Worldline (WLN) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was €2,205 million, down 3.4% year-over-year, with Merchant Services and Financial Services declining, while Mobility & e-Transactional Services grew modestly.

• Adjusted EBITDA fell to €401 million (18.2% margin), impacted by lower sales, negative client/sector mix, and cost inflation.

• A €4.1 billion goodwill impairment in Merchant Services led to a net loss of €4,218 million, though normalized net income was €121 million.

• Management team was extensively renewed, with new CEO and key executives, and transformation initiatives underway, including a focus on core payments and divestment of MeTS.

• Strategic partnerships, product launches, and external audits of merchant risk portfolios continued, with interim results showing no need for material offboarding.

Financial highlights

• Adjusted EBITDA: €401 million (18.2% margin), down from €514 million (22.5%) in H1 2024.

• Free cash flow: €40 million (9.9% conversion), or €102 million (25.4%) excluding Power24 costs.

• Net debt at period end was €2,125 million, representing 2.2x LTM EBITDA; liquidity supported by €1.17 billion proforma cash post bond repayment.

• Normalized EPS was €0.43, down from €0.74 in H1 2024.

• Capital expenditures were €134.5 million (6.1% of revenue), down year-over-year.

Outlook and guidance

• FY25 organic revenue expected to decline low single digits, with H2 improvement anticipated.

• Adjusted EBITDA guidance set at €825–875 million; free cash flow expected to be neutral at mid-point.

• Guidance incorporates indirect business loss from recent media campaigns and remains cautious due to ongoing uncertainties.

• Restructuring cash outflow (excluding Power24) forecast at ~€150 million for 2025.

• Capital Markets Day scheduled for November 6, 2025.