Thought Machine Reaches $100M Revenue and Delays IPO to 2028
Thought Machine, the London core-banking firm, has crossed a significant milestone: achieving $100 million in annual revenue and ARR (Annual Recurring Revenue). Additionally, they secured a fresh £30m ($41m) investment from a leading bank that is also one of their clients, further strengthening their position. As a result, the company has delayed its planned initial public offering (IPO) to at least 2028.
A Focus on Revenue Over Valuation
Founder Paul Taylor emphasizes a shift in priorities, preferring to discuss revenue growth and commercial success rather than company valuation. Thought Machine builds cloud software for banks, managing accounts, payments, and ledgers. This approach has resulted in a 57% revenue increase in 2025 and crossed the $100m mark in mid-2026.
A Diverse Client Base
The company boasts relationships with 18 of the world’s largest banks, signing 68 agreements total. Many of these backers are also direct clients, including Lloyds, ING, and Standard Chartered. Despite a reduction in losses from £70m to £12m, Thought Machine’s sales team continues to expand, aiming to add over 100 engineers in 2026 across London and a new Lisbon office.
A Global Presence
While often considered a British champion, only 15% of Thought Machine’s revenue originates from the UK. The United States is its largest market, followed by Australia and Latin America. This global reach influences their IPO plans, as Paul Taylor describes the current market conditions as "difficult" after a prolonged period of stagnation.
A Steady Growth Strategy
For now, Taylor prioritizes steady revenue growth over a high-profile IPO. He believes banks will evaluate suppliers based on consistent performance rather than just valuation. This strategic approach positions Thought Machine for long-term success in the fintech industry.