Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

<ul>
<li>Temenos has dismissed CEO Jean-Pierre Brulard after 16 months, despite progress under his leadership. CFO Panagiotis Spiliopoulos has been appointed interim CEO while a search for a successor is underway.   </li>
<li>The company’s repeated reliance on CFOs to fill CEO roles and failure to retain or promote internal candidates from sales or product functions highlight structural weaknesses in leadership succession planning.   </li>
<li>Although Temenos’ strategic plan is in place and early results are positive, the leadership instability has reignited investor concerns—reflected in a c. 15% share price drop.</li>
</ul>


Temenos has dismissed CEO Jean-Pierre Brulard after 16 months, despite progress under his leadership. CFO Panagiotis Spiliopoulos has been appointed interim CEO while a search for a successor is underway.   
The company’s repeated reliance on CFOs to fill CEO roles and failure to retain or promote internal candidates from sales or product functions highlight structural weaknesses in leadership succession planning.   
Although Temenos’ strategic plan is in place and early results are positive, the leadership instability has reignited investor concerns—reflected in a c. 15% share price drop.


Temenos (TEMN SW): Structural Senior Leadership Issue

Research Analyst, AlphaBox Advisors

Vijay Lohia, CFA

Research Analyst

Value-Investing Philosophy and Bottom-up Approach

AlphaBox Advisors

At AlphaBox, our recommendations are sector and country agnostic and diversified by market cap. We follow value-investing philosophy and pursue a bottom-up approach to recommending stocks that has a good risk-reward profile and potential to generate market-beating returns, which in some cases would be complemented with an attractive dividend yield. Our recommendations fall into the following two broad categories: (i) Long-term Compounders – Global Markets (ii) EM and FM Alpha

Event-Driven

<ul>
<li>Overall, the sentiments are extremely negative with most sell-side analysts having a Sell/Neutral rating on the stock.</li>
<li>We believe either A) Revenue and earnings growth will pick up under the new management team, or B) Temenos will be taken over by some private equity firm.</li>
<li>While revenue growth has remained subdued, the company’s moat remains intact in our view.</li>
</ul>


Overall, the sentiments are extremely negative with most sell-side analysts having a Sell/Neutral rating on the stock.
We believe either A) Revenue and earnings growth will pick up under the new management team, or B) Temenos will be taken over by some private equity firm.
While revenue growth has remained subdued, the company’s moat remains intact in our view.


Temenos (TEMN SW): World's No.1; Improving Fundamentals; M&A Candidate

<ul>
<li>The sale of Multifonds at a low EV/EBIT multiple of 8.0x reflects Montagu's use of a higher multiple based on adjustments to EBITDA, pointing out modest free cash flow contribution.   </li>
<li>Considering the sale, Temenos revised 2028 targets, reducing ARR, operating profit, and free cash flow projections accordingly. Investors are looking for more transparency on how these changes affect operating margin.   </li>
<li>Temenos’ shift from total software licensing breakdowns to a unified subscriptions/SaaS line, alongside complex revenue recognition rules, adds to investor uncertainty about how to assess the future revenue structure.</li>
</ul>


The sale of Multifonds at a low EV/EBIT multiple of 8.0x reflects Montagu's use of a higher multiple based on adjustments to EBITDA, pointing out modest free cash flow contribution.   
Considering the sale, Temenos revised 2028 targets, reducing ARR, operating profit, and free cash flow projections accordingly. Investors are looking for more transparency on how these changes affect operating margin.   
Temenos’ shift from total software licensing breakdowns to a unified subscriptions/SaaS line, alongside complex revenue recognition rules, adds to investor uncertainty about how to assess the future revenue structure.


Temenos (TEMN SW): Trying to Solve the Modelling Puzzle

Thematic (Sector/Industry)

<ul>
<li>In Q2 2025, European software firms—particularly small caps—experienced a slowdown in revenue growth due to geopolitical uncertainty and US tariffs, while large-cap players remained resilient and even accelerated growth.   </li>
<li>US software continued to outperform European peers, with strong momentum driven by AI, cybersecurity, and digital banking, but growth is stabilising below the high levels of the low-interest rate era.   </li>
<li>Software M&amp;A is recovering strongly in 2025, with USD 111bn in deals closed year-to-date—driven mainly by strategic buyers. Private equity remains active, particularly in Europe, though below historical peaks.</li>
</ul>


In Q2 2025, European software firms—particularly small caps—experienced a slowdown in revenue growth due to geopolitical uncertainty and US tariffs, while large-cap players remained resilient and even accelerated growth.   
US software continued to outperform European peers, with strong momentum driven by AI, cybersecurity, and digital banking, but growth is stabilising below the high levels of the low-interest rate era.   
Software M&amp;A is recovering strongly in 2025, with USD 111bn in deals closed year-to-date—driven mainly by strategic buyers. Private equity remains active, particularly in Europe, though below historical peaks.


European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

<ul>
<li>Software companies see a slow improvement in revenue growth, with Europe narrowing the performance gap. However, growth remains below post-lockdown levels, and a return to high double-digit rates is unlikely.  </li>
<li>The best-performing vendors are those focused on defence, large-scale data handling, AI infrastructure, cybersecurity, financial services digitisation, and modern accounting platforms. US firms still lead in absolute growth numbers.   </li>
<li>While the number of software M&amp;A deals above USD 200m has declined, total deal value is on track for a record year in 2025, driven primarily by strategic acquirers.</li>
</ul>


Software companies see a slow improvement in revenue growth, with Europe narrowing the performance gap. However, growth remains below post-lockdown levels, and a return to high double-digit rates is unlikely.  
The best-performing vendors are those focused on defence, large-scale data handling, AI infrastructure, cybersecurity, financial services digitisation, and modern accounting platforms. US firms still lead in absolute growth numbers.   
While the number of software M&amp;A deals above USD 200m has declined, total deal value is on track for a record year in 2025, driven primarily by strategic acquirers.


European Software: Q1 2025 Takeaways – Gradual Improvement

Switzerland

Temenos AG provides integrated software solutions. The Company offers analytics, channels, financial crime mitigation, funds and securities, risk and compliance, and front office and digital banking suits for the management of administrative tasks at banks and financial services companies. Temenos operates worldwide.

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Temenos AG (TEMN SW)

Temenos (TEMN SW): Structural Senior Leadership Issue

Temenos dismisses CEO after 16 months, appoints CFO as interim CEO, highlighting weaknesses in leadership succession planning and causing investor...

Gregory Ramirez

Temenos (TEMN SW): World's No.1; Improving Fundamentals; M&A Candidate

World's No.1 Banking Software giant available at attractive valuations. With recent management changes, either earnings growth will pick up, or it...

Vijay Lohia, CFA

Temenos (TEMN SW): Trying to Solve the Modelling Puzzle

Montagu's sale of Multifonds at low multiple prompts Temenos to revise targets, causing investor uncertainty over revenue structure and operating...

Gregory Ramirez

European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Gregory Ramirez

European Software: Q1 2025 Takeaways – Gradual Improvement

Software companies in Europe are closing the revenue growth gap with the US. M&A deals above $200m are declining, but total deal value is set for...

Gregory Ramirez

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Temenos (TEMN SW): Structural Senior Leadership Issue

​Temenos dismisses CEO after 16 months, appoints CFO as interim CEO, highlighting weaknesses in leadership succession planning and causing investor...

Gregory Ramirez

Temenos (TEMN SW): World's No.1; Improving Fundamentals; M&A Candidate

World's No.1 Banking Software giant available at attractive valuations. With recent management changes, either earnings growth will pick up, or it...

Vijay Lohia, CFA

Temenos (TEMN SW): Trying to Solve the Modelling Puzzle

​Montagu's sale of Multifonds at low multiple prompts Temenos to revise targets, causing investor uncertainty over revenue structure and operating...

Gregory Ramirez

European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

​European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Gregory Ramirez

European Software: Q1 2025 Takeaways – Gradual Improvement

​Software companies in Europe are closing the revenue growth gap with the US. M&A deals above $200m are declining, but total deal value is set for...

Gregory Ramirez

Temenos dismisses CEO after 16 months, appoints CFO as interim CEO, highlighting weaknesses in leadership succession planning and causing investor...

Montagu's sale of Multifonds at low multiple prompts Temenos to revise targets, causing investor uncertainty over revenue structure and operating...

European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Software companies in Europe are closing the revenue growth gap with the US. M&A deals above $200m are declining, but total deal value is set for...