Half Year 2025 Adyen NV Earnings Call

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Hello, everyone welcome to <unk> H 120, 25 earnings call. My name is Isaac Lima, and together with my colleague Maggie O'donnell, we cover Investor relations here at IGN.

I will be facilitating a short discussion about our business progress and our financial results with our co CEO Ingo and our CFO Ethan.

After that Maggie will take over for a Q&A session. If you would like to ask a question. Please use the raise hand functionality at the bottom of your screen and when we call on you and on mute. Your line. Please state your full name and the firm you represent before asking your question.

With that let's get started.

Ingo, let's start a little bit broad when you look back at 2025 is the first half of the year. What are your main takeaways. Thanks, Isaac and thanks, everyone for joining the call today. When we look at 2025. Our main objective was to increase the share of wallet with our customers and win new customer logos to our platform.

We look at the execution of this we are very happy with the results. So far we continue to increase the share of wallets in multiple multiple verticals and geographies and at the same time that is the case for the logos that we that we have won both in the enterprise section as platforms.

Speaker #1: 25th, our main objective was to increase the share of wallet with our customers and win new customer logos to our platform. And if we look at the execution of this, we are very happy with the results so far.

Speaker #1: We continue to increase the share of wallet in multiple verticals and geographies, and at the same time, that is the case for the logos that we have won both in enterprise section as platforms.

That's very positive those would've had some negative impact of what's happening around us are in the macro world.

The strong euro or the weak dollar. However, you look at it impacted our results and the fact that the tariffs impact that some of our merchants. So specifically the merchant's base in APAC that we're trading into the USA were impacted by days and this also had impact on our numbers same time, it's also an opportunity for us.

Speaker #1: So that's very positive. We also had some negative impact of what's happening around us. So in the macro world, the strong euro or the weak dollar, however you look at it, impacted our results and the fact that the tariffs impacted some of our merchants.

And that's also how we always look at new things have changed around us that we can't control.

Speaker #1: So specifically, the merchants based in APAC that were trading into the U.S. were impacted by this, and it has also had an impact on our numbers.

And we can help those merchants to go into new markets and that's of course, the benefits of a single platform.

Speaker #1: At the same time, it's also an opportunity for us. And that's also how we always look at new things that change around us that we can't control.

So looking back and also looking at the main themes with our customers. We're focusing at three big things that are important to our customers at the moment. The first is to make sure that we continue to help them increase their authorization rates at the lowest cost and the lowest fraud rates very important topic, the second topic that.

Speaker #1: And we can help those merchants to go into new markets, and that's, of course, the benefit of a single platform. So looking back and also looking at the main themes with our customers, we're focusing at three big things that are important to our customers at the moment.

We invest a lot of time and together with our customers is making sure. They can enter into new geographies. The APEC merchants as an example, but that's of course, a broader theme for our customers and then thirdly, how we can help that forms to be become a financial technology players how they can offer financial products based on our infrastructure.

Speaker #1: The first is to make sure that we continue to help them increase their authorization rates at the lowest cost and the lowest fraud rates.

Speaker #1: Very important topic. The second topic that we invest a lot of time in together with our customers is making sure they can enter into new geographies.

Speaker #1: The APAC merchants as an example, but that's, of course, a broader theme for our customers. And then thirdly, how we can help platforms to become a financial technology player.

To be successful in this space and if I take this all together I am very pleased where we are with this first half year, we're executing in line with our plans and that's what we're also going to do in the second half of this year.

Speaker #1: So how they can offer financial products based on our infrastructure to be successful in this space. And if I take this all together, I'm very pleased where we are with this first half year.

Thanks angle no Ethan clearly a lot has happened in this first half of the year can you help us understand how that played out in our numbers, yes sure. So as Ingo mentioned it was a resilient first half of growth for us this year.

Speaker #1: We're executing in line with our plans. And that's what we're also going to do in the second half of this year. So you're.

Speaker #2: Thanks, Ingo. Now, Ethan, clearly a lot has happened in this first half of the year. Can you help us understand how that played out in our numbers?

Ultimately our net revenues grew to around $1 1 billion euros or 21% growth on a constant currency basis.

Speaker #1: Yeah, sure. So as Ingo mentioned,

Speaker #3: it was a resilient first half of growth for us this year. Ultimately, our net revenues grew to around 1.1 billion euros or 21% growth on a constant currency basis.

Our growth would have been one percentage point lower on a reported basis.

You look at where that growth is driven from the biggest part continues to come like it has in past years from expanding share of wallet with our existing customers.

Speaker #3: Our growth would have been 1 percentage point lower on a reported basis. If you look at where that growth is driven from, the biggest part continues to come, like it has in past years, from expanding share of wallet with our existing customers.

That's a strong trend for us as we continue to grow also in the years ahead.

At the same time, we also were able to add new wins are new customers to the platforms, which will be supportive to that growth again.

Speaker #3: That's a strong trend for us as we continue to grow also in the years ahead. At the same time, we also were able to add new wins.

The part of our growth, which was lower than what we had expected coming into this year as the growth of our own customer base as.

As we had referenced previously.

Speaker #3: New customers to the platforms, which will be supportive to that growth again. The part of our growth which was lower than what we had expected coming into this year is the growth of our own customer base as we had referenced previously.

When we look at it from a regional perspective, we saw that EMEA was our fastest growing region at 21% closely followed by North America at 20% growth this half year.

Speaker #3: When we look at it from a regional perspective, we saw that EMEA was our fastest growing region at 21%, closely followed by North America, at 20% growth this half year.

When we look at EBITDA EBITDA grew 28% this half year, which brought EBITDA margins up to 50% as we're seeing the operating leverage of our business model continues to kick in even as we continue to invest in the team at the same time.

Speaker #3: When we look at EBITDA, EBITDA grew 28% this half year, which brought EBITDA margins up to 50% as we're seeing the operating leverage of our business model continue to kick in, even as we continue to invest in the team at the same time.

And so ultimately it was a strong resilient half year of growth for us so far.

Thanks, Ethan you of course mentioned our regions can you also had a little bit of color to the performance of the business developments that we've seen across our three pillars. In this first half of the year, Yeah happy to.

Speaker #3: And so ultimately, it was a strong resilient half year of growth for us so far.

Speaker #2: Here, thanks Ethan. You, of course, mentioned our regions. Can you also add a little bit of color to the performance or the business developments that we've seen across our three pillars in this first half of the year?

Starting with digital digital in the first half grew 10% in net revenues.

That was again.

Driven by slower growth from APAC headquartered online retailers at the same time, we're also seeing strength in verticals that we've seen past strengthened as well verticals like.

Speaker #3: Yeah, happy to. Starting with digital, digital in the first half grew 10% in net revenues. That was again driven by slower growth from APAC headquartered online retailers at the same time we're also seeing strength in verticals that we've seen past strength in as well.

Content and subscription delivery mobility, they continued to perform well not only as verticals, but also across various regions that we're operating in.

Speaker #3: Verticals like content and subscription, delivery and mobility, they continue to perform well. Not only as verticals, but also across various regions that we're operating in.

If you look at unified Commerce Unified Commerce grew net revenues, 31% in the first half.

That's driven by continued strength in our <unk> or our retail group of customers, but also in the verticals that we've been growing into over past years verticals like food and beverage like hospitality like entertainment.

Speaker #3: If you look at unified commerce, unified commerce grew net revenues 31% in the first half, that's driven by continued strength in our retail group of customers, but also in the verticals that we've been growing into over past years: verticals like food and beverage, like hospitality, like entertainment.

We're diversifying our customer base within unified Commerce, and we continue to see the benefits of that in our net revenue growth from the first half.

Platforms was growing 55% in the first half that's fastest growing of our of the pillars that.

Speaker #3: We're diversifying our customer base within unified commerce, and we continue to see the benefits of that in our net revenue growth from the first half.

Mostly driven by vertical SaaS platforms.

We now are up to 32 platforms, who are processing over 1 billion euros annually with us as as we continue to grow in that space.

Speaker #3: Platforms was growing 55% in the first half. That's the fastest growing of the pillars. That's mostly driven by vertical SaaS platforms. We now are up to 32 platforms who are processing over a billion euros annually with us, as we continue to grow in that space.

It's of course important for our customers that we support them and embedding payments and that's where you see this growth coming from at the same time. We're also seeing traction as we develop financial products and help our customers grow into broader financial.

Speaker #3: It's, of course, important for our customers that we support them in embedding payments, and that's where you see this growth coming from. At the same time, we're also seeing traction as we develop financial products and help our customers grow into broader financial technology providers themselves.

Financial technology providers themselves.

Thanks, Ethan maybe let's go back to angle for a little bit Ingo you mentioned earlier about our continued investment to innovation.

Which is of course, a very important topic in the industry right. Now can you give us a few examples of how we approach innovation at origin.

Absolutely. So if you think about how we approach to market, we want to take full control over the infrastructure. We have made heavy investments in the infrastructure that we've built over the years and that's rage ranging from how we operate our own.

It infrastructure to the license is definitely hold so having banking licenses in Europe U S. UK helps us to build the products that are most relevant to our customers and our customers are very forward looking customers are they what they're looking for is for instance, also to move money around the world at the lowest cost.

Because we have these licenses we are capable of doing this we have direct access to the clearing so for us it's very easy to be efficient here.

And at the same time I think an important part of our philosophy is always to move quickly when new things emerge and I think stable coins. As an example here I think stable coins will help to also move money around quickly.

And so it's very similar in line with the things that we want to achieve as a company. So if deptford horizon merchants see the need for it in the markets that are active we will certainly start to offer it and move quickly.

Now I'd like to say on the topic of innovation for just a little bit longer. If you don't mind can you give us some specific examples of things that we have already built as a result of demand from our customers.

Yeah. So we have built for instance, and challenge of payment routing or Adrienne uplifts are both products that we launched in the second half of last year and we have seen high uptake. Since so these are very successful products. If we look at uplift for instance, this exactly caters to the needs that our.

Alluding to in the introduction.

Where we want to optimize authorization rates with costs and fraud and since the pilots the uptake of this product has been phenomenal.

One thing that customers really appreciate in this product as it is a full funnel approach.

Taking all of these matters into account and then come with the best solution instead of what legacy systems do and typically take these different optimizations separately.

One of the sub four products in uplift is protect and to give a bit of a flavor of how successful. It is like two thirds of our customers in the first half that started with us have implemented protect from the beginning so I think we are in a very strong position here.

To help them to.

<unk> be successful in this space.

That's good to hear and indeed, very good signs that our products are resonating with our customers.

Now another topic Thats also generating quite some bus in the industry is the use or the rise of autonomous agents, especially within online commerce.

<unk> playing a role in this shift.

Absolutely so of course that agenda commerce that you're referring to is in its early days, but it is promising and we're tracking it closely to see how we can best help our merchants to adopt it when its ready and when it's there. So one of the things that we do is we look carefully with our customers.

How we can best help them. So how should the product look like and how can we get to the best experience and if you look at our platform. Our single platform globally. We have a couple of components in our platform that already are catered for this journey. So we have authentication. We have tokenism mission. We are a very good for all system.

And packaging this with the new needs of our merchants for agenda commercial all lead to the best product.

So we're in that process of further preparing for it and making sure that when it takes off and we have a best in class product available that basically caters for a frictionless experience, but also making sure for instance that fraud stays under control because that's of course, a risk if you don't exactly know who's transacting.

As a as an agent.

Thanks, It seems like our platform is ready for what's to come then absolutely.

Eaton, let's look forward a little bit. So how are you seeing the second half of this year, how do you expect it to play out, especially in the current macroeconomic backdrop that we're operating and also of course, considering all the things that you've already seen playing out in the first half.

Yeah sure. Good question. So I think if you think about where our growth comes from in any any period again. The biggest part is how we expand share of wallet with our existing customers. We're seeing strong traction through the first part of this year and we expect that to continue through the second half of this year. We're also adding a number of new logos, it's a more sizeable cohort so far this year.

Than we've seen in past years. So we see also strength there.

Speaker #2: Here, thanks Ethan. Maybe let's go back to Ingo for a little bit. Ingo, you mentioned earlier about our continued investment to in innovation. Which is, of course, a very important topic in the industry right now.

That's what gives us the confidence that.

The opportunities for growth not only this year, but also in the years ahead are really there for us.

The part of our growth which is.

Speaker #2: Can you give us a few examples of how we approach innovation at Adyen?

It's lower than what we had expected coming into this year as the market volume growth the gross growth of our own customer base.

Speaker #1: Yeah, absolutely. So if you think about how we approach the market, we want to take full control over the infrastructure. So we have made heavy investments in the infrastructure that we built over the years.

Which is mostly focused on a small subset of customers that I discussed previously.

Speaker #1: And that's ranging from how we operate our own IT infrastructure to the licenses that we hold. So having banking licenses in Europe, US, UK helps us to build the products that are most relevant to our customers.

But we expect that to continue through the course of the second half and that's ultimately why we expect our.

Second half net revenue growth to be similar to what first half net net revenue growth was.

Beyond that we're excited about the position we're in about our ability to execute about.

Speaker #1: And our customers are very forward-looking customers. So what they're looking for is, for instance, also to move money around to the world at the lowest cost.

Our ability to grow with our existing customers customers, but also the new ones we're adding.

And we will continue to focus on that execution from a EBITDA margin perspective.

Speaker #1: Because we have these licenses, we are capable of doing this. We have direct access to the clearing. So for us, it's very easy to be efficient here.

We're both investing in the team of which we continue to invest in and continue to plan to invest in a similar way in the second half as we did in the first half.

Speaker #1: At the same time, I think an important part of our philosophy is always to move quickly when new things emerge. And I think stablecoins is an example here.

But we are at the same time see operating leverage that's inherent to our business model.

So for the rest of the year, we expect EBITDA margin to expand albeit at a slower rate than we saw the expansion from 2023 to 2024, given that investments, we're continuing to make in the team.

Speaker #1: I think stablecoins will help to also move money around quickly. And so it's very similar in line with the things that we want to achieve as a company.

Speaker #1: So if that further arises and merchants see the need for it in the markets that they're active, we will certainly start to offer it and move quickly.

When I look ahead again I feel we're in a really strong position to continue to develop and deliver growth together with our customers both our existing customers focusing on new markets winning share of wallet is providing new products, but also with the new customers, we're adding to the platform and we're excited to continue to execute and work on that together with them.

Speaker #2: Here, I'd like to see on the topic of innovation for just a little bit longer if you don't mind. Can you give us some specific examples of things that we have already built as a result of the man from our customers?

Speaker #1: Yeah, so we've built, for instance, an intelligent payment routing or Adyen Uplift, both products that we launched in the second half of last year.

Thank you very much Ethan and thank you both for your insights. So far. This concludes the first part of today's call. We're now moving over to the Q&A section Maggie over to you.

Speaker #1: And we have seen high uptake since. So these are very successful products. If we look at Uplift, for instance, this exactly caters to the needs that I was alluding to in the introduction.

Yeah.

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Speaker #1: Where we want to optimize authorization rates with cost and fraud. And since the pilot, the uptake of this product has been phenomenal. One thing that customers really appreciate in this product is that it is a full funnel approach.

Okay.

Hi, Maggie O'donnell from the Investor Relations team and I'm gonna be moderating today's Q&A as a reminder, if you have a question. Please use the raise hand functionality on the zoom.

Speaker #1: So taking all these matters into account and then come with the best solution. Instead of what legacy systems do and typically take these different optimizations separately.

And let me call on you. Please on mute yourself and state your name before asking your question.

Let's get started and take a look at the questions. We've received so far.

Our first question comes from the line of Adam Wood from Morgan Stanley. Adam. Please go ahead and ask your question.

Speaker #1: One of the support products in Uplift is Protect, and to give a bit of flavor of how successful it is, like two-thirds of our customers in the first half that started with us have implemented Protect from the beginning.

Hi, Thanks for taking the question Zach Adam Wood from Morgan Stanley.

Maybe just starting off with you've obviously highlighted the weakness with that cohorts of merchants and Asia selling into the U S. I think the biggest question I've had today is could you just kind of reassure us on the scale of that exposure is it big enough to have justified and moved on to the guidance for the full year were there any other kind of reasons. There are problems in the business you identified outside of that.

Speaker #1: So, I think we are in a very strong position here to help them to be successful in this space.

Speaker #2: Here, that's good to hear. And indeed, very good signs that our products are resonating with our customers. Now, another topic that's also generating quite some buzz in the industry is the use or the rise of autonomous agents, especially within online commerce.

The Big thing and then maybe secondly, you give us a bit of an idea of what you've assumed on the second half of the year in terms of that impact, but you can assume that it stays similar to what we saw in Q2 have you assumed that there is any kind of move in other geographies that could that could impact. Thank you.

Speaker #2: Do you see Adyen playing a role in this shift?

Speaker #1: Absolutely. So, of course, Adyen e-commerce that you're referring to is in its early days. But it is promising and we're tracking it closely to see how we can best help our merchants to adopt it when it's ready and when it's there.

Thanks, Adam evenly I can take both of those sure.

Yeah. So if we think about this cohort of this subset of customers. It's a it's a handful of customers I think the easiest way to try to quantify it is to look at what our growth would be especially in the second quarter because of the impact happened in the latter part of the half.

Speaker #1: So one of the things that we do is we look carefully with our customers at how we can best help them. So how should the product look, and how can we get to the best experience?

Speaker #1: And if you look at our platform, our single platform globally, we have a couple of components in our platform that are already catered for this journey.

So if you would take this subset of customers out of our our growth but out of our platform. We are growth would've been approximately 2% higher.

Speaker #1: So we have authentication, we have tokenization, we have a very good fraud system. And packaging this with the new needs of our merchants for Adyen e-commerce will lead to the best product.

In Q2, right, because that's where most of the impact was seen that's also what we expect to see in a continued to see in the second half and why our view is that we'll see similar growth rates in H due to what we saw in each one.

Speaker #1: So, we're in that process of further preparing for it and making sure that when it takes off, we have the best-in-class product available that basically caters to a frictionless experience, but also making sure, for instance, that fraud stays under control.

And the second question.

And yeah in terms of assumptions is ultimately it's that rate that we expect that this will continue through the course of the second half.

Speaker #1: Because that's, of course, a risk if you don't exactly know who's transacting as an agent.

And.

Of course, if that positively develops that can change the for us as well, but its currently our expectation that that will continue through the course of the second half and again why we've tried to share the outlook as we have.

Speaker #2: Here, thanks. Seems like our platform is ready for what's to come then.

Speaker #1: Absolutely.

Speaker #2: Now, Ethan, let's look forward a little bit. So how are you seeing the second half of this year? How do you expect it to play out, especially in the current macroeconomic backdrop that we're operating and also, of course, considering all the things that you've already seen playing out in the first half?

Great. Thanks for your question Adam.

The next question comes from the line of Justin <unk> from UBS. Justin. Please go ahead, none yourself and ask a question.

Speaker #3: Yeah, sure. Good question. So I think if you think about where our growth comes from in any period, again, the biggest part is how we expand share of wallet with our existing customers.

Yeah.

Very good this is just enforced from UBS. Thank you so much for having me on so a couple of questions here.

Sorry to dig on this a little bit more about I'm going to follow up on Adam's question regarding the macro impact. So I just want to make sure that we're super clear on the precise impact there. So you talked about two points higher in <unk> I think that would've been a partial quarter impact, meaning I believe that tariff impact you're speaking about started at the beginning of may so.

Speaker #3: We're seeing strong traction through the first part of this year and we expect that to continue through the second half of this year. We're also adding a number of new logos.

Speaker #3: It's a more sizable cohort so far this year than we've seen in past years. So we see also strength there. That's what gives us the confidence that the opportunities for growth not only this year, but also in the years ahead are really there for us.

Does that mean that we should be expecting a greater relative impact into H, which makes up the delta. If you will between the prior full year guide and the current.

Speaker #3: The part of our growth, which is lower than what we had expected coming into this year, is the market volume growth, the growth of our own customer base.

And just to be clear again on that point you are basically assuming a certain growth rate over that may to June period, and then keeping it exactly the same as you pull that through the rest of the year.

Speaker #3: Which is mostly focused on a small subset of customers that I discussed previously. But we expect that to continue through the course of the second half.

A secondary question not tied to the guidance uplift have heard from some that you are beginning to charge for this feature after I believe it was initially rolled out as a complementary solution.

Speaker #3: And that's ultimately why we expect second half net revenue growth to be similar to what first half net revenue growth was. Beyond that, we're excited about the position we're in, about our ability to execute, about our ability to grow with our existing customers, but also the new ones we're adding.

Is that true and maybe if you could just talk about what you're charging for it and what the uptake has been so far with the clients that have it maybe a percentage.

The adoption rate or something like that thank you.

Speaker #3: And we'll continue to focus on that execution. From an EBITDA margin perspective, we're both investing in the team of which we continue to invest to plan to invest in a similar way in the second half as we did in the first half.

Justin if you take the first one on impact and Ingo you can take the one on uplift.

So I think indeed, it is true that we saw most of the impact.

From this group of customers in the second quarter.

Speaker #3: But we, at the same time, see operating leverage that's inherent to our business model. So for the rest of the year, we expect EBITDA margin to expand albeit at a slower rate than we saw the expansion from 2023 to 2024.

That's very much towards the towards the end of the half I think the best way to look at it is indeed, the Q2 number that's why I tried to help with quantifying it around 2% now what is it exactly from the very first day of the quarter, a fair enough, but I think the right type of magnitude to think about is that 2%.

Speaker #3: Given that investments are continuing to be made in the team, when I look ahead, I feel we're in a really strong position to continue to develop and deliver growth together with our customers.

In terms of the assumption for the for the rest of the year.

It continues to be our expectation that that's the type of impact that we will see through the course of the second half.

Speaker #3: Both our existing customers focusing on new markets, winning share of wallets, providing new products, but also with the new customers we're adding to the platform.

Which is again why I hope it's helpful that we quantify it in this way.

Speaker #3: And we're excited to continue to execute and work on that together with them.

Uplift yeah. So on uplift indeed uplift is a a prototype we launched in the second half of last year.

Speaker #2: Thank you very much, Ethan. And thank you both for your insights so far. This concludes the first part of today's call. We're now moving over to the Q&A section.

We are a party charging for it so it depends a bit on the module that you exactly using in some of the parts are free of course ultimately what we're building for is that we charge for the products that we offer through to our customers. So it's currently mixed uptake of uplift is very positive I can't share a precise numbers. That's why we tried to be helpful on the product.

Speaker #2: Maggie, over to you.

Right, which is part of uplift where two thirds of the new customers have.

Speaker #4: Hi, I'm Maggie O'Donnell from the Investor Relations team, and I'm going to be moderating today's Q&A. As a reminder, if you have a question, please use the raise hand functionality on the Zoom.

We have taken a product when they started with us. So I think that gives you order of magnitude.

And going forward of course, where we can where we bring value to our customers we will charge for it.

Speaker #4: And when we call on you, please unmute yourself and state your name before asking your question. Let's get started and take a look at the questions we've received so far.

Great.

Thanks for your questions.

Next question is going to come from Mohammed <unk> from Goldman Sachs. Please go ahead and meet yourself and ask your question.

Speaker #4: Our first question comes from the line of Adam Wood from Morgan Stanley. Adam, please go ahead and ask your question.

Great. Thank you Maggie my angle. He sent two for me Firstly, just wanted to kind of confirm that.

Speaker #5: Hi, thanks very much for taking the question. It's Adam Wood from Morgan Stanley. So maybe just starting off, you obviously highlighted the weakness with that cohort of merchants in Asia selling into the US.

Outside of the kind of Asia headquartered customers, you Didnt really see any of that kind of impact in your business and I also noticed that your growth decelerated.

Speaker #5: I think the biggest question I've had today is, could you just kind of reassure us on the scale of that exposure? Is it big enough to justify the move down in the guidance for the full year?

From kind of a second half last year to the first half loss. This year by about six points can you help us just understand what's going on there and then secondly, you've obviously reiterated your kind of midterm guidance around this kind of acceleration of the growth.

Speaker #5: Were there any other kind of reasons or problems in the business that you identified outside of that, or was that the big thing? And then could maybe just secondly, you give us a bit of an idea of what you've assumed on the second half of the year in terms of that impact that you assume that it stays similar to what we saw in Q2?

Can you help us kind of perhaps frame or quantify that and the building blocks around what that's going to drive that I know you talked about share gains new customer volume adds but would be great to kind of get your calibration around kind of what's driving that acceleration again. Thank you. Okay. Thanks now you can do you want to take all this sure.

Speaker #5: Have you assumed that there's any kind of move in other geographies that could impact? Thank you.

Speaker #4: Thanks, Adam. Ethan, why don't you take both of those?

Speaker #3: Sure. Yeah, so if we think about this cohort of, or this subset of customers, it's a handful of customers. I think the easiest way to try to quantify it is to look at what our growth would be, especially in the second quarter, because the impact happened in the latter part of the half.

First if there are other types of impacts.

We have quite a diversified customer base diversified across regions across verticals. So you see different impacts in different pockets of our of our customer base take one example, let's say luxury retail REIT to a vertical that we've been in for a number of years on the unified Commerce side, I think it's pretty well known.

Speaker #3: So if you would take this subset of customers out of our growth platform, out of our platform, our growth would have been approximately 2% higher.

Speaker #3: In Q2, right? Because that's where most of the impact was seen. That's also what we expect to see in the continue to see in the second half and why our view is that we'll see similar growth rates in H2 to what we saw in H1.

This is a tougher period for some of them, but if you look at the growth onto our platform, we actually see that that's a vertical that's growing faster.

Then the platform overall and that's because it's mixed in with share of wallet gains.

Speaker #4: And the second question?

That continues to be the big focus for us how do we expand with our customer base, how do we make sure that we represent a bigger portion of their overall payments and that's the biggest part of our growth in any given period. So yes, you can see some some impacts in certain places, but also because there is the share of wallet gains connected to us to it it's not always.

Speaker #3: Yeah, in terms of assumptions, is ultimately it's that, right? That we expect that this will continue through the course of the second half. And of course, if that positively develops that can change the for us as well.

Speaker #3: But it's currently our expectation that that will continue through the course of the second half. And again, why we've tried to share the outlook as we have.

So simple to derive that a drive that for you.

Speaker #4: Great. Thanks for your question, Adam. The next question comes from the line of Justin Forsyth from UBS. Justin, please go ahead and unmute yourself and ask your question.

In terms of the deceleration in EMEA.

I think it's more.

Relevant to look at this growth over a longer period of time right I think over the last say year and a half we've seen that our fastest growing region has been EMEA I think given the scale of where we're at already in EMEA. It's a very clear sign that there's significant room for us to further grow here.

Speaker #5: Very good. This is Justin Forsyth from UBS. Thank you so much for having me on. So a couple of questions here. Sorry to dig on this a little bit more, but I'm going to follow up on Adam's question regarding the macro impact.

That in digital unified Commerce and in platforms Theres major opportunities still for US ahead, even if its our most mature region and I think that's a strong sign for for our growth going forward. So there's nothing I would specifically call out from one period to the next I think the fact that we continue to grow in this way is something that also is a positive for our <unk>.

Speaker #5: So I just want to make sure that we're super clear on the precise impact there. So you talked about two points higher in Q2.

Speaker #5: I think that would have been a partial quarter impact, meaning I believe that tariff impact you're speaking about started at the beginning of May.

Speaker #5: So does that mean that we should be expecting a greater relative impact in QH, which makes up the delta, if you will, between the prior full year guide and the current?

Term growth trajectory here.

In terms of the midterm guidance that you referenced you referenced the building blocks.

Speaker #5: And just to be clear again on that point, you're basically assuming a certain growth rate over that May to June period, and then keeping it exactly the same as you pull that through the rest of the year.

There's a few things that are really important in driving our growth right. The first is the rate at which we expand share of wallet. There. We continue to see strong signs. We've also seen that in the first half it's a big area, where we are in discussion with our customers, it's where the majority of our focus lies.

Speaker #5: A secondary question, not tied to the guidance. Uplift, have heard from some that you're beginning to charge for this feature after I believe it was initially rolled out as a complimentary solution.

That's trending well of course, we say, we get visibility in that like six to 12 months out and discussions with our with our customer base.

Speaker #5: Is that true? And maybe if you could just talk about what you're charging for it and what the uptake has been so far with the clients that have it, maybe a percentage of adoption rate or something like that.

But the trend we see there our position the value we can bring to our customers that's apparent and that's that's clear in how we're gaining share now.

Speaker #5: Thank you.

Speaker #4: Thanks, Justin. Ethan, why don't you take the first one on impact and Ingo, you can take the one on Uplift.

The other piece, which becomes much more relevant not this year, but in future years is how we've been able to add or we are able to add new customers right.

Speaker #3: Yeah, so I think indeed it's true that we saw most of the impact from this group of customers in the second quarter. That's very much towards the end of the half.

<unk> has a very little impact on our growth this year, but in future years that should that that's really important and there we've seen again that the 20th twenty-five cohorts so far as far outpacing our where we were in the past couple of years are.

Speaker #3: I think the best way to look at it is indeed the Q2 number. That's why I tried to help with quantifying it around 2%.

Speaker #3: Now, what's it exactly from the very first day of the quarter? Fair enough. But I think the right type of magnitude to think about is that 2%.

Another sign that we're well positioned that we create value for our customers.

Speaker #3: In terms of the assumption for the rest of the year, it continues to be our expectation that that's the type of impact that we will see through the course of the second half.

There's plenty more to win I think those are the areas where we.

Of course, our most focused as an organization.

We will track closely the expectations of our own customers growth through time.

That develops as it will develop but the areas of execution, where we're really focused we feel we're in a strong position.

Speaker #3: Which is again why I hope it's helpful that we quantify it in this way. Uplift, yeah.

Speaker #1: So, on Uplift, indeed, Uplift is a product that we launched in the second half of last year. We are partly charging for it, so it depends a bit on the module that you are exactly using, and some of the parts are free.

Great. Thanks for your questions now the next question comes from her sheet that robot from Bernstein.

Please go ahead and meet yourself and ask your question.

Yeah.

Good afternoon.

Speaker #1: Of course, ultimately what we're building for is that we charge for the products that we offer to our customers. So it's currently a mix.

You seem to now offering more services Saturday Sunday, our full stack acquiring and it looks like you have been increasingly marginalizing platform. He saw similar without regard to an uplift you talked about the protect launching this quarter.

Speaker #1: The uptake of Uplift is very positive. I can't share precise numbers. That's why we try to be helpful on the product side, which is part of Uplift, where two thirds of the new customers have taken that product when they started with us.

How is that kind of modular capabilities, that's resonating with your customers.

Does it help you getting kudos revenues at a different clip question volumes.

Speaker #1: So, I think that gives order of magnitude. And going forward, of course, where we bring value to our customers, we will charge for it.

And then separately.

I think you are.

Latam and APAC revenue accelerated nicely.

Speaker #4: Great. Thanks for your questions. The next question is going to come from Mohammed Moawalla from Goldman Sachs. Mo, please go ahead and unmute yourself and ask your question.

The path I know you've been investing a lot in local licenses and products, but maybe talk about the time I said Colin.

Thank you.

Great. Thanks appreciate that and go why don't you take the first one on modular Ais services and then even the ones on Latam and APAC sure. Yeah. So modernization of course, that's a very important topic for our merchants I think what we tried to build as a platform now that ultimately is freshwater basically caters to the needs of our.

Speaker #5: Great, thank you. Maggie, hi Ingo. Ethan, two from me. Firstly, just wanted to kind of confirm that outside of the kind of Asia headquartered customers you didn't really see any other kind of impact.

Speaker #5: In your business, and I also noticed that your growth decelerated from kind of second half last year. To the first half last this year by about six points.

Customers, so let's take risk as an example, there can be situations where for.

Speaker #5: Can you help us just understand what's going on there? And then secondly, you've obviously reiterated your kind of midterm guidance around this kind of acceleration of the growth.

For instance, a merchant is also having a another provider, but they want to consolidate their risk services with a single provider. They these are the type of things that we want to show for our with our protect our offering.

Speaker #5: Can you help us kind of perhaps frame or quantify that and the building blocks around what's that's going to drive that? I know you talked about share gains.

And therefore, it is very important to offer like this and that.

Speaker #5: New customer volume adds, but it would be great to kind of get your calibration around kind of what's driving that acceleration again. Thank you.

That is in line with the strategy, there's a lot of our customers have that social why we're investing in it.

Speaker #4: Great, thanks Mo. Ethan, do you want to take all of those?

It is important to make sure that we proved the value there I know of course, if we prove to value. It also becomes more logical to get more acquiring over time. So that's the strategy that we're executing on.

Speaker #3: Sure. First, if there are other types of impacts. Of course, we have quite a diversified customer base, right? Diversified across regions, across verticals. So you see different impacts in different pockets of our customer base.

And as far as Latam and APAC I think maybe a one by one.

Speaker #3: Take one example. Let's say luxury retail, right? A vertical that we've been in for a number of years on the unified commerce side. I think it's pretty well known that this is a tougher period for some of them.

In Latam, we've been talking about investments, we've been making in both Brazil and Mexico.

In Brazil, that's we cover quite nicely the focus on building out picks a local payment method there what we've been doing with our own license there for acquiring how we've built out our advancements are anticipations product there and that's something that our customers are appreciating and where we've been able to grow our grow in a strong way in the first.

Speaker #3: But if you look at the growth on our platform, we actually see that that's a vertical that's growing faster than the platform overall. And that's because it's mixed in with share of wallet gains.

Speaker #3: That continues to be the big focus for us. How do we expand our customer base? How do we make sure that we represent a bigger portion of their overall payments?

Half in Latin America, it's also impacted by currency, so that growth would be even higher on a on a constant currency basis in APAC. The same I think the consistency of of working together with our customers supporting them in the geographies where.

Speaker #3: And that's the biggest part of our growth in any given period. So yes, you can see some impacts in certain places, but also because there's the share of wallet gains connected to it, it's not always so simple to derive that view.

Yeah. They ultimately are looking for a four building their businesses as paid off we've talked a lot in APAC about Japan, and India. That's much more of a longer term play than something that we are.

Speaker #3: In terms of the deceleration in EMEA, I think it's more relevant to look at this growth over a longer period of time, right? I think over the last, say, year and a half, we've seen that our fastest growing region has been EMEA.

Already see playing a huge role in our numbers today, but we're also really excited about the opportunities there.

To play out over a number of years, so I think strength in both places.

Speaker #3: I think given the scale of where we're at already in EMEA, it's a very clear sign that there's significant room for us to further grow here.

Great. Thanks for your question.

The next one comes from harness late <unk> from Jefferies. Please go ahead and meet yourself and ask your question.

Speaker #3: That in digital, unified commerce, and in platforms, there's major opportunities still for us ahead even if it's our most mature region. I think that's a strong sign for our growth going forward.

Yes, Hello, everyone the tamas from Jefferies.

Those are a couple of questions. The first one just on the guidance cut maybe you can talk a little bit about the 20 to 26 do you expect that those headwinds and <unk>, which started towards the end of each one will annualize in each one next year and then the <unk>.

Speaker #3: So there's nothing I'd specifically call out from one period to the next. I think the fact that we continue to grow in this way is something that is also a positive for our long-term growth trajectory here.

Speaker #3: In terms of the midterm guidance that you referenced, you referenced the building blocks. There's a few things that are really important in driving our growth, right?

Also along the same path of questions is around tariffs tariffs have been enforced early August would you expect.

Speaker #3: The first is the rate at which we expand share of wallet. There, we continue to see strong signs. We've also seen that in the first half.

Updated guidance is already catering for for any potential headwinds here, you mentioned share of wallet gains but.

Speaker #3: It's a big area where we are in discussion with our customers. It's where the majority of our focus lies. That's trending well. Of course, we say we get visibility in that like 6 to 12 months out in discussions with our customer base.

But to dive into it and then maybe it was on the same thing you lift the EBITDA margin.

<unk> target unchanged for D. C. Maybe you can give you a little bit better feeling though as you would have flowed a little bit to topline and tiring stayed stable in Q2, and then just like the last thing maybe on our pipeline and sales people and cohorts. Maybe you can give me an update.

Speaker #3: But the trend we see there, our position, the value we can bring to our customers, that's apparent and that's clear in how we're gaining share now.

Speaker #3: The other piece, which becomes much more relevant not this year, but in future years, is how we've been able to add or we are able to add new customers.

It seems like all to work in terms of hiring in client and Kpis and unified commerce platforms why should they not the accelerated hiring at this point.

Speaker #3: Right? It has very little impact on our growth this year. But in future years, that's really important. And there, we've seen again that the 2025 cohort so far is far outpacing where we were in the past couple of years.

Great. Thanks, harness pay them any questions Ian.

You take the first day so the one on the 2026 outlook tariffs in general in EBITA, and then Ingo, maybe you can touch on head count and hiring.

Speaker #3: Another sign that we're well positioned, that we create value for our customers, and that there's plenty more to win. I think those are the areas where we, of course, are most focused as an organization.

Yeah again, I think the biggest impact that we saw here was in Q2. So I think your way of assessing this that that annualize in Q2 as fair all other things equal of course, many things still have to play out by that time.

Speaker #3: We'll track closely the expectations of our own customers' growth through time. That develops as it will develop. But the areas of execution where we're really focused, we feel we're in a strong position.

So in isolation, that's a fair way to look at it but of course, we will track closely and continue to share updates on what we expect as time goes on.

Speaker #4: Great, thanks for your questions, Mo. The next question comes from Harshita Rawat from Bernstein. Harshita, go please go ahead and unmute yourself and ask your question.

As far as if the tariffs are included in the guidance that we've shared I think the way that we tried to look at it was.

Speaker #6: Good Good afternoon. So you seem to now offer more services separate from your full stack acquiring and looks like you've been increasingly modularizing your platform.

Do you expect that the impacts that we saw in Q2 with this subset. This handful of customers continues through the course of the year then our expectation is that while our growth rate will be at a similar level to the growth rate. We had in the first half. So it is a continuation of the trends that we've seen that we expect for the second half and it is our it is our baseline expectation.

Speaker #6: We saw some of that with Adyen Uplift. You talked about the Protect module, this quarter. How is that kind of modularized capability set resonating with your customers?

Speaker #6: Can that also help you kind of grow revenues at a different clip versus volumes? And then separately, I think your LATAM and APAC revenues accelerated kind of nicely.

<unk>.

So on the EBIT decided are indeed, I think two things are true right, we're continuing to hire and invest.

That's really important because the growth trajectory for us is not a if there is not a one year. Pat this is a multi multiyear journey for us.

Speaker #6: This half, I know you've been investing a lot in local licenses and products. But maybe talk about the drivers of growth in those markets.

Ultimately investments we make in the team today.

Those will not lead to short term revenues those will play out over time so we.

Speaker #6: Thank you.

Speaker #4: Great, thanks Harshita. Ingo, why don't you take the first one on modularized services and then Ethan, the ones on LATAM and APAC?

We want to be sure that we maintain that flexibility to not only invest.

Speaker #1: Sure. Yeah, so on modularization, of course, that's a very important topic for our merchants. I think what we try to build is a platform that ultimately is flexible and basically caters to the needs of our customers.

In the in the ongoing kind of business as usual type of areas, but also to make strategic investments in the right areas that makes sense to drive that growth.

That's the flexibility that we're looking for going forward, which is why we continue to to guide here, even as we do expect EBITDA margins to expand from 24 into 2025.

Speaker #1: So let's take risk as an example. There can be situations where for instance, a merchant is also having another provider, but they want to consolidate their risk services with a single provider.

And then on the on the hiring we're still focused on growth. So growth is most important so we're looking at top line growth.

Speaker #1: These are the type of things that we want to solve for with our Protect offering. Therefore, it is very important to offer it like this.

And based on that we looked at Okay. What is the right hiring plan that we could facilitate to get to this growth and we believe that with the guidance that we have given there that we can execute on our plans. If we see an opportunity of course, we will hire. Additionally, if that's needed but also you'll see a lot of operating leverage gagging.

Speaker #1: And that is in line with the strategy that a lot of our customers have. That's also why we're investing in it. It is important to make sure that we prove the value there.

Speaker #1: And of course, if we prove the value, it also becomes more logical to get more acquiring over time. So, that's the strategy that we're executing on.

Intuitive business and we also want to.

See that's overwriting that rich are basically resulting in higher EBITDA margins and so it's finding that right balance and we feel that we are.

Speaker #3: And as far as LATAM and APAC, I think maybe one by one, in LATAM, we've been talking about investments. We've been making in both Brazil and Mexico.

On the right track and that's also why you should expect.

In line with the current growth we can support the top line and that's what we're what we're managing towards.

Speaker #3: In Brazil, that's we covered quite nicely the focus on building out picks, a local payment method there. What we've been doing with our own license there for acquiring how we've built out our advancements or anticipations product there.

Great. Thank you for your questions harness. The next question comes from Fred Golan at Bank of America. Please go ahead and on mute yourself and ask your question.

Speaker #3: And that's something that our customers are appreciating and where we've been able to grow in a strong way in the first half in Latin America.

Hey, Jason.

Thanks, Maggie Fred of Bank of America.

Speaker #3: It's also impacted by currency, so that growth would be even higher on a constant currency basis. In APAC, the same. I think the consistency of working together with our customers supporting them in the geographies where they ultimately are looking for building their businesses has paid off.

I can come back on each too in terms of specific moving parts. So.

Back to you as drag you've flagged about two points dragging wound back in Q2.

I guess some headwinds we had.

In Asia last year, and this semester will subside.

Speaker #3: We've talked a lot in APAC about Japan and India. That's much more a longer-term play than something that we already see playing a huge role in our numbers today, but we're also really excited about the opportunities there.

Ebay et cetera.

So that implies a slightly higher underlying growth rate towards its 21%, which is what you guide for each to any other moving parts, we should bear in mind when you look at.

Speaker #3: To play out over a number of years. So I think strength in both places.

The second half.

And then more and more specifically I know you've been asked already about what you think but it seems dressing you reiterate your financial objectives.

Speaker #4: Great. Thanks for your question. The next one comes from Hanis Leitner from Jefferies. Hanis, please go ahead and unmute yourself and ask your question.

To kind of low to high <unk>.

Speaker #1: Yes, hello everyone. It's Hanis from Jefferies. I got also a couple of questions. The first one just on the guidance cut maybe you can talk a little bit about 2026.

Can you spend a little bit of time on the kind of usual building blocks.

I mean, you mentioned a wallet share.

New logos, where you feel very confident.

Speaker #1: Do you expect that those headwinds in H2 or which started towards the end of H1 will annualize in H1? Next year? And then the also along the same path of questions is around tariffs, like tariffs have been enforced early August.

We grew to understand a little bit how are you.

Do you think that kind of acceleration.

Embedded in the guidance.

And you can expect for for next year as well. Thank you.

Thanks, Fred Ethan do you want to take both of those yeah. I think you I think you highlighted the main the main moving parts for <unk> for the second half right.

Speaker #1: Would you expect that your updated guidance is already catering for any potential headwinds here? You mentioned share of wallet gains. But now to dive into it.

We did see that most of the impact happened in Q2 and not for the full first half so that will have a bigger impact.

In H two than in the full each one as we expect we do get some lapping of of large customers.

Speaker #1: And then maybe also on the same thing, you left the EBITDA margin target unchanged for this year. Maybe you can give a little bit better feeling now as you have lowered a little bit the top line and hiring stayed stable in Q2.

Who have lower volumes this year than in the last year towards the very towards the back half of the second half I think those are the main moving parts are.

You highlighted them and ultimately that's what gets us to the the view that we'll expect similar growth in the second half compared to the first half in terms of financial objectives. Indeed, we did confirm our guidance for 'twenty six.

Speaker #1: And then just like the last thing, maybe on pipeline and sales, people and cohort, maybe you can give there an update. It seems like all to work in terms of hiring and client and KPIs in unified commerce and platforms.

The reason we continue to confirm our guidance is that again, we see strength in our ability to gain share of wallet with our existing base.

Speaker #1: Why should you not accelerate hiring at this point?

Again, the new new wins or are performing strongly. This year are also when you compare it to past year. So we feel confident not only this year, but also going into into future years of course, we need to see how this plays out in our in the coming months and year and we'll give as much insight as we can along the way to what we're expecting.

Speaker #4: Great, thanks Hanis. For your many questions. Ethan, why don't you take the first three? So the one on the 2026 outlook. Tariffs in general and EBITDA.

Speaker #4: And then Ingo, maybe you can touch on headcount and hiring.

Speaker #3: Yeah, again, I think the biggest impact that we saw here was in Q2. So I think your way of assessing this, that that annualizes in Q2 is fair.

But we're confident in our position and that's ultimately why we confirmed the guidance for for next year as well.

Speaker #3: All other things equal. Of course, many things still have to play out by that time. So in isolation, that's a fair way to look at it.

Great. Thanks for your question Fred The next question comes from Darrin Peller from Wolfe Research Darren. Please go ahead, and a neat yourself and ask your question.

Speaker #3: But of course, we'll track closely and continue to share updates on what we expect. As time goes on. As far as if the tariffs are included in the guidance that we've shared, I think the way that we tried to look at it was if you expect that the impacts that we saw in Q2 with this subset, this handful of customers continues through the course of the year, then our expectation is that our growth rate will be at a similar level to the growth rate we had in the first half.

Thanks, Maggie NGO it sounds like you're adding more new logos this year than even prior and maybe more than maybe you would have anticipated perhaps is that uplift as that dynamic routing whats really driving the incremental success, maybe even in prior years or is it just scale on top of all the innovation.

And then you sort of I know, we've asked a lot of questions on guidance, but same store sales was supposed to be somewhere around seven or eight percentage points contribution I think to your overall building blocks.

Speaker #3: So it is a continuation of the trends that we've seen that we expect for the second half. And it is our baseline expectation. Oh, EBITDA

So is that the same assumption or do you need less of that now given the new logos for let's say 2026.

Speaker #1: is the last question. Sorry for that. So on the EBITDA side, indeed, I think two things are true, right? We're continuing to hire and invest.

Okay on the first question. So indeed, the increase in logos or the improved a cohort of 25 is indeed, the result of the investments that we've made particularly in the sales teams in the recent years I think we've spoken about this quite regularly how we further want to double down on our inquiry.

Speaker #1: That's really important because the growth trajectory for us is not a one-year path. This is a multi-year journey for us. Ultimately, the investments we make in the team today will not lead to short-term revenues.

Speaker #1: Those will play out over time. So, we want to be sure that we maintain that flexibility to not only invest in the ongoing kind of business-as-usual type of areas, but also to make strategic investments in the right areas that make sense to drive that growth.

Using their sales teams are making sure that we could further grow the company and I think that you'll see the results here in this strong a cohort of course that social based on the products that we are developing so indeed with the uptake of protect as an example, you can see that as really value by by new customers and I think the root cause of it.

Speaker #1: And that's the flexibility that we're looking for going forward, which is why we continue to guide here even as we do expect EBITDA margins to expand from 24 into 2025.

It's getting a higher cohort is also related to the fact that we have upped the number of people in the sales teams.

Speaker #1: Yeah, then on the hiring, we're still focused on growth. So growth is most important. So we're looking at top line growth. And based on that, we looked at, okay, what is the right hiring plan that we could facilitate to get to this growth?

And on same store sales I think in our terminology, we call that the market volume growth. So the growth of our customers if I if I understand right.

We've talked about back two years ago that we would have that we expected around high single digits growth high single digits low double digits growth from the growth of our own customer base.

Speaker #1: And we believe that with the guidance that we have given there, that we can execute on our plans. If we see an opportunity of course, we will hire additionally if that's needed.

Of course, that's what we're talking about now not being at our expectations headed into this year.

Speaker #1: But also, you see a lot of operating leverage getting into the business. And we also want to see that operating leverage basically resulting in higher EBITDA margins.

But ultimately it's something that I think is a trend that will continue over time that this is still.

A set of customers which is growing.

There is still significant payment adoption to happen over time, so I would continue to expect that.

Speaker #1: So, it's finding that right balance. We feel that we are on that right track, and that's also why you shouldn't expect an acceleration in hiring.

The growth of our own customers plays an important role in our growth having said that again the share of wallet expansion that is the biggest piece and if you add in the new customers that we're winning now and that we've won over past years, when you add them into your existing.

Speaker #1: With the current growth, we can support the top line and that's what we're managing towards.

Speaker #4: Great. Thank you for your questions, Hanis. The next question comes from Fred Boulon at Bank of America. Fred, please go ahead and unmute yourself and ask your question.

Your group of existing customers over time, I expect that that will still continue to be the biggest part.

But I I do think that this will still be a growing market for now for a number of years ahead.

Speaker #5: Hi, Ingo. Ethan, thanks Maggie. Fred at Bank of America. If I can come back on H2 in terms of specific moving parts, so APAC to US drag, you flagged about two points dragging or impact in Q2.

Great. Thank you for your questions. Darren. The next question comes from Sandeep Deshpande from JP Morgan Sandeep. Please go ahead 90 yourself and ask your question.

Yeah, Hi, Thanks for letting me on my question is back again to the 26 guidance. I mean, you have guided previously in the midterm for low twenty's to high Twenty's, which would be at the midpoint around 25%, but over the last two years, you've been closer to the low end of that guidance.

Speaker #5: I guess I'm headwinds. We had in H2 last year, and this semester will subside. Cash App, eBay, et cetera. So that implies a slightly higher underlying growth rate towards 21%, which is what you got for H2.

What is it that will take that too.

Speaker #5: Any other moving parts we should bear in mind when you look at the second half? And then more specifically, I know you've been asked already about 26, but it's interesting you reiterate your financial objectives.

Speaker #1: End of the 26th guidance. I mean, you have guided previously in the mid-term for low 20s to high 20s, which would be at the midpoint around 25%.

Sandeep: Welcome to the 26th guidance. I mean, you have guided previously in the midterm for low 20s to high 20s, which would be at the midpoint around 25%. But over the last two years, you have been closer to the low end of that guidance. What is it that will take that towards the midpoint of that guidance? Is it this additional revenue generation from these new modules that you are adding, which can increase the monetization? Or is it the new products that you have invested in over the last two to three years in the platforms, et cetera? Is that what is going to accelerate the growth from here? Or is it the new logos that you have added? My second question is regarding your new products itself.

Point of that guidance is it this additional revenue generation from these new modules that youre, adding which can increase the monetization or easy.

Speaker #1: But over the last two years, you've been closer to the low end of that guidance. what is it that will take that towards the midpoint of that guidance?

The new products that you have.

Speaker #5: They point to kind of low to high

Invested in over the last two to three years in the platform et cetera. So is it is that is what is going to accelerate the growth from here or is it the new logos that you have added and my second question is regarding your new products itself you talked about your growth in.

Speaker #1: Is it this additional revenue generation from these new modules that you're adding, which can increase the monetization? Or is it the new products that you have invested in over the last two to three years, in the platforms, etc.?

Acquiring oh, sorry in terms of the the Cogs that you'll be issuing through to your some of your partners. How do you recognize that revenue and maybe how.

Speaker #1: So, is it, is that what is going to accelerate the growth from here? Or is it the new, logos that you have added? And my second question is regarding your new products itself.

How should we be looking at it in future years is this also something of this sort of product going to be driving the growth. Thank you. Thanks, Sandeep, if and when I can take the one on the outlook and then maybe touch on issuing in how we recognize revenue, but ingo maybe you could talk about issuing as a product in general.

Speaker #1: You talked about your growth in, acquiring, sorry, in, in terms of the, the cards that you've been issuing through, through your, some of your partners.

Sandeep: You talked about your growth in acquiring, sorry, in terms of the cards that you have been issuing through some of your partners. How do you recognize that revenue? Maybe how should we be looking at it in future years? Is this also some of this sort of product going to be driving the growth?

Speaker #1: How do you recognize that revenue and maybe, how, how should we be looking at it in future years? Is this also some of this sort of product going to be driving the growth?

Yeah sure. So in terms of what we expect to be the biggest driver of of our growth.

Speaker #1: Thank you.

H&M: Thanks, Sandeep. Ethan, why don't you take the one on the outlook and then maybe touch on issuing and how we recognize revenue? Ingo, maybe you could talk about issuing as a product in general.

Speaker #2: Thanks, Sandeep. Ethan, why don't you take the one on the Outlook and then maybe touch on issuing and how we recognize revenue, but Ingo, maybe you could talk about issuing as a product in general?

Products play a role right in individually monetizing them has some role but the biggest advantage of driving this product innovation is the fact that we can do more share of wallet with our customers right. They work together with us because these products are solving real pain points for them and of course, you monetize part of that and make sure that you're <unk>.

Speaker #3: Yeah, sure. So, in terms of what we expect to be the biggest driver of our growth, products play a role, right? And individually monetizing them has some role, but the biggest advantage of driving this product innovation is the fact that we can do more share of all it with our customers, right?

Ethan Tandowsky: Yeah, sure. So, in terms of what we expect to be the biggest driver of our growth, products play a role, and individually monetizing them has some role. But the biggest advantage of driving this product innovation is the fact that we can do more share of wallet with our customers. They work together with us because these products are solving real pain points for them. And of course, you monetize part of that and make sure that you capture the value that you're providing to your customers. But I think for us, the real focus is how do we continue to get more share of wallet with our existing base? And how do we continue to break into more and more customers and bring them onto the platform? Because I think we have a very proven track record of the moment we start working with customers.

<unk> the value that you're providing to your customers, but I think for us. The real focus is how do we continue to get more share of wallet with our existing base and how do we continue to to break into more and more customers and bring them onto the platform. Because I think we have a very proven track record of the moment, we start working with customers. We also ramped them up up over a number of years.

Speaker #3: They work together with us because these products are solving real pain points for them. And of course, you monetize part of that and, and make sure that you capture the value that you're providing to your customers.

Speaker #3: But I think for us, the real focus is how do we continue to get more share of all it with our existing base and how do we continue to, to break into more and more customers and bring them onto the platform?

<unk> when they experienced both the service and the product.

So I think those much more continue to be our focus more than individually monetizing any individual product I think that will continue to be our approach also into 'twenty six.

Speaker #3: Because I think we have a very proven track record of the moment we start working with customers. We also ramp them up over a number of years.

Ethan Tandowsky: We also ramp them up over a number of years when they experience both the service and the product. So I think those much more continue to be our focus more than individually monetizing any individual product. I think that will continue to be our approach also into 2026. As far as issuing revenue, it looks very similar to what happens on the acquiring side. So we earn processing fees as well for each transaction. And we earn a type of markup when we ultimately settle those transactions to the card schemes. So you can think about it very similarly to the types, the way that we also monetize on the acquiring side.

Speaker #3: When they experience both the service and the product. so I think those much more continue to be our focus more than individually monetizing any individual product.

As far as issuing revenue.

It looks very similar to what happens on the acquiring side right. So we earn processing fees as well and.

And for each transaction and we earn a type of markup when we ultimately settle those transactions through the card schemes. So you can think about it very similarly to the types of the way that we also monetize on the acquiring side.

Speaker #3: I think that will continue to be our approach also in 2026. As far as issuing revenue, it looks very similar to what happens on the acquiring side, right?

Speaker #3: So we earn processing fees as well. and for each transaction, and we earn a type of markup, when we ultimately, settle those, transactions to the card schemes.

And issuing a product like issuing is very important in our ESP proposition. So it's one of the products to how basically platforms to offer.

Speaker #3: So, you can think about it very similarly to the types, the way that we also monetize on the acquiring side.

Oh for issuing as a financial product, it's a product that we started in 2019, that's when we launch it. So I think it's also very clear that it takes time to build a that's a skill that we wanted to have specifically last 12 months you see that.

Speaker #4: Yeah, and on issuing, product, like issuing is very important in our EFP, proposition. So it's one of the products to help basically pa-platforms to, offer issuing as a financial, product.

Ingo Uytdehaage: On issuing a product, issuing is very important in our EFP proposition. So it's one of the products to help basically platforms to offer issuing as a financial product. It's a product that we started in 2019. That's when we launched it. I think it's also very clear that it takes time to build it at the scale that we wanted to have. Specifically, the last 12 months, you see the fruits of investing in this area. With the current run rate over $2 billion, we are making a lot of effort. We create a lot of results in the issuing space. I'm very pleased to see that. That's also how we will look at the other investments in the financial products. It will take time, but the opportunity is there. That's why we continue to invest in it.

The fruits of investing in this area so with the current run rate over 2 billion.

Speaker #4: It's a product that we started in 2019, that's when we launched it. So I think it's also very clear that it takes time, to build it at the scale that we wanted to have.

We are making a lot of effort over a lot of it we would create low results in on the issuing space and I'm very pleased to see that and that's also how we will look at the other investments in the financial products. It will take time, but the opportunity is there and that's why are we why we continue to to invest in it.

Speaker #4: Specifically, the last 12 months, you see, the, the, fruits of, investing in this area. So with the current run rate over 2 billion, we are making, a lot of effort, over a lot of, we create a lot of results in, on the issuing space.

Okay. Thank you for your questions.

Speaker #4: And I'm very pleased to see that. And that's also how we will look at the other investments in the financial products. It will take time, but the opportunity is there, and that's why we continue to invest in it.

The next question comes from Josh Levin at Autonomous Josh. Please go ahead, and then meet yourself and ask your question.

Thank you good afternoon.

First question when you have some kind of tariff are de Minimis tax event, something that causes volumes to slow down do you have a leading indicators and internal warning system that tells you before the volume slowdown or would you only sort of see it or understand it yourselves when the volume actually slows down.

Speaker #2: Great. Thank you for your questions. The next question comes from Josh Levin at Autonomous. Josh, please go ahead and unmute yourself and ask your question.

H&M: Great. Thank you for your questions. The next question comes from Josh Levin at Autonomous. Josh, please go ahead and unmute yourself and ask your question.

Speaker #1: Thank you. Good afternoon. the first question, when you have some kind of tariff or de minimis tax event, something that causes volumes to slow down, do you have a leading indicators or an internal warning system that tells you before the volume slowed down or you only sort of see it or understand it yourselves when the volume actually slows down?

Josh Levin: Thank you. Good afternoon. First question, when you have some kind of tariff or de minimis tax event, something that causes volumes to slow down, do you have leading indicators or an internal warning system that tells you before the volume slowed down? Or you only sort of see it or understand it yourselves when the volume actually slows down? Second, are you seeing any?

And then second are you seeing any changes in consumption patterns, which partially offset the impact of the de Minimis tax for example, consumers switching to other platforms and you happen to be the acquirer for those platforms. Thank you.

Speaker #1: And then second, are you seeing, any.

Thanks, Josh.

Do you want to take that yeah sure. So I think in general right. We're working with large enterprises, we have account management and account management teams, who aren't really close to each of our customers and I would say that the best indicator. We get is through discussion with our customers one of the things. We highlighted was for instance Ah.

Big focus on Brazil at the moment and it's really important that as we have these discussions that we understand how our customer strategies are developing and supporting because in the end we have one global platform, which can typically help them with strategic shifts that they may be making that's where we've had our teams very very focused I think that's where we're seeing a nice too.

Speaker #3: Things we highlighted was, for instance, a, a big focus on Brazil at the moment, right? It's really important that as we have these discussions, that we understand how our customers' strategies are developing and supporting because in the end, we have one global, platform which can typically help them with strategic shifts that they may be making that's where we've had our teams very, very focused.

Ethan Tandowsky: The things we highlighted was, for instance, a big focus on Brazil at the moment. It is really important that as we have these discussions, we understand how our customer strategies are developing and supporting. Because in the end, we have one global platform, which can typically help them with strategic shifts that they may be making. That is where we have had our teams very, very focused. I think that is where we are seeing nice traction. Our customers see us as a trusted partner that can help them drive any strategic shift that they are looking for. That is the focus that we have had. I do not have a specific KPI I talk to, but mostly it is engagement from our teams with our customers to understand their expectations for their business and how we can help them with it.

<unk> are our customers see us as a trusted partner that can help them drive any strategic shifts out there that theyre looking for and that's the focus that we've had so I don't have like a specific K P. I talked to you, but mostly it's engagement from our teams with our customers to understand their expectations for their business and how we can help.

Speaker #3: I think that's where we're, we're, we're seeing a nice traction. Our, our customers see us as a trusted partner that can help them drive any strategic shift that they're, that they're looking for.

Them with it.

Speaker #3: And that's the focus that we've had. So I don't have a specific KPI I talk to, but mostly it's engagement from our teams with our customers to understand their expectations for their business and how we can help them with it.

In terms of changes in consumption patterns.

So our platform is a representation of the customers, we work with and in the markets that we work with them right.

Of course, they are parts of our of the platform, which I've seen.

Benefits of parts of the platform, which I've seen have seen negative impacts over the last half year I would say on a total basis. This is the one which is relevant to call out which is why we did call. It out in this letter, but also why I've hopefully helps to quantify it. So you get a sense of the type of impact.

Speaker #3: In terms of changes in consumption patterns, our platform is a representation of the customers we work with and in the markets that we work with them.

Ethan Tandowsky: In terms of changes in consumption patterns, our platform is a representation of the customers we work with and in the markets that we work with them, right? Of course, there are parts of the platform which have seen benefits, parts of the platform which have seen negative impacts over the last half year. I would say on a total basis, this is the one which is relevant to call out, which is why we did call it out in this letter, but also why I have hopefully helped to quantify it. You get a sense of the type of impact that we are talking to.

Speaker #3: Right? of course, there are parts of, of the platform which have seen, benefits, parts of the platform which have seen, have seen negative impacts, over the last half year.

Impact that we're talking to.

Great. Thank you for your questions. The next question comes from Pavan Funny at Citibank. Please go ahead and on mute yourself and ask your question.

Speaker #3: I would say on, on, on a total basis, this is the one which is relevant to call out, which is why we, we did call it out in this letter, but also why I've hopefully helped to, to quantify it so you get a sense of the type of, of impact that we're talking to.

Hi that prevent us from Citi. Thanks for taking my questions I've got a couple if I may firstly, maybe another follow up on 2020 fixed growth. If you don't mind I'd appreciate that market. The market growth component is still uncertain, we will lap that two percentage point impact in Q2 next year.

Speaker #2: Great. Thank you for your questions. The next question comes from Pavan Daswani at Citibank. Please go ahead and unmute yourself and ask your question.

H&M: Great. Thank you for your questions. The next question comes from Pavan Daswani at Citibank. Please go ahead and unmute yourself and ask your question.

But all else being equal could you maybe touch on the visibility on wallet share Ram said, whether you expect that to accelerate next year from the new products that you've talked about getting some momentum on and then secondly on stable claims you mentioned that is something you could look to integrate if your customers ask for it rarely now based on current conversations and could this integrate what could this integration.

Speaker #5: Hi, there. Pavan Daswani from Citi. Thanks for taking my questions. I've got a couple if I may. firstly, maybe another follow-up on 2026 growth if you don't mind.

Speaker 6: Hi there, Pavan Daswani from Citibank. Thanks for taking my questions. I have a couple, if I may. Firstly, maybe another follow-up on 2026 growth, if you do not mind. I appreciate that the market growth component is still uncertain where we will have that 2 percentage point impact in Q2 next year. All else being equal, could you maybe touch on the visibility on share of wallet ramps and whether you expect that to accelerate next year from the new products that you have talked about gaining some momentum on? Secondly, on stablecoin integration, you mentioned that it is something you could look to integrate if your customers ask for it. Where are we now based on current conversations? What could this integration potentially involve?

Speaker #5: appreciate that market, the market growth component is still uncertain where we lap that two percentage point impact. In Q2 next year, but all else being equal, could you maybe touch on the visibility on wallet share ramps and whether you expect that to accelerate next year from the new products that you've talked about gaining some momentum on?

Potentially involved.

Great. Thanks for your questions Ethan Let me take the first one on 2026, and then Ingo the one unstable claim.

Speaker #5: And then secondly, on stablecoins, you mentioned that it's something you could look to integrate if your customers ask for it. Where are we now based on current conversations and could this integrate, what could this integration potentially involve?

Sure so.

On share of wallet wins.

We typically because we get this information through discussion with our customers read understanding their biggest needs their biggest priorities mapping out. These accounts and then working together to grow with them. We typically look at that on like a six to 12 month time horizon. So of course as you get closer towards the end of the year you start to get a view on what the next year looks like specifically.

Speaker #2: Great. Thanks for your questions. Ethan, why don't you take the first one on 2026 and then Ingo, the one on stablecoin.

H&M: Great. Thanks for your questions. Ethan, why don't you take the first one on 2026 and then Ingo, the one on stablecoin?

Speaker #3: Sure. So, on share of wallet wins, we typically, because we get this information through discussion with our customers, right, understanding their biggest needs, their biggest priorities, mapping out these accounts, and then working together to grow with them, we typically look at that on a 6 to 12-month time horizon.

Ethan Tandowsky: Sure. On share of wallet wins, we typically, because we get this information through discussion with our customers, understanding their biggest needs, their biggest priorities, mapping out these accounts, then working together to grow with them, we typically look at that on a 6 to 12 month time horizon. As you get closer towards the end of the year, you start to get a view on what the next year looks like, specifically opportunity by opportunity. If you think about it more holistically, the trend we are seeing is that across regions, across pillars, our product is really resonating. That is the thing that is allowing us to capture share of wallet at the rate we are. That is ultimately what has driven our resilient growth in the first half, is that we have been able to expand our share of wallet with our existing base. The trend is positive.

Opportunity by opportunity.

If you think about it more holistically the trend we're seeing is that across.

Across regions across pillars.

Our product is really resonating and that's the thing that's allowing us to capture share of wallet at the rate. We are that's ultimately what's driven our resilient growth in the first half.

Speaker #3: So of course, as you get closer towards the end of the year, you start to get a view on what the next year looks like, specifically kind of opportunity by opportunity.

Speaker #3: if you think about it more holistically, the trend we're seeing is that, across regions, across pillars, our product is really resonating and that's the thing that's allowing us to capture share of wallet at the rate we are.

Is that we've been able to expand our share of wallet with our existing base and so the trend is positive of course, we only get more visibility into the specific opportunities as we get closer to the year, but I would say the trend for US is positive on our existing customer base next to that we also see that for new wins, that's also in a better position.

Speaker #3: That's ultimately what's driven our resilient growth in the first half: we've been able to expand our share of wallet with our existing base.

Now than it was even in the last couple of years. So our cohort. This year is a it is larger than what we've done in past years I think those are the trends, which gives us the confidence to confirm the guidance and I think as we get closer to the to the year. We also know specifically the opportunities that will specifically focus on together with our customers.

Speaker #3: And so the trend is positive. Of course, we only get more visibility into the specific opportunities as we get closer to the year, but I would say the trend for us is positive on our existing customer base.

Ethan Tandowsky: We only get more visibility into the specific opportunities as we get closer to the year. I would say the trend for us is positive on our existing customer base. Next to that, we also see that for new wins, that is also in a better position than it was even in the last couple of years. Our cohort this year is larger than what we have done in past years. I think those are the trends which give us the confidence to confirm the guidance. I think as we get closer to the year, we also know specifically the opportunities that we will specifically focus on together with our customers.

Speaker #3: Next to that, we also see that, for new wins, that's also in a better position than it was even in the last couple of years.

Speaker #3: So our cohort this year, is, is, is, is larger than what we've done in past years. I think those are the trends which give us the confidence to confirm the guidance and I think as we get closer to the, to the year, we also know specifically the opportunities that will specifically focus on together with our customers.

Yeah, the unstable corners, where are we at the moment. So I think the conversations that we have with our customers is to see how we can help them to move money around the world I think that's the first question. So if you look at the markets where we are.

And if you see for instance in all the main markets that we're active we have already disability to move funds around quickly at the lowest cost.

Speaker #4: Yeah, on stablecoins, where are we at the moment? So I think the conversations that we have with our, customers is to see how we can help them to move money around the world.

Ingo Uytdehaage: On stablecoins, where are we at the moment? I think the conversations that we have with our customers are to see how we can help them to move money around the world. I think that's the first question. If you look at the markets where we are, and if you see, for instance, in all the main markets that we're active, we have already this ability to move funds around quickly at the lowest cost because we are connected directly to the clearing. It's less of a need. I could imagine that, for instance, if inflation would be very high in a country like Brazil, let's assume that this would happen in the next 12 months, so way beyond the current inflation rates, that there are merchants in Brazil that, for instance, would start to ask for a payout in stablecoins.

Because we are connected directly to a to the clearing so it's less of a need.

Speaker #4: I think that's the first question. So if you look at the markets where we are, and if you see, for instance, in, all the main markets that we're active, we have already this ability to move funds around quickly at the lowest cost.

So I could imagine that for instance, if inflation would be very high in a country like Brazil, let's assume that this would happen in the next 12 months so way beyond the current inflation rates that there are merchants in Brazil that for instance would start or ask for a payout and stable coins that would be a scenario, where we certainly would.

Speaker #4: because we are connected directly, to, to the clearing. So it's less of a need. so I could imagine that, for instance, if inflation would, be very high in a country like Brazil, let's assume that this would happen in the next 12 months.

Into if a regulatory situation.

I think that's one example of course in other application could be.

Speaker #4: So way beyond, the current inflation rates, that there are merchants in Brazil that, for instance, would start to ask for a payout in stablecoins.

Stable coin as a payment methods, but we think that that's relatively still very unlikely if it vote.

We would certainly start to look into that but that's at the moment remote or not.

Speaker #4: That would be a scenario where we certainly would look into, if, regulatory, situation, would allow it. I think that's one example. Of course, another application could be, a stablecoin as a payment method, but we think that that's relatively still very unlikely.

Ingo Uytdehaage: That would be a scenario where we certainly would look into if a regulatory situation would allow it. I think that's one example. Of course, another application could be a stablecoin as a payment method. But we think that that's relatively still very unlikely. If it would happen, we would certainly start to look into that. But that's at the moment remote and not under discussion with our merchants.

A discussion with our with our merchants.

Great. Thank you for your question. The next question comes from Sterne Merit.

Barclays. San Please go ahead and I meet yourself and ask your question.

Speaker #4: If it would happen, we would certainly, start to look into that, but that's at the moment remote and not under discussion with, with our merchants.

Great. Good afternoon, thanks for taking my questions.

Maybe one follow up question on the wallet share.

Golf driver can yes can you, perhaps provide us just a bit more color how penetrated your customer base is now and how sustainable this issue.

Speaker #2: Great. Thank you for your question. The next question comes from Sven Mert at Barclays. Sven, please go ahead and unmute yourself and ask your question.

H&M: Great. Thank you for your question. The next question comes from Sven Mert at Barclays. Sven, please go ahead and unmute yourself and ask your question.

Could it be in the medium to long term.

Speaker #6: Great. Good afternoon. Thank you for taking my questions. maybe one follow-up question on the wallet share, growth driver. Can you abs, can you perhaps provide us just a bit more, color how penetrated your customer base is now in our sustainabilist growth contribution could be in the medium to long-term?

Speaker 6: Great. Good afternoon. Thank you for taking my questions. Maybe one follow-up question on the share of wallet growth driver. Can you perhaps provide us just a bit more color, how penetrated your customer base is now, and how sustainable this growth could be in the medium to long term? A second question on issuing. Volumes have ramped up very strongly from a low base. Can you give us a bit more color on how broad based this is and how we should think about growth for the second half and next year? Thank you.

And second question issue.

Volumes at ground.

Very strongly from a low base can you give us a bit more color.

<unk> base business and how we should think about growth for the second next year. Thank you.

Great. Thank you eat the money to take the first one and you can go to the second one.

Speaker #6: And then a second question on issuing. volumes have ramped there very strongly from a low base. Can you give us a bit more color on how broad-based this is and how we should think about growth for the second half and, and next year?

Sure.

I guess almost two years ago, we shared our view on what we think our share of wallet is kind of per pillar I think to summarize it we feel that the majority of payments are still to win and these are in these customer segments.

Speaker #6: Thank you.

Speaker #2: Great. Thank you. Ethan, why don't you take the first one and Ingo, the second one?

H&M: Great. Thank you. Ethan, why don't you take the first one, and Ingo, the second one?

Speaker #3: Sure. I, I guess almost two years ago, we shared our view on what we think our share of wallet is kind of per pillar.

So there is still certainly opportunity for us to continue to grow with our existing customers for a number of years, having said that at some point this existing base will.

Ethan Tandowsky: Sure. I guess almost two years ago, we shared our view on what we think our share of wallet is kind of per pillar. I think to summarize it, we feel that the majority of payments are still to win in these customer segments. So there is still certainly opportunity for us to continue to grow with our existing customers for a number of years. Having said that, at some point, this existing base will be penetrated to the level that we think we can get to. So what is important is also that we add new customers. Because, of course, they are new customers at some point, but they also become existing customers. They become your base that you can grow off of.

Speaker #3: I think to summarize it, we feel that the majority of payments are still to win in these, in these customer segments. so there's still certainly opportunity for us to continue to grow with our existing customers for a number of years.

We'll be penetrated a it's.

It's at a level that that we think we can get to so what's important is also that we add new customers.

Because of course, they're new customers at some point, but they also become existing customers. They become your base that you can grow off of and that's why while new customers are not very relevant to our net revenue growth. Let's say this year. They are really relevant to our growth in 26 or 27 a M beyond.

Speaker #3: Having said that, at some point, this existing base, will be penetrated. to the level that, that we think we can get to. So what's important is also that we add new customers.

Speaker #3: because of course, there are new customers at some point, but they also become existing customers; they they become your base that you can grow off of.

Which is why we track it very closely and again why were pleased to see that.

It's a it's a cohort that's growing at a faster rates than our than what we've seen in previous years.

Speaker #3: And that's why, while new customers are not very relevant to our net revenue growth, let's say this year, they're really relevant to our growth in 2026 or in 2027 and beyond.

Ethan Tandowsky: That is why, while new customers are not very relevant to our net revenue growth, let us say this year, they are really relevant to our growth in 2026 or in 2027 and beyond, which is why we track it very closely. Again, why we are pleased to see that it is a cohort that is growing at a faster rate than what we have seen in previous years. Of course, there is opportunity to win in the existing base, but it is also really important that we continue to add these new customers so that as the years go on, we can capture the growth opportunity that we have.

So of course theres opportunity to win in the existing base, but it's also really important that we continue to add these new customers. So that as the years go on we can capture the growth opportunity that we have.

Speaker #3: which is why we track it very closely. And again, why we're pleased to see that, it's a, it's a cohort that's growing at a, at a faster rate than, than what we've seen in previous years.

And issuing.

The investments over the years are indeed start to work out the number of customers has us issuing has also increased so it's not just.

Speaker #3: So, of course, there's an opportunity to win in the existing base, but it's also really important that we continue to add these new customers so that as the years go on, we can capture the growth opportunity that we have.

Dependent on a single or to a customer.

Commercial lines I'm very happy with the fact that.

Speaker #4: Yeah, now on issuing, I think the investments over the years indeed start to work out. The number of customers that use issuing has also increased.

Ingo Uytdehaage: Yeah, and on issuing, I think the investments over the years indeed start to work out. The number of customers that use issuing has also increased. It is not just dependent on a single or two customers. I am very happy with the fact that we get a well-distributed selection of customers using issuing. That also is why I am very confident on the growth profile going forward. We do not specifically guide on expectations for issuing volumes. Given the development over the past 12 months, you can see that we have a lot of traction in this area and why we are quite bullish on further developing it and making sure that we increase the volumes with our customers, but also increase the number of customers. That is also what we have seen in the past.

We got a well dressed distribute its selection of customers using issuing and that also is why I'm very confident on the growth profile going forward, we don't specifically guide on expectations for issuing volumes.

Speaker #4: So it's not just, dependent on, on a single or two, customers. So I'm, I'm very happy with the fact, that we get a well-distributed, selection of customers using issuing.

But given the development over the past 12 months you can see that we have a lot of traction in this area.

And why we're quite bullish on further developing edge I'm, making sure. It up we are increased volumes with our customers, but also increase the number of customers. Because that's also what we have seen in the past. The moment that you have specific use cases up and running and you start to process them at scale Morial follow and I think we have gone to that situation where that's at.

Speaker #4: And that also is why I'm very confident on the growth profile, going forward. We don't specifically guide on expectations for issuing volumes. but given the development over the past 12 months, you can see that we have a lot of traction in, this area.

Speaker #4: and why we're quite bullish on further developing it and making sure that we, yeah, increase the volumes with our customers, but also increase the number of customers because that's also what we have seen in the past.

Okay. So we have a lot of proof points. We also now have the volumes then are the additional growth will follow in the next years.

Speaker #4: The moment that you have specific use cases up and running and you start to process them at scale, more will follow. And I think we have gone to that situation where that's actually the case.

Ingo Uytdehaage: The moment that you have specific use cases up and running and you start to process them at scale, more will follow. I think we have gone through that situation where that is actually the case. We have a lot of proof points. We also now have the volumes. The additional growth will follow in the next years.

Great. Thank you for your questions. The next question comes from <unk> <unk> from Deutsche.

Deutsche Bank. Please go ahead, none neat yourself and ask your question.

Speaker #4: So we have, a lot of proof points. We also now have the volumes, so then, the additional growth will, will follow, in, in the next years.

Hi, Thanks for taking my question I appreciate that me already exhausted that Brian, but I just wanted to know like tariffs. Aside can you tell us more about macro trends and the impact of macro and different geos are you seeing any sign of improvement and I'm in your guidance do you expect the same trajectory we're still improved.

Speaker #2: Great. Thank you for your questions. The next question comes from Nooshin Nahati from Dis Deutsche Bank. Please go ahead and unmute yourself and ask your question.

H&M: Great. Thank you for your questions. The next question comes from Nushan Nahati from Deutsche Bank. Please go ahead and unmute yourself and ask your question.

Speaker #7: Hi. Thanks for taking my question. I appreciate that we already exhausted the guidance, but I just wanted to know, like, tariffs aside, can you tell us more about macro trends and the impact of macro in different geos?

Speaker 6: Hi, thanks for taking my question. I appreciate that we already exhausted the guidance, but I just wanted to know, tariffs aside, can you tell us more about macro trends and the impact of macro in different geos? Are you seeing any sort of improvement? In your guidance, do you expect the same trajectory or some improvements there? Also, strategic change, do you expect further share of wallet gain elsewhere from these APAC merchants other than North America in your guidance? Or would that come up as some sort of upside? Thank you.

<unk> also.

<unk> expanded wallet share gain else that some these APAC matches and then go from there.

In your guidance or would that come up at that so.

Speaker #7: Are you seeing any sort of improvement? In your guidance, do you expect the same trajectory or some improvements there? Also, regarding strategic shifts, do you expect further wallet share gain elsewhere from these APAC merchants, other than North America, in your guidance?

So I'm sorry, that's upside thank you.

Thanks Nation, Ethan do you want to take both of those sure.

Yeah, So I think I'd I'd, probably go back to the example, I shared on what we see in for instance luxury retail.

Speaker #7: Or would that come up as some sort of upside? Thank you.

The fact that macroeconomic trends are mixed in with our share of wallet expansion.

Speaker #2: Thanks, Nooshin. Ethan, do you wanna take both of those?

H&M: Thanks, Nushan. Ethan, do you want to take both of those?

It means that it's not always straightforward to identify these especially on a short term basis right. So I think what we've tried to clarify is the area, where we see it most impactful that's clearly this handful of customers APAC headquartered in the online online retail space, where it's quite clear.

Speaker #3: Sure, yeah, so I think I’d probably go back to the example I shared on what we see in, for instance, luxury retail.

Ethan Tandowsky: Sure. Yeah, I think I'd probably go back to the example I shared on what we see in, for instance, luxury retail. The fact that macroeconomic trends are mixed in with our share of wallet expansion means that it's not always straightforward to identify these, especially on a short-term basis. I think what we've tried to clarify is the area where we see it most impactful. That's clearly this handful of customers, APAC headquartered in the online retail space, where it's quite clear. In other areas, it's often mixed in with share of wallet gains, and it's not very visible to us. There's nothing else that I would highlight or that I should quantify that would be, I think, helpful to your thinking for the second half. In terms of strategic shift, we're constantly looking at the opportunities that we have with our customer base.

Speaker #3: The fact that macroeconomic trends are mixed in with our share of wallet expansion means that it's not always straightforward to identify these, especially on a short-term basis, right?

In other areas, it's often mixed in with share of wallet gains and it's it's not very visible to us. So.

Speaker #3: So, I think what we've tried to clarify is the area where we see it most impactful. That's clearly this handful of customers APAC headquartered in the online retail space, where it's quite, quite clear.

There's nothing else that I would highlight or that I should quantify that would be I think helpful to your thinking for the second half.

In terms of strategic shift.

Where we're constantly looking at the opportunities that we have with our customer base. So yes, there is an opportunity to help our customers in other markets.

Speaker #3: in other areas, it's often mixed in with share of wallet gains and it's, it's not very visible to us. So, there's nothing else that I would highlight or that I should quantify that would be, I think, helpful to your thinking for, for the second half.

We highlighted Brazil. For example is one of the important opportunities that we have it is factored into the opportunities overall that we see in the business and.

Speaker #3: In terms of strategic shift, we're constantly looking at the opportunities that we have with our customer base. So yes, there's an opportunity to help our customers in other markets.

And it's something that we'll focus closely on to make sure that we execute well.

Ethan Tandowsky: Yes, there's an opportunity to help our customers in other markets. We highlighted Brazil, for example, as one of the important opportunities that we have. It is factored into the opportunities overall that we see in the business. It's something that we'll focus closely on to make sure that we execute well. Yes, like other opportunities, we look at it as part of our assessment of what to expect going forward.

So yes like other opportunities we are we look at it as part of our assessment of what to expect going forward.

Speaker #3: We highlighted Brazil, for example, as one of the important opportunities that we have. It is factored into the opportunities overall that we see in the business.

Okay. Thank you for your questions. The next question comes from Sanjay Sacconi at K B W. Sanjay. Please go ahead and meet yourself and ask your question.

Speaker #3: and it's something that will focus, closely on to make sure that we execute well. so yes, like other opportunities, we, we look at it as part of our assessment of what to expect going forward.

Thank you for letting me ask my question Ingo you mentioned you can help these handful of effective merchant so the hapag move into other markets, how long does that journey.

Speaker #2: Great. Thank you for your questions. The next question comes from Sanjay Sakrani at KBW. Sanjay, please go ahead and unmute yourself and ask your question.

H&M: Great. Thank you for your questions. The next question comes from Sanjay Saqrani at KBW. Sanjay, please go ahead and unmute yourself and ask your question.

<unk> have an offsetting impact this year and is it factored into sort of that 2% that you expected over the remainder of the year.

Speaker #6: Thank you for letting me ask my question. Ingo, you mentioned, you can help these hands full of affected merchants in APAC move into other markets.

Speaker 6: Thank you for letting me ask my question. Ingo, you mentioned you can help these handful of affected merchants in APAC move into other markets. How long does that journey take? Can that have an offsetting impact this year? Is it factored into that 2% that you've expected over the remainder of the year? Secondly, for Ethan, let me ask a modeling question. One is just finance income. I know it's a smaller part of revenues, but rates are declining in Europe. They are probably going to decline in the U.S. How should we think about interest rate sensitivity on a go-forward basis? What have you baked into your expectations? Secondly, on just a clarification point, that 2% impact that happened in the second half of the first half, it would have been higher over the first half.

And then just secondly, I'm sorry, let me ask a modeling question.

One is just a finance income I know, it's a smaller part of revenues, but rates are declining in Europe. The polygon is declining in the U S.

Speaker #6: How long does that journey take, and can that have an offsetting impact this year? And is it factored into sort of that 2% that you've expected over the remainder of the year?

How should we think about interest rate sensitivity on a go forward basis sort of what have you baked into your expectations and then just separately on just a clarification point.

Speaker #6: And then just secondly, sorry, Ethan, let me ask a modeling question. One is just finance income. I know it's a smaller part of revenues, but rates are declining in Europe.

That 2% impact will happen in the second half of the first half like it would've been higher over the first half just to be clear Youre, just assuming 2% impact for the second half or just a quarterly to an off about 2% sorry. Thank you.

Speaker #6: They're probably gonna decline in the US. h-how should we think about interest rate sensitivity on a go-forward basis? And sort of what, what have you baked into your expectations?

Speaker #6: And then just secondly, on a clarification point, that 2% impact that happened in the second half of the first half, like, it would have been higher over the first half, just to be clear.

Thanks.

So the first question Ingo you can take that one and anything you'll take the second two.

Cool yeah. So indeed, how long does it take through gathers implemented so I think it depends of it typically we are known to blocking factor here because if you want to move your operations from one country to the other or if you want to expand into a new country. There is way more things out.

Speaker 6: Just to be clear, are you just assuming 2% impact for the second half or just a quarterly 2.5%, 2%? Thank you.

Speaker #6: You're just assuming 2% impact for the second half or, or just a quarterly 2.5, 2%, sorry. Thank you.

Speaker #2: Thanks. All right, so the first question, Ingo, you can take that one and then Ethan, you'll take the second too.

H&M: Thanks. All right, so the first question, Ingo, you can take that one. Then Ethan, you will take the second, too.

You'll need to arrange for as a customer.

Speaker #4: Cool. yeah, so indeed, how long does it take to, get this implemented? So I think it depends a bit. typically, we are not a blocking factor here because if you want to move your operations from one country to the other or if you want to expand into a new country, there is way more things that, you need to arrange for as a, as a customer.

Ingo Uytdehaage: Cool. Yeah, so indeed, how long does it take to get this implemented? I think it depends a bit. Typically, we are not a blocking factor here because if you want to move your operations from one country to the other or if you want to expand into a new country, there are way more things that you need to arrange for as a customer. We are active in the markets that we are looking for. I think one of the markets that is looked into is both Brazil and Mexico to see how customers can further grow there. We are active there, so we are able to move quickly. It is a single platform. It is a single integration. It can be done in a couple of months to get up and running.

We are active in the markets that you are looking for so I think one of the markets that has looked into is both Brazil, and Mexico to see how our customers comfort of rotor and we are active there. So we are able to move quickly. It's a single platform a single integration and so it can be done in a car.

Speaker #4: we are active in a m markets that we're looking for. So I think one of the markets that is looked into is both Brazil and, and Mexico to see how, customers can further grow there.

We'll have months to get up and running.

Of course, we have tried to take that into account or so are in and being helpful. On what we expect for rest of this year.

Speaker #4: And we are active there. So we are able to move quickly. It's a single platform. It's a single integration. so it can be done in, in, a couple of months to, to get up and running.

It is included in our in the numbers.

And on the on finance income so the part which is in net interest income the part that's within net revenues.

Speaker #4: Of course, we have tried to take that into account also in being helpful on what we expect for the rest of this year.

It has slight.

Ingo Uytdehaage: Of course, we have tried to take that into account also in being helpful on what we expect for the rest of this year. I think it is included in the numbers.

Our interest rates sensitivity, but mostly are mostly not it.

Speaker #4: So, I think it's included in the numbers.

It is very small right. It has limited impact on our net revenue growth.

This half, but also I wouldn't expect that to change in the next few halves.

Speaker #3: And on, on finance income, so the part which is in net interest income, the part that's within net revenues, it has slight, interest rate sensitivity, but mostly, mostly not.

Ethan Tandowsky: On finance income, the part which is in net interest income, the part that is within net revenues, it has slight interest rate sensitivity, but mostly not. It is very small. It has limited impact on our net revenue growth this half, but also I wouldn't expect that to change in the next few halves. Ultimately, it has little interest rate sensitivity. What has some more interest rate sensitivity is what is below EBITDA. The interest income that we make below that line, that has some impact from interest rates, as the majority of that interest is earned by putting those funds at central banks. If they change their rates, that has some impact on the interest income component, the one below the line, very little above as part of net revenue.

<unk>.

But ultimately it has it has little interest rate sensitivity what has some more interest rate sensitivity is what's below EBITDA. So the interest income that we make below that line.

Speaker #3: It is very small, right? It has limited impact on our net revenue growth this half, but I also wouldn't expect that to change in the next few halves.

That has some impact from interest rates.

The majority of that interest is earned by putting those funds at central banks.

Speaker #3: But ultimately, it has little interest rate sensitivity. What has some more interest rate sensitivity is what's below EBITDA. So, the interest income that we make below that line, that has some impact from interest rates.

And if they change their rates that has some impact on the on the interest income component.

The one below the line very little above as part of net revenue.

And the two percentage point impact again, yes that was Q2.

Speaker #3: As the majority of that interest is earned by putting those funds at central banks, if they change their rates, that has some impact on the interest income component.

That's what we expect to continue through the course of this year for H, one that number was less because we didn't see the same type of impact in Q1, but we're factoring in that Q2 number which is also why I tried to quantify the number for Q2 and not the total number for each one.

Speaker #3: the one below the line very little above, i as part of net revenue. And the 2% point impact, again, yes, that was Q2. that's what we expect to continue through the course of this year.

Ethan Tandowsky: The 2 percentage point impact, again, yes, that was Q2. That is what we expect to continue through the course of this year. For H1, that number was less because we didn't see the same type of impact in Q1. We are factoring in that Q2 number, which is also why I tried to quantify the number for Q2 and not the total number for H1.

Great. Thank you for your questions.

The final question is going to come from Bryan Bergin at TD Cowen Brian. Please go ahead and I meet yourself and ask your question.

Speaker #3: For H1, that number was less because we didn't see the same type of impact in Q1. However, we're factoring in that Q2 number, which is also why I tried to quantify the number for Q2 and not the total number for H1.

Okay.

Hey, guys. Thank you.

Question 2025 cohort growth. So you noted that the 25 25 cohort is tracking well ahead of prior years can you just add any quantification to that as far as how much larger it is in the average land size or the pace of their relative expansion versus those prior cohorts that may help soon as some of the concerns on the 26 commentary here.

Speaker #2: Great. Thank you for your questions. The final question is going to come from Brian Bergen at TD Cowen. Brian, please go ahead and unmute yourself and ask your question.

H&M: Great. Thank you for your questions. The final question is going to come from Brian Bergen at TD Cowen. Brian, please go ahead and unmute yourself and ask your question.

Speaker #6: Hey, guys. Thank you. First question: 2025 cohort growth. So you noted that the 2025 cohort is tracking well ahead of prior years. Can you just add any quantification to that as far as how much larger it is in the average land size or the pace of their relative expansion versus those prior cohorts that may help soothe some of the concerns on the 2026 commentary here?

Speaker 6: Hey, guys. Thank you. First question, 2025 cohort growth. You noted that the 2025 cohort is tracking well ahead of prior years. Can you just add any quantification to that as far as how much larger it is in the average land size or the pace of their relative expansion versus those prior cohorts that may help soothe some of the concerns on the 2026 commentary here? On the second question on financial position. Now, €12.5 billion net cash. Can you share any evolution in the thought here on potential uses of cash, understanding you require the cushion for credit ratings considerations and your scaling capital businesses in EFP? Can you just share any relative balance sheet lending intensity factors that you kind of consider internally?

And then on second question on financial position. So now 12 5 billion Euro net cash just any evolution in the thought here on potential uses of cash understanding you require the cushion for credit rating considerations and you're scaling capital businesses and ESP, but can you just share any relative balance sheet lending intensity factors that you kind of consider internally.

Speaker #6: And then on second question on financial position. So now 12 and a half billion euro net cash, just any evolution in the thought here on potential uses of cash understanding your require the cushion for credit rating considerations and, and your scaling capital businesses and EFP.

Go ahead, yeah, I'll take them.

Uh huh.

I think maybe what what's helpful is if we look at how the 2025 cohort compares to other let's say 'twenty 'twenty fours, it's growing at a faster rate than the overall platform right. So the comparison of this year's cohort compared to last year is at a higher rate than the overall platform is growing so not only is it just.

Speaker #6: But can you just share any relevant balance sheet lending intensity factors that you kind of consider internally?

Speaker #2: Okay. Go Go ahead.

Speaker #4: Sorry, I'll take yeah, I'll take them. I, I think may-maybe what, what's helpful is if we look at how the 2025 cohort, compares to other, let's say 2024s, it's growing at a faster rate than the overall platform, right?

Ethan Tandowsky: Go ahead. I will take them. I think maybe what is helpful is if we look at how the 2025 cohort compares to other, let us say, 2024s, it is growing at a faster rate than the overall platform. The comparison of this year's cohort compared to last year is at a higher rate than the overall platform is growing. Not only is it just bigger in isolation on an absolute basis, but also on a relative basis, it is supportive to our growth over time. In terms of the cash position, I think what is really key for us is continuing to drive the growth that we expect over a number of years, as I mentioned earlier. I think the flexibility that the strength of our balance sheet brings is still the best use of cash to help drive that growth.

Bigger in isolation on an absolute basis, but also on a relative basis, it's supportive to our growth over time.

In terms of.

The cash position I think what's really key for us is continuing to drive the growth that we expect over a number of years as I mentioned earlier I think the flexibility that the strength of our balance sheet. She brings is still the best use of cash to help drive that growth and that's going to continue to be our focus.

Speaker #4: So, the comparison of this year's cohort compared to last year is at a higher rate than the overall platform is growing. So, not only is it just bigger in isolation on an absolute basis, but also on a relative basis, it's supportive to our growth over time.

Speaker #4: In terms of the cash position, I think what's really key for us is continuing to drive the growth that we expect over a number of years, as I mentioned earlier.

Great. Thank you everyone. So much for joining us today, one thing I'd like to mention before we go is that we are going to be hosting an investor day here in Amsterdam on November 11th 2025, and we're looking forward to seeing you all there. Thank you so much for joining us.

Speaker #4: I think the flexibility that the strength of our balance sheet brings is still the best use of cash to help drive that growth. And that's gonna continue to be our focus.

Ethan Tandowsky: That is going to continue to be our focus.

Okay.

Yeah.

[music].

Speaker #2: Great. Thank you. I know I said we had only one last question, but I think we can squeeze in one more quick one from Evercore.

H&M: Great. Thank you. I know I said we had only one last question, but I think we can squeeze in one more quick one from Evercore. Adam from Evercore, can you please go ahead and unmute yourself and ask your question? Might have surprised him. Adam Fresh, can you hear us? All right, we will try one more. Alex Foray from Exane. All right, I think we are all set. Thank you, everyone, so much for joining us today. One thing I would like to mention before we go is that we are going to be hosting an Investor Day here in Amsterdam on November 11, 2025. We are looking forward to seeing you all there. Thank you so much for joining us.

Speaker #2: So Adam, from Evercore, can you please go ahead and unmute yourself and ask your question? You might have surprised him. Adam, Adam Frisch, can you hear us?

Speaker #2: All right, we'll try one more. Alex Foray from Exane. All right. I think we're all set. Thank you, everyone, so much for joining us today.

Speaker #2: One thing I'd like to mention before we go is that we are going to be hosting an Investor Day here in Amsterdam on November 11, 2025.