Q2 2026 wrap: improving, but growth still limited

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Worldline

Q2 2026 wrap: improving, but growth still

limited

Reiterate Rating: UNDERPERFORM | PO: 11.15 EUR | Price: 12.19 EUR

Portfolio refocus over, top line improving

03 August 2026

WLN Q2 was slightly above consensus on organic growth whilst the EBITDA decline was

more limited than expected. Revenue was flat organically, with 2% growth in Merchant

Services (-2% net of scheme payments), offset by an ongoing contraction of -6.9% in

Financial Services. Despite a better Q2, WLN lowered its 2026 revenue target to reflect

a lower than expected recovery in FS; however EBITDA was unchanged on solid cost

control, and FCF was upgraded. MS is improving but remains uneven by geography (high

margin Switzerland and Benelux continue to underperform, weighing on margins) while

Financial Services is likely to take time to recover given long sales and implementation

cycles. We note however that leverage is more contained post the disposals and capital

increase (est 1.8x reported, 3.7x on agency basis at year end), while the platform migration

is on track. Reiterate U/P on low growth profile, PO raised from €9 to €11.15 (ADR $4.9

to $6.0) reflecting c2% revenue / EBITDA upgrades. Prefer Buy rated Adyen and Wise.

Equity

Q2 results ahead, revenue guide lowered, FCF upgraded

Q2 organic revenue growth came in slightly ahead of expectations, with revenue flat YoY

versus consensus of -2% and BofA at -0.9%, driven by stronger Merchant Services

growth (+2.0% vs +1.6% in Q1, or -2.1% net). Reported EBITDA beat consensus by

12.2% and increased 0.4% YoY, while fully-pruned EBITDA of €294m declined 2% YoY.

FCF of -€35m was better than consensus of -€76m, with management also indicating

that the headcount reduction programme is progressing ahead of plan. 2026 guidance:

1/ Lowered organic growth to flat to marginally positive organic growth, vs low single

digit previously (consensus -1.2%). 2/ EBITDA confirmed of €630-650m. 3) FCF

improved to -€60 to -€40 vs –€80 to –€70m.

Call Key takes: stabilising commercial momentum

1/ Demand: solid merchant volume trends in Q2 but delta to net revenue growth

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