Earnings release
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 Ad hoc announcement pursuant to Art. 53 LR Temenos announces Q3-26 results; FY-26 guidance raised • Q3-26 ARR of USD 904m, up 12% y-o-y c.c. • Non-IFRS Q3-26 product revenue up 14% c.c. • Non-IFRS Q3-26 subscription and SaaS of USD 122m, up 22% c.c. • Non-IFRS Q3-26 maintenance up 7% c.c. • Non-IFRS Q3-26 EBIT up 26% c.c. with 4 points of margin expansion • Non-IFRS Q3-26 EPS up 32% reported • Q3-26 free cash flow (FCF) of USD 36m, up 24% reported • FY-26 EBIT and EPS guidance raised, guidance reconfirmed for ARR, subscription & SaaS and FCF • FY-28 targets reconfirmed GRAND-LANCY, Switzerland, October 27th, 2026 – Temenos AG (SIX: TEMN), a global leader in banking technology , today announced its third quarter 2026 results. Commenting on the results, Temenos CEO, Takis Spiliopoulos said: "We saw good underlying business momentum in the third quarter, supported by a stable sales environment, and we signed all of the revenue that had slipped from the second quarter. Subscription and SaaS revenue growth was impacted by one large deal in Africa signing in the first days of Q4-26. We continue to expand our large deal execution capabilities to improve execution consistency and, with a strong pipeline of deals, are confident in delivering our full-year guidance. Our recurring revenue base has continued its consistent growth trajectory, with ARR up 12% and subscription and SaaS revenue up 22% in constant currency. We also delivered strong growth in profitability, with EBIT up 26% and four points of margin expansion, and EPS up 32% driven by efficiency savings, good cost control and operating leverage, while free cash flow grew 24%. Looking at the regions, I was particularly pleased with the performance in Europe, including the signing of a large deal with a global tier 1 bank for its European operations. We also had a good performance in the Middle East, signing multiple deals with new and existing customers and continue to build momentum in North America with four new SaaS deals, including a deal with a regional US bank signed early in the third quarter, and a large deal in Canada. We continue to make good progress on our strategic priorities. The integration of additiv is progressing well, with a new tie r 1 bank deal signed in APAC, while our Product & Technology leadership team is accelerating the delivery of our product roadmap and innovation. We delivered sizeable efficiency savings and maintained good cost discipline in the quarter and with the continued momentum in the business, we are raising our FY-26 guidance for EBIT and EPS, while reconfirming our guidance for ARR, subscription and SaaS and free cash flow growth. We are also reconfirming our FY-28 targets.” Annual Recurring Revenue (ARR) Note: *Constant currency (c.c.) adjusts prior year for movements in currencies USDm, except EPS Q3-26 Q3-25 Change C.C.* Annual Recurring Revenue 903.6 811.0 11% 12%
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 Income statement and free cash flow Note: The definition of non -IFRS adjustments is provided below. *Constant currency (c.c.) adjusts prior year for movements in currencies Business update • Stable sales environment throughout the quarter, with all slipped revenue from Q2 closed in Q3 • Q3-26 subscription and SaaS revenue growth impacted by one large deal in Africa signing in the first days of Q4-26 • Strong underlying momentum with a good number of new logos and SaaS ACV signings across regions • Europe performing particularly well, signing a number of deals including a large deal with a global tier 1 bank for its international operations • Middle East also performed well, signing multiple deals with new logo and existing customers across the Gulf region • Strong SaaS momentum in North America with four new logo deals, including a deal with a regional US bank and a large deal in Canada • Good progress on integration of additiv, with new tier 1 bank deal signed in APAC • Strong growth in profitability from AI -driven efficiency savings, good cost control and operati ng leverage, and strong double-digit free cash flow growth • Robust start to the fourth quarter and good visibility driven by a strong pipeline • FY-26 guidance raised with non-IFRS EBIT growth of c.12% (c.c., up from c.9%) and EPS growth of c.10% (reported, up from c.7%); guidance reconfirmed for ARR growth of c.12% (c.c.), non-IFRS subscription & SaaS revenue growth of c.9% (c.c.), and FCF growth of c.16% (reported) • FY-28 targets reconfirmed Revenue Reported IFRS revenue was USD 292.5m for the quarter, and non-IFRS revenue was USD 292.8m for the quarter, both increasing by 13% vs. Q3-25. Reported IFRS subscription and SaaS revenue for the quarter was USD 121.7m, and non-IFRS subscription and SaaS revenue for the quarter was USD 121.8m, both increasing by 23% vs. Q3-25. EBIT Reported IFRS EBIT was USD 84.8m for the quarter, an increase of 41% vs. Q3-25. Reported non-IFRS EBIT was USD 109.3m for the quarter, an increase of 29% vs. Q3-25. Earnings per share (EPS) Reported IFRS EPS was USD 0.92 for the quarter, an increase of 42% vs. Q3-25. Non-IFRS EPS was USD 1.23 for the quarter, an increase of 32% vs. Q3-25. Cash flow USD 36.4m of free cash flow was generated in the quarter, an increase of 24% vs. Q3-25. USDm, except EPS Q3-26 Q3-25 Change C.C.* Subscription and SaaS 121.8 99.2 23% 22% Maintenance 134.7 125.5 7% 7% Services 36.2 33.8 7% 8% Total revenues 292.8 258.5 13% 13% EBIT 109.3 84.6 29% 26% EBIT margin 37.3% 32.7% 5% pts 4% pts EPS 1.23 0.93 32% Free cash flow 36.4 29.3 24% Non-IFRS
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 FY-26 non-IFRS guidance Temenos raises its FY-26 guidance. The guidance for FY-26 is non-IFRS and in constant currencies, except for EPS and FCF which are reported. The acquisition of additiv is expected to be marginally accretive to Temenos’ FY-26 ARR and non-IFRS subscription and SaaS guidance and is expected to be neutral for Temenos’ FY-26 EBIT, EPS and FCF guidance. 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.12% c.c. (up from c.9%). • EPS growth of c.10% reported (up from c.7%). • 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 1.12; • GBP to USD exchange rate of 1.34; and • USD to CHF exchange rate of 0.82 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, and do not include any contribution from additiv. • 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 October 27 th, 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, October 27th, 2026, Takis Spiliopoulos, CEO and Daniel Schmucki, 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: Q3 2026 webcast link
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 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) 203 059 58 63 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 organiz ational transformation activities planned and controlled by management, or cost related mainly to advisory fees, integration, sep aration, carve-out costs, earn-out credits or charges and regulatory changes requiring retrospective application which may result in one-off impact to the Income Statement and adjustments made to reflect the associated tax charge relating to the above items. Regulatory driven changes qualify only where: • The change is externally imposed (law or regulation) • Requires retrospective application, and • Results in a non-recurring adjustment 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.4-5% of revenue • FY-26 estimated amortisation of acquired intangibles of USD 40m • FY-26 estimated restructuring/M&A related costs of USD 14-15m – 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 Director of Corporate Affairs, 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 27th, 2026 Appendix I – Q3-26 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 30 September 2026 30 September 2025 30 September 2026 30 September 2025 Revenues Subscription and SaaS 121,694 99,220 469,603 474,584 Maintenance 134,560 125,470 532,115 491,218 Services 36,248 33,835 139,862 129,315 Total revenues 292,502 258,525 1,141,580 1,095,117 Operating expenses Sales and marketing (77,161) (72,382) (320,690) (314,248) Services (31,555) (32,838) (123,566) (129,141) Software development and maintenance (67,173) (70,391) (268,847) (288,827) General and administrative (31,853) (22,837) (126,995) (98,302) Total operating expenses (207,742) (198,448) (840,098) (830,518) Operating profit 84,760 60,077 301,482 264,599 Other Gain on sale of business and contingent consideration fair value losses - - (16,250) 136,530 Net interest expenses (5,880) (1,304) (16,836) (8,510) Foreign exchange gain / (loss) and movement in fair value from financial instruments 814 (1,761) (9,242) (16,806) Total other (expenses) / income (5,066) (3,065) (42,328) 111,214 Profit before taxation 79,694 57,012 259,154 375,813 Taxation (16,320) (12,650) (46,316) (60,704) Profit for the period 63,374 44,362 212,838 315,109 Earnings per share (in US$): basic 0.93 0.65 3.16 4.51 diluted 0.92 0.65 3.12 4.46
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 TEMENOS AG All amounts are expressed in thousands of US dollars 30 September 2026 30 June 2026 31 December 2025 30 September 2025 Assets Current assets Cash and cash equivalents 138,027 150,774 203,536 184,224 Trade receivables 206,564 188,916 181,927 173,901 Other receivables and financial assets 108,129 108,453 108,657 107,722 Total current assets 452,720 448,143 494,120 465,847 Non-current assets Property, plant and equipment 47,048 44,980 46,027 43,827 Intangible assets 1,528,804 1,259,877 1,277,777 1,291,231 Trade receivables 326,225 319,593 298,962 281,485 Other long term assets 55,445 61,770 72,729 85,169 Deferred tax assets 79,705 64,657 59,638 80,979 Total non-current assets 2,037,227 1,750,877 1,755,133 1,782,691 Total assets 2,489,947 2,199,020 2,249,253 2,248,538 Liabilities and equity Current liabilities Trade and other payables 240,013 269,879 263,914 235,057 Deferred revenues 462,333 468,695 468,048 432,583 Income tax liabilities 146,645 124,665 101,561 158,584 Borrowings 22,030 16,770 16,864 300,204 $ 0.00 Total current liabilities 871,021 880,009 850,387 1,126,428 Non-current liabilities Borrowings 929,476 825,414 792,084 585,654 Deferred tax liabilities 60,283 51,200 67,165 54,361 Trade and other payables 8,971 14,039 17,626 17,980 Deferred revenues 39,563 32,715 24,532 13,501 Retirement benefit obligations 26,220 23,647 19,484 16,407 Total non-current liabilities 1,064,513 947,015 920,891 687,903 Total liabilities 1,935,534 1,827,024 1,771,278 1,814,331 Shareholders’ equity Share capital 215,878 211,942 236,245 236,245 Treasury shares (54,903) (115,206) (396,879) (406,120) Share premium and capital reserves (809,498) (857,735) (507,609) (503,826) Fair value and other reserves (281,584) (288,151) (284,115) (279,777) Retained earnings 1,484,520 1,421,146 1,430,333 1,387,685 Total equity 554,413 371,996 477,975 434,207 Total liabilities and equity 2,489,947 2,199,020 2,249,253 2,248,538
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 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 2026 30 September 2025 30 September 2026 30 September 2025 Cash flows from operating activities Profit before taxation 79,694 57,012 259,154 375,813 Adjustments: Depreciation and amortization 29,759 30,209 119,490 122,859 Gain on sale of business and contingent consideration fair value losses - - 16,250 (136,530) Other non-cash and non-operating items 14,877 9,317 78,075 79,739 Changes in working capital: Trade and other receivables (13,157) (4,817) (66,124) (136,259) Trade and other payables, and retirement benefit obligations (37,856) (16,737) 1,290 22,813 Deferred revenues (1,435) (13,795) 54,267 61,508 Cash generated from operations 71,882 61,189 462,402 389,943 Income taxes paid (7,313) (6,776) (60,463) (28,650) Net cash generated from operating activities 64,569 54,413 401,939 361,293 Cash flows from investing activities Purchase of property, plant and equipment (1,395) (892) (6,877) (3,323) Disposal of property, plant and equipment - - 109 163 Purchase of intangible assets (1,136) (1,321) (6,182) (3,109) Capitalized development costs (17,527) (15,296) (60,997) (66,494) Proceeds on sale of business, net of cash disposed - - 4,000 319,045 Acquisition of subsidiary, net of cash acquired (135,299) - (135,299) - Settlement of financial instruments 2,631 (3,809) (6,501) (17,746) Interest received 266 725 1,705 2,123 Net cash (used in) / generated from investing activities (152,460) (20,593) (210,042) 230,659 Cash flows from financing activities Dividend paid - - (117,940) (110,549) Acquisition of treasury shares (35,880) (147,876) (163,049) (307,429) Proceeds from borrowings 180,000 11,170 590,000 170,715 Repayments of borrowings (60,000) (11,172) (225,000) (527,383) Proceeds from issuance of bonds - - - 281,976 Repayment of bond - - (273,312) - Proceeds from long-term loans - - 467 (1,100) Payment of lease liabilities (2,791) (3,818) (12,356) (14,233) Interest paid (5,014) (482) (31,037) (18,655) Settlement of financial instruments - - - (245) Payment of other financing costs (534) (4,009) (3,123) (6,066) Net cash generated from / (used in) financing activities 75,781 (156,187) (235,350) (532,969) Effect of exchange rate changes (637) 1,227 (2,744) 17,972 Net (decrease) / increase in cash and cash equivalents in the period (12,747) (121,140) (46,197) 76,955 Cash and cash equivalents at the beginning of the period 150,774 305,364 184,224 107,269 Cash and cash equivalents at the end of the period 138,027 184,224 138,027 184,224
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PRESS RELEASE FOR IMMEDIATE RELEASE October 27th, 2026 Appendix II – reconciliation of IFRS to non-IFRS Q3-26 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 2026 2026 2025 2025 IFRS Non-IFRS IFRS Non-IFRS adjustments Non-IFRS IFRS Non-IFRS adjustments Non-IFRS Subscription and SaaS 121,694 129 121,823 99,220 - 99,220 23% 23% Maintenance 134,560 129 134,689 125,470 125,470 7% 7% Services 36,248 - 36,248 33,835 33,835 7% 7% Total Revenue 292,502 258 292,760 258,525 - 258,525 13% 13% Total Operating Expenses (207,742) 24,323 (183,419) (198,448) 24,479 (173,969) 5% 5% Restructuring (3,098) 3,098 - (4,284) 4,284 - (28%) Amort of Acquired Intangibles (11,109) 11,109 - (10,598) 10,598 - 5% Share based payment (10,116) 10,116 - (9,597) 9,597 - 5% Operating Profit 84,760 24,581 109,341 60,077 24,479 84,556 41% 29% Operating Margin 29% 37% 23% 33% 5.7% pts 4.6% pts Finance Costs (5,066) 1,382 (3,684) (3,065) - (3,065) 65% 20% Taxation (16,320) (4,919) (21,239) (12,650) (4,740) (17,390) 29% 22% Net Earnings 63,374 21,044 84,418 44,362 19,739 64,101 43% 32% EPS (USD per Share) 0.92 0.31 1.23 0.65 0.28 0.93 42% 32% 3 Months Ending 30 September Change