Worldline (WLN) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was €2,205m, down 3.4% organically year-over-year, with adjusted EBITDA at €401m (18.2% margin) and a reported net loss of €4.2bn due to a €4.1bn non-cash goodwill impairment reflecting market changes.

• Free cash flow was €40m (9.9% of adjusted EBITDA), impacted by Power24 and €62m in non-recurring strategic costs.

• Management is focused on transformation, cost control, and restoring growth, with a renewed executive team and ongoing strategic initiatives.

• Entered exclusive negotiations to divest MeTS activities for up to €410m enterprise value, aiming to refocus on core payment activities.

• External audits of the merchant portfolio are underway, with interim results showing no need for material offboarding in regulated entities.

Financial highlights

• Adjusted EBITDA was €401m (18.2% margin), down from €514m (22.5%) in H1 2024; normalized net income was €121m, but reported net income was -€4,218m due to impairment.

• Free cash flow before strategic initiatives was €102m (25.4% EBITDA conversion), with €40m reported after Power24 costs.

• Net debt at end of June was €2.1bn (2.2x adjusted EBITDA), with €1.17bn in cash post-bond repayment and a €1.125bn revolving credit facility extended to 2030.

• Capex reduced to €135m (6.1% of revenue), down €25m year-over-year.

Outlook and guidance

• FY25 is expected to see a low single-digit organic revenue decline, with H2 stable or slightly negative.

• Adjusted EBITDA guidance for 2025 is €825–875m; free cash flow expected to be neutral at the mid-point.

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

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

• Capital Markets Day scheduled for November 6, 2025.