Qliro AB

Welcome to Q2 presentation 2026. During the questions and answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Christopher Rutgersen. Please go ahead.

Thank you and welcome to our Q2 presentation. So as usual, we will start with a quick strategic update with some highlights, walk through the financial update and talk a bit about the outlook and then end with some Q&A. So first of all, we still see a very large opportunity to build a new European leader in composable payments. We believe the infrastructure in payments is changing. We want to be the best position player for that change in the industry. And that is a key driver of our current growth in market shares. We do that through delivering a world leading experience for merchants and their customer journey. And this is something that's truly differentiate us versus local competition. Q2 now marks the second profitable quarter in a row. So we reached break even in Q1 and that journey continues. We are growing our volume, our total payments volume by 28% in the quarter. And our most profitable volumes, the BNPL volumes, are accelerating to 47% growth in the quarter, which we're very proud about. Our net revenue growth is also accelerating, now up to 24% growth, up from the 90% we saw in Q1 and the 14% we saw in Q4. So we are trending upwards in the net revenue growth that has been lagging a bit behind the volume and BNPL growth in the past. Large share of the volumes from a growth perspective is now coming from our investments and success in the SME segment across all the Nordic markets. And we've continued to grow the SME business as part of our financials, both from a net revenue perspective and gross profit perspective, given the higher margins in the segment. So that's now representing more than 60% of the volume growth in the quarter. And overall in our Nordic expansion, both in Norway and Finland, we see continued very strong momentum and large pipeline going forward. So... Someone is moving the pictures here. Sorry, the pages are jumping. So... Talking about the first point, we want to build a European leader in composable payments, starting in the Nordics with global capabilities. And we're now in the process of adding more and more international payment methods into our checkout to cater for international volumes of our Nordic merchants. From a sales perspective, we're primarily targeting Nordic merchants. But we're also with the partnership with P-Pro that was recently announced addressing European merchants with a lot of Nordic volume and we'll come back to that later in the presentation. Our mission is to deliver a world-leading experience for merchants and their customer journey. I've been in this industry for more than 10 years and my experience is that there's no one that's doing a really good merchant experience and combining that with full focus on the merchant's customer journey, not selling a lot of other things to the consumers. And that's something differentiates us both versus local niche bank competitors as well as the more global BNPL players. And it's a large reason for why many merchants see from a strategic perspective that they are shifting to our platform. Our ambition is to become the local market leader in the Nordics within the next three to five years. And with the current growth trends, we are well on the way to get there. From a product perspective, we also launched a new generation of our checkout in the quarter. Cliro Checkout Generation 4 with the focus on increasing our performance even further, both speed in the checkout, conversion, as well as our new upsell functions. Overall, we see a conversion uplift of 13% when we compare it to Lydic Nordic competitors in the first AB test that was done versus competition. So when merchants are upgrading to our platform, they typically do an AB test running some volumes on the former platform and some volume on our platform. So far, we haven't lost any of these AB tests since 2024 when we launched the second generation of the checkout, which was called Checkout Generation 0.0. From a profitability perspective, we are increasing our profit compared to the first quarter, still with quite small margins. But we are happy we are continuing on the profitability trend. So we are breakeven and we're targeting to reach also profitability, of course, for the full year with increased profits going forward. So we now have the large investment phase behind us in 2021. December 2024 we decided to launch our international expansion with setting up the sales offices in Norway and later in Finland as well as kind of doubling down on sales and marketing also in the Swedish market that have yielded very good results in growth and have now taken us back to profitability so going forward we're planning to continue to grow but being profitable at the same time and These growth investments have led to good volume growth during the last one, two years. And we are in the current quarter growing 28% compared to the same quarter last year. We are still seeing a very strong momentum in the SME segment. But in this specific quarter, we saw slightly lower momentum in the existing enterprise portfolio with a bit less expected organic growth than we had during the end of last year. and a bit slower ramp up of new enterprise merchants where we had expected some larger deals to be signed and onboarded before summer, but negotiations are still ongoing. And so the pipeline is strong for the autumn, but they didn't come live as of now. So we're growing 28%. And as part of that, we have also recently renewed a large share of our enterprise portfolio. So we announced during this week that we are prolonging and extending the agreement with the group that's having the brands Skruvat.se and Byt Hjul, as well as Däckskiftarna, one company within the group that are not processing with us today, but are shifting to us during the next year. So we've also, during the early this year, extended contracts with both Nelly and Lyko, two of our other top five merchants. We are very well positioned with secured contract in our existing portfolio, which creates a lot of stability for the business going forward. From a revenue perspective, we are growing net revenue by 24% in the quarter. So the net revenue have increased for kind of the last five quarters in a row. A bit lagging the growth we have seen in the BNPL volume. And the NPL volume growth is now on a very high level at 47% growth in the quarter, but also partly driven by shorter duration products. So we don't expect that to fully materialize into net revenue growth, but it's still a very good leading indicator that our products are more and more used from a consumer perspective, not only for the longer duration purchases, but also for more frequent purchases with invoices and part payments being paid and so on. shorter duration. And that shorter duration is also coming through in lower credit losses, which we will also see coming to that part of the financial presentation. From an SME perspective, we are accelerating in the SME business. We're adding more than 115 new active merchants on the platform in the quarter. We now have more than 800 merchants processing on our platform, growing the merchant base by 120%. And our net revenue growth from the SME segment is growing by 140% compared to last year. So now representing 26 million in net revenue in the quarter. So given that that's expected to continue going forward, we're now processing more than 100 million per year in run rate on SME business, which is a very good number compared to this is a quite new initiative that we have launched and we see a lot of success in SME business and expect this growth momentum to continue also going forward. SME business now represents 23% of our net revenue. and more than 60% of the new volume growth in the quarter. We also see good momentum in the new markets where we've always processed the consumer products or kind of pay later products also in Norway, Finland, Denmark. But it was not until in kind of late 2024 where we launched our Norwegian sales office In April last year, we launched our finished sales office that we started to sell to also local merchants in Norway, Finland. This has so far been very successful. We have more than 3 billion in signed volume from merchants locally that is expected to go live on the platform. And we continue to win more and more market share and kind of build momentum as both the pipeline get more mature and stronger in each of the markets. As part of the international expansion, so the third arrow is on the last page, we expect to target European and global volumes from merchants selling into the Nordics. More than 20% of Nordic e-commerce volume is coming from European and global merchants. The first step in this strategy is that we're launching an exclusive partnership with P-Pro. as their Nordic BNPL partner. So we will have exclusivity on this market with our products. So they are offering Clearo Pay Later in their network of global payment service providers, so basically global checkout providers, as well as some global kind of really kind of tier one merchants that are selling into the Nordic market. This partnership is expected to go live kind of early next year and kind of start to process volumes during next year. So, and we expect that this could be a significant kind of growth contribution going forward, both from P-PRO as well as from this strategy in general of enabling CLIRO as pay later method into other global checkout providers. And the strategic highlights kind of going forward. In the midterm, we expect to build a market leading position in the Nordics and we're well underway to get there. We see a strong commercial momentum and we will continue to drive a market share growth both in the SME segment as well as the enterprise segment. As mentioned, we had a slightly slower kind of conversion to sign the contracts in the enterprise space during H1, but we expect that to catch up during H2. The pipeline is still strong. The deals haven't been lost, but rather pushed a bit into the future. We expect the revenue growth to continue during the year and going forward as more and more of the volume build up our loan book and start to generate more revenue. SME will continue to grow with more than 30% growth in new volumes. And as mentioned, we're actually representing 60% volume growth in kind of the quarter but going forward we also expect some larger enterprise deals coming in and hence the SME number in absolute numbers would not go down but in share of total growth we expect it to maybe be above 30 but probably below 50. So our Nordic expansion has also kind of a lot of potential to grow further and now we created a full Nordic commercial organization We recently announced that we are changing our organization a bit. We announced a deputy CEO, and as part of that, we also set up a Nordic commercial organization with SME team across the Nordic, enterprise team across the Nordic, and so on. And we believe that will help us to drive the Nordic success even further. We will also continue to focus on improving our income generation from the volumes to continue to improve our Paylater performance metrics. That is an important driver of our profitability. We are working on our scalability and efficiency, and especially due to the new platform that we are launching for our Paylater products. We have announced that previously that we launched it for the first part payment products in Sweden. that is now live for all our part payment products in Sweden for a small share of our volume and we expect to ramp that up during the rest of the year and then launch the platform also in our other markets and that's an important part of also ensuring compliance with the new consumer credit directive that's implemented in Sweden during the November of this year so very well positioned for that and we will continue to drive our revenue growth and profitability for the full year 2026 And with that said, let's jump into the more detailed financial update. So first of all, as mentioned before, our total payments volume is growing by 28%. That's translating into 24% growth on net revenue. And at the same time, we see credit losses declining by 14%. So despite the growth in volume, our growth in loan book, and our growth in net revenue, credit losses is actually declining, and that's very good. So we have a good momentum on gross profit. Gross profit one, before variable cost, we're growing 39%. We're keeping variable cost fairly flat at 2% growth. despite the 28% volume growth. So we have done a lot of efficiency initiatives and cost saving initiatives on the variable cost side during last year. We now see that coming through in the numbers and that's leading to gross profits to growth of 47% in the quarter. At the same time, we are reducing our fixed costs by 4%. So, That's leading to an operating profit of 0.7 million in the quarter, up from minus 29.5 last year, which was kind of our low point in profitability during the investment phase. So very proud of these financial results. And we also see good improvements on the margin metrics, both game one and game two. The loan book has a steady growth now of 8%. We expect that to increase a bit going forward as the BNPL growth are growing rapidly. The BNPL volume as share of our total payments volume is now stabilizing around 16%. We expect it to stay at that level or potentially increase a bit also going forward as we are continuing to improve our pay later offering. Our net revenue growth, as mentioned, is growing 24%, 220 million in the quarter. More or less fairly flat in absolute numbers compared to last quarter, and that's normal in the seasonality of our business, where the volumes typically are a bit weaker in Q1, Q2, and then are picking up during the rest of the year with a high point in Q4. Our credit losses, as mentioned, is declining 14%, and the debt collection ratio is now starting to stabilize. In the previous quarter, we reduced it by 30%, but we're now coming into slightly more challenging comparables. So it's not that the improvement is less, it's just that the improvements were already starting in Q1, Q2 last year, but are still declining by 11% compared to last year. So that's also leading to that we continue to expect improvements also from a financial perspective on credit losses going forward. So the leading indicators on the credit side is good. Based on all the investments we have done during the last two years in both our new credit team, new credit kind of infrastructure for both our, basically all our databases, variables, credit decision models, credit limit frameworks and strategies. So we revamped that whole setup and that is now kind of yielding very good results from both financial perspective, but also from a consumer experience perspective. Part of this is also driven by the improvement in the consumer experience in general with the new Cliro app that has been launched in a new version also during the spring, where we help consumers to pay more on time. We lose some reminder fee revenue from that, so we see a bit of impact on that on the revenue side, but we believe that a better consumer experience and low credit losses will help us to build a better business long term. From a cost perspective, we've been working hard on cost control since Q2 last year. We did the restructuring program in September, October last year to take down cost as well as ensure we had a more scalable foundation as well as improving a bit on the tech side, which you will see on the next page. But overall cost, including the variable cost, is declining 3%. And we have a 6% decline in the rest of the cost compared to last year. So basically a fairly flat cost base despite the growth we've seen in both volumes and net revenue. So we truly see kind of the scalability of the business model now coming through in practice. We are now also developing more and more with AI on the tech side. We're using cloud code kind of fully in all teams. And based on that, as well as the new technical platforms we launched during last year, we have reduced our CapEx investments since Q3 and we are now running it around 22 million per quarter, so down roughly 35% compared to last year. Given the success with the P-Pro partnership, as well as some other upcoming partnerships, we are expected to increase CapEx a bit again, but not to the previous levels, just to finance the new business opportunities. From a profit perspective, as I already mentioned, the investment phase is now behind us. That has yielded good results on the growth, as discussed, bringing us back to profitability and we expect profitability to increase also going forward yielding kind of a full year profit well 2026. from a capital perspective no big news we are at running at the level of 21.9 percent so we're well capitalized and that's also due to the rights issue that was successfully processed in april with that was always subscribed with 191 bringing in 101 million before transaction costs. So that was it for the financial update. And looking ahead, I've already mentioned it, but we will expect continued net revenue growth going forward. We expect profitability for the full year 2026. We'll continue to accelerate our sales engine in both segments. And we will continue to build growth momentum in our new market. So we're now improving our processes across the Nordics to even more streamlined to support the markets in the best way. We have learned a lot during the last year or two years in Norway, one year in Finland to improve even further. So we expect that success to increase going forward. And with that, we also focus on making sure that the volumes is turning into profitable loan book, that we continue to improve the scalability and efficiency with our new platform. And with that, we have our mission to deliver a market leading experience for merchants and their customer journey. And we'll continue on that focus going forward. Thank you very much. And I open up for questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad.

We have one first question of considering your projected growth. How is your reasoning regarding capital injection from shareholders who meet capital requirements? And as I just mentioned, we did a very successful capital raise in April. We did a rights issue that was oversubscribed 191%. We brought in 101 million Swedish krona in new capital. And with that, we are expected to fund our growth journey going forward. We are now profitable and expect to grow profitable also going forward. Secondly, we have a question regarding the new Consumer Credit Directive, CCD2, that is a European regulation that is implemented in November in the Swedish consumer credit law, as well as the regulation in Finland and Denmark. And we are very well prepared from that from a technical perspective. That's why we're launching our new Pay Later platform that will not only help us be compliant from a regulatory perspective, but also increase our operational efficiency across all our processes related internally to having kind of consumer experience related to our Pay Later products. So we get a much more kind of modern cloud-based platform as well as kind of much more efficient processes as we can develop more tools on top of the new platform that we put on. the previous legacy infrastructure. That will also be a platform that we can take into new markets if we would like to going forward. So that's from a technical perspective. From a financial perspective, the new regulation commits on fee caps and so on. We are already within those fee caps, so we don't see any large impact or any significant impact on the business from that perspective. And then there are some product changes we need to do to kind of adapt the consumer experience to fit with new communication requirements, marketing requirements, and so on. But nothing that we see currently that is impacting us from a financial perspective. But of course, we're working to ensure we always are compliant with all our products in all markets. So that's it. And I think that's all the questions we have so far. and get a text there from the moderator that there's no more questions. So then I wish you all a great summer. And if not before, we connect in three months from now. And your vacations. Thank you very much.