Sapiens International Corporation (NASDAQ:SPNS) delivered third-quarter results that beat revenue expectations on Thursday, fueled by accelerating demand in North America and continued expansion across emerging markets, while earnings landed in line with analyst projections.
The insurance software provider reported adjusted EPS of $0.36, matching Wall Street estimates. Quarterly revenue rose 11.2% year over year to $152.3 million, ahead of the consensus estimate of $147.89 million.
“In the third quarter of 2025, we continued to execute on our strategic priorities, securing new deals and strengthening customer relationships globally,” said Roni Al-Dor, President and CEO of Sapiens. “All our top geographic markets grew in the quarter, led by double digit expansion in North America and Rest of the World.”
Annualized recurring revenue climbed to $220 million, up 26.7% from a year earlier — with 17.5% attributed to organic growth and 9.2% to recent acquisitions.
North America remained the standout region, with revenue rising to $64.3 million from $55.8 million last year. Europe posted growth as well, increasing to $71.8 million from $69.3 million, while revenue from other regions advanced to $16.2 million compared with $12 million in the prior-year quarter.
Despite the solid top-line gains, Sapiens saw its adjusted operating margin narrow to 16.7%, down from 18.3% a year earlier, reflecting higher costs tied to the company’s expansion initiatives.
Sapiens is currently in the process of being acquired by private equity firm Advent, which agreed to buy the company for $43.50 per share in cash, valuing the deal at roughly $2.5 billion. Announced in August, the transaction is expected to close in the coming months.