Q2 2026 Temenos AG Earnings Call Transcript
Key Points
- Temenos AG (TMNSF) reported a strong start to Q3 2026 with a robust pipeline of large and new logo deals, expecting subscription and SaaS revenue to grow at least 30% year-on-year.
- The company successfully signed the majority of slipped subscription and SaaS revenue deals in the first three weeks of Q3 2026, including significant deals with major banks in Europe.
- APAC region performed particularly well, securing a large new logo in the ASEAN region and multiple deals with existing customers.
- Temenos AG (TMNSF) continues to execute on its strategic roadmap, making investments in core banking expertise and closing the acquisition of additiv to strengthen its wealth proposition.
- The company achieved strong double-digit growth in free cash flow, reflecting solid financial management and operational leverage.
- A small number of large and new logo deals were delayed at the end of Q2 2026, primarily in Europe, impacting subscription and SaaS revenue.
- Subscription and SaaS revenue declined by 13% in Q2 2026 and 4% in H1 2026 due to the delayed deals.
- Product revenue declined marginally year-on-year in Q2 2026, despite a healthy 6% growth in H1 2026.
- The company's cost base was broadly flat in Q2 2026, with an increase in fixed costs offset by lower variable cost accruals.
- There was a deceleration in ARR growth compared to Q1 2026, with ARR growing 11% to reach $881 million at the end of the quarter.
Ladies and gentlemen, welcome to the Temenos Q2 2026 results conference call and Live Webcast. I am Moira, the Chorus Call operator. (Operator Instructions) The conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Takis Spiliopoulos, CEO and Interim CFO. Please go ahead.
Good afternoon, good evening. Thank you for joining our Q2 '26, results call. As usual, I will talk you through our key performance and operational highlights for the quarter before updating you on our financial performance. Starting on slide 6. We had a strong start to the quarter and a stable sales environment throughout.
However, we saw a small number of mainly large and new logo deals timed out at the end of the quarter. Most of these deals were in Europe. Importantly, none of these deals have been lost. We have also been able to sign the majority of the slipped
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