Temenos (TEMN) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2-25 and H1-25 performance with stable sales, large deal signings, and significant new customer wins, especially in Europe and the Americas.

• Strategic investments in sales, product, and technology were self-funded through cost programs, supporting profitability growth.

• Launched new AI-integrated products, including Product Manager Co Pilot and FCM AI agent, and completed the sale of Multifonds (Multiphone) on May 31, 2025.

• Notable wins included Banco de Amazonia in Brazil, East West Bank in APAC, and 151 go-lives in H1-25, excluding Multifonds.

• Raised FY-25 guidance and confirmed FY-28 targets, with increased traction in the wealth segment.

Financial highlights

• Q2-25 proforma total revenue up 17% year-over-year to $277.6m; H1-25 up 10% to $497.9m.

• Subscription and SaaS revenue grew 24% in Q2-25 and 12% in H1-25 year-over-year in constant currency.

• Q2-25 proforma non-IFRS EBIT up 30% year-over-year to $111.6m; margin at 40.2%, up 4 percentage points.

• Q2-25 non-IFRS EPS was $1.22, up 36% year-over-year; reported IFRS EPS was $2.32, up 364%.

• Free cash flow grew 8% in Q2-25 to $65m and 10% in H1-25 to $104m, with acceleration expected in H2.

Outlook and guidance

• FY-25 guidance raised: at least 12% ARR growth, at least 6% Subscription and SaaS growth, at least 9% EBIT growth, and 10-12% EPS growth.

• FY-28 targets reconfirmed: ARR of at least $1.2bn, EBIT of ~$450m, FCF of ~$400m, with strong pipeline visibility.

• FY-25 tax rate expected at 15-17% due to a one-off $15m tax benefit; normalized rate 19-21%.

• Guidance excludes Multifonds (Multiphone) contributions and is based on constant currency, except for EPS and free cash flow.