Temenos (TEMN) Q4 2025 earnings summary

Executive summary

• Achieved or exceeded all FY-25 guidance metrics, with product revenue constant currency growth of 11%, outpacing market growth of 7%.

• Strong demand across regions and client tiers, with multiple Tier 1 bank wins, especially in the US and Japan.

• Significant investments in sales and product, including a 60% increase in sales quota carriers and continued execution of an AI strategy.

• Raised FY-28 targets and announced FY-26 guidance, reflecting confidence in strategic positioning.

• Sale of Multifonds completed in Q2-25; all proforma figures exclude Multifonds.

Financial highlights

• ARR grew 12% year-on-year in FY-25 to $860 million, now over 90% of product revenue.

• Total revenue up 10% year-on-year to $1,071 million (non-IFRS, constant currency, proforma).

• Subscription and SaaS revenue up 9% to $453 million; maintenance revenue up 15% in Q4 and 12% for the year.

• Non-IFRS EBIT up 21% for the year to $372 million; non-IFRS EPS up 25% to $4.20.

• Free cash flow up 15% year-on-year to $256 million.

Outlook and guidance

• FY-26 guidance: ~12% ARR growth, ~9% subscription/SaaS growth, ~9% EBIT growth, ~7% EPS growth, ~16% free cash flow growth.

• FY-26 guidance includes a headwind from a terminated BNPL client, with no further impact expected after FY-26.

• FY-28 targets raised: ARR above $1.23 billion, EBIT ~$480 million, free cash flow ~$410 million.