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Second quarter results out last night from Temenos, the Swiss banking software vendor, showed the firm had a strong three months to the end of June.
The firm saw 24% growth in subscription and SaaS revenue for Q2, translating into growth of 12% for the whole of the first half. In Q1, Annual Recurring Revenue (ARR) was up 10% on a constant currency basis to $797m. In Q2, growth improved slightly, up 11% to $791m. It was also a good quarter for maintenance, largely due to strong sales of the Temenos premium maintenance offering. The performance at the overall top line helped to boost EBIT growth of 28% over Q2 in 2024. In all, the firm “significantly exceeded” the Q2 2025 guidance it issued back in April.
While there was “strong execution in a stable environment across the board”, management was “especially pleased” with the performance in Europe. For example, Temenos saw a number of new signings in the wealth space and good conversion of larger deals. It’s also been encouraging to see ongoing product advancement in AI, for example the development of a Microsoft Copilot-based financial crime prevention tool in collaboration with a “tier 1 European bank”.
Looking ahead, the company has upped full-year subscription and SaaS guidance to “at least 6%” growth from the previous 5-7% range. EBIT, however, has been notably raised from “at least 5%” to “at least 9%”. Solid execution and good progression against strategic objectives are both paying dividends.
Posted by: Kate Hanaghan at 10:00
Tags:
results
banking