Temenos (TEMN) investor relations material

Executive summary

• Q3-26 delivered strong recurring-revenue, profitability and cash-flow growth; ARR reached $903.6m, up 12% YoY in constant currency.

• Subscription and SaaS revenue grew 22% in constant currency, affected by the BNPL client headwind and a large African deal signed in early Q4.

• FY-26 non-IFRS EBIT and reported EPS growth guidance was raised to ~12% and ~10%; other guidance and FY-28 targets were reconfirmed.

Financial highlights

• Q3 non-IFRS revenue was $292.8m, up 13% reported and in constant currency; IFRS revenue was $292.5m, also up 13%.

• Non-IFRS subscription and SaaS revenue was $121.8m, up 23% reported and 22% in constant currency; maintenance was $134.7m, up 7%, and services was $36.2m, up 7% reported and 8% c.c.

• Non-IFRS EBIT was $109.3m, up 29% reported and 26% c.c.; IFRS EBIT was $84.8m, up 41% YoY.

• Non-IFRS net profit was $84.4m and diluted EPS was $1.23, each up 32%; IFRS net earnings were $63.4m and EPS was $0.92.

• Free cash flow was $36.4m versus $29.3m in Q3-25, up 24%.

Outlook and guidance

• FY-26 non-IFRS EBIT growth guidance increased to ~12% c.c. from ~9%; reported EPS growth guidance increased to ~10% from ~7%.

• FY-26 guidance reconfirmed: ARR growth ~12% c.c., subscription and SaaS growth ~9% c.c., and reported FCF growth ~16%; additiv is marginally accretive to ARR and subscription and SaaS, and neutral to EBIT, EPS and FCF.

• FY-28 organic targets, excluding additiv, were reconfirmed: ARR of at least $1.23bn, EBIT of ~$480m and FCF of ~$410m.

• FY-26 guidance includes BNPL termination headwinds of 3 points to ARR, 5 points to subscription and SaaS, and 4 points to EBIT and EPS; no further headwind is expected after FY-26.

• FY-26 tax-rate assumption is 19%-21%; currency assumptions are EUR/USD 1.12, GBP/USD 1.34 and USD/CHF 0.82.