Thought Machine reaches $100 million in revenue, postpones IPO to 2028.

      Most tech founders aim for higher valuations, but the leader of Thought Machine prefers to focus on revenue, which has recently hit a noteworthy milestone.

      The London-based core-banking firm has surpassed $100 million in annual revenue for the first time, according to tech.eu. It has also secured an additional £30 million ($41 million) from a "tier 1" bank, postponing any stock market listing until at least 2028. These figures are drawn from its latest financial results.

      Prioritizing revenue over valuation

      Thought Machine develops cloud software that manages key banking operations such as accounts, payments, and the underlying ledger. Banks pay a fee based on their usage of its Vault platform. In 2025, revenue increased by 57%, reaching $100 million in annual recurring revenue by mid-2026. The company also achieved positive free cash flow during the latter half of last year.

      Founder Paul Taylor remains notably unconcerned about the company's valuation, stating, “We are trying to put less emphasis on valuation and more emphasis on commercial success.” He did not provide a new valuation figure.

      Thought Machine was valued at $2.7 billion in 2022 and competes with other core-banking innovators like Starling’s Engine, Mambu, and 10x.

      A modest raise, a substantial client base

      The £30 million raise is relatively small by fintech standards and comes from a bank that is also a client. Many of its investors, which include Lloyds, ING, and Standard Chartered, are likewise customers. The company reports collaborating with 18 of the largest banks globally and has signed a total of 68. Investment in banking software continues to grow.

      While the progress is significant, it hasn’t come without challenges. Thought Machine reduced its losses from around £70 million to about £12 million during this period. Costs remained stable while revenue grew, bolstered by increasingly larger contracts. The firm has approximately 530 employees and intends to hire over 100 engineers in 2026, expanding in London and opening a new office in Lisbon.

      Which flag to fly?

      Despite being portrayed as a British champion, Thought Machine's revenue distribution is notably non-British. Only about 15% of its revenue originates from the UK, with the United States now its largest market, followed by Australia and Latin America, supported by offices in New York and Miami.

      This situation reflects on Taylor's plans for an IPO. He expresses a desire for the London stock market to recover, yet describes the current conditions as "difficult," given five years of stagnation. As such, any potential listing has been postponed until at least 2028, joining a lineup of European fintechs rumored to be going public.

      Others are holding off as well. Currently, Taylor believes that consistent revenue, rather than a flashy valuation, tells a better story, and that banks will evaluate suppliers in a similar manner.