Adyen N.V.

Hello, everyone, and thank you for joining Adyen's H1 2026 earnings call. My name is Maggie O'Donnell from Investor Relations, and I will be hosting today's call. With me today are Pieter, our co-founder and co-CEO, and Hua, our incoming interim CFO. We're going to begin with playing the prepared remarks from Ingo and Hua, then Pieter will say a few words, and finally, we will open it up for Q&A with Pieter and Hua. If you'd like to ask a question, please use the raised hand functionality at the bottom of your screen. With that, let's get started.

Hello, everyone. The beginning of 2026 was a strategically important half for Arjen. As commerce rapidly evolves, we're enabling more of the world's largest merchants to capture greater value across the entire commerce journey. We grow faster than our market. This consistent outperformance is driven by two engines. First, we're winning new and diverse customers. And second, we're deepening relationships and expanding our share of wallet with existing ones. Both reflect our ability to continuously deliver new value for our customers. Our long-term relationships provide clear visibility into the durability of this growth. Merchants typically expand their share of wallet with Adyen from under 20% in years 3 to 7 to more than 40% after year 12. Even after more than a decade, customers like Uber, Microsoft, Spotify and Google continue to broaden their use of our platform. This sustained expansion gives us ultimate confidence in our resilience and ability to continue outperforming the market. The strong momentum reflected in our H1 performance comes from our unchanged mission, solving complexity for our merchants. And the complexity is only increasing as commerce rapidly evolves. Competition for consumer attention is fiercer than ever. Workflows are shifting rapidly to AI and legacy infrastructure is no longer sufficient to meet the demands of modern digital commerce. Our long term strategy is built for exactly this shift, which is why more customers are looking to us as a stronger partner. Our North Star is to become the single trusted platform for the financial infrastructure on which global commerce runs. We started by building the world's most advanced payments processing stack. Now we're expanding that same engineering-first mindset to solve customer pain points before, at, and after the transaction. Our payments engine remains our foundation, and it continues to win share, but we're no longer just a payments company. We are the complete financial operating system for modern commerce, from payments to loyalty, bailing, and intelligent money movement. You can see this focus in high impact milestones we delivered this half. First, we completed the acquisitions of TalonOne and Orb, moving us deeper into our customer's technology stack and extending our platform well beyond payments. TalonOne brings market leading promotions and loyalty capabilities into our single platform. Combined with our unique online and in-person transaction data, it allows merchants to finally deliver truly omni-channel loyalty at scale. For years, retailers have struggled to connect digital and physical customer experiences. By bringing loyalty natively into our architecture, merchants can recognize shoppers across channels and deliver personalized incentives in real-time. Deepening consumer engagement and making loyalty far more effective than stand-alone systems ever could. All but rest is another growing customer challenge. As AI transforms how software is built and consumed, usage-based billing is becoming the default pricing model for many businesses. or gives merchants the tools to automate metering, pricing and billing, while our payment infrastructure completes the revenue lifecycle by connecting usage directly to settlement. Together, this gives businesses a single system to launch flexible pricing models globally and at scale. These acquisitions are an important part of our long-term strategy, serving as powerful drivers of our growth. to represent our fundamental long-term belief that in a complex world, the company that facilitates revenue optimization will deliver the most value. It also reflects how we invest, selectively, with discipline, and where we see clear strategic logic. Second, we introduced AgenAgentic to solve a critical problem for our merchants. How to sell safely and efficiently in the emerging AI agent economy Without a universal standard, merchants would need to build and maintain dozens of separate integrations just to keep their inventory, pricing and payments in sync This creates massive operational costs and risks Our product suite solves this. It acts as the universal translator that allows merchants to connect once to our platform and securely accept payments across all major GenTIC protocols. All while using the same unified fault detection and compliance rules they trust today. Third, we officially launched Intelligent Money Movement. For large enterprise merchants, complexity doesn't end at the point of payment. It often begins there. We help businesses automate global money movement on a single unified platform. Because this occurs natively on our own technical and banking infrastructure, capital flows dynamically and without the frictional delays of traditional banking wills. It allows us to move money completely end-to-end, unlocking unprecedented speed and treasury efficiency so global businesses can simplify their most complex operations. Taking together, these capabilities make our gen a more strategic partner to our customers and strengthen our long-term growth opportunity. The success of this strategy is directly reflected in our financial results this half. We delivered a strong half of 2026, with net revenue up 21% on a constant currency basis, driven by this ongoing platform expansion. Our skill is already immense. We are processing billions of transactions for thousands of global merchants. In the first half alone, we processed 804 billion euro in volume. To reiterate, we are winning in the market because we are building the complete financial operating system for modern commerce. As we look to the second half of 2026 and beyond, we will continue to execute with the same speed, discipline and engineering first mindset that has brought us here. and we hold ourselves to the same standard with you, our shareholders, setting clear commitments and delivering against them, consistently. To speak more to our operation execution and financial performance, I'll now hand things over to our interim CFO, Hua Cao. Hua, over to you.

Hello everyone, I'm Hua Cao, Adyen's incoming interim CFO. For the past year, I've worked alongside the Management Board as the SVP of Group Finance, and I'm thrilled to step into this role at such a strategically important time for Adyen, marked by our recent acquisitions of Talon One and Orb, the launch of Intelligent Money Movement and Adyen Agentic, and so much more. My focus is on empowering our incredible team to serve our customers and continuing our history of financial discipline. while keeping our dialogue with our investors transparent and constructive. Now let's turn to our financials, beginning with our top line results. Net revenue was 1.3 billion euros in the first half, up 19% year over year, or 21% on a constant currency basis, with continued strong growth in line with our communicated guidance. The best way to understand Adyen's net revenue growth First, expanding share of wallet with existing customers. Second, ramping up previous year cohorts. Third, winning new merchants. And fourth, scaling our financial products. We drove roughly two-thirds of our growth by deepening relationships with our existing merchants, specifically those onboarded before 2025. As Ingo highlighted, compounding revenue from established merchant cohorts is a valuable driver of our business. The remainder of our growth came from the ramp of our 2025 cohort, New customer wins in 2026 and the expansion of our financial products offering. These levers lay the foundation for the future as more recent wins scale and drive our continued growth for years to come. To support this expanding business, we added 249 net new joiners in the first half, bringing our total FDEs to 5,020 at the end of June. Our disciplined and targeted approach to hiring focused primarily on technical and go-to-market roles to drive our product roadmap and commercial momentum. With this focus, we remain well on track for our full-year goal of 550 to 650 net new hires. This measured pace of investment directly supported our strong profitability. EBITDA reached €642 million for the first half, up 18% year-over-year, Thank you for joining us. Our core infrastructure operates on our own private cloud, which creates a commercial advantage and allows us to deliver operational efficiency as we scale. Now, I'd like to say a few words on our approach to capital allocation. We are in a high growth phase and sustained efficient growth is our single highest priority. Everything we've done and everything we will do demonstrates this commitment. We put our capital to work where it drives the greatest long-term value. In the first half of 2026, our strong balance sheet allowed us to invest in our team to drive innovation, strengthen our platform infrastructure to support global scale, and execute targeted M&A to accelerate our roadmap and reach, as you saw with Talon 1 and Orb. Looking ahead, we remain fully focused on capturing the massive opportunity in front of us. Moving on to our outlook for the rest of the year, for net revenues, We now expect full year 2026 net revenue growth of 21 to 23% year over year on a constant currency basis. This reflects a one percentage point contribution from the acquisitions for the full year or two percentage points of contribution in the second half. Our growth outlook for the underlying organic business is unchanged. and we expect the growth rate in the second half to be similar to the first half, excluding the impact of Talon 1 and ORP. On EBITDA, we expect our underlying 2026 EBITDA margin to remain in line with 2025. Including the two acquisitions, we expect a 1 percentage point dilution, leading full year EBITDA margin to land approximately 1 percentage point lower than 2025. Thank you for joining us. to secure compute and storage availability and lock in price amid an unprecedented demand environment. As a result, we now expect CapEx of approximately 7% of net revenue for the full year. Through this active management, we expect CapEx to return towards historical levels post-2026. In summary, we delivered a strong first half with 21% constant currency revenue growth and 50% underlying EBITDA margins Thanks everybody for joining us today. I want to add a few words to what Ingo and Juan just said.