Worldline: Debt Halved, but Annual Growth Outlook Reduced
Worldline released its first-half results marked by a balance sheet improvement (net debt halved to €1,165 million) and an acceleration in Merchant Services (revenue +1.8% on an organic basis). The group's commercial momentum, however, is being dampened by the structural decline in Financial Services (revenue -7.1%), a consequence of early contract terminations, and the company has lowered its annual growth outlook.
The company nevertheless confirmed its adjusted EBITDA guidance for 2026 (€630-650 million) and improved its free cash flow forecast.
Merchant Services Accelerate While Financial Services Decline
In the first half of 2026 on a post-refocusing basis, Worldline's revenue stood at €1,736 million, down slightly by 0.2% on an organic basis compared to the first half of 2025. This near-stability masks diverging trajectories within the group. Merchant Services recorded revenue growth of 1.8% on an organic basis, driven by approximately 4% growth in merchant volumes (MSV) and solid performance in Germany, Italy, Greece and Nordic countries in the SME segment.
Conversely, Financial Services posted a decline of 7.1% on an organic basis, reflecting the impact of contract terminations that occurred earlier and lengthening sales cycles. The group signed several new contracts (ABN Amro/ICS in the Netherlands, Central Bank of Curaçao), but these do not yet offset the lost revenue from closed operations.
Group Margin Slightly Compressed Despite Improvement in Merchant Services
The group's adjusted EBITDA stood at €294 million in the first half of 2026, with a margin of 16.9% of revenue, slightly down 0.3 percentage points compared to the first half of 2025 (17.2%). This overall contraction masks an inverse dynamic across divisions. Merchant Services improved its EBITDA margin by 0.7 percentage points to 19.0% (€261 million), benefiting from cost discipline supported by the North Star transformation.
Financial Services saw its EBITDA margin contract by 3.0 percentage points to 18.5% (€67 million), due to the decline in commercial activity linked to contract terminations. The conversion rate of adjusted EBITDA to cash flow stood at -10.7% for the half-year, penalized by rationalization and integration costs of €45 million (down from €112 million a year earlier) and a negative working capital contribution of €61 million.
Net Debt Reduced by Half and 2026 Outlook Lowered
Worldline's balance sheet improved significantly. Net debt declined to €1,165 million at the end of the half-year (versus €2,191 million a year earlier), thanks to the capital increase and the divestment program (Magellan Partners, Six, Cuscal Limited), making it possible to achieve a reported leverage ratio below 2x. Cash stands at €1,847 million as of end-June, complemented by a fully undrawn renewable credit facility of €1,125 million.
For 2026, Worldline revised its outlook. Revenue growth guidance was lowered from "+1% to +3%" to "stable to slightly positive", reflecting timing effects related to the commercial recovery of Financial Services. Adjusted EBITDA remains confirmed in a range of €630-650 million, supported by cost discipline and North Star execution. Free cash flow has been improved to a range of -€60 million to -€40 million (previously -€80 million to -€70 million). The group also accelerated several key milestones of its transformation, notably the first end-to-end agentic payment in Europe and the acceleration of generative artificial intelligence deployment.
