Thought Machine surpasses $100m revenue milestone

By Milan Rojan

Thought Machine has surpassed $100 million in annual revenue, reporting a 57% year-on-year increase as demand for its cloud-native core banking and payments technology has continued to grow among tier 1 financial institutions.

Paul Taylor, Chief Executive Officer and Founder of Thought Machine, said: “Crossing the $100 million revenue threshold proves that the world’s largest banks are no longer thinking of cloud-native core technology as being solely for greenfield business; they are deploying it at scale for full bank migrations. We have established clear leadership in the tier 1 market because our platform properly fulfils the needs of banks at scale.”

The company has said its annual recurring revenue (ARR) has also exceeded $100 million, supported by multi-year commitments for large-scale core banking transformation programmes. Thought Machine has attributed the growth to increasing adoption of its Vault platform by global banks undertaking core modernisation initiatives.

The FinTech has said it now serves 68 banks across more than 30 countries, including 18 of the world’s largest financial institutions. According to the company, this has given it more core banking contracts with global tier 1 banks than all next-generation competitors combined.

Thought Machine has also reported achieving positive free cash flow, supported by its long-term contract model, which it said has established a clear path towards sustained operating profitability.

The company has outlined plans to expand investment across research and development, artificial intelligence and international growth. These initiatives have included opening a new engineering office in Lisbon, expanding its London engineering team, and establishing a new office in Miami to support growth across the Americas.

The company has said it will continue investing in AI capabilities to support core banking migrations, automate banking operations and enable new commerce models, while expanding its global footprint as financial institutions accelerate cloud-based transformation strategies.