Temenos : Q1 2026 Results Press Release & Primary Statements

About this update from Temenos Ag

Ad hoc announcement pursuant to Art. 53 LR Temenos announces strong Q1-26 results; FY-26 guidance reconfirmed Q1-26 (growth rates are vs. Q1-25 proforma, excluding Multifonds) Q1-26 ARR of USD 861m, up 13% y-o-y c.c. Non-IFRS Q1-26 product revenue growth of 14% c.c. Non-IFRS Q1-26 subscription and SaaS up 12% c.c. Non-IFRS Q1-26 maintenance up 15% c.c. Non-IFRS Q1-26 EBIT up 20% c.c. with 2 points of margin expansion Non-IFRS Q1-26 EPS up 20% reported Q1-26 free cash flow (FCF) of USD 60m, up 22% reported FY-26 guidance and FY-28 targets reconfirmed GRAND-LANCY, Switzerland, April 21 st , 2026 - Temenos AG (SIX: TEMN), a global leader in banking technology, today announces its first quarter 2026 results. Commenting on the results, Temenos CEO and interim Chief Financial Officer, Takis Spiliopoulos said: "Temenos delivered a strong first quarter, with product revenue growth of 14% and ARR growth of 13%, continuing the momentum we built through 2025 and reflecting the early benefits from strategic investments in product, technology and goto-market. We saw good traction across geographies and client segments. Tier 1 wins in Japan and APAC, alongside expansion of relationships with banks in the Middle East, Switzerland and the UK, further demonstrates that we are making good progress against our strategy. In the US, we are making good progress on several deals in our pipeline and we expect to announce further signings this year, and we continue to roll out our AI strategy at pace across the organization. I am also delighted to announce the appointment of Daniel Schmucki as CFO of Temenos, joining us from August 3 rd , 2026. Daniel brings extensive financial and operating experience, most recently as CFO of SIX Group. He has a proven track record in developing and leading high performance teams in global and multicultural environments, and I am confident he will be a strong partner for the business and enable us to accelerate the delivery of our strategic roadmap. We enter the rest of the year with reconfirmed FY-26 guidance and FY-28 targets, a growing pipeline, and a well-funded investment plan. Our product roadmap is on track, with targeted announcements this quarter. The strategy we laid out at the 2026 February Capital Markets Day is being executed with discipline, and I am confident in our ability to deliver on our vision of Leading Banking Forward." Annual Recurring Revenue (ARR) USDm, except EPS Q1-26 Q1-25 (proforma) Change C.C.* 16% 13% Annual Recurring Revenue 860.7 741.4 Note: Proforma excludes Multifonds in previous quarters. The sale of Multifonds was completed in Q2 -25. *Constant currency (c.c.) adjusts prior year for movements in currencies Income statement and free cash flow Non-IFRS Q1-26 Q1-25 Change C.C.* USDm, except EPS (proforma) Subscription and SaaS 87.2 76.8 14% 12% Maintenance 131.8 113.5 16% 15% Services 33.9 30.0 13% 8% Total revenues 253.0 220.3 15% 13% EBIT 82.7 69.5 19% 20% EBIT margin 32.7% 31.5% 1% pt 2% pts EPS 0.90 0.75 20% Free cash flow 59.5 48.8 22% Note: Proforma excludes Multifonds in previous quarters. The sale of Multifonds was completed in Q2 -25. The definition of non-IFRS adjustments is provided below. *Constant currency (c.c.) adjusts prior year for movements in currencies Business update Strong Q1-26 performance across all key metrics, product revenue continues to grow above market Sales environment remained stable Good traction with existing customers and new logos across tiers Momentum in US with several deals progressing through the pipeline and expected to sign this year Continued strong growth in premium maintenance signings Continued investment across the business to deliver strategic roadmap with selective senior hirings CFO appointment announced, with Daniel Schmucki joining August 3 rd , 2026, bringing strong financial and operational experience, most recently as CFO of the SIX Group AG Operational leverage driving profitability, with growth in cost base from investments in FY-25 offset by strong revenue growth FY-26 guidance and FY-28 targets reconfirmed Revenue Non-IFRS revenue was USD 253.0m for the quarter, an increase of 15% vs. Q1-25 (proforma excluding Multifonds). Reported IFRS revenue was USD 253.0m for the quarter, an increase of 9% vs. Q1-25. Non-IFRS subscription and SaaS revenue for the quarter was USD 87.2m, an increase of 14% vs. Q1-25 (proforma excluding Multifonds). Reported IFRS subscription and SaaS revenue for the quarter was USD 87.2m, an increase of 9% vs. Q1-25. EBIT Reported non-IFRS EBIT was USD 82.7m for the quarter, an increase of 19% vs. Q1-25 (proforma, excluding Multifonds). Reported IFRS EBIT was USD 56.6m for the quarter, an increase of 41% vs. Q1-25. Earnings per share (EPS) Non-IFRS EPS was USD 0.90 for the quarter, an increase of 20% vs. Q1-25 (proforma, excluding Multifonds). Reported IFRS EPS was USD 0.58 for the quarter, an increase of 45% vs. Q1-25. Cash flow USD 59.5m of free cash flow was generated in the quarter, an increase of 22% vs. Q1-25 (proforma, excluding Multifonds). FY-26 non-IFRS guidance Temenos reconfirms its FY-26 guidance. The guidance for FY-26 is organic, non-IFRS, in constant currencies, except for EPS and FCF which are reported. Growth rates are versus FY-25 proforma (excluding Multifonds). ARR growth of c.12% c.c. Subscription and SaaS growth of c.9% c.c. EBIT growth of c.9% c.c. EPS growth of c.7% reported FCF growth of c.16% reported FY-26 guidance includes a negative headwind on growth from the termination of one BNPL client in FY-25. There is no further headwind from this termination after FY-26. The impact is as follows: 3% pts on ARR 5% pts on subscription & SaaS 4% pts on EBIT and EPS Currency assumptions for FY-26 guidance In preparing the FY-26 guidance, the Company has assumed the following: EUR to USD exchange rate of 1.15; GBP to USD exchange rate of 1.33; and USD to CHF exchange rate of 0.79 The Company has also assumed the following for FY-26 guidance: FY-26 tax rate expected to be between 19-21% FY-28 targets Temenos reconfirms its FY-28 targets. These targets are organic and non-IFRS. ARR of at least USD 1.23bn EBIT of c.USD 480m FCF of c.USD 410m The guidance provided above and other statements about Temenos' expectations, plans and prospects in this press release constitute forward-looking financial information and represent the Company's current view and estimates as of April 21 st , 2026. We anticipate that subsequent events and developments may cause the Company's guidance and estimates to change. Future events are inherently difficult to predict. Accordingly, actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of factors. More information about factors that potentially could affect the Company's financial results is included in its annual report available on the Company's website. Conference call and webcast At 18.30 CET / 17.30 BST / 12.30 EST today, April 21 st , 2026, Takis Spiliopoulos, CEO and interim CFO, will host a webcast to present the results and offer an update on the business outlook. The webcast can be accessed through the following link: Q1 2026 webcast link Please use the webcast in the first instance to avoid delays in joining the call. For those who cannot access the webcast, the following dial-in details can be used as an alternative. Please dial in 15 minutes before the call commences. Switzerland / Europe: + 41 (0) 58 310 50 00 United Kingdom: + 44 (0) 207 107 06 13 United States: + 1 (1) 631 570 56 13 Non-IFRS financial information Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company's supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies. The Company's non-IFRS figures exclude share-based payments and related social charges costs, any deferred revenue write-down resulting from acquisitions, discontinued activities that do not qualify as such under IFRS, gain/loss from business disposals, acquisition/investment/carve out related charges such as financing costs, advisory fees and integration costs and fair value changes on investments, charges as a result of the amortization of acquired intangibles, costs incurred in connection with a restructuring program or other organizational transformation activities planned and controlled by management, and adjustments made to reflect the associated tax charge relating to the above items. Below are the accounting elements not included in the FY-26 non-IFRS guidance, which remain unchanged FY-26 estimated share-based payments and related social charges of c.5% of revenue FY-26 estimated amortisation of acquired intangibles of USD 40m FY-26 estimated restructuring/M&A related costs of USD 10m - Ends - About Temenos Temenos (SIX: TEMN) is a global leader in banking technology. Through our market-leading core banking suite and best-in-class modular solutions, we are modernizing the banking industry. Banks of all sizes utilize our adaptable technology - deployed on-premises, in the cloud, or as SaaS - to deliver next-generation services and AI-enhanced experiences that elevate banking for their customers. Our mission is to create a world where people can live their best financial lives. For more information, please visit https://www.temenos.com . Investor and media contacts Investors Adam Snyder Director of Corporate Affairs, Temenos Email: [email protected] Tel: +44 207 423 3945 International media Conor McClafferty FGS Global on behalf of Temenos Email: [email protected] Tel: +44 7920 087 914 Swiss media Martin Meier-Pfister IRF on behalf of Temenos Email: [email protected] Tel: +41 43 244 81 40 Appendix I - Q1-26 reported income statement Reported income statement Non-IFRS reported 87.2 80.2 9% 7% 131.8 120.9 9% 7% 33.9 31.2 9% 4% 253.0 232.2 9% 7% 82.7 75.8 9% 9% 32.7% 32.6% 0% pts 1% pt 0.90 0.81 11% USDm, except EPS Q1-26 Q1-25 Change CC* Subscription and SaaS Maintenance Services Total revenues EBIT EBIT margin EPS The definition of non-IFRS adjustments is provided below. * Constant currency (c.c.) adjusts prior year for movements in currencies Appendix II - Q1-26 IFRS primary statements TEMENOS AG All amounts are expressed in thousands of US dollars except earnings per share Three months to Three months to Twelve months to Twelve months to 31 March 2026 31 March 2025 31 March 2026 31 March 2025 Revenues Subscription and SaaS 87,219 80,152 465,131 446,619 Maintenance 131,820 120,890 513,776 472,454 Services 33,917 31,154 132,683 127,348 Total revenues 252,956 232,196 1,111,590 1,046,421 Operating expenses Sales and marketing (73,485) (69,579) (321,349) (295,211) Services (31,934) (32,132) (126,550) (128,030) Software development and maintenance (67,632) (65,591) (281,654) (288,149) General and administrative (23,276) (24,808) (117,503) (110,102) Total operating expenses (196,327) (192,110) (847,056) (821,492) Operating profit 56,629 40,086 264,534 224,929 Other Gain on sale of business and contingent consideration fair value losses - - 120,280 - Net interest expenses (3,186) (1,751) (10,566) (14,091) Foreign exchange loss and movement in fair value from financial instruments (545) (829) (22,678) (4,791) Total other (expenses) / income (3,731) (2,580) 87,036 (18,882) Profit before taxation 52,898 37,506 351,570 206,047 Taxation (13,158) (8,480) (60,250) (32,107) Profit for the period 39,740 29,026 291,320 173,940 Earnings per share (in US$): basic 0.59 0.41 4.27 2.43 diluted 0.58 0.40 4.22 2.41 31 March 31 December 31 March 2026 2025 2025 Assets Current assets Cash and cash equivalents 136,674 203,536 134,556 Trade receivables 179,298 181,927 165,979 Other receivables and financial assets 114,532 108,657 111,741 430,504 494,120 412,276 Assets classified as held for sale - - 243,417 Total current assets 430,504 494,120 655,693 Non-current assets Property, plant and equipment 45,275 46,027 48,027 Intangible assets 1,267,758 1,277,777 1,283,212 Trade receivables 316,331 298,962 223,679 Other long term assets 61,853 72,729 49,192 Deferred tax assets 67,883 59,638 58,394 Total non-current assets 1,759,100 1,755,133 1,662,504 Total assets 2,189,604 2,249,253 2,318,197 Liabilities and equity Current liabilities Trade and other payables 287,280 263,914 223,853 Deferred revenues 462,675 468,048 438,065 Income tax liabilities 119,247 101,561 118,366 Borrowings 20,232 16,864 265,011 889,434 850,387 1,045,295 Liabilities relating to assets classified as held for sale - - 42,849 Total current liabilities 889,434 850,387 1,088,144 Non-current liabilities Borrowings 761,394 792,084 451,965 Deferred tax liabilities 64,255 67,165 55,703 Trade and other payables 15,524 17,626 3,518 Deferred revenues 23,757 24,532 16,361 Retirement benefit obligations 20,218 19,484 19,048 Total non-current liabilities 885,148 920,891 546,595 Total liabilities 1,774,582 1,771,278 1,634,739 Shareholders' equity Share capital 236,245 236,245 254,764 Treasury shares (419,516) (396,879) (352,957) Share premium and capital reserves (578,620) (507,609) (287,522) Fair value and other reserves (293,160) (284,115) (217,837) Retained earnings 1,470,073 1,430,333 1,287,010 Total equity 415,022 477,975 683,458 Total liabilities and equity 2,189,604 2,249,253 2,318,197 Three months to Three months to Twelve months to Twelve months to 31 March 2026 31 March 2025 31 March 2026 31 March 2025 Cash flows from operating activities Profit before taxation 52,898 37,506 351,570 206,047 Adjustments: Depreciation and amortization 27,991 29,259 123,054 127,227 Gain on sale of business and contingent consideration fair value losses - - (120,280) - Other non-cash and non-operating items 12,853 17,869 92,712 79,380 Changes in working capital: Trade and other receivables (20,653) (8,736) (101,213) (89,669) Trade and other payables, and retirement benefit obligations 16,666 9,877 34,524 48,776 Deferred revenues (5,383) (6,921) 23,105 26,874 Cash generated from operations 84,372 78,854 403,472 398,635 Income taxes paid (3,918) (4,188) (43,864) (30,295) Net cash generated from operating activities 80,454 74,666 359,608 368,340 Cash flows from investing activities Purchase of property, plant and equipment (1,626) (1,473) (5,195) (5,410) Disposal of property, plant and equipment - - 95 163 Purchase of intangible assets (812) (640) (3,126) (3,303) Capitalized development costs (14,992) (17,857) (62,208) (68,833) Proceeds on sale of business, net of cash disposed 4,000 - 323,045 - Settlement of financial instruments (803) (3,333) (25,426) (1,826) Interest received 346 354 2,533 1,624 Net cash (used in) / generated from investing activities (13,887) (22,949) 229,718 (77,585) Cash flows from financing activities Dividend paid - - (110,549) (96,938) Disposal of treasury shares - - - 67,447 Acquisition of treasury shares (104,362) - (424,797) (226,783) Proceeds from borrowings 15,000 21,971 403,744 339,899 Repayments of borrowings (40,000) (49,436) (445,995) (339,461) Proceeds from issuance of bonds - - 281,976 - Repayment of bond - - (273,312) (166,181) Proceeds from long-term loans - - 467 467 Payment of lease liabilities (3,041) (3,178) (13,953) (14,533) Interest paid (578) (1,295) (17,404) (26,303) Settlement of financial instruments - - - 5,507 Payment of other financing costs (216) (574) (7,196) (2,945) Net cash used in financing activities (133,197) (32,512) (607,019) (459,824) Effect of exchange rate changes (232) 1,197 19,811 1,169 Net (decrease) / increase in cash and cash equivalents in the (66,862) 20,402 2,118 (167,900) Cash and cash equivalents at the beginning of the period 203,536 114,154 134,556 302,456 Cash and cash equivalents at the end of the period 136,674 134,556 136,674 134,556 period PRESS RELEASE FOR IMMEDIATE RELEASE April 21, 2026 Appendix III - reconciliation of IFRS to non-IFRS Q1-26 Income Statement Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company's supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies. To compensate for these limitations, the supplemental non-IFRS financial information should not be read in isolation, but only in conjunction with the Company's consolidated financial statements prepared in accordance with IFRS. IFRS - Non- IFRS Reconciliation Thousands of US Dollars 3 Months Ending 31 March Change 2026 IFRS Non-IFRS adjustments 2026 Non-IFRS 2025 IFRS Non-IFRS adjustments 2025 Non-IFRS IFRS Non-IFRS Subscription and SaaS 87,219 - 87,219 80,152 - 80,152 9% 9% Maintenance 131,820 131,820 120,890 120,890 9% 9% Services 33,917 33,917 31,154 31,154 9% 9% Total Revenue 252,956 - 252,956 232,196 - 232,196 9% 9% Total Operating Expenses (196,327) 26,051 (170,276) (192,110) 35,711 (156,399) 2% 9% Restructuring (2,888) 2,888 - (9,489) 9,489 - (70%) Amort of Acquired Intangibles (9,436) 9,436 - (10,651) 10,651 - (11%) Share based payment (13,727) 13,727 - (15,571) 15,571 - (12%) Operating Profit 56,629 26,051 82,680 40,086 35,711 75,797 41% 9% Operating Margin 22% 33% 17% 33% 5.1% pts 0.0% pts Finance Costs (3,731) - (3,731) (2,580) - (2,580) 45% 45% Taxation (13,158) (4,691) (17,849) (8,480) (6,365) (14,845) 55% 20% Net Earnings 39,740 21,360 61,100 29,026 29,346 58,372 37% 5% EPS (USD per Share) 0.58 0.32 0.90 0.40 0.41 0.81 45% 11%

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