Business
Temenos : Q4 2025 Results Press Release & Primary Statements
Temenos : Q4 2025 Results Press Release & Primary
About this update from Temenos Ag
Ad hoc announcement pursuant to Art. 53 LR Temenos delivers strong FY-25 results and raises FY-28 targets Q4-25 and FY-25 summary (growth rates are vs. Q4 and FY-24 proforma, excluding Multifonds) Q4-25 and FY-25 results in line with pre-announcement Q4-25 ARR of USD 860m, up 12% y-o-y c.c. Non-IFRS subscription and SaaS up 5% c.c. in Q4-25 and 9% c.c. in FY-25 Non-IFRS maintenance up 15% c.c. in Q4-25 and 12% c.c. in FY-25 Non-IFRS total revenue up 9% c.c. in Q4-25 and 10% c.c. in FY-25 Non-IFRS EBIT up 13% c.c. in Q4-25 and 21% in FY-25 with 3 points of margin expansion Non-IFRS EPS up 14% reported in Q4-25 and 25% reported in FY-25 Free cash flow (FCF) up 17% reported in Q4-25, and up 15% reported for FY-25 at USD 256m FY-26 guidance announced (non-IFRS, organic, constant currency unless otherwise stated) with ARR growth of c.12%, subscription and SaaS growth of c.9%, EBIT growth of c.9%, EPS growth (reported) of c.7% and free cash flow growth (reported) of c.16% FY-26 guidance includes a negative headwind from the termination of one BNPL client in FY-25; 3% pts on ARR; 5% pts on subscription and SaaS; 4% pts on EBIT and EPS. There is no further headwind from this termination after FY-26 Raised FY-28 targets announced (non-IFRS, organic, constant currency unless otherwise stated) with ARR of at least USD 1.23bn (up from at least USD 1.2bn), EBIT of c.USD 480m (up from c.USD 450m) and free cash flow of c.USD 410m (up from c.USD 400m) Proposed dividend of CHF 1.40 for FY-25 to be voted on at the AGM on May 13, 2026 GRAND-LANCY, Switzerland, February 24, 2026 - Temenos AG (SIX: TEMN), a global leader in banking technology, today announces its fourth quarter and full year 2025 results. Commenting on the results, Temenos CEO and interim Chief Financial Officer, Takis Spiliopoulos said: "Temenos delivered a strong performance in 2025, building momentum each quarter and delivering above-market product revenue growth of 11% in the first year of our strategic roadmap. ARR was up 12%, now representing over 90% of product revenue. This shift toward recurring revenue, combined with 15% free cash flow growth, demonstrates both the transformation of our business model and our operational discipline. Our Q4-25 performance was particularly notable for tier 1 client wins as we expand our footprint in some of the world's largest banks. The significant investments we made across our platform, product capabilities and global sales organization are evident in enhanced engagement and strong pipeline, which positions us well for 2026. This is especially true in the US market where our expanded sales capacity is translating into robust pipeline growth and we expect to announce more US deals in 2026. I'm grateful to our colleagues across the world whose collaboration and accountability made these results possible. As we execute our strategic roadmap, investing in our people remains fundamental to delivering value for clients and shareholders alike. We have announced our FY-26 guidance which reflects the stable sales environment, our strong pipeline growth and our confidence in maintaining the good momentum in the business through our focus on execution. Temenos has a clear vision of Leading Banking Forward and a strategic roadmap to achieve this based around three levers of growth; growing in best of suite, expanding our composable core solutions and accelerating adjacent point solutions, with AI embedded across our platform. We raised our FY-28 targets to reflect our strong first year of execution, confidence in our strategic positioning and good visibility. With a well-funded investment plan, we are confident in delivering our FY-28 growth ambitions." Annual Recurring Revenue (ARR) USDm, except EPS Q4-25 Q4-24 Change CC* 15% 12% 39% Annual Recurring Revenue 859.9 749.5 Cloud ARR (% of total ARR)* Note: Figures are proforma. Proforma excludes Multifonds. The sale of Multifonds was completed in Q2-25. *Cloud ARR excludes Multifonds and BNPL customer. Constant currency (c.c.) adjusts prior year for movements in currencies. Income statement and free cash flow Non-IFRS 151.7 141.7 7% 5% 452.5 410.8 10% 9% 131.3 112.4 17% 15% 490.3 431.9 14% 12% 31.6 28.9 10% 6% 128.3 122.5 5% 3% 314.6 283.0 11% 9% 1,071.1 965.2 11% 10% 106.3 93.0 14% 13% 371.9 304.8 22% 21% 33.8% 32.9% 1% pts 1% pts 34.7% 31.6% 3% pts 3% pts 1.32 1.16 14% 4.20 3.35 25% USDm, except EPS Q4-25 Q4-24 Change CC* FY-25 FY-24 Change CC* Subscription and SaaS Maintenance Services Total revenues EBIT EBIT margin EPS 15% Free cash flow 113.0 96.6 17% 256.4 223.2 Note: Figures are proforma. Proforma excludes Multifonds. 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 Achieved FY-25 guidance which was raised twice, with strong performance across all key metrics Delivered above-market product revenue growth (subscription and SaaS, and maintenance) of 11% vs. market growth of 7% in first year of our strategic plan Sales environment remained stable Strong demand across regions and tiers, including multiple deals signed with tier 1 banks globally Very strong maintenance growth driven by premium maintenance signings Continued investment across the business in sales and product, in line with strategic roadmap - sales quota carrier headcount increase of 60%+ Executing well-defined AI strategy across platform, process and people to capitalize on our structural advantage FY-26 guidance announced; FY-28 targets raised to reflect strong first year of execution, confidence in strategic positioning and good visibility Revenue Non-IFRS revenue was USD 314.6m for the quarter, an increase of 11% vs. Q4-24 (proforma excluding Multifonds). Reported IFRS revenue was USD 314.6m for the quarter, a decrease of 1% vs. Q4-24. Non-IFRS subscription and SaaS revenue for the quarter was USD 151.7m, an increase of 7% vs. Q4-24 (proforma excluding Multifonds). Reported IFRS subscription and SaaS revenue for the quarter was USD 151.7m, a decrease of 10% vs. Q4-24. EBIT Non-IFRS EBIT was USD 106.3m for the quarter, an increase of 14% vs. Q4-24 (proforma, excluding Multifonds). Reported IFRS EBIT was USD 69.5m for the quarter, a decrease of 19% vs. Q4-24. Earnings per share (EPS) Non-IFRS EPS was USD 1.32 for the quarter, an increase of 14% vs. Q4-24 (proforma, excluding Multifonds). Reported IFRS EPS was USD 0.62 for the quarter, a decrease of 43% vs. Q4-24. Cash flow USD 113.0m of free cash flow was generated in the quarter, an increase of 17% vs. Q4-24 (proforma, excluding Multifonds). Dividend Taking into account the profit and cash generation in 2025, as well as the expected strength of future cash flows, Temenos intends to pay a dividend of CHF1.40 per share in 2026 subject to shareholder approval at the AGM on May 13, 2026. The timing for the dividend payment will be as follows: 13 May AGM approval 18 May Shares trade ex-dividend 19 May Record date 20 May Payment date FY-26 non-IFRS 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 1.18; GBP to USD exchange rate of 1.35; and USD to CHF exchange rate of 0.78 The Company has also assumed the following for FY-26 guidance: FY-26 tax rate expected to be between 19-21% Raised FY-28 targets Temenos has announced raised FY-28 targets. These targets are organic and non-IFRS. ARR of at least USD 1.23bn (up from at least USD 1.2bn) EBIT of c.USD 480m (up from c.USD 450m) FCF of c.USD 410m (up from c.USD 400m) 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 February 24, 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 GMT / 12.30 EST today, February 24, 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: Q4 2025 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 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 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 Reported non-IFRS results for FY-25 FY-25 non-IFRS reported 458.1 450.5 2% 0% 502.8 464.3 8% 7% 129.9 129.3 0% (1%) 1,090.8 1,044.1 4% 3% 382.4 354.6 8% 6% 35.1% 34.0% 1% pts 1% pts USDm, except EPS FY-25 FY-24 Change CC* Subscription and SaaS Maintenance Services Total revenues EBIT EBIT margin Note: Reported figures include Multifonds in previous quarters. The sale of Multifonds was completed in Q2 -25. The definition of non-IFRS adjustments is provided above in this press release. * Constant currency (c.c.) adjusts prior year for movements in currencies Appendix II - Q4-25 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 December 2025 31 December 2024 31 December 2025 31 December 2024 Revenues Subscription and SaaS 151,668 168,188 458,064 450,510 Maintenance 131,326 119,698 502,846 464,280 Services 31,643 31,038 129,920 129,315 Total revenues 314,637 318,924 1,090,830 1,044,105 Operating expenses Sales and marketing (94,397) (91,202) (317,443) (291,255) Services (29,855) (32,248) (126,748) (127,133) Software development and maintenance (73,146) (82,360) (279,613) (286,438) General and administrative (47,730) (26,997) (119,035) (108,065) Total operating expenses (245,128) (232,807) (842,839) (812,891) Operating profit 69,509 86,117 247,991 231,214 Other Gain on sale of business and contingent consideration fair value losses (16,250) - 120,280 - Net interest expenses (3,345) (2,724) (9,131) (15,715) Foreign exchange loss and movement in fair value (9,869) (3,713) (22,962) (5,892) from financial instruments Total other (expenses) / income (29,464) (6,437) 88,187 (21,607) Profit before taxation 40,045 79,680 336,178 209,607 Taxation 2,457 (2,675) (55,572) (32,428) Profit for the period 42,502 77,005 280,606 177,179 Earnings per share (in US$): basic 0.63 1.09 4.06 2.46 diluted 0.62 1.08 4.00 2.43 31 December 30 September 31 December 2025 2025 2024 Assets Current assets Cash and cash equivalents 203,536 184,224 114,154 Trade receivables 181,927 173,901 179,918 Other receivables and financial assets 108,657 107,722 107,709 494,120 465,847 401,781 Assets classified as held for sale - - 235,269 Total current assets 494,120 465,847 637,050 Non-current assets Property, plant and equipment 46,027 43,827 50,841 Intangible assets 1,277,777 1,291,231 1,280,873 Trade receivables 298,962 281,485 206,435 Other long term assets 72,729 85,169 47,598 Deferred tax assets 59,638 80,979 53,891 Total non-current assets 1,755,133 1,782,691 1,639,638 Total assets 2,249,253 2,248,538 2,276,688 Liabilities and equity Current liabilities Trade and other payables 263,914 235,057 218,316 Deferred revenues 468,048 432,583 437,931 Income tax liabilities 101,561 158,584 115,645 Borrowings 16,864 300,204 257,157 850,387 1,126,428 1,029,049 Liabilities relating to assets classified as held for sale - - 44,390 Total current liabilities 850,387 1,126,428 1,073,439 Non-current liabilities Borrowings 792,084 585,654 469,566 Deferred tax liabilities 67,165 54,361 55,876 Trade and other payables 17,626 17,980 1,722 Deferred revenues 24,532 13,501 18,956 Retirement benefit obligations 19,484 16,407 18,155 Total non-current liabilities 920,891 687,903 564,275 Total liabilities 1,771,278 1,814,331 1,637,714 Shareholders' equity Share capital 236,245 236,245 254,764 Treasury shares (396,879) (406,120) (403,945) Share premium and capital reserves (507,609) (503,826) (250,427) Fair value and other reserves (284,115) (279,777) (219,402) Retained earnings 1,430,333 1,387,685 1,257,984 - Total equity 477,975 434,207 638,974 Total liabilities and equity 2,249,253 2,248,538 2,276,688 Three months to Three months to Twelve months to Twelve months to 31 December 2025 31 December 2024 31 December 2025 31 December 2024 Cash flows from operating activities Profit before taxation 40,045 79,680 336,178 209,607 Adjustments: Depreciation and amortization 33,903 32,440 124,322 130,368 Gain on sale of business and contingent consideration fair value losses 16,250 - (120,280) - Other non-cash and non-operating items 40,050 22,061 97,728 75,428 Changes in working capital: Trade and other receivables (26,350) (73,313) (89,296) (69,776) Trade and other payables, and retirement benefit obligations 29,756 24,834 27,735 32,548 Deferred revenues 45,571 85,512 21,567 13,161 Cash generated from operations 179,225 171,214 397,954 391,336 Income taxes paid (27,231) (11,747) (44,134) (27,985) Net cash generated from operating activities 151,994 159,467 353,820 363,351 Cash flows from investing activities Purchase of property, plant and equipment (2,397) (678) (5,042) (5,026) Disposal of property, plant and equipment 95 163 95 163 Purchase of intangible assets (610) (765) (2,954) (3,133) Capitalized development costs (15,086) (16,507) (65,073) (70,322) Proceeds on sale of business, net of cash disposed - - 319,045 - Settlement of financial instruments (7,949) 2,261 (27,956) 5,071 Interest received 783 365 2,541 2,069 Net cash (used in) / generated from investing activities (25,164) (15,161) 220,656 (71,178) Cash flows from financing activities Dividend paid - - (110,549) (96,938) Disposal of treasury shares - - - 67,447 Acquisition of treasury shares (13,006) - (320,435) (226,783) Proceeds from borrowings 270,000 30,000 410,715 487,695 Repayments of borrowings (70,000) (141,952) (455,431) (305,027) Proceeds from issuance of bonds - - 281,976 - Repayment of bond (273,312) - (273,312) (166,181) Proceeds from long-term loans 467 (1,100) 467 467 Payment of lease liabilities (3,677) (3,820) (14,090) (15,076) Interest paid (15,845) (16,379) (18,121) (25,344) Settlement of financial instruments - (245) - 3,966 Payment of other financing costs (2,255) (767) (7,554) (3,472) Net cash used in financing activities (107,628) (134,263) (506,334) (279,246) Effect of exchange rate changes 110 (3,158) 21,240 (5,658) Net increase in cash and cash equivalents in the period 19,312 6,885 89,382 7,269 Cash and cash equivalents at the beginning of the period 184,224 107,269 114,154 106,885 Cash and cash equivalents at the end of the period 203,536 114,154 203,536 114,154 PRESS RELEASE FOR IMMEDIATE RELEASE February 24, 2026 Appendix III - reconciliation of IFRS to non-IFRS Q4-25 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 December Change 2025 IFRS Non-IFRS adjustments 2025 Non-IFRS 2024 IFRS Non-IFRS adjustments 2024 Non-IFRS IFRS Non-IFRS Subscription and SaaS 151,668 - 151,668 168,188 - 168,188 (10%) (10%) Maintenance 131,326 131,326 119,698 119,698 10% 10% Services 31,643 31,643 31,038 31,038 2% 2% Total Revenue 314,637 - 314,637 318,924 - 318,924 (1%) (1%) Total Operating Expenses (245,128) 36,848 (208,280) (232,807) 33,867 (198,940) 5% 5% Restructuring (4,710) 4,710 - (5,556) 5,556 - (15%) Amort of Acquired Intangibles (12,999) 12,999 - (11,502) 11,502 - 13% Share based payment (19,139) 19,139 - (16,809) 16,809 - 14% Operating Profit 69,509 36,848 106,357 86,117 33,867 119,984 (19%) (11%) Operating Margin 22% 34% 27% 38% -4.9% pts -3.8% pts Gain on sale of business and contingent consideration fair value losses (16,250) 16,250 - - - - Finance Costs (13,214) 7,635 (5,579) (6,437) 3,500 (2,937) 105% 90% Taxation 2,457 (12,490) (10,033) (2,675) (6,518) (9,193) (192%) 9% Net Earnings 42,502 48,243 90,745 77,005 30,849 107,854 (45%) (16%) EPS (USD per Share) 0.62 0.71 1.33 1.08 0.43 1.51 (43%) (12%)