Good afternoon, good evening. Thank you for joining our Q3 2026 results call.

Before we begin, I would like to introduce Daniel Schmucki, who joined Temenos as CFO in August. Daniel has a strong track record in building and leading high-performance teams in complex international businesses and is an excellent addition and strong partner for our Executive Committee and senior management.

I am pleased to have him alongside me today. As usual, I will start with our key performance and operational highlights for the quarter, before handing over to Daniel, who will provide an update on our financial performance.

Starting on slide 6, we had a strong start to the quarter, signing all slipped revenue from Q2. The sales environment remained stable throughout the third quarter, with good underlying business momentum.

Subscription and SaaS revenue growth was impacted by one large deal in Africa signing in the first days of Q4. This one deal would have resulted in subscription and SaaS growth above our guidance and consensus levels.

We continue to strengthen our large-deal execution capabilities to improve consistency. We have good visibility and a strong pipeline of deals into Q4, and we also had a robust start to the fourth quarter.

We remain confident in achieving our 2026 subscription and SaaS guidance, and our focus is execution to close out the year strongly. Looking at the regional performance in Q3 '26, Europe performed particularly well, signing a number of deals, including with a global tier 1 bank for its international operations.

Importantly, we also saw strong SaaS performance in North America, with four new deals, including the US regional bank deal we announced in July and a large deal in Canada. The Middle East also performed well, with both new logo and existing customer deals across the Gulf region.

The integration of additiv is progressing well, with a new tier 1 bank deal signed in APAC. I will cover more on additiv shortly.

We delivered very good growth in profitability in the quarter, driven by efficiency savings, our good cost control, and operating leverage. Free cash flow also continues to perform well, growing 24% in the quarter.

Lastly, we have raised our 2026 EBIT growth and EPS growth guidance to 12% and 10% respectively, and reconfirmed our other guidance metrics as well as our 2028 targets. Moving to slide 7, we continue to see momentum with banks across geographies and tiers, both from existing customers extending their relationships with Temenos and from new logos adopting Temenos for the first time.

I would like to highlight a few of these deals. In Europe, we extended our core banking relationship with a tier 2 corporate bank, supporting their business as they continue their platform transformation.

In the Middle East and Africa, we expanded an existing tier 1 relationship with additional modules to enhance transaction processing capabilities. We also saw good momentum in the US and Canada.

In APAC, a tier 1 bank selected us to modernize its digital wealth platform, the first tier 1 deal we have signed in this space since the acquisition of additiv in July. These are just a handful of deals we signed in the quarter, which demonstrate the breadth of our global client base and demand for our product across geographies and tiers.

Moving to slide 8, I would like to focus on two deals in particular that demonstrate the progress we are making with some of the world's largest financial institutions, and this is driven by good execution against our product and technology roadmap specifically for top-tier clients and our strategic sales focus on these institutions. Firstly, we signed a large deal with a US-headquartered global bank, expanding our relationship for international private banking.

They are rolling out Temenos core banking in their private banking operations across multiple geographies, and this new deal adds additional capabilities and volume to expand the platform's scope. It builds on the strong progress we made with this client over the past few years, and I would like to thank my colleagues across the business, from product and technology to delivery and sales, for their excellent work that made this possible.

Secondly, as you may have seen from the press release yesterday, we announced a deal with Vancity to modernize their core banking platform. Vancity is the largest credit union in Canada, and they have big ambitions.

The deal has a broad scope covering retail deposits, lending, corporate banking, and payments, and demonstrates the breadth and depth of our platform. Turning to slide 9, I would like to highlight some recent client implementation successes.

BSI is the largest Islamic bank in Indonesia, serving more than 23 million customers. They have been a Temenos customer for many years and chose to build on that investment by upgrading to the latest Temenos core.

This was a significant transformation and shows how Temenos can help a large, sophisticated bank modernize its core while creating the capacity and resilience to support future growth. Turning to slide 10, Kingdom Bank is a specialist bank in UK, which successfully went live with Temenos core, payments, and Financial Crime Mitigation on Temenos SaaS running on Microsoft Azure.

By replacing siloed legacy systems with Temenos, the bank is streamlining operations, reducing manual processes, and is able to scale more efficiently while continuing to provide the personalized service its customers expect. Moving to slide 11, I would like to give you an update on additiv following completion of the acquisition in July.

We are deliberately taking a measured approach to the integration, maintaining stability for customers and the additiv team while integrating key corporate functions. The founder-led management team continues to run the business, which was part of the approach we set out when the transaction was completed.

We have already integrated additiv with Temenos core banking, and we are now leveraging our global client relationships to grow the pipeline. We are seeing strong interest from tier 1 and tier 2 prospects, and we have already signed a new tier 1 bank deal in APAC in Q3.

This early traction reinforces the strategic rationale for the acquisition. It also compliments our AI strategy through purpose-built, AI-enabled experience and orchestration, which is increasingly important in helping banks automate processes and deliver personalized services at scale.

On slide 12, we continue to make good progress on our strategic execution priorities. Our product and technology leadership team is accelerating the roadmap and innovation delivery, and we continue to invest selectively in sales capabilities, in particular to strengthen our large-deal execution capabilities.

This is a priority area for me to improve execution consistency in large deals and ensure they sign as planned going forward. We are also investing in key growth markets, including Brazil and Japan, where we are seeing good pipeline growth.

Across the business, we are increasing automation and simplifying our processes and systems to drive further efficiencies. AI is increasingly supporting this, and we are seeing tangible productivity benefits across our corporate, product, and technology functions.

We remain focused and are balancing investment in the areas that support our growth with continued cost discipline. With that, I will now hand over to Daniel, who will take you through our financial performance for the quarter.

Thank you very much, Takis. This is my first results call since joining Temenos in early August, and I do look forward to meeting many of you over the coming weeks and months.

As you can see on slide 14, we delivered another strong quarter of ARR growth, up 12% to reach $904 million. This reflects continued demand across both our installed base and new logos.

Product revenue grew 14%, driven by good underlying momentum across the business and continued strength in maintenance, which grew 7% in the quarter as expected. Turning to slide 15, subscription and SaaS grew 22% in the quarter.

We signed all revenue that slipped from Q2, and our win rates remained strong throughout the quarter. However, as Takis talked about, Q3 subscription and SaaS revenue did not meet our expectations due to one large deal in Africa signing in the first week of Q4.

Excluding the headwind from BNPL client, subscription and SaaS grew 30% in the quarter. Q4 is the last quarter where we will face this headwind.

Total revenue grew 13%, mainly driven by the subscription and SaaS revenue, but also strong contributions from maintenance and services revenue growth. Moving on to slide 16, non-IFRS EBIT was particularly strong this quarter, growing 26%, and non-IFRS EPS grew by 32%.

This reflects the good revenue growth in the quarter as well as efficiency gains, our continued disciplined approach to cost management, and the operating leverage in the business. We continued to invest in our product and technology organization, as well as go-to-market capabilities in selective growth markets and for large deals.

Let me now highlight a few items on slide 17. ARR grew 12% to reach $904 million by the end of quarter, giving us good visibility on future revenue and cash flow.

Maintenance grew 7% in the quarter, which was in line with our expectations, and reflecting good ongoing demand for premium maintenance across our customer base. Maintenance is tracking well, and we now expect it to grow 8% to 9% for the full year.

On profitability, our EBIT margin improved by 4 percentage points year-on-year to 37.3%, reflecting strong operating leverage and benefits from our cost efficiencies. Moving to non-operating items on slide 18, net profit and EPS both grew 32% in the quarter.

Higher EBIT more than offset the increase in new finance charges. The quarter also benefited from a year-on-year improvement in FX rates.

Our tax charge was broadly unchanged year-on-year, and we still expect the full-year tax rate of 19% to 21%. On slide 19, we generated free cash flow of $36 million in the quarter, up 24% year-on-year, driven by strong ARR growth, strong operating profitability, and our disciplined approach to capital allocation.

This remains a key metric for us as we continue to drive growth in our recurring revenue. This brings me to slide 20, where we show the changes in group liquidity during the quarter.

We generated $72 million of operating cash flow before tax expenses. We paid out $135 million of cash in the additiv acquisition, which drove the increase in the net borrowings of $120 million, with the balance paid in shares.

We also bought back $36 million of shares in the quarter. We ended the quarter with leverage of 1.6 times, reflecting the acquisition of additiv.

Turning to slide 21, a few comments on our debt, leverage, and capital allocation. As we announced on the 12th of August, we launched a new share buyback program of up to 100 million Swiss francs, running until the end of February 2027, in line with our disciplined approach to capital allocation.

Our reported net debt of $813 million primarily reflects the acquisition of additiv, partly offset by continued strong free cash flow generation. We expect leverage to be within our target range of 1 to 1.5 times by year-end.

Moving on to slide 22, we have raised our full-year guidance for non-IFRS EBIT growth of 12%, up from 9%, and EPS growth of 10%, up from 7%. We reconfirm guidance of 12% ARR growth, 9% subscription and SaaS revenue growth, and 16% free cash flow growth.

This includes a marginal contribution from additiv on ARR and subscription and SaaS. The guidance includes the headwind from the termination of the BNPL client in 2025, which we have given on that slide.

As I mentioned, there will be no further headwind from this beyond 2026. Lastly, on slide 23, we have reconfirmed our 2028 targets, reflecting our continued confidence in our strategic positioning, good visibility, and continued conversion of our pipeline.

This does not include any contribution from additiv yet, and we plan to update these targets at our Q4 results announcement in February. Operator, please, can we open for questions?

Hi. Good evening, and thanks for the question.

Perhaps just on the subscription and SaaS. The indication was for at least 30, we've got 22.

I know you mentioned the large deal in Africa slipping into Q4, but just to be clear, that was the only delta versus your initial expectations for at least 30. Then, can you help us understand just what happened with the deal that drove the slip versus your initial expectations for the deal closure?

Then, just one more, just on the BNPL headwind. You mentioned subscription and SaaS would have been 30% ex the BNPL headwind, an 8-point headwind versus the 22% growth.

I think the indication had always been that the BNPL headwind would be for 5 points for 2026. Could you just help us understand why that was larger in Q3?

Thank you.

Hi, Toby. Thanks for the question.

On your first one, yes, it was the the one deal that, drove the difference. As we said, with, without that, without that issue, we would have been comfortably ahead of what we had guided.

Now, what happened, and and clearly you appreciate, those large deals, are sometimes a bit difficult to predict in terms of timing, there were, last-minute complications let's say on the legal side which and some logistical challenges, which basically, drove this a few days into into October. That was very unfortunate, but that was the the only one.

It was a very large deal as you can see from the delta. Now on the on the BNPL one, what we said is the impact is, 5% on a full-year basis.

Clearly, given, it's equal amounts from this BNPL client which we have lost per quarter, but SaaS and subscription are different across the years, and this is where you see the gap. Yeah.

For the full year, it remains clearly for the full year the delta will be the smallest one.

That's great. Thank you.

Yes, thank you. Good evening, gentlemen.

I have two questions. The first is for Daniel.

You've been on the job now I think for 3 months as a CFO. If you could share your first feeling on Temenos, if you're happy with reporting tools that you have found when you joined the company, and if you see areas of improvements on the financial side.

My second question is more for you, Takis. Basically you're going to deliver better profitability on roughly unchanged revenue from what you were expecting earlier in the year.

What has driven the reduced cost expenses during the year that gets to a beat on the profitability side? Thank you.

Thank you very much for the question. Looking back over the last couple of weeks and months, I was particularly impressed by, first of all, the quality of the people here at Temenos, its culture, Temenos' strategy, the strength of the product portfolio, as well as its roadmap, the client relationships, as well as the very disciplined execution attitude in the organization.

In combination of all these qualities, I do see a great deal of opportunities which lays ahead of us. A bit more focusing on finance, I did inherit a very strong finance organization with numerous talented and very motivated professionals.

I'm very convinced that I can bring in my experiences as a former CFO of other large and complex multinational organization. One of such opportunities is to continue to consequently adapt AI across all finance functions across the whole Temenos universe, from data, via workflow, via tools, etcetera, and so on.

Continuous improvement is part of my DNA, and I will certainly contribute towards that direction also here at Temenos.

Hi, Laurent. Taking the second one.

Looking at the original cost guidance we had given for Q3 and also the full year, we have now seen that we were able to drive a lot more efficiencies across our entire cost base. If you look at Q3, and that also applies to Q4, these came primarily from organizational efficiencies in R&D, very disciplined approach to costing, G&A, and corporate functions.

Clearly, what we always said, once you have real ownership across the business and managers apply the what we call the self-funding principle, which we have been embedding, that clearly shows very good results. It's also we're now seeing tangible productivity gains from AI, and also we continue to automate a lot of processes across the business, and this drives additional efficiency gains, yeah.

This is without having any impact on investing. Actually, on the contrary, some of those efficiency gains are reinvested in our strategic roadmap.

Clearly, there is a very disciplined approach. Overall, if you split the roughly $12 million increase in EBIT, yeah, you have maybe $2-$3 million coming from maintenance and services and the remaining $8-$9 million really from AI and automation efficiencies.

This is something which is sustainable, the upside basically flowing into the EBIT guidance for the full year.

Great. Thank you.

Great. Thanks very much for taking my question.

I'll try and sneak two in as well if I can. Firstly, can you just say something about the competitive environment at the moment?

I think on the Q2 call someone focused on the Wells Fargo deal. I think in Q3 parts of Deutsche Bank have gone to a competitor as well.

Have you seen any change in competitive intensity or win rates that are worth calling out to us? Then secondly, maybe for you, Daniel.

Can you talk about whether you're revisiting any of the disclosures that you're providing the market? I guess the sorts of topics that investors are debating are things like capitalized R&D that I see ticked up slightly in the quarter, the treatment of share-based payments, and maybe revenue recognition around subscription revenue.

Are these the same topics that you're thinking about or all of these up for debate, or are you thinking about completely different issues? Thank you.

Hi, Charlie. Yes, you're allowed two questions.

First, on the competitive environment, we're aware of what the one competitor, it's not really a competitor because we haven't really squared up with them anytime, even and not at Wells Fargo. Wells Fargo is not really in our target segment, if you think about the regional banking part, tier 2, tier 3.

We just had our annual strategy session with the board, and we had actually very good win rates, if you look at the last 12 months, across most competitors. I think outside the US, I would still call out Infosys, Oracle, and yeah, and maybe Intellect, to a certain extent, being most prominent.

In the US, it's still the two incumbents, FIS and Fiserv. The few times we squared off against neo-vendors, but were very few times, obviously we didn't see any impact.

Mostly we don't see them on the shortlist. Now, on, and I'll let Daniel ask on the other one, you may have seen we actually lowered the share-based compensation impact this year from 5% to 4% to 5%, and I think this will continue to move down.

On capitalized development, the net impact, the slight increase you have seen, this is just coming from inclusion of additiv. Nothing special, no change in policy to read in.

Hi, Charlie, thanks for your question. I am very comfortable with the level of disclosure and the way we disclose at Temenos.

We do give a lot of details including on cap dev, as well as on share-based cost, and my focus is more on how we can drive the finance function to be a good partner on the business.

Great. That sounds like no change, then.

Perfect. Thank you.

Hi, Takis. Hi, Daniel.

Thanks for having me on. I'll continue the tradition and ask two questions if that's okay.

Firstly, I guess on margins, operating leverage so far this year has been very strong with EBIT growth running well ahead of plan. I guess looking at your medium-term guidance, which you've reiterated, the delta between EBIT growth and revenue growth is expected to narrow.

You've talked a lot about AI savings and efficiency benefits, could you just help us understand why we shouldn't expect operating leverage to continue beyond FY '26 at a similar pace that it has been, or are you expecting increased investment over the medium term? Then maybe a more longer-term question, perhaps.

One of the things we've been hearing from perhaps other vendors in the enterprise software space is AI simplifying implementations, migrations, and upgrades. Are you seeing AI have a significant impact on the economics of making a core banking migration?

Is this helping banks become more willing to undertake modernization projects? What's the evidence of that if you are seeing that?

Thanks.

Hi, Mark. Happy to take the two questions.

First one, clearly we're only scratching or starting to scratch the surface in terms of the capabilities AI can bring, and already now we see some tangible impact. Now, if you put the $5 to $10 million in comparison to our cost base of $750 million plus/minus, that's 1%.

Clearly there are a lot of opportunities around workforce productivity and in general a lot tighter management in terms of the discretionary spend. A lot of things you simply don't need to do with adding people anymore.

What we have been saying internally is, okay, AI and automation will actually enable you to do more, in some cases a lot more, with the existing resources. You can actually almost keep your cost flat or just increasing slightly, and then the revenue growth will drive a lot of margin improvement.

Now, we still have a lot of investment plans, we appreciate the 2028 EBIT margin target may not look very ambitious right now, but let's keep the discussion for another day. Now, on the AI-enabled or AI-assisted implementation, you're spot on, and we started already last year, late last year, but especially this year to try to almost industrialize this process.

We've built a lot of agents ourselves and also with partners. We're trialing both AI-enabled deployments, installing new software, but as well as upgrading existing customers from a older release to a newer one with this AI agents, running a number of POCs.

It's helping. The numbers we're getting, it's already quite exciting.

I think we'll still need some time to get this to an industrial grade, but we would expect this if you shorten implementation times, it will drive down ROI and then it will help definitely accelerate the demand side, yeah, because it's still one of the biggest hurdles for many banks to embark, yeah, is the cost of implementation, not so much the cost of the software. It's happening, same what you see from other enterprise vendors.

Very clear. Thank you very much.

Hi. Good evening.

Thank you for taking my questions. I guess I'm asking two as well.

You've talked about expanding your large-deal execution capabilities to improve consistency. Can you just elaborate a bit further on what specifically need to change operationally and how long it will take you to build out these capabilities?

Then, secondly, on the net capitalization increase, as this was driven by the inclusion from additiv, can we just extrapolate the Q2 or the Q3 run rate to Q4 and how should we think about 2027?

Hi, Merkt. Yes, happy to take your two questions.

Maybe on the cap dev first, it's, I think the Q2 number, which was basically zero, was probably, had a bit of a one-offs in there. I think the run rate clearly is lower than what we had in Q2.

Q3, I think for Q4 maybe similar, yeah, it would be appropriate. I think for 2027, we would expect the net cap dev to grow much less than revenue or R&D.

It's not going to I think we're trying to keep this as flat as possible, maybe even going slightly down over future years. Now, what we are changing, and we started this in Q2 and have accelerated this, on the one hand, is hiring some people with a lot of experience doing large, complex deals.

That's on the people side and you don't need hundreds of them, it's just a handful which we have now all onboarded. Maybe there is one, two in addition coming.

Number two, we have put even more rigorous review cycle on specifically large deals. There is now a comprehensive review across, not just deal progress, but also the legal side which will do everything to prevent any potential delays to be recognized early and basically then resolved.

We have a very sophisticated monitoring system in place where you also get AI help, or basically AI, the agents can tell you if a deal is not tracking according to plan, you can interfere and try to solve it and bring it back on track. A lot of AI-supported processes and stronger people on this one, which hopefully will prevent from this happening again.

Very helpful. Thank you.

Good evening, Takis, and welcome, Daniel. A couple on my end as well.

First one, more of a strategic one on recent events. Have you thought at all about resilience after recent core banking outages that we've seen, in particular there was an incident, I believe, in the UK where a Google Cloud server was knocked out and you saw the Revolut global app down for several hours and a bunch of other UK banks impacted.

Maybe you just talk a little bit about how you think about those types of resiliencies and what you guys have built into the platform in those instances. Then a separate question around the guide either to Takis or Daniel.

I want to understand a little bit around the timelines associated with the S&S guidance because I believe that the S&S guidance has stayed unchanged at 9% constant currency from the beginning of the year. I believe additiv is now captured within that 9%.

I understand that you've guided it to a quote-unquote "marginal contribution" for the year, just wanting to understand what that means. Does that mean that we have a slightly lower organic expectation?

Understanding, again, that it's marginal, but just would like to understand the moving pieces there. Thank you very much.

Hi, Justin. Take the second one first.

It's really rounding. It's marginal, and it's yeah.

I think this is what we said consistently since the acquisition, and nothing has changed there. Clearly we expect them to have eventually a stronger contribution, as Daniel said, will reflect that when we issue '27 guidance and the mid-term targets in February.

Now, the other one is quite interesting, and clearly we have been watching what's happening out there. Now, one of the things, some of the savings we're getting across the business is also being reinvested.

Broadly in two areas. One is a lot about product, yeah, as we said, accelerating the roadmap, intelligent delivery with AI assistants, another area is corporate IT and cybersecurity.

If there is one thing which is very high on the agenda, what has a very high priority with all banks is cyber resilience, yeah. We've already started a while ago, have clearly accelerated what we do in terms of cyber resilience, i.e., running all our software, all our products against the most modern frontier models.

This is not just a one-off, this is something we do on a recurring basis. You do basically with the most recent releases and then you go back with the older releases.

There is a lot of focus on this one, and this will continue. Yeah.

On the SaaS side, clearly as we know, we rely mainly on Amazon and Azure, clearly the investments they're doing on cyber resilience are also benefiting our customers. Clearly it's a high priority agenda, and we'll continue to invest there.

Great. Thank you so much.

Have a great night.

Hi, good evening. Just one for me.

It's about Q4. With the African deal signed, how much of the subscription and SaaS revenue required to meet the guidance is already contractually secured?

Is the remaining unsigned requirement more or less concentrated in large deals than it was entering 3Q? Thank you.

Hi, Josh. Okay.

There is, aside from this deal in Africa, there is obviously more that has already been signed this far in the month of October. I think this is, no, we're not going to give monthly guidances and monthly percentages.

Now, what we can say and appreciate that there was this one deal miss, but if you look at the Q4 '25 subscription and SaaS versus Q3 2025, there it sequentially increased by $53 million. If you look at our guidance now, which we have reconfirmed, the quarter-on-quarter increase is around $55 million, about the same.

Now, the difference is we didn't have any slips from Q3 to Q4 '25, but now clearly we had a large one. It makes actually the task, if you want, on a relative basis a bit easier.

Do we have more large deals Q4 '26 than Q4 '25? I would say in terms of percentage is a similar amount which we have in the forecast.

The pipeline obviously consists of a lot more larger deals, as we have been talking about since in Q2 already. The pipeline has a lot more large deals and a lot more new logo deals.

That's as much as we can say.

Thank you.

Yes. Good evening.

Thanks for taking my question. I just have one, please.

I was wondering if you could update us on your progress in converting the US pipeline into revenue, because obviously you announced a few nice deals in North America, but looking at the numbers, Americas as a region was down double digit in Q3 on subscription and SaaS. When do you think we should expect the US to drive meaningful subscription and SaaS revenue growth, please?

Thank you.

Yeah. Hi, Thomas.

Appreciate that it's not all visible what we sign. We signed four new logos in the US, and one big in Canada in Q3.

Now, these are all SaaS deals, i.e., they're visible in the ARR, but you see very limited revenue impact now in Q3. Obviously, you get one quarter of revenue in Q4.

Clearly we're seeing the good pipeline which we built over the last 12 months converting into sign deals. There is clearly more we expect from Q4 and also '27 and beyond.

I think this is yes, it could always be a bit faster, but that's where we are. What you see basically in the Americas, obviously, is the much larger swing is LatAm, yeah, because LatAm is still a predominantly on-prem business.

I think LatAm had an okay quarter, and this is what you see basically in the pie chart.

Got it. Thank you.

Thanks for listening and looking forward to catch up over the next days and weeks. Else, we talk in February.

Thank you.