Banking software provider Temenos reported fourth-quarter revenue of $318.9 million, a 7% increase from the previous year, according to a company announcement.

Unaudited figures indicate that adjusted operating profit (EBIT) improved by 18% to $120.0 million, raising the operating margin to 37.6% from 34.0% the previous year. Software licensing revenue grew by 9% in the quarter to $168.2 million, while free cash flow surged 25% to $141.7 million.

Benefiting from a Stable Sales Environment

«We benefited from a stable sales environment, particularly in subscription license contracts and SaaS ACV (Software as a Service Annual Contract Value),» said CEO Jean-Pierre Brulard. «Both are critical for ARR (Annual Recurring Revenue) growth and provide visibility into future cash flows.»

Brulard emphasized that consistent execution of the new strategy introduced in November has been key to these results, with a strong focus from the executive team.

Full-Year Results Show Growth

For the full year, Temenos reported revenue of $1.04 billion, up 4%, while recurring revenue rose by 10% to $804.2 million. EBIT grew by 13% to $354.6 million, achieving a margin of 34.0%, compared to 31.3% in the prior year. The complete annual results will be published on February 18.

Rebuilding Trust

Since taking over as CEO in May 2024, Brulard has scaled back the company’s medium-term growth targets and announced new investments. Additionally, the product portfolio was streamlined, with a renewed focus on recurring revenue through new offerings.

The company faced turbulence following allegations of revenue manipulation by U.S.-based short-seller Hindenburg Research. These latest results signal progress in restoring trust and driving sustainable growth.