Business Updates
- All key metrics show robust performance, with FY25 guidance increased significantly.
- Product revenue growth reached 11%, outperforming the market growth of 7% in the first year of the strategic plan.
- The sales environment remains solid.
- There’s substantial demand across various regions and tiers, highlighted by multiple agreements with Tier 1 banks globally.
- Premium maintenance contracts have notably boosted maintenance revenue.
- Investment in sales and products continued to align with our strategic roadmap, with sales team headcount up by over 60%.
- Well-defined AI strategies are being executed across platforms and processes to leverage existing advantages.
- We’ve announced guidance for 2026, reflecting adjusted targets for 2028 based on strong execution and a positive outlook.
Revenue
Non-IFRS revenue for the quarter stood at $314.6 million, marking an 11% increase from Q4 2024 (pro forma, excluding Multiphones).
Reported IFRS revenue for the quarter was $314.6 million, reflecting a 1% decrease compared to the fourth quarter of 2024.
Non-IFRS subscription and SaaS revenue reached $151.7 million, a 7% rise from Q4 2024 (pro forma, excluding Multiphones).
IFRS subscription and SaaS revenue was reported at $151.7 million, down 10% from the previous fourth quarter.
EBIT
Non-IFRS EBIT was $106.3 million for the quarter, an increase of 14% compared to Q4 2024 (pro forma, excluding Multifond).
IFRS EBIT for the quarter reported at $69.5 million, a 19% decrease from Q4 2024.
Earnings per Share (EPS)
Non-IFRS EPS for this quarter was $1.32, marking a 14% increase from Q4 2024 (pro forma, excluding multi-fund).
Reported IFRS EPS for the quarter was at $0.62, showing a significant decrease of 43% compared to Q4 2024.
Cash Flow
Generated free cash flow amounted to $113 million, up 17% from Q4 2024 (pro forma, excluding Multifond).
Dividend
Considering the earnings and cash flow generated in 2025, Temenos intends to distribute a CHF 1.40 per share dividend in 2026, pending shareholder approval at the meeting set for May 13, 2026. Here’s the timeline for dividend payments:
- Approval at the general shareholder meeting on May 13
- May 18 marks the ex-dividend trading date
- May 19 is the recording date
- Payment is scheduled for May 20
Non-IFRS Guidance for 2026
Guidance for 2026 is provided in constant currency on a non-IFRS organic basis, excluding EPS and FCF. Growth rates reflect projections for 2025 (excluding multi-funds).
- ARR growth rate is expected to be about 12% in constant currency
- Subscription and SaaS growth is approximately 9% in constant currency
- EBIT growth rate is estimated around 9% in constant currency
- Reported EPS growth should be around 7%
- FCF is projected to increase by approximately 16%
The FY26 forecast indicates potential growth headwinds from the discontinuation of one BNPL customer in FY25. No further issues from this termination are anticipated post-FY2026. The impacts include:
- 3% points on ARR
- 5% points on subscription and SaaS
- 4% points on EBIT and EPS
Assumed Currency for FY2026 Guidance
In forming our 2026 guidance, we’re assuming:
- EUR to USD exchange rate of 1.18.
- GBP to USD exchange rate of 1.35.
- USD to CHF exchange rate of 0.78.
Additionally, we anticipate the following for the fiscal year 2026:
- Tax rate is predicted to be between 19% and 21%
Raising Targets for FY28
Temenos has raised its targets for 2028, which are organic and non-IFRS based.
- ARR target is now a minimum of $1.23 billion (up from at least $1.2 billion)
- EBIT is approximately $480 million (up from about $450 million)
- FCF target is about $410 million (up from approximately $400 million)
This forecast and other expectations shared in this announcement are considered forward-looking and represent current beliefs as of February 24, 2026. We recognize that future events could alter guidance and estimates. Fluctuations can be challenging to predict, so actual results may significantly differ from these projections for various reasons. More details about potential factors influencing financial outcomes are available in our annual report.
Conference Calls and Webcasts
On February 24, 2026, at 18:30 CET / 17:30 GMT / 12:30 EST, CEO and Interim CFO Takis Spiliopoulos will lead a webcast to present results and updates on business outlook. The webcast can be accessed via this link:
Q4 2025 Webcast Link
It’s advisable to use the webcast initially to avoid joining delays. However, if you can’t access the webcast, you can use the dial-in details below. Please call in 15 minutes prior to the start.
Switzerland / Europe: + 41 (0) 58 310 50 00
United Kingdom: + 44 (0) 207 107 06 13
USA: + 1 (631) 570 56 13
Non-IFRS Financial Information
Readers should note that the non-IFRS information in this release has limitations and is not based on a strict accounting framework. It shouldn’t be seen as a substitute for IFRS metrics. Also, our non-IFRS figures may not be directly comparable to similar measures from other companies. Our figures exclude share-based payments and related expenses, write-downs from acquisitions, one-time activities, gains and losses on business sales, costs related to acquisitions, changes in fair value of investments, as well as expenses connected to restructuring or organizational changes.
Here are certain accounting elements excluded from the 2026 non-IFRS guidance:
- Estimated stock-based payments and related charges expected to be about 5% of revenues for fiscal 2026
- Estimated amortization of acquired intangible assets is projected at $40 million for 2026.
- Estimated restructuring or M&A-related expenses for FY2026 are around $10 million.
