Temenos (TEMN) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 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 in the US and Japan, and robust maintenance growth.

• Significant investments in sales and product, increasing sales quota carrier headcount by 60% to over 140, and executing on AI strategy.

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

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

Financial highlights

• ARR grew 12% year-on-year in Q4 2025, reaching $860 million, now over 90% of product revenue.

• Product revenue up 11% to $943m; total revenue up 10% to $1,071m (non-IFRS, constant currency, proforma).

• Subscription and SaaS revenue up 9% to $453m; maintenance revenue up 17%.

• Non-IFRS EBIT up 22% to $372m; non-IFRS EPS up 25% to $4.20.

• Free cash flow up 15% to $256m.

Outlook and guidance

• 2026 guidance: ~12% ARR growth, ~9% subscription and SaaS growth, ~9% EBIT growth, ~7% EPS growth, ~16% free cash flow growth.

• No further headwind from BNPL client termination beyond 2026.

• 2028 targets raised: ARR above $1.23 billion, EBIT ~$480 million, free cash flow ~$410 million.