Earnings release
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 Ad hoc announcement pursuant to Art. 53 LR Temenos announces strong Q3-25 results; FY-25 guidance raised driven by sales momentum Q3-25 (growth rates are vs. Q3-24 proforma, excluding Multifonds) • Q3-25 ARR of USD 811m, up 11% y-o-y c.c. • Non-IFRS Q3-25 subscription and SaaS up 10% c.c. • Non-IFRS Q3-25 maintenance up 14% c.c. • Non-IFRS Q3-25 EBIT up 36% c.c. with 6 points of margin expansion • Non-IFRS Q3-25 EPS up 41% reported • Q3-25 free cash flow (FCF) of USD 29m, up 30% reported • FY-25 guidance raised (non-IFRS, excludes Multifonds) with subscription and SaaS growth of at least 7% c.c. (previously at least 6%), EBIT growth of at least 14% c.c. (previously at least 9%), and EPS growth of 15- 17% reported (previously 10-12%) • Reconfirmed ARR guidance of at least 12% c.c. and FCF guidance of at least 12% reported GRAND-LANCY, Switzerland, October 28, 202 5 – Temenos AG (SIX: TEMN), a global leader in banking technology , today announces its third quarter 2025 results. Annual Recurring Revenue (ARR) 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 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 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 particular FCM AI agent and Money Movement & Management • Continued executing targeted investments across the business USDm, except EPS Q3-25 Q3-24 (proforma) Change CC* Annual Recurring Revenue 811.0 721.4 12% 11% USDm, except EPS Q3-25 Q3-24 (proforma) Change CC* Q3-25 YTD (proforma) Q3-24 YTD (proforma) Change CC* Subscription and SaaS 99.2 89.5 11% 10% 300.9 269.1 12% 12% Maintenance 125.5 109.2 15% 14% 359.0 319.5 12% 12% Services 33.8 32.0 6% 3% 96.6 93.6 3% 2% Total revenues 258.5 230.8 12% 11% 756.5 682.2 11% 10% EBIT 84.6 62.0 36% 36% 265.6 211.8 25% 24% EBIT margin 32.7% 26.9% 6% pts 6% pts 35.1% 31.0% 4% pts 4% pts EPS (USD) 0.93 0.66 41% 2.90 2.20 32% Free cash flow 29.3 22.5 30% 143.4 126.6 13% Q3-25 non-IFRS Q3-25 YTD non-IFRS
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 • Sales hiring continued at pace, on track to increase sales headcount 50% by year -end • Growth in profitability driven by sales momentum, with investments largely self -funded by ongoing savings from cost efficiency programs • FY-25 guidance raised; FY-28 targets reconfirmed Commenting on the results, Temenos Interim CEO and Chief Financial Officer, Takis Spiliopoulos said: “We had a strong third quarter, driven by broad based demand from new logos as well as existing customers. We continued to invest in the business in line with our strategic plan and are on track to increase sales headcount 50% by year end. We have also continued to hire in our product and technology organization and we are rolling out a substantial number of AI initiatives across the business. Looking at our financial performance, ARR grew 11% in the quarter in constant currency, with strong subscription and SaaS signings and particularly strong momentum in maintenance revenue which was up 14%, driven largely by premium maintenance. We now expect maintenance to grow around 11% constant currency for the full year. From an overall cost perspective, the investments we are executing have been largely self -funded by ongoing cost efficiencies and good cost control . Our non -IFRS EBIT grew 36% in constant currency in Q3 -25, driven by strong revenue growth and operating leverage. We generated USD 29m of free cash flow in the quarter, up 30% year-on-year and 13% YTD, and we ended the quarter with leverage at 1.4x net debt to non-IFRS EBITDA, within our target operating leverage of 1.0x to 1.5x. We completed our CHF 250m share buyback in the quarter, repurchasing shares representing 5.5% of the company’s registered share capital which will be proposed for cancellation at the 2026 AGM. We remain prudent in our outlook, given the re are a number of large deals expected in Q4 -25. However, based on our Q3 -25 performance and the stable sales environment, we are raising our guidance for FY -25 and reconfirming our FY-28 targets.” CEO search update Commenting on the CEO search, Thibault de Tersant, Chairman of the Board, said: “We are making good progress and are actively considering a number of internal and external candidates. The Board is pleased the executive team are working well together under Takis’ leadership and would like to thank them for their focus and dedication in driving continued momentum in the business.” Revenue Reported IFRS revenue was USD 258.5m for the quarter, an increase of 5% vs. Q3-24 Non-IFRS revenue was USD 258.5m for the quarter, an increase of 12% vs. Q3-24 (proforma excluding Multifonds) Reported IFRS subscription and SaaS revenue for the quarter was USD 99.2m, an increase of 3% vs. Q3-24. Non-IFRS subscription and SaaS revenue for the quarter was USD 99.2m, an increase of 11% vs. Q 3-24 (proforma excluding Multifonds). EBIT Reported IFRS EBIT was USD 60.1m for the quarter, an increase of 30% vs. Q3-24. Reported non-IFRS EBIT was USD 84.6m for the quarter, an increase of 36% vs. Q3-24 (proforma, excluding Multifonds). Earnings per share (EPS) Reported IFRS EPS was USD 0.65 for the quarter, an increase of 51% vs. Q3-24. Non-IFRS EPS was USD 0.93 for the quarter, an increase of 41% vs. Q3-24 (proforma, excluding Multifonds).
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 Cash flow USD 29.3m of free cash flow was generated in the quarter, an increase of 30% vs. Q3-24 (proforma, excluding Multifonds). FY-25 non-IFRS guidance raised The guidance for F Y-25 is non -IFRS an d in constant currencies , except for EPS and FCF which are reported . The guidance excludes any contribution from Multifonds. FCF includes IFRS 16 leases and interest costs. • ARR growth of at least 12% c.c. (no change) • Subscription and SaaS growth of at least 7% c.c. (previously at least 6%) • EBIT growth of at least 14% c.c. (previously at least 9%) • EPS growth of 15-17% reported (previously 10-12%) • FCF growth of at least 12% reported (no change) Currency assumptions for FY-25 guidance In preparing the FY-25 guidance, the Company has assumed the following: • 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: • FY-25 tax rate expected to be between 15 -17%, benefiting from one off tax impact of c.USD 15m from prior years; normalized tax rate of 19-21% FY-28 targets FY-28 targets exclude contribution from Multifonds. FCF includes IFRS 16 leases and interest costs. • ARR of at least USD 1.2bn • EBIT of c. USD 450m • FCF of 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 October 28, 2025. 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, October 28, 2025, Takis Spiliopoulos, Interim CEO and Chief Financial Officer, 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: Q3 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, th e 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
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 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-25 non-IFRS guidance, which remain unchanged • FY-25 estimated share-based payments and related social charges of c.5% of revenue • FY-25 estimated amortisation of acquired intangibles of USD 45m • FY-25 estimated restructuring/M&A related costs of USD 35m – 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 www.temenos.com. Investor and media contacts Investors Adam Snyder Head of Investor Relations, Corporate Communication and Sustainability, Temenos Email: asnyder@temenos.com Tel: +44 207 423 3945 International media Conor McClafferty FGS Global on behalf of Temenos Email: Conor.McClafferty@fgsglobal.com Tel: +44 7920 087 914 Swiss media Martin Meier-Pfister IRF on behalf of Temenos Email: meier-pfister@irf-reputation.ch Tel: +41 43 244 81 40
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 Appendix I – Q3-25 reported income statement Reported income statement The definition of non-IFRS adjustments is provided below. * Constant currency (c.c.) adjusts prior year for movements in currencies USDm, except EPS Q3-25 Q3-24 Change CC* Q3-25 Q3-24 Change CC* Subscription and SaaS 99.2 96.4 3% 2% 99.2 96.4 3% 2% Maintenance 125.5 116.9 7% 6% 125.5 116.9 7% 6% Services 33.8 33.6 1% -2% 33.8 33.6 1% -2% Total revenues 258.5 246.9 5% 3% 258.5 246.9 5% 3% EBIT 84.6 71.3 19% 17% 60.1 46.2 30% 28% EBIT margin 32.7% 28.9% 4% pts 4% pts 23.2% 18.7% 5% pts 4% pts EPS (USD) 0.93 0.76 22% 0.65 0.43 51% Non-IFRS IFRS
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 Appendix II – Q3-25 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 30 September 2025 30 September 2024 30 September 2025 30 September 2024 Revenues Subscription and SaaS 99,220 96,404 474,584 436,188 Maintenance 125,470 116,895 491,218 454,153 Services 33,835 33,617 129,315 132,842 Total revenues 258,525 246,916 1,095,117 1,023,183 Operating expenses Sales and marketing (72,382) (70,355) (314,248) (290,855) Services (32,838) (31,581) (129,141) (131,272) Software development and maintenance (70,391) (71,789) (288,827) (279,419) General and administrative (22,837) (27,041) (98,302) (108,258) - Total operating expenses (198,448) (200,766) (830,518) (809,804) - Operating profit 60,077 46,150 264,599 213,379 Other Gain on sale of business - - 136,530 - Net interest expenses (1,304) (5,398) (8,510) (18,797) Foreign exchange (loss) / gain and movement in fair value from financial instruments (1,761) 420 (16,806) (7,883) Total other (expenses) / income (3,065) (4,978) 111,214 (26,680) Profit before taxation 57,012 41,172 375,813 186,699 Taxation (12,650) (10,327) (60,704) (42,622) Profit for the period 44,362 30,845 315,109 144,077 Earnings per share (in US$): basic 0.65 0.43 4.51 1.99 diluted 0.65 0.43 4.46 1.97
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 TEMENOS AG All amounts are expressed in thousands of US dollars 30 September 30 June 31 December 30 September 2025 2025 2024 2024 Assets Current assets Cash and cash equivalents 184,224 305,364 114,154 107,269 Trade receivables 173,901 182,594 179,918 200,429 Other receivables and financial assets 107,722 124,351 107,709 115,752 465,847 612,309 401,781 423,450 Assets classified as held for sale - - 235,269 - Total current assets 465,847 612,309 637,050 423,450 Non-current assets Property, plant and equipment 43,827 50,243 50,841 54,118 Intangible assets 1,291,231 1,300,411 1,280,873 1,509,622 Trade receivables 281,485 261,864 206,435 176,467 Other long term assets 85,169 88,678 47,598 49,045 Deferred tax assets 80,979 75,101 53,891 74,888 Total non-current assets 1,782,691 1,776,297 1,639,638 1,864,140 Total assets 2,248,538 2,388,606 2,276,688 2,287,590 Liabilities and equity Current liabilities Trade and other payables 235,057 264,687 218,316 210,608 Deferred revenues 432,583 444,329 437,931 394,161 Income tax liabilities 158,584 145,556 115,645 83,477 Borrowings 300,204 297,147 257,157 23,908 1,126,428 1,151,719 1,029,049 712,154 Liabilities relating to assets classified as held for sale - - 44,390 - Total current liabilities 1,126,428 1,151,719 1,073,439 712,154 Non-current liabilities Borrowings 585,654 590,566 469,566 881,671 Deferred tax liabilities 54,361 58,155 55,876 107,573 Trade and other payables 17,980 21,940 1,722 2,451 Deferred revenues 13,501 16,165 18,956 17,437 Retirement benefit obligations 16,407 16,341 18,155 19,734 Total non-current liabilities 687,903 703,167 564,275 1,028,866 Total liabilities 1,814,331 1,854,886 1,637,714 1,741,020 Shareholders’ equity Share capital 236,245 236,245 254,764 254,764 Treasury shares (406,120) (271,115) (403,945) (412,343) Share premium and capital reserves (503,826) (506,505) (250,427) (260,831) Fair value and other reserves (279,777) (268,228) (219,402) (217,752) Retained earnings 1,387,685 1,343,323 1,257,984 1,182,732 Total shareholders’ equity 434,207 533,720 638,974 546,570 - Total equity 434,207 533,720 638,974 546,570 Total liabilities and equity 2,248,538 2,388,606 2,276,688 2,287,590
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 TEMENOS AG All amounts are expressed in thousands of US dollars Three months to Three months to Twelve months to Twelve months to 30 September 2025 30 September 2024 30 September 2025 30 September 2024 Cash flows from operating activities Profit before taxation 57,012 41,172 375,813 186,699 Adjustments: Depreciation and amortization 30,209 33,329 122,859 131,401 Gain on sale of business - - (136,530) - Other non-cash and non-operating items 9,317 20,441 79,739 90,026 Changes in working capital: Trade and other receivables (4,817) (7,981) (136,259) (36,134) Trade and other payables, and retirement benefit obligations (16,737) 322 22,813 15,031 Deferred revenues (13,795) (35,368) 61,508 8,842 Cash generated from operations 61,189 51,915 389,943 395,865 Income taxes paid (6,776) (10,222) (28,650) (54,659) - - Net cash generated from operating activities 54,413 41,693 361,293 341,206 Cash flows from investing activities Purchase of property, plant and equipment (892) (1,876) (3,323) (8,324) Disposal of property, plant and equipment - - 163 165 Purchase of intangible assets (1,321) (656) (3,109) (2,934) Capitalized development costs (15,296) (17,400) (66,494) (73,116) Repayment for long-term loans - - - 3,000 Proceeds on sale of business, net of cash disposed - - 319,045 - Settlement of financial instruments (3,809) (3,694) (17,746) 3,082 Interest received 725 260 2,123 2,405 Net cash (used in) / generated from investing activities (20,593) (23,366) 230,659 (75,722) Cash flows from financing activities Dividend paid - - (110,549) (96,938) Acquisition of treasury shares (147,876) (187,422) (307,429) (226,783) Proceeds from borrowings 11,170 231,906 170,715 521,949 Repayments of borrowings (11,172) (148,073) (527,383) (369,932) Proceeds from issuance of bonds - - 281,976 220,840 Repayment of bond - - - (366,373) Proceeds from long-term loans - 1,567 (1,100) 1,567 Payment of lease liabilities (3,818) (3,916) (14,233) (14,746) Interest paid (482) (2,249) (18,655) (20,924) Settlement of financial instruments - - (245) 4,043 Payment of other financing costs (4,009) (626) (6,066) (3,843) Net cash used in financing activities (156,187) (108,813) (532,969) (248,980) Effect of exchange rate changes 1,227 3,808 17,972 3,753 Net (decrease) / increase in cash and cash equivalents in the period (121,140) (86,678) 76,955 20,257 Cash and cash equivalents at the beginning of the period 305,364 193,947 107,269 87,012 Cash and cash equivalents at the end of the period 184,224 107,269 184,224 107,269
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PRESS RELEASE FOR IMMEDIATE RELEASE October 28, 2025 Appendix III – reconciliation of IFRS to non-IFRS Q3-25 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 2025 2025 2024 2024 IFRS Non-IFRS IFRS Non-IFRS adjustments Non-IFRS IFRS Non-IFRS adjustments Non-IFRS Subscription and SaaS 99,220 - 99,220 96,404 - 96,404 3% 3% Maintenance 125,470 125,470 116,895 116,895 7% 7% Services 33,835 33,835 33,617 33,617 1% 1% Total Revenue 258,525 - 258,525 246,916 - 246,916 5% 5% Total Operating Expenses (198,448) 24,479 (173,969) (200,766) 25,122 (175,644) (1%) (1%) Restructuring (4,284) 4,284 - (3,928) 3,928 - 9% Amort of Acquired Intangibles (10,598) 10,598 - (10,478) 10,478 - 1% Share based payment (9,597) 9,597 - (10,716) 10,716 - (10%) Operating Profit 60,077 24,479 84,556 46,150 25,122 71,272 30% 19% Operating Margin 23% 33% 19% 29% 4.5% pts 3.8% pts Finance Costs (3,065) - (3,065) (4,978) 4,200 (778) (38%) 294% Taxation (12,650) (4,740) (17,390) (10,327) (5,700) (16,027) 22% 9% Net Earnings 44,362 19,739 64,101 30,845 23,622 54,467 44% 18% EPS (USD per Share) 0.65 0.28 0.93 0.43 0.33 0.76 51% 22% 3 Months Ending 30 September Change