Thought Machine says annual revenue has passed $100mn

Thought Machine said total revenue for the financial year ending December 2025 exceeded $100mn, a 57% increase from the prior year, citing its audited accounts. The cloud-native core banking and payments technology provider also said annual recurring revenue crossed the same threshold in the second quarter of 2026, supported by multi-year commitments linked to large bank migration projects.

The figures point to continued demand among major banks for replacement core systems, a costly and operationally sensitive area of technology spending. Thought Machine said its growth has been driven by contracts with tier 1 banks moving core banking workloads onto its Vault platform.

Annual recurring revenue, commonly used by software companies with subscription or long-term contract models, expresses recurring contracted revenue on an annualised basis. It differs from recognised revenue, which is booked under accounting rules as services are delivered, but it can indicate the scale and predictability of a vendor’s contracted run rate.

Thought Machine said its client base now includes 18 of the world’s largest financial institutions, which it described as more than 10% of the global tier 1 banking market. The company also said it has signed 68 banks globally and serves clients in more than 30 countries.

The company attributed the growth to wider use of its technology beyond new digital banking units. Paul Taylor, Thought Machine’s chief executive and founder, said the revenue milestone showed large banks were deploying cloud-native core systems for full-bank migrations, rather than only for greenfield businesses.

Thought Machine said it generated positive free cash flow in the second half of 2025. It also said long-term customer contracts give it a more predictable revenue base and a path toward sustained profitability, though it did not disclose net income or a timetable for reaching that target.

Investment plans

The company said it is putting capital into research and development, artificial intelligence tools and geographic expansion. It has opened an engineering office in Lisbon and said it is increasing headcount at its London headquarters, with plans to add more than 100 engineers in 2026.

Thought Machine said its AI work is focused on accelerating bank migrations, supporting agentic commerce and automating bank operations. It did not provide separate revenue figures for AI-related products or services.

The company is also expanding in the Americas. It said sales in the region reached a record level and that adoption of its Vault platform has grown in Latin America. Thought Machine has opened an office in Miami, adding to its regional headquarters in New York.

Core banking migrations are among the most complex technology projects in financial services because they involve deposit accounts, payments, customer records and regulatory controls. Vendors in the sector typically compete on system resilience, migration tooling, product flexibility and the ability to handle high-volume transaction processing for regulated institutions.

This story draws on original reporting from Finextra Research.