Temenos Announces Strong Q3-25 Results; FY-25 Guidance Raised Driven by Sales Momentum

Annual Recurring Revenue (ARR)

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
• 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 there 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. Q3-24 (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).

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 FY-25 is non-IFRS and 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, 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-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