On February 18, Temenos, a banking software company, adjusted its full-year 2028 targets following the sale of its fund administration software business Multifonds for $400 million earlier in February. The Swiss-based company now anticipates annual recurring revenue (ARR) to reach at least $1.2 billion in 2028, lowered from its previous target of over $1.3 billion initially set for 2027.
Temenos also revised its 2028 earnings before interest and taxes (EBIT) target to approximately $450 million from the prior $500 million, along with adjusting the free cash flow projection to around $400 million from about $420 million.
In addition to these adjustments, the banking software firm offered insight into its 2025 financial year. Temenos foresees that a key revenue measure will increase by a minimum of 12% in 2025, illustrating consistency with the 2024 full-year and fourth-quarter earnings, which were on par with preliminary results.
Furthermore, the company expects a non-IFRS, constant currency ARR growth of at least 12% in 2025, coupled with a subscription and Software as a Service (SaaS) growth range of 5-7%.
Temenos’ CFO, Takis Spiliopoulos, remarked on the company’s cost base, highlighting the benefits from the efficiency program initiated in the second half of 2024 and showcasing limited impact from investments made, especially in Sales and Marketing and R&D.
Last year, Temenos initiated a strategic initiative, including management-level reorganizations following two consecutive quarters of cutting its outlook.
The Geneva-based company, which disclosed preliminary fourth-quarter results in January, revealed that Cloud ARR accounted for 43% of the quarter’s total ARR.