Temenos Publishes 2026 Interim Report With $534.4 Million H1 Revenue

Temenos published its 2026 Interim Report on September 8, 2026, reporting total revenue of USD 534.4 million and IFRS operating profit of USD 147.2 million for the six months ended June 30, 2026. The Grand-Lancy, Switzerland-based banking software group released the unaudited accounts in an ad hoc announcement pursuant to Art. 53 LR.

Reported and Non-IFRS Results

The interim report breaks first-half IFRS revenue into three lines. Subscription and SaaS revenue was USD 196.2 million, compared with USD 207.2 million in the prior-year period. Maintenance revenue rose to USD 266.2 million from USD 246.0 million, and services revenue increased to USD 72.0 million from USD 64.4 million. Total IFRS revenue of USD 534.4 million compares with USD 517.7 million in the six months ended June 30, 2025.

IFRS operating profit increased to USD 147.2 million from USD 118.4 million, while profit for the period fell to USD 107.0 million from USD 193.7 million. Diluted IFRS earnings per share were USD 1.58, down from USD 2.71, and basic earnings per share were USD 1.60 against USD 2.74. The prior-year result included a USD 136.5 million gain on the sale of a business: the disposal of Multifonds to Montagu Private Equity, announced on February 6, 2025 at a total enterprise value of about USD 400 million inclusive of an earnout and completed on May 31, 2025. The earnout arrangement requires cash payments tied to subscription signings, annual contract value and new customer ARR targets across 2025, 2026 and 2027, up to a maximum of USD 75 million; its fair value stood at USD 8.5 million at June 30, 2026.

Alongside the IFRS figures, Temenos reported its own non-IFRS alternative performance measures, which it compares against proforma prior-year figures that exclude Multifonds. On that basis, the company reported annual recurring revenue of USD 880.6 million, up 11% from USD 790.6 million, and non-IFRS EBIT of USD 198.8 million, up 10% from USD 181.1 million, for a non-IFRS EBIT margin of 37.2% versus 36.4%. Non-IFRS earnings per share were USD 2.20, up 12% from USD 1.96, with free cash flow of USD 133.7 million, up 17%, and operating cash flow of USD 211.3 million, up 27%. The report reconciles non-IFRS EBIT to the IFRS figure by adding back USD 18.9 million of amortization of acquired intangibles, USD 8.0 million of restructuring and M&A-related costs, and USD 24.6 million of share-based payments to the USD 147.2 million IFRS operating profit.

Cash Flow, Balance Sheet and Capital Returns

Cash generated from operations was USD 211.3 million, and net cash from operating activities was USD 185.4 million after USD 25.9 million of income taxes paid. Cash and cash equivalents stood at USD 150.8 million at June 30, 2026, down from USD 203.5 million at December 31, 2025. Total assets were USD 2,199.0 million and total equity was USD 372.0 million, compared with USD 478.0 million at year-end 2025.

Financing outflows in the period included a dividend payment of USD 117.9 million — CHF 93.3 million, or CHF 1.40 per share, relating to the 2025 financial year — and USD 114.2 million spent acquiring treasury shares. The group drew USD 140.0 million of borrowing proceeds and repaid USD 95.0 million. Total borrowings stood at USD 842.2 million at June 30, 2026, against USD 808.9 million at the end of 2025, comprising USD 245.2 million of bank borrowings, USD 564.6 million of unsecured bonds and lease liabilities. In June 2026, Temenos extended the maturity of its USD 500 million multicurrency committed revolving facility by one year to July 1, 2031; USD 245 million was drawn under the facility at the reporting date, and the group states it complied with the facility’s leverage covenants throughout the reporting periods.

On share capital, Temenos completed the share buyback program of up to CHF 100 million announced in December 2025, which ran from December 11, 2025 to April 8, 2026 and repurchased 1,244,986 shares for a total of CHF 89.8 million during the half. A further 3,952,656 treasury shares were canceled as a share capital reduction approved by the 2026 Annual General Meeting, leaving 1,255,313 treasury shares and 67,954,491 issued ordinary shares of CHF 5 nominal value at June 30, 2026. In August 2026, after the reporting period, the group announced a new buyback program of up to CHF 100 million, which commenced on August 13, 2026.

Subsequent Events and Accounting Notes

The report discloses one material post-period transaction. On June 8, 2026, Temenos announced a definitive agreement to acquire Additiv AG, a Switzerland-based fintech company that provides a specialist platform to orchestrate financial services; the company describes the acquisition as aligned with its strategic focus on strengthening its Wealth franchise and expanding AI-enabled experience and orchestration capabilities. The acquisition completed on July 17, 2026 for preliminary consideration of CHF 226.7 million, and the group states the initial accounting, including the fair value of acquired intangible assets, was still being evaluated when the interim statements were authorized for issue.

Among the accounting disclosures, Temenos applied an estimated annual income tax rate of 23% for the half, compared with 19% in the prior-year period. The group confirmed it will adopt IFRS 18 “Presentation and Disclosure in Financial Statements” from its mandatory effective date of January 1, 2027, with full retrospective application; it states the standard will not affect net profit but will change the presentation of the statement of profit or loss, including reclassifying certain foreign currency-related effects into operating profit. The report also notes that subscription and SaaS revenue, profit and cash collection tend to be stronger in the second half of the year, and specifically the final quarter, and that interim results are therefore not necessarily indicative of full-year results.

Temenos, incorporated in Glarus, Switzerland, in 2001 and listed on the SIX Swiss Exchange since June 26, 2001, develops, markets and sells integrated banking software systems. The report states that more than 950 core banking and more than 600 digital clients use its software across more than 150 countries.