Temenos ( (TMNSF) ) has released its Q1 earnings. Here is a breakdown of the information Temenos presented to its investors.
Temenos AG is a global leader in banking technology, offering core banking solutions and modular services to modernize the banking industry. In its Q1 2025 earnings report, Temenos reported solid growth in key financial metrics, including a 9% increase in Annual Recurring Revenue (ARR) and a 12% rise in free cash flow, despite some challenges in the SaaS segment. The company also announced a share buyback program of up to CHF 250 million, reflecting confidence in its financial health.
Key highlights from the earnings report include a 17% increase in non-IFRS earnings per share and an 8% rise in non-IFRS EBIT. The company experienced strong growth in software licensing, which helped offset a decline in SaaS revenue due to anticipated downsell from a large Buy Now Pay Later customer. Temenos also made strategic investments, such as opening an innovation hub in Florida, to support its US strategy and global market expansion.
Looking forward, Temenos reconfirmed its full-year 2025 guidance, anticipating ARR growth of at least 12% and free cash flow growth of at least 12%. The company remains optimistic about signing delayed deals in Q2 2025 and continues to focus on digital transformation initiatives to enhance its competitive positioning.
Overall, Temenos is poised to maintain its growth trajectory, leveraging its strong balance sheet and strategic investments to navigate macroeconomic uncertainties and drive long-term success.