Adyen N.V.

Hello, everyone, and thank you for joining Audien's Q1 2026 business update call. My name is Maggie O'Donnell, and I will be hosting today's call. We will begin today by playing the prepared remarks that were available on the IR site earlier today. We will first hear from Ingo, and because we have Ethan with us here today, we will hear from him live directly. We will then move on to the Q&A with Ethan. As a reminder, to ask a question, please use the raised hand functionality at the bottom of your screen. With that, let's get started.

Hello, I'm Ingo Eijsdager, co-CEO of Adyen. The first quarter was a strong start to the year for Adyen, with net revenue of 20% year-over-year on a constant currency basis. What we are seeing across our customer base reinforces a structural shift in where value is created in payments. Historically, most of the value in payments are at the point of authorization, improving acceptance rates, optimizing routing, and managing cost. Today, more of that value is moving outside of the payment moment. Before payment is made, our customers are making increasingly complex decisions around which transactions to allow through, how to balance conversion and risk, and how to shape the outcome. After the payment, they are managing how funds move across markets, entities, and time. In most organizations, these steps are still handled across separate systems, creating duplication, higher cost and less control. As a result, our customers are asking us to take on a broader role, not just as a payment processor, but as a platform that helps them manage these decisions in one place. We are expanding our role across the transaction lifecycle, influencing decisions before the payment and enabling more efficient money movement after it. The reason for this is straightforward. We have always been focused on the biggest drivers of value in a transaction. Conversion, fraud and cost. But by the time a transaction reaches authorization, much of the outcome has already been set. You can still optimize, but you are working within a fixed set of inputs. Now, if you move earlier in the flow, that changes. You can decide which transaction to allow through, how to balance conversion against risk, and increasingly, how to shape the transaction itself. That is where the largest improvements in performance come from, and why we are moving up the funnel. You can already see this in products like Agenda Uplift, where improvements are driven by decisions made before the payment itself, but it's also very much connected to the acquisition of Ten on One, which we announced a few weeks ago. This is a direct extension of the same idea, and one we are very excited about. A consistent challenge our customers face isn't recognizing a shopper, but acting on that insight in real time. Today, promotions, pricing, and incentives are often managed separately from the transaction itself, disconnecting decisions that directly impact conversion and revenue. By bringing 10-on-1 into the platform, we can connect those elements directly. A merchant can recognize a customer and immediately apply a relevant incentive or pricing decision within the same interaction before the payment is completed. That allows them to influence outcomes earlier in the flow, where the impact is highest. What makes this particularly compelling is that it connects identity directly to action, using insight to shape the transaction itself in real time. The key enabler of this is identity. Customers need a continuous understanding of who the customer is across interactions. That is what allows them to make consistent decisions on conversion, risk, and personalization across channels and in real time. Over time, this expands what we are optimizing for. Most payment systems still focus on improving individual transactions. What we are increasingly helping customers do is balance those outcomes more effectively and factor in longer term value, moving from optimizing transaction in isolation to improving overall economics. Additionally, we are seeing a similar shift after the payment. For many customers, the bigger challenge is no longer accepting payments, but managing what happens next across markets and entities. Today, that's often handled across multiple banks and systems, creating inefficiencies and limiting visibility. With intelligent money movement, we are bringing these flows together in one system, allowing customers to manage funds more actively, reduce operational complexity, and gain better control over how and when money moves. We are actively investing to expand the platform across these areas. We are building at pace, supported by improvements in tooling and the use of AI. Much of this work sits deeper in the stack, less visible, but critical to operating reliably at scale. AI is accelerating how we build, but our advantage is where we apply it. Anyone can use AI, but not everyone can apply it to real money at scale within a regulated system. Our global banking licenses and SIEMO platform architecture are key to that, allowing us to bring new capabilities to customers in a consistent and scalable way without adding complexity. Finally, on agentic commerce, there is a lot of progress at the interface level, but in practice most flows still do not work reliably when connected to enterprise systems. As frontier AI models increasingly shape how products are discovered, evaluated and selected, we are helping merchants to standardize the way they connect three things. Identity, data and decisioning. Because as transactions move earlier in the flow and happen without direct user interaction, the ability to combine these three things becomes critical. And that's also where Talon 1 comes in, enabling merchants to directly influence what is shown and sold by applying pricing, promotions and incentives in real time, even as those interactions become more automated. We are investing in the protocols and infrastructure needed to support this. As transactions become more distributed across agents and platforms, consistent identity and interoperability are key to making these models work in practice. We do not expect a material impact from this in the next 8 to 12 months, but we do expect it to become increasingly relevant beyond that. So when you step back, the direction is clear. We are expanding our role from optimizing payments to helping customers optimize the full economics of their transactions, making better decisions before the payment, shaping outcomes during it, and managing money more efficiently after it. That is where we see the largest opportunity and where we continue to invest. With that, I will hand it over to Ethan to walk through the results in more detail.

Hi, everyone. Thanks for joining us. We are off to a strong start to the year, with performance well in line with our expectations, driven by strong execution and the resilience of our diversified customer base. Net revenue for the first quarter reached 620.8 million euros, representing 16% year-over-year growth, or 20% on a constant currency basis. Process volume was 382 billion euros, up 21%. This performance relies on two distinct drivers, gaining wallet share with our existing merchants and the strength of new customer cohorts. In terms of pillar performance, Digital net revenue reached €349.6 million, up 13% year-over-year on a constant currency basis and accelerating from the prior period. This is driven by continued share of wallet gains as we deepen partnerships with some of our largest content and subscriptions customers. APAC-based online retail merchants continue to present a slight headwind, which we expect to ease in the second quarter. Unified commerce net revenue reached 196.2 million euros, up 28% year-over-year on a constant currency basis, driven primarily by strength in luxury and small-format retail. In the quarter, we saw a less pronounced shift in customers between digital and unified commerce compared to the second half of last year. We continue to execute on our strategy to expand share of wallet across channels over time. Platforms net revenue grew to 75 million euros, reflecting a 40% increase year-over-year on a constant currency basis. Growth was driven by our expansion across the vertical SaaS businesses that we work with, with particular momentum in the financial services and food and beverage verticals, as well as the growing adoption of our embedded financial products. Now on the team. We continue to invest in our long-term growth. We added 88 net new FTEs in the quarter, a majority of whom are in our tech and commercial teams in North America. Our hiring plans remain the same for the year, and we continue to expect to add 550 to 650 net new hires in 2026. Turning to our outlook, given our strong start to the year and resilient performance from our merchants, we are reiterating our full year 2026 guidance. We continue to expect net revenue growth between 20% and 22% on a constant currency basis. We also reiterate our expectation for the 2026 EBITDA margin to remain broadly in line with 2025. Similar to prior years, we expect our EBITDA margin to be higher in H2 than in H1. We also continue to expect capital expenditures to be up to 5% of net revenue. This guidance remains unchanged by our recently announced acquisition of TalentOne. Given the expected closing timeline in the second half of the year, we do not expect the transaction to have a material impact on our 2026 financials. We will provide more information on the expected financial impact once the deal is complete. This is an example of where we can use our financial strength to help drive growth in the business. Our strong capital position gives us financial flexibility and a range of options to drive further growth in shareholder value. To summarize, we're off to a strong start of the year. We continue to see healthy growth across our customer base, which has proven resilient in an uncertain macroeconomic environment. We are well positioned to execute our strategy and to deliver on our long-term growth ambitions.