Operator: Ladies and gentlemen, welcome to the Temenos Q3 2026 Results Conference Call and live webcast. I am Sandra, the Chorus Call operator. I would like to remind you that all participants have been listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Takis Spiliopoulos, CEO, and Daniel Schmucki, CFO. Please go ahead, gentlemen.
Takis Spiliopoulos: 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 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 six, 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.
Takis Spiliopoulos: 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 2026, Europe performed particularly well, signing a number of deals, including with a global tier one bank for its international operations.
Takis Spiliopoulos: 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 one bank deal signed in APAC. I will cover more on additiv shortly. We delivered very good growth and 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 seven.
Takis Spiliopoulos: 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 two corporate bank, supporting their business as they continue their platform transformation. In the Middle East and Africa, we expanded an existing tier one relationship with additional modules to enhance transaction processing capability. We also saw good momentum in the US and Canada. In APAC, a tier one 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.
Takis Spiliopoulos: 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 scope.
Takis Spiliopoulos: 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.
Takis Spiliopoulos: They have been a Temenos customer for many years and choose 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.
Takis Spiliopoulos: 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 complements 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.
Takis Spiliopoulos: 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 efficiency. AI is increasingly supporting this, and we are seeing tangible productivity benefits across our corporate, product, and technology functions. We remain focused on the 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.
Daniel Schmucki: 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.
Daniel Schmucki: 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.
Daniel Schmucki: 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 offsets the increase in net 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%.
Daniel Schmucki: 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.
Daniel Schmucki: As we announced on 12 August, we launched a new share buyback program of up to CHF 100 million 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.
Daniel Schmucki: 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?
Operator: Yes, sure. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume of the webcast when asking a question. Please limit yourself to one question per person. Anyone with a question may press star and 1 at this time. Our first question comes from Toby Ogg from JPMorgan. Please go ahead.
Toby Ogg: Yeah. Hi, good evening. Thanks for the question. Perhaps just on the subscription and SaaS. So yeah, the indication was for at least 30%. We have 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? Just one more, just on the BNPL headwind. You mentioned subscription and SaaS would have been 30% ex the BNPL headwind, so an 8-point headwind versus the 22% growth. I think the indication had always been that the BNPL headwind would be for 5% for 2026. So could you just help us understand why that was larger in Q3. Thank you.
Takis Spiliopoulos: Yeah. Hi, Toby. Thanks for the question. On your first one, yes, it was the one deal that drove the difference. As we said, without that issue, we would have been comfortably ahead of what we had guided. Now, what happened, and clearly you appreciate those large deals are sometimes a bit difficult to predict in terms of timing. So there were last-minute complications, let's say, on the legal side and some logistical challenges, which basically drove this a few days into October. That was very unfortunate, but that was the only one. It was a very large deal, as you can see from the delta. Now, on the BNPL one, what we said is the impact is 5% on a full-year basis.
Takis Spiliopoulos: Clearly, given its 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. For the full year, it remains. Clearly for the full year, the delta will be the smallest one.
Toby Ogg: That's great. Thank you.
Operator: The next question comes from Laurent Daure from Kepler Cheuvreux. Please go ahead.
Laurent Daure: Yes, thank you. Good evening, gentlemen. I have two questions. The first is for Daniel. You have been on the job now, I think, for 3 months as a CFO. If you could share your first feeling on Temenos, if you are happy with the reporting tools that you have found when you joined the company, and if you see areas of improvement on the financial side. My second question is more for you, Takis. Basically, you are going to deliver better profitability on roughly unchanged revenue from what you were expecting earlier in the year. So what has driven the reduced cost expenses during the year that gets to a bit on the profitability side? Thank you.
Daniel Schmucki: 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 am very convinced that I can bring in my experiences as a former CFO of other large and complex multinational organization.
Daniel Schmucki: 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, et cetera, and so on. Continuous improvement is a part of my DNA, and I will certainly contribute towards that direction also here at Temenos.
Takis Spiliopoulos: 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 people apply, managers apply the, what we call the self-funding principle, which we have been embedding, that clearly shows very good results. It is also we are now seeing tangible productivity gains from AI. Also we continue to automate a lot of processes across the business, and this drives additional efficiency gains. This is without having any impact on investing.
Takis Spiliopoulos: Actually, on the contrary, some of those efficiency gains are reinvested in our strategic roadmap. Clearly there is a very disciplined approach. So overall, if you split the roughly EUR 12 million increase in EBIT, you have maybe EUR 2 million, EUR 3 million coming from maintenance and services and the remaining EUR 8 million, EUR 9 million really from AI and automation efficiencies. This is something which is sustainable. So the upside basically flowing into the EBIT guidance for the full year.
Laurent Daure: Okay, great. Thank you.
Operator: The next question comes from Charlie Brennan from Jefferies. Please go ahead.
Charlie Brennan: Great. Thanks very much for taking my question. I will 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? Secondly, maybe for you, Daniel, can you talk about whether you are revisiting any of the disclosures that you are providing the market? I guess the topics that investors are debating are things like capitalized R&D that I see ticked up slightly in the quarter, the treatments of share-based payments, and maybe revenue recognition around subscription revenue.
Charlie Brennan: Are all of these up for debate, or are you thinking about completely different issues? Thank you.
Takis Spiliopoulos: Hi, Charlie. Yes, you are allowed two questions. First, on the competitive environment. We are aware of the one competitor, is not really a competitor because we have not really squared up with them any time, even 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 maybe Intellect to a certain extent being most prominent. In the US, it is still the two incumbents, FIS and Fiserv. The few times we squared off against new vendors, but they were a few times, obviously, we did not see any impact there.
Takis Spiliopoulos: Mostly, we do not see them on the shortlist. Now, I will 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 the capitalized development. The net impact, the slight increase you have seen, this is just coming from inclusion of additiv and nothing special, no change in policy to read in.
Daniel Schmucki: 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. My focus is more on how we can drive the finance function to be a good partner on the business.
Charlie Brennan: Great. That sounds like no change then. Perfect. Thank you.
Operator: The next question comes from Mark Hyatt from Morgan Stanley. Please go ahead.
Mark Hyatt: Hi, Takis. Hi, Daniel. Thanks for having me on. I will continue the tradition and ask two questions if that is 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 have reiterated, the delta between EBIT growth and revenue growth is expected to narrow. You have talked a lot about AI savings and efficiency benefits. Could you just help us understand why we should not expect operating leverage to continue beyond FY26 at a similar pace that it has been? Or are you expecting increased investments over the medium term? Then maybe a more longer-term question, perhaps. One of the things we have been hearing from perhaps other vendors in the enterprise software space is AI simplifying implementations, migrations, and upgrades.
Mark Hyatt: 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 is the evidence of that if you are seeing that? Thanks.
Takis Spiliopoulos: Hi, Mark. Yeah, happy to take the two questions. First one, clearly we are 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 is 1%. Clearly there are a lot of opportunities around workforce productivity and in general, a lot more tighter management in terms of the discretionary spend, and a lot of things you simply do not 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.
Takis Spiliopoulos: You can actually almost keep your cost flat or just increasing slightly, then the revenue growth will drive a lot of margin improvement. 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. On the AI-enabled or AI-assisted implementation, you are spot on. We started already late last year, but especially this year, trying to almost industrialize this process. We have built a lot of agents ourselves and also with partners who are trialing both AI-enabled deployments or installing new software, as well as upgrading existing customers from an older release to a newer one with AI agents running a number of POCs. It is helping. The numbers we are getting, it is already quite exciting.
Takis Spiliopoulos: I think we will still need some time to get this to an industrial grade, but we would expect if you shorten implementation times, it will drive down ROI. Then it will help definitely accelerate the demand side. It is still one of the biggest hurdles for many banks to embark, is the cost of implementation, not so much the cost of the software. Yeah, it is happening. Same what you see from other enterprise vendors.
Mark Hyatt: It is very clear. Thank you very much.
Operator: The next question comes from Sven Merkt from Barclays. Please go ahead.
Sven Merkt: Hi. Good evening. Thank you for taking my questions. I guess I am asking 2 as well. You have talked about expanding your large deal execution capabilities to improve consistency. Can you just elaborate a bit further on what specifically needs to change operationally and how long it will take you to build out these capabilities? Secondly, on the net capitalization increase. As this was driven by the inclusion from additiv, can we just extrapolate the Q3 run rate to Q4, and how should we think about 2027?
Takis Spiliopoulos: Hi, Mark. Yes, happy to take your 2 questions. Maybe on the cap-dev first. I think the Q2 number, which was basically zero, had a bit of a one-off in there. I think the run rate clearly is lower than what we had in Q2. I think for Q4 may be similar, it would be appropriate. I think for 2027, we would expect the net cap-dev to grow much less than revenue or R&D. I think we are trying to keep this as flat as possible, maybe even going slightly down over future years. 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 is on the people side, and you do not need hundreds of them.
Takis Spiliopoulos: It is 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, very sophisticated monitoring system in place where you also get AI help. Where basically AI, the agents can tell you if a deal is not tracking according to plan. So you can interfere and try to solve it and bring it back on track. So a lot of AI-supported processes, and stronger people on this one, which hopefully will prevent from this happening again.
Sven Merkt: Very helpful. Thank you.
Operator: The next question comes from Justin Forsythe from UBS. Please go ahead.
Justin Forsythe: 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 have 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.
Justin Forsythe: I want to understand a little bit around the timelines associated with the S&S guidance, because I believe the S&S guidance has stayed unchanged at 9% constant currency from the beginning of the year. But I believe additiv is now captured within that 9%. I understand that you have guided it to a "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 is marginal, but just would like to understand the moving pieces there. Thank you very much.
Takis Spiliopoulos: Hi, Justin. Take the second one first. It is really a rounding. It is marginal, and it is. 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, we will reflect that when we issue 2027 guidance and the midterm targets in February. Now, the other one is quite interesting, and clearly we have been watching what is happening out there. Now, one of the things, some of the savings we are getting across the business is also being reinvested broadly in two areas. One is a lot about product, as we said, accelerating the roadmap, intelligent delivery with AI assistance.
Takis Spiliopoulos: Another area is corporate IT and cybersecurity. If there is one thing which is very high on the agenda, which has a very high priority with all banks, is cyber resilience.
Takis Spiliopoulos: We have already started a while ago, have clearly accelerated what we do in terms of cyber resilience, 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 what with the most recent releases, then you go back with the older releases. There is a lot of focus on this one, and this will continue. On the SaaS side, clearly, as we know, we rely mainly on Amazon and Azure. Clearly the investments they are doing on cyber resilience are also benefiting our customers. Clearly it is a high priority agenda and we will continue to invest there.
Justin Forsythe: Great. Thank you so much. Have a great night.
Operator: The next question comes from Josh Levin from Autonomous Research. Please go ahead.
Josh Levin: Hi, good evening. Just one for me. It is 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 Q3? Thank you.
Takis Spiliopoulos: 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, we are not going to give monthly guidances and monthly percentages. What we can say and appreciate that what this one deal missed. If you look at the Q4 2025 subscription and SaaS versus Q3 2025, there it sequentially increased by CHF 53 million. If you look at our guidance now, which we have reconfirmed, the quarter-on-quarter increase is around CHF 55 million, about the same. The difference is we did not have any slips from Q3 to Q4 2025, but now clearly we had one, a large one. It makes actually the task, if you want on a relative basis, a bit easier.
Takis Spiliopoulos: Do we have more large deals Q4 2026 than Q4 2025? I would say in terms of percentage, it 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 this Q2 already, the pipeline now has a lot more large deals and a lot more new logo deals. That is as much as we can say.
Josh Levin: Thank you.
Operator: The last question for today's call comes from Thomas Poutrieux from BNP Paribas. Please go ahead.
Thomas Poutrieux: 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.
Takis Spiliopoulos: Yeah. Hi, Thomas. Appreciate that it is not all visible what we sign. We signed four new logos in the US and 1 big in Canada in Q3. These are all SaaS deals, i.e., they are visible in the ARR, but you see very limited revenue impact now in Q3. Obviously, you get 1 quarter of revenue in Q4. Clearly we are seeing the good pipeline, which we built over the last 12 months, converting into signed deals. There is clearly more we expect from Q4 and also 2027 and beyond. I think this is. Yes, it could always be a bit faster, but that is where we are. What you see basically in the Americas, obviously, is the much larger swing is LATAM. Yeah.
Takis Spiliopoulos: Because LATAM is still a predominantly on-prem business, so I think LATAM had an okay quarter, and this is what you see basically in the pie chart.
Thomas Poutrieux: Okay, got it. Thank you.
Operator: Ladies and gentlemen, this concludes today's question and answer session. I would now like to turn the conference back over to Takis for any closing remarks.
Takis Spiliopoulos: Thanks for listening and looking forward to catch up over the next days and weeks. Else, we talk in February. Thank you.
Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
