this. So it's an attractive value proposition for clients.

25:19 That's something, you know, we have seen, you know, getting a lot of traction with the premium offerings. The second element, which is always also working into maintenance, is it also reflects, you know, the CPI linked uplift, you know, the value uplift we get from subscription deals. So it's not just, you know, the premium part. On, you know, we're having now 13% in H1 twenty six. We think we should be at 8% for the full year. So now for Q3, you're you're probably going to be around, you know, the 5% mark, and then Q4 will be the remaining. You know, we clearly have now tough comparison basis ahead for Q3 and Q4, also because the overall pool in terms of, you know, the opportunity doesn't grow that much. I mean, we get the new clients in, but there is always a delay.

26:24 So clearly, you know, that's what we see as the right number for the year. And beyond 2728, as we had commented, it's probably around the 5% to 6% mark, so it should then normalize. Super helpful. Thanks. The next question comes from the line of Tobey Og from JPMorgan. Please go ahead. Mr. Og, your line is open. Yes. Hi, good evening and thanks for the question. On the queue. Can you hear me? Can you hear me?

27:10 Yes, sir. Yes, we can hear you. Can hear me? Yes, sorry about that. Yes, good evening and thanks for the question. Just on the Q3 subscription and SaaS guide for at least 30%, how much of that would you say is underpinned by those slipped deals that you've already signed and then the remaining that you expect to sign? And therefore, much is sort of left to do kind of beyond that deal slippage tailwind just as we think about building confidence around that 30% plus guide for Q3? And then just more broadly around the full year subscription and SaaS guide, how confident are you around that and what's kind of driving that confidence at this point?

27:58 Thank you. Hi, Kobi. So if you ballpark numbers, what we have done, given, you know, approximately, if you take consensus as reference, a 20,000,000 miss on subscription and SARS, that has been entirely moved into the Q3 guidance, you know. So we didn't really see, you know, a lot of other changes. That was the thinking, and given the traction we have seen in the first three weeks, and the rest is expected over the next days and weeks, you know, this is what we put behind.

28:44 Now, where does our confidence, not just for Q3 but also the full year, come from? You know, clearly, we have invested a lot in our sales force in, you know, the last eighteen months, mostly last year, and clearly you see now a lot happening in the pipeline already at the start of the year, especially across new logo deals and especially larger deals. So we are, you know, when I look at the second half pipeline, it's, you know, it's a significant increase, versus, you know, last year, H two, H one, but also H one this year. So that gives, you know, that gives a lot of visibility and underpins our confidence that, you know, this isn't really a major issue in terms of the deals. It's really timing, what we see, and and the early traction in Q3 confirms that.

29:46 So, yes, you know, we are confident, and this is why we have, you know, reconfirmed our guidance. Mr. Brennan, your line is open. You can proceed with your question. Great. Hopefully, you can hear me. Just a couple for me actually, if I can. Firstly, just a technical one. Did the Additive deal actually close in the quarter? I couldn't see it in the cash flow statement. Or has it closed in Q3? And should we expect you to update your guidance in Q3 for the acquisition? And then secondly and unrelated, can you just talk us through the moving parts in the OpEx line? We don't often see OpEx lower Q1 at the Q2 stage.

30:34 I understand that some sales commissions would have been impacted, but it looks like it's in the R and D line as well. And I always struggle to forecast the OpEx at Temenos. Can you give us a range for the second half OpEx that you're expecting? Thank you. Hi, Charlie. So the Additive transaction closed Friday last week on the seventeenth. We have maintained, you know, the guidance we've given at the time of the acquisition, so basically neutral on EBIT, EPS, and free cash flow and slightly accretive, on subscription and SaaS and ARR.

31:20 Yeah. So this is I think we'll probably have a a more precise view on after Q3. But if you want, you know, you can take you remove the marginally accretive, so the rest is purely organic. The organic growth guidance has remained unchanged. Now on the cost, so we have variable costs, which is sales commission, but it's also bonus accruals, which obviously make a big difference, whether you, you know, hit your budget or not. And this is basically the underlying, if you want, trend we see. Now on r and p costs, if you probably look at the IFRS numbers, you know, that can be a bit misleading.

32:18 When we look at the pro form a costs on this one for RNP, you see a slight increase, 2% up in the quarter, and 8% in the first half. So we're definitely investing into R and D, especially across our strategic initiatives. So this is actually tracking well. Now on costs for the second half, yeah, happy to provide a bit of color. Given, you know, the expectation of a 30% plus growth for SaaS and subscription, you would see also variable costs going up, even a bit more than last year. So on a sequential basis, you will probably think about 30,000,000 plus Q3 over Q2.

33:22 And then for q four, you probably would have another, you know, 35,000,000 over q three. And just a small follow-up. Given that your profit expectation for the year is unchanged, why aren't you making bonus accruals this quarter? I would have thought you would have accrued evenly through the course of the year. No, this is the variable accruals usually go with with revenue growth and, you know, revenue growth of 1%, obviously, compared to 13% in the in in q one, you know, this is this is how we do it. Okay. Thank you. The next question comes from the line of Laurent Doer from Kepler Cheuvreux. Please go ahead.

34:13 Yes. Thank you. Good evening, Takis. I have two questions. The first is on the slippage. You you explained pretty well the main reasons, but I was wondering more generally in the discussion with clients, geopolitical context, the macro, has it been a topic of discussion? Could have caused some delays? Or do you believe that in the second quarter, everything that took place had basically no impact? And same for the, yeah, the bank IT budget. Do you think some of the banks have devoted more of their budget to memory of a hardware? Or same thing, no impact? And my second question is on the the services performance, very high margin and sales.

35:04 Do do we have to consider this to be a a one off or a swing for the coming quarters? Thank you. Yeah. Hi, Laura. Let's take the the Mopro question first. So far, you know, we we have seen the sales environment really remaining stable throughout '26, and it hasn't really changed also in the first few weeks in July. So I've not seen a negative impact on pipeline generation or conversion rates. This is, you know, what we have seen on those deals. It's really a timing issue, and keep in mind, you know, we have, we would not have been, you know, selected if there was a lengthening of the sales cycles. Yeah? So the selection process, if you want, or the entire, you know, pipeline process is still the same, you know, twelve to eighteen months.

36:06 Now, where I believe, you know, we have seen some question marks in the entire space, we didn't feel it so far is really, you know, some potential spend being diverted towards AI. We have not seen that. It's really, you know, going as planned so far. Now where we see, you know, where we could see, you know, a potential impact is, you know, if there was a massive global recession, you know, this or next year, then you would probably expect, you know, some impact on demand. But for now, it's actually almost the opposite we see. You know? The core banking is really is really seen as nondiscretionary and and strategic.

37:04 And if we look at, especially, data and AI, these are, for many banks, two additional reasons, actually, for banks contemplating and embarking on a core modernization journey, if you want, and this is what we have seen in the pipeline acceleration. So so far, macro uncertainty, yeah, not visible. Of course, you know, if you talk about MIA specifically, you know, again, there could be always an individual deal being impacted depending on, you know, what's what's happening on a daily basis, but no broad based change in the environment.

37:53 On services, yeah, it's it's good to get a question on services. I think we we haven't had that for a while. Now the the strong services revenue growth in q two reflects primarily ongoing implementation activity across our client base and the timing of project milestones rather than any structural change. So as you know, services demand continues to benefit from basically the strong sales execution in prior quarters, last year and also Q1. So there's always a delayed positive impact, you know, on basically customer adoption.

38:42 Now our partner strategy has remained consistent. We continue to execute the partner hybrid delivery model outlined at our Capital Markets Day, where partners are increasingly used to extend implementation capacity and support ultimately, you know, us being more scalable in growth markets. So I think as we expand partner capacity over time, the individual quarters may see different mixes between partner delivered and Temenos delivered work, but there has been no fundamental shift in our partner model, and, you know, that's an explanation. But clearly, for this year, we're now, given the strong first half, would expect services to grow mid to high single digit overall.

39:38 Okay, very clear. Thanks,akis. The next question comes from the line of Justin Forsyth from UBS. Please go ahead. Good evening, Takis. Thank you for the questions. I wanted to ask one on, and apologies for piling on the deal slippage related point. I just wanted to confirm, you're talking, I think, about number of deals signed when you say the majority of deals have been signed into the first few weeks here of 3Q. Are you also referring to that on a revenue basis? Meaning the majority of that $20,000,000 worth of revenue slipped pulled into the 3Q guide. Is that also on a revenue basis? And on the ARR, it decelerated versus 1Q about two points.

40:30 Should we expect that to reaccelerate to that 13% growth ish in 3Q tied to again the signing of these deals plus the SaaS deal for the North American bank that you signed? And then just a minor one on additive. Just wanted to talk a little bit about the business mix there because going through the slides, it looks quite concentrated around a certain customer base. So maybe you could just talk a little bit through what the expansion case is for additive and how you plan to diversify the revenue over time and sell that into your existing customers? Thank you. Hi, Justin. Many questions. So on the slippage, we always highlight that, you know, the majority of the slipped revenue.

41:18 So we're not talking about the individual number of contracts. It's really the revenue. So we missed, say, 20%. The majority of that has been recovered and signed. So talking about revenue numbers only. On ARR, if you look at the contributing factors to ARR growth, we had, you know, I would say two positive ones, so SARS ACV and maintenance, and one negative, which was the subscription growth. So this basically drove the, you know, 11%, which was still in line with consensus.

42:06 I believe, and given, you know, what we have seen so far in q three, this, this should clearly accelerate again, and we feel confident that we do the 12% for q three, but also the full year. Now on additive, we have just you know, we have closed Additive, the acquisition, just, you know, last Friday. Now what we what we have said from the beginning, you know, Additive has a very strong, if you want, stand alone business, you know, because their wealth offering, you know, serves not just banks, but also, you know, insurance companies. You know, they have some retail clients, you know, and so on. Everybody who wants to get into the mass affluent space and, you know, have a consolidated offering, you know, has a good opportunity with additive.

43:08 So this will stay because they will continue to serve those customers, and they will have a strong pipeline on their own. Now what we we have now started doing is for the mass affluent piece on the wealth side, which we did not have available, we have started now the cross selling this into our, you know, very strong client base, and and this is where we have seen a lot of traction, including, you know, tier one customers. And if you've seen their slides and their, you know, documentation, they have a lot of tier one customers already. So clearly, that's continuing on the same trend. Got it. Thank you so much, Takis. Appreciate it. Have a good night.

43:59 The next question comes from the line of Thomas Tio from BNP Paribas. Please go ahead. Good evening. Thank you. Thank you very much for taking the question. A couple of questions from me as well. Maybe starting with the competitive landscape. We heard a few months ago now, Pismo, which is part of Visa, you're making noise about the fact that they won Wells Fargo for Colleges. Can you maybe help us understand how you differentiate them from a technology perspective in core banking? And more broadly, whether you've seen any shift in the competitive landscape presently? That's the first. And then secondly, could you maybe give us an indication of the size of The U. S. Bank that you signed on SaaS recently perhaps relative to Regent Bank that you signed a few years ago for instance, would be helpful. Thank you.

44:54 Yeah. Hi, Thomas. On the competitive landscape for us, so we we have not, we are not coming across PISMO so far. So I can't really comment on their offering. What we what we have seen in The US specifically, it's it's really the, you know, incumbents, as always, as you would have expected, you know, both FIS and Fiserv being the ones we, you know, usually meet in the last round. Outside of The U. S, it's still the same competitive positioning. So we have Infosys and Oracle being, you know, the two main competitors more on a global basis.

45:46 We see less local competition or regional competition. I think this is this is where we see opportunities coming to the market that, you know, some banks running on software where the provider is going end of life or is not able to modernize and invest, and, you know, these opportunities are coming to the market. There has been a shift in ownership of the Finastera core banking, as you probably have seen. This is also providing some additional opportunities, but overall, I would say no change to that extent.

46:32 The U. S. Bank we signed early July is exactly in our target market, lower tier two, tier three, you know, sizable double digit billion asset size. This is as much as we can say. From a contract perspective, it's an attractive contract for us. It's a SaaS contract, as we have mentioned, as most of the pipeline in The US is SaaS. Yeah. This is as much as we can say. Hopefully, we'll eventually be able to also name the bank so far we can't do it. Got it. Thank you very much. Ladies and gentlemen, that was the last question.

47:21 I would now like to turn the conference back over to Takis Stelioparus for any closing remarks. Yeah. Thanks, everyone, you know, for your question. Clearly, we want to do better and will do better in Q3, but we see this as really a timing issue, no change to the business, none of the deals lost, and looking forward to talk to you in October again. Thank you. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus and thank you for connecting to the call. You may now disconnect your lines. Goodbye.