Good morning to our guests in America, good afternoon to our guests in Europe. My name is Ingo Middelmenne, and as the Head of Investor Relations of Verve Group, I'd like to cordially welcome you to today's earnings call of our company.

As you see, we're using a new conferencing system from today onwards. It now allows our private investors to participate live in a listen-only mode.

Our institutional investors and analysts will be able to ask their questions live in the Q&A session. For doing so, you can always click the blue live Q&A button, which will automatically put you in the queue for later.

We have had an intense quarter behind us with a lot of effects and initiatives for us to explain. As usual, we have prepared a presentation for you to provide you with some additional insight to increase transparency for you.

After this presentation, we will of course take the time to answer your questions. Please be reminded that the entire call, including the Q&A session, will be recorded and will be made available publicly on our website following this call.

If you already know you want to ask a question later, you can already queue yourself into the Q&A line now. We would highly appreciate this.

Now I'm handing you over to our CEO, Remco Westermann, to guide you through the first part of today's call. Remco, please go ahead.

Thank you, Ingo. Also from my side, a warm welcome to the first presentation of the third quarter 2025.

As usual, I will present the headlines and the latest developments, followed by Christian, our CFO, who will present the financials. Q3 was a very important quarter for Verve, which laid the foundation for further strong and profitable growth.

As a very important milestone, we finalized the unification of our in-app platform, which leads to cost efficiencies as well as revenue opportunities. We also continue to invest in growth by further strengthening our demand side, adding more sales employees, and also acquiring two demand-side-oriented companies, as well as by further investments in our products, data, and AI.

While revenues and EBITDA for Q3 2025 were down versus Q3 last year, we started seeing the positive effects of the unification and the growth investments by the end of the quarter, and even stronger in Q4. Let me lead you through the Q3 presentation.

Let me start with an overview of our main events. As already mentioned in the introduction, as planned, we successfully finalized the in-app platform unification project.

This leads to lower cost. One platform requires one team, and as such, is much more cost-efficient as several platforms.

Even more important, the unified platform is better performing platform, which is and further will continuously be improved, showing better performance, and as such, leading to revenue increases. Our second strong growth driver is further investment in our main growth drivers.

We have a great product portfolio, and we are further investing in products, data, and AI, with also emphasis on our ID-less targeting. These products need to be sold, and that means growing our sales team.

With approximately 4,000 small and mid-sized agencies in the US plus the HoldCo agencies, a substantial sales team to address those is required. We are actively growing our sales team organically and also non-organically.

Coming to point three, acquisitions continue to contribute successfully to our growth. With the acquisition of Captify Technologies, we add strong positions in the US, UK, and Australia, expanding sales, customer reach, and adding intent data to our portfolio of contextual and the ID-less targeting solutions.

With Acardo, we acquired a strong addition in Germany, enabling us to get stronger in the German market with strong CPG contacts and great solutions for retailers and CPGs, amongst others, with solutions such as couponing and measuring via retail casher systems. Getting to the financials, point four, Q3 revenue was impacted by the unification project, as already mentioned before: temporary lower revenues and higher cost till mid of the quarter.

On top of that, we faced a softer market, without political ad spend, and with sectors such as, for example, CPG being weaker. Based on a change in revenue recognition, we are, however, reporting higher revenues than last year.

This is based on having more margin and revenue controls on the unified platform. Christian will cover this later.

Number five, our EBITDA came also in weaker due to lower revenues, one-offs of efficiency measures, and increased cost based on, for example, hiring more sales people, where costs come well before the revenue come. Also, weaker US dollar did not help us, as the majority of our revenues are in the USD, while large part of our costs are in euros, and we also report in euros.

Coming to the last point on the page, while Q3 and Q2 were not strong quarters based on the before-mentioned, by end of Q3, we started to see increased momentum. The momentum continues into Q4, with a performant single in-app platform, and efficiency measures and growth initiatives starting to show effect.

Based on this strong start into and further positive outlook for Q4, we reaffirm and narrow our 2025 guidance. Christian will cover that in more detail.

Looking at our main KPIs. What we see here, that we in Q3 were also able to further strengthen our already strong in-app position.

While LLMs like ChatGPT and the likes put web advertising and web publishers under pressure, in-app is a nice growth area to be in. Mobile now represents 97% of our revenues.

Whereas also CTV is a very interesting segment, we saw CPMs and margins coming under pressure based on more supply getting into the market, while a lot of demand is still stuck with spend on linear TV. Verve's CTV share of revenues is down from 4% in last quarter to 3% in Q3, which is reflecting this.

We are further investing in solutions for CTV that are differentiating and expect CTV to be the growth drive for Verve also on the long term, but don't want to work for low margin, and as such, saw lower revenues in this quarter. I'm very pleased with the fact that we were able to increase the share of demand versus supply.

As previously mentioned, the more we directly sell to demand, and the more balanced our supply and demand are, the stronger the company gets. Demand now represents 31% of revenues, up from 25% in the previous quarter.

Based on our investments towards brands and agencies, we expect the share to further grow. We also started to see positive effects of our investments in markets outside of the US, with the US now representing 75% of our revenues versus 79% in the previous quarter, and Europe increasing to 12% versus 9% in Q2.

Revenues and earnings performance were impacted by investments and changes in revenue recognition. While Christian will go more in detail, I cover the main financial KPI revenue and EBITDA on this slide.

Revenues 3.3% down versus last year on a like-for-like basis, and due to the unification and more control on margins, we, however, had to change our revenue recognition, and as such, show higher revenues as reported revenues. EBITDA is 22% down versus last year, which results from the lower revenues as well as from the higher cost due to the unification effects and the increased cost for our growth investments.

Coming to our KPIs. We saw an increase in ad impressions to 288 billion in the quarter, 18% up versus last year.

While revenue was down, this shows that CPMs and margins came down, reflected by weaker overall market and a mix shift away from CTV. Based on platform unification, onboarding and scaling were slow in Q2 and Q3.

However, from the middle of the quarter, we ramped up onboardings, with our number of overall software customers increasing by 6%, and including M&A actually by 23%. Our number of large software clients also again started to increase by 3% excluding M&A and 12% including M&A versus the last quarter.

The net dollar expansion rate with 90% was a bit lower than last quarter based on the one-time effects and market weakness with, for example, lack of political ad spend. Our customer retention rate remains at high levels, with our over-$100,000 client retention rate at a solid 96%.

Looking at growth drivers, our product innovation continues to be a strong driver. Here, for example, the scaling of our ad formats: Verve continues to increase impressions and conversions through full screen and video ads.

We see a strong 56% year-on-year growth with now $14 million revenues in Q3. Another area of product innovation is our ID-less targeting, as investors know.

We continued our product innovation into this area as well. The ID, the old backbone of user tracking and ad personalization, continues to disappear.

We further invest and scale our ID-less solutions. The acquisition of Captify adds further capabilities with their intent data.

We were able to grow our iOS revenues by 29% to $187 million LTM. Coming to platform unification, I mentioned the word several times in this presentation already.

This is also slide that we have shown previously. We started our business in ad tech by gaining critical mass through acquisitions, but to be successful in this business, a cutting-edge technology setup is key, and that means integrating platforms.

In Q2 and Q3, we saw temporary pain of that, but by end of Q3 and in Q4, we see the benefits. Important to mention that the latest acquisitions, Captify and Acardo, are simple cases that strengthen our demand side and don't require technical integrations.

Talking about our acquisitions, we're happy with them. We acquired Captify and Acardo, Captify just being half month consolidated into the third quarter, Acardo being consolidated from the start of the fourth quarter, but both strengthening our business.

Captify strengthens our sales teams in the US and UK and Australia. They have strong agency contacts and contracts, those can be leveraged, for example, if they have a contract with an agency, we can also start selling our other products into that, so that really adds.

There was only very limited overlap actually from the agency contacts with, let's say, the previous acquisition Jun Group and the further contacts we have in the US. Search intent data for targeting are added by Captify, and they're adding substantial revenue, whereas we paid an attractive multiple.

Acardo supports Verve in building stronger positions outside the US, especially strengthening our German position. Their strong relations with CPG brands can also be leveraged internationally, and also their couponing and cash register data capabilities we see as a potential gain outside of Germany, but also, of course, to further lift that inside of Germany.

Coming more towards the future, we continue to invest in structural growth that sometimes hurts, as we have seen also in Q3, but if we look at the overall growth of this company, it has always paid out in the mid and the long term, and we expect all the investments we do also to do and to already show in Q4. One area, important area: further improvement of platform and AI performance.

A unified platform is the base for further scaling and increased efficiency, and we continue our investments in AI and data, as well as further yield improvement of the platform. As the second, further scaling of our demand side by further scaling our sales organization, targeting a sales headcount of 150 sellers in the US by end of 2026, as well as expanding and improving our products and service portfolio with focus on verticals such as retail, CPG, and media companies, but also in podcasts, for example, we're seeing really nice results.

Additionally, we are working on the demand-side solutions based on the nice additional possibilities you have with generative AI and agentic technologies. We also expect to be able to show nice progress in that field.

That brings me to the end of my part, and I would like to hand over to Christian. Thank you very much, Remco.

My plan is to cover the financial performance of Q3 in numbers, but actually also spend some time in drilling into some of the underlying dynamics and drivers of the performance, and then I'll end on guidance for the year. Firstly, looking at revenue and adjusted EBITDA, we report 25% revenue growth for the quarter from 114 to $142 million in Q3 this year.

You will note a callout of $32 million here shaded in purple, and this is the impact of the change of revenue recognition, which I'll come back to and explain. If we normalize for that on a like-for-like basis, we had a growth of—a negative growth of 3%.

If we look at the organic growth of the business, taking into—adjusting for M&A and adjusting for FX, because we also had some headwinds from FX, we declined 4 percentage points—4.1 percentage points. We report $26 million in adjusted EBITDA for the quarter.

This is a decline from previous year of 22%, and also sequentially we are lower with $3.4 million. Now if we look at the EBITDA margin, with the addition of of the revenue recognition and the top line of 142 reporting, we will report 18% in adjusted EBITDA margin.

However, if you look here at a comparable EBITDA margin going from—going back in time, here the light blue line, we would on a like-for-like basis be reporting 24% in EBITDA margin. Despite a somewhat soft quarter, we generate operating cash flows of $34 million.

That's actually a doubling from last quarter, which was $15.2 million. I should, however, note that we also have a negative impact of working capital of $20 million—$29 million, $29.6 million, and this is majorly caused by lower use of our securitization program.

All in all, we invested $34 million, and that's a combination of M&A for Vivento and Captify, and also continuing to invest in the platform. I'll now try to dig a little bit deeper into the revenue and the top line and the performance of of the quarter.

Most importantly is probably the one effect of the change in revenue recognition, which has an impact of $32 million. As we move our mobile in-app volumes onto the unified platform, new unified platform, this platform has significantly enriched control features for pricing.

That means we can determine some of the pricing and the floors, and this essentially means that we also bear the burden of making the campaigns work. Now by IFRS 15 standards, that means we need to recognize the revenue on a principal basis, i.e.

on a gross basis, where it was for this part previously recognized on a net basis. As I said, it adds $32 million to revenues.

It has no impact on EBITDA, and this would be the principle that we will continue to recognize going forward. Positive impacts: we had, as Remco referred to, we had very strong iOS growth, 29% growth on a LTM basis.

We also had a good contribution from higher video and full screen volumes lifting our revenues, and we had we consolidated in Captify from the mid of September with some contribution. In terms of negative impacts for the quarter, the main one I would probably call out is that we did see a continued effect of the platform challenges after the unification until and including July and just the start of August.

We also communicated that last time. From thereon, we've seen improving momentum through the quarter.

It's mainly July and some of August that was impacted, but it does have a negative impact on the revenues for the quarter and therefore contributions. Aside from that, please keep note that in when you compare to last year, we did have some political revenues in Q3, actually even more in Q4.

In Q3, we had some 2-$3 million of political revenues, which of course we do not have this year. We also see reduced CTV revenues and continued to have FX headwinds.

That brings me onto—covered revenue part, brings me onto profitability. Here's showing both gross profit and EBITDA.

On the left-hand side, you see a calculation of our gross margin on a like-for-like basis. It's essentially revenues minus purchased services, our COGS, and you see an increase from 35% in Q2 to 37%, 2 percentage points up.

Also at with 37% level, we're actually above the levels of quarters—comparable quarters last year. I think this is very important because it really shows that the investments we're doing in the product is starting to show effect, and also that the challenges we had on some of with the unification of the platform in Q2 is is dealt with.

When we then look at EBITDA, and I will structure this in two components: Firstly, we had a number of one-off payments or expenses through the quarter. This we adjust normalize for in the adjusted EBITDA.

Just to cover them, we had $1.6 million in personnel expenses. This was mostly severance payments, given we are now through with the platform unification.

We have been able to capture cost savings and also personnel savings and including also different efficiency measures across the organization leading to $1.6 million in severance payments. We had legal costs, legal and advisory costs for M&A of $1.7 million, and also other expenses totaling $1 million, most of it is share-based compensation.

All together, $4.3 million. Aside from that, the profitability of the quarter is affected by the lower revenue loss and also continued technical costs that continued into the quarter, and that is probably the main reason why our EBITDA is softer for this quarter.

Also, after the completion of the unification, we are capitalizing less for the quarter. We do $3.3 million less in capitalization for the quarter compared to same quarter last year.

As Remco mentioned, we continue to invest in our sales team and sales footprint, and that means we are taking people and costs on board, sometimes in advance of full revenues of a sales person. All in all, an EBITDA for the quarter which is somewhat softish, but primarily driven by shorter-term effects and continued strategic investments in in our sales footprint and product, to say.

Which brings me onto operating cash flow and to CapEx development. Here on the left-hand side, you see the operating operational cash flow development for the period, and you will note that we have a we are down to $66 million in LTM for operating cash flows, down from 137.

This is reflective of two quarters now with lower cash generation, and also we of course have one-off the one-off expenses that I mentioned before does have a cash impact, and then with the negative development in our working capital. You will also see that we are realizing on an LTM basis $38 million in cash interest expenses.

That's lower than the 45 we had in 2024, and this is the benefit of the refinancing of the bonds, which will continue to benefit for going forward. At the same time, we maintain our CapEx investments, here illustrated by the purple, 34 and the 9, at roughly same levels as last year, and we did CapEx investment in M&A across Vivento and Captify of $25 million.

This brings me to adjusted leverage ratio and interest coverage ratio. Overall, we are certainly working on bringing down our leverage ratio and continue to to focus on that.

We have all we have also communicated that in the case of an M&A, we could see periods where our net leverage ratio would increase temporarily. Here we see for LTM basis September that we are at 3.1 times, up from 2.4.

I think this quarter basically sees a combination of outflows for M&A, and then together with the lower cash somewhat muted cash generation and together with also negative working capital swings. All these elements come together and reduces our cash position for the quarter, and thereby it also influences our net leverage ratio.

Moving then to interest coverage ratio, we see we are actually up in 3.5, at good and healthy levels. The increase is mainly driven by the fact that we are paying less interest on the bonds.

Now I focused a lot on Q3 and Q3 performance, but just taking a back a step back and looking at things in a bigger picture, we have had certain investment phases in the company through its lifetime. I think we've demonstrated when you look at it in a long-term perspective that we are able to grow our revenues significantly, as well as our adjusted EBITDA, 31% here across from 2020 to LTM today, and also we increased our adjusted EBITDA 38%.

I think that is important in to also have in mind as we look at the performance of Q3, and we should be evaluating on on the long-term performance and Q3. That's really what I wanted to highlight with this slide.

Then moving into guidance. We've had a very strong start to trading in Q4, and that leads us to reaffirm and but also update our full-year guidance for the year.

If we look at net revenues, we are guiding 560 to $580 million, and if you look at the underlying effects here on the right-hand side, you can really see a year where we had very good and strong growth in Q1, less growth in Q2 and Q3, but with the acceleration and the momentum shift we saw actually already within here Q Q3, but also then accelerating into Q4, we feel comfortable and certain that we'll reach 560 to $580 million in top line. I should note that the 560 and 580 to $580 million incorporates additions from M&A and also from the change of revenue recognition principle.

We tried to do that to be as precise and give as much clarity on where are we actually going to end the year in reported terms. Adjusted EBITDA, we maintain from guidance on adjusted EBITDA, we maintain from 125 to $140 million, taking into account that we continue to make investments also both in sales and in product.

That concludes my section, and I will now hand over to Remco for wrap-up and closing remarks.

Thank you, Christian. That brings me to the last slide of the presentation.

Based on the efficiency measures and the investment in our growth initiatives in the previous quarters, we saw strong end of Q3 and an even stronger start into Q4. The unification of in-app supply platform is finalized.

Customers returned to former spending levels and beyond. We were able to implement team and technology cost optimizations, and we restarted new customer onboarding in Q3 and saw good effect from that.

Putting more emphasis on the demand side is also leading to organic growth. We will further continue to onboard sales people and sales support staff.

We see a positive trend with regards to upselling of our combined and continuous improved product portfolio. As well as on the supply side, we also on the demand side see a strong momentum in customer onboarding and scaling of the customers.

We continue to focus on launching and improving our products and solutions. We see that AI and yield investments on the unified platform show positive impact.

We work on further improvements of our ID-less targeting, video solutions, data propositions, and brand and agency solutions. On top, the acquisition of Captify Technologies and Acardo are adding further critical mass.

We started integrating measures immediately after the acquisitions, and synergies are already started to show, where majority of the synergies will come from 2026 onwards. As part of the integrations, we also implemented selective cost cuts with regards to overlaps and duplicates.

The investments during Q2 and Q3 are paying off. Based on these investments and the improvements we see and further expect, we have started into strong Q4 and also expect a strong 2026.

Q4 will be strong uplift versus the earlier quarters, expecting net revenues of well over $200 million and with strong EBITDA of between 39 and $54 million, as Christian just showed. Even though we're not super happy with the numbers of Q2 and Q3, like some of the investors also will be, I guess, it is worth it.

We're really with that able to continue a strong growth path, like we did in the past. With all those improvements and seeing the numbers, we are very confident about a very strong Q4.

I would like to thank you all, and would hand back to Ingo.

Thank you, Remco. Now it's time for our Q&A session.

If you want to queue into the Q&A line, please click on the blue live Q&A button on the left side of your screen. The first question comes from Alice Eklund from First Berlin.

Alice, please go ahead.

Yes, good afternoon, gentlemen. Thanks for the detailed presentation and for taking some questions here.

I'll get things rolling. My main topic really is a couple questions about the overall ad market.

Starting with that, if you could maybe give us some color on how the market is in general developing. I know you hammered home a couple of times about the absence of the political ad budgets, but aside from that, maybe you could talk a little bit about how the overall ad market is developing.

Then also looking ahead to next year, we've got a couple of big events coming up with the Winter Games and also the World Cup. Do you see those as good growth drivers for next year?

Maybe you could just give us a little bit of insight how you see next year developing with the ad budgets there. Then aside from that, just a small housekeeping question: it'd be helpful if you could give the 2024 net revenue figure based on the updated revenue recognition methodology that you've adopted.

I'll leave it with that. Thanks.

Thanks, Alice. I think I'll take the first question, and Christian would like to take the second one.

Ad market: that's a story we can talk very long about. I'll try to summarize some of the headlines.

US is our main market. The US is with the tariffs and all those things, there's a lot of uncertainty and unpredictability in it.

Overall expectations were that it would be a super weak market this year. That's what we don't see, but there is weakness in some sectors, especially in auto and, for example, CPG, we see weakness.

What we overall see is that in the open internet, there is a consolidation trend, which makes sense because you need to be larger to do investments in AI and to grow. If I see what we are investing in those sectors, small companies cannot do that, so that makes sense, and we see a lot of companies that are for sale and in that sense will either sell or will, yeah, drop out of the market.

Walled gardens, we see different movements there. Amazon is pretty aggressive, especially at the moment, going in with their DSP and, yeah, hitting on some of the larger players on the DSP side with, let's say, very low tariffs and also very cheap CPMs on CTV.

That's shifting a bit. Google is withdrawing a bit from the market with all the, how do you say it, legal stuff that they get on their things, putting more on YouTube.

We see shifts there. Then we see channel shifts: LLMs are really hitting on the web market.

That's, let's say, another trend that we see. Political ads was strong last year because of the elections in the US.

Was already starting Q3; Q4 was even stronger. We have taken that into account actually with our forecast that, let's say, there's also Q4 revenues in political last year.

Those are, I think, a few of the big trends in the market. It's not a super strong market; it's certainly not even a strong market, but it's also not super soft.

There's shifts within the market. Programmatic still winning from linear, also an important point.

We hope that next year will be better, and as you mentioned, there will be some big events next year, and big events normally also drive advertising spend. Also having said all this, we're still a relatively small company in this big market, and as such, there's enough growth opportunities.

The weaker revenues were not caused by the market to just say it. Yes, there was some headwinds, and yes, it didn't help us, but the weaker revenues were caused by platform unification, which really was more painful than we originally expected, but on the other hand, we see now the really positive effects from that.

I hope that answers your question as good as I could in a short time.

Yes, thank you, Remco.

Yes. Your question was what would have been the corresponding revenue back in the same quarter last year, and it would have followed roughly the same path of 3% decline.

It would have been 100 close to $145 million.

No, sorry Christian. Felt was unclear about that.

What would have been the top line for 2024 based on the current revenue recognition? You reported 437.

I'm just trying to get a comparable basis to compare the 2025 full-year numbers that you're guiding for.

Okay. I would have to come back with a number on that for you.

That's fine. You can email it to me.

Thanks. We'll follow up on email.

Great. Thank you, Alice.

The next question comes from Adrian Elmlund from Nordea. Adrian, please go ahead.

Yes. Hi, guys.

Good afternoon. I hope you can hear me.

Very well.

Very well. Perfect.

I have a couple of questions. Firstly, could we get some more detailed explanation here regarding the working capital effects?

We're basically seeing three quarters now with rather weak cash flows, right, mainly due to working capital. Could you give some comments regarding the kind of cash generation going forward and your thoughts on that?

Sure. It's correct that in Q3, we had positive operating cash from the business, but we also had a negative swing in our net working capital, which of course takes some of the effect out.

This was because we had lower securitization, roughly of $29 million. The major effect there is really a lower use of our securitization program also because of some timing aspects.

In Q4, we generally always have a good contribution of cash and also from working capital in Q4, I would expect that it replenishes in Q4 for the year.

Kind of a follow-up on that: could you kind of explain this securitization program? Is that a one-time thing?

What will happen in the corp next year? Will it reverse, or kind of is this systematic in any way?

It's not systematic. I would expect some of it to reverse in Q4.

The securitization program is, as you potentially know, that we sell our receivables on a non-recourse basis. We have utilized that program less this end of this quarter than we normally do, and that explains the change from Q2 to Q3 of the -$29 million.

Okay. Kind of following up on that again, okay, with some weak cash flows here, obviously some accelerated M&A and with that, of course, increased leverage.

You've also stated that, going forward, you want to have reduced leverage ratio, right? I think you've reduced the target some year ago.

Could you perhaps give some comments regarding the leverage ratio and sort of the tying up the cash flow question there?

Yeah. That's true, and looking at it from a overall perspective, we have been working and are working on bringing down our net leverage ratio.

As I said, we also have been clear about that when we do M&A, that might temporarily move up, and that's what it's done for this quarter. Together with then a lower effects on our cash position, which is with the impact from both lower operating cash, but also the net working capital, that depletes some of our cash position, which of course goes against the net debt.

Going forward, with increased cash for Q4, it will improve, but I think it will take into next year as well to improve substantially, and it will continue to be a focus point for us.

Okay. Perfect.

Two more questions if you will. One will be technical.

Sort of given the platform unification here, as I understand it, it mainly affects the SSP segment, right? Could you give some explanation for why we've seen a margin pressure in the DSP?

Is that mainly due to the personnel costs, or kind of what are the reasons behind that?

Adrian, good question. Thank you very much.

You're right, let's say, on the supply-side marketplace side, we have seen the unification effects that was integrating the two SSPs, so that's fully on the supply side. On the demand side, we see the, let's say, the burden, but also already the positives of adding extra sales people, because if you add sales people, you first have to pay the salaries, and there's nothing coming in.

After half a year, you see partly things coming in, and after a year, if you're lucky, they're starting to make the salary. We are really investing in sales people, so that's one point.

The second thing is what I also already said, there's a bit of a mix difference there. CTV, we put less attention on because of the margin so much under pressure, so that's also an effect that's hurting us there a bit.

Perfect. Lastly here, also a question regarding the kind of revenue recognition.

Could you give any guidance what to expect in revenue recognition for 2026 so that we can put it in the model? Is that kind of $30 million times 4, or how should we view it?

I think we've been quite clear in terms of indicating, if you look at the guidance slide, we've been quite clear in trying to indicate that it had an effect of $32 million for Q3, and I think we indicate $36 million for Q4. That's an estimate, of course.

I think you can take a similar proportion going forward. It will have effect for all the quarters for next year would compare to this year, but it only starts here after July because that is when we move the volumes onto the new platform.

Not entirely 3 x 30, it will go a little bit up, but probably as an average, and with also scaling with revenues. If you factor in and scale with the revenue growth for next year, you'll probably have a pretty accurate estimate of it.

Perfect. That was all for me.

Yeah. Absolutely.

Thanks. Bye, guys.

Great. Thanks, Adrian, for your contribution.

Now the next question comes from Martin Yang from Oppenheimer. Martin, it's yours.

Hi, can you hear me okay?

Yes.

Thank you for taking my question. Just want to get more clarity on the annual guidance.

If we want to compare the guidance this quarter to the prior guidance, should I subtract the adjusted revenue in 3Q and also the implied 36 revenue $36 million in 4Q on '25 revenue from the updated guidance to compare apples to apples with your prior guidance?

That is correct, Martin. Thank you for the question.

That is correct that we in our full-year guidance for '25 here, that's 560 to $580 million, we try to take all effects that we know of, both the M&A and the impact of the change revenue recognition, into that number, you can effectively take the 32 and the estimated 36 and deduct that, and you would have it more on a like-for-like basis.

Thank you, Christian. Then next question on gross margin: it was mentioned in the press release.

Can you please walk us through how you calculate gross margin?

Yes. It's essentially our gross revenues minus the purchased services, that will both have elements of inventory, but there will also be certain other cost elements.

It's not exactly one-to-one with ad tech, which I think means some US companies use, but it is equal to the definitions that we have used. Normally we've only released the separation of purchased services and other expenses once a year with our annual report.

In this case, we give it out here for this quarter. Does that explain it sufficiently?

Yes, because I was doing some rough calculation based on your disclosure, but my numbers is a little off from the published gross margin in the press release.

Okay. That could maybe be because what we have provided here has been a like-for-like basis, because we also have to neutralize the effect of the revenue recognition so that the numbers that we show is on a fully like-for-like basis backwards in time as well.

Otherwise, it would be pears and apples. Got it.

A

last question from me is on the revenue recognition. Can you maybe share with us what percentage of revenues was adjusted to turn from net to gross, and what specific business segments or business divisions were most impacted on this adjustments?

It is the SSP segment that is impacted. It is, as we move to one unified platform on the SSPs, and it is the volumes that we have migrated onto the new platform, which is the mobile in-app volumes.

There's still outstanding some on display and CTV, but those are minor. The majority is this move for the in-app volumes that moves onto the platform.

I cannot give you a percentage out of how it is, but those are the impacted areas.

Got it. Thank you, Christian.

That's it for me.

Thank you. Thank you, Martin.

Thank you, Martin. The next question comes from Jörg Frey from Warburg Research.

Jörg, please go ahead.

Hi, gentlemen. Thanks for the presentation.

Just quickly on your savings: you alluded to the $8 million that you are going to save from the platform migration next year. How should we think about that, how much is going to flow through to the bottom line, and how much are you going to invest in additional sales or anything else?

Do you want me to take that question, Remco?

Yes, please.

Yeah. It's correct that we have indicated saving initiatives that would have a run rate of $8 million plus.

I would expect that we continue to invest in US for sales, and one way to look at it would be that at least two-thirds continue to have an effect and a roll-in effect of next year, but we will still have some investments in the US. That said, that's when you look at pure personnel costs, right, if you look at the run rate of our personnel costs.

However, what you should also factor in is that we have been doing investments in our sales force, and these will now ramp with revenues, they start to pay off the past investments.

Right, understood.

We've been in other advertising companies with we've got a lot of discussions about visibility for 2026, and are you generally seeing what we have seen in some peers that there is a very big reluctance on booking volumes just right now and bigger commitments for next years, or any general comments on that side would be appreciated.

Jörg, thanks for the question. Good question.

We indeed see based on, how do you say it, uncertainty, unpredictability in the US that also agencies are doing more short-term bookings. We even had bookings in Q3 which were then withdrawn or which basically postponed then to Q4, there is more short-term thinking in the market on the client side as well as on the agency side, but mostly driven, of course, by the clients.

That makes it not easier to estimate. Ad tech in general, it is a growth market, but these kind of things make it a bit more unpredictable.

I'm also always saying, it's markets where companies really grow with double digit, and my first company I worked in was an oil company growing with 1% per year. That's easier to predict, those kind of things, than these kind of things, but it makes it more difficult also for investors, of course, and for us as well.

Yeah. I hope you'll continue to to manage that well, and all the best for these volatile times.

Thank you very much.

Thanks so much, Jörg. The next question is a question from the chat from Rasmus Engberg from Kepler Cheuvreux, and he wants to know something about organic growth: 'Can you talk about the phasing of organic growth in Q4 and Q1?

Do you think we will see organic growth in those quarters?'

Shall I take that one, Christian?

Absolutely.

Yeah. The simple answer is yes, we expect to see organic growth.

With our platforms now really being more efficient than before, lot of customer onboarding, we will see organic growth. We have not given any, let's say, guidance so far for 2026, also not for Q1, but based on where the company stands, the onboarding, the strong product portfolio, the investments we've done in sales, we expect to show strong organic growth in the next quarters.

Great. Thanks, Remco.

Now we've got a question from Christopher General from Inderes coming up. Christopher, you were both in the live Q&A and on the chat.

I'll now just read your question from the chat: 'As I understand it, the weak cash flow is mainly a result of lower utilization of the securitization program in Q3. Are there any reasons behind this lower utilization during the quarter, and should we expect lower utilization in the coming quarters?

Could you also give some more color on what the underlying free cash flow would have been adjusting for this lower utilization?'

Okay. The utilization of the securitization program was lower this quarter.

It was partly because of lower revenues, but also some timing effects, which means that we are using it more now, and that also means that I expect that we will use it more through Q4 and therefore replenish from a cash position perspective. I think that was one part of your question.

How it would influence our free cash flow, was that the question?

The second word: 'Could you also give some color on what the underlying free cash flow would have been adjusting for this lower utilization?'

If you took the Q3 and compared it to Q2, it would have been an addition of roughly $29 million. It almost explains the whole negative swing in working capital.

If you add that back, then it would have a positive effect of in cash flow.

Great. Thanks, Christian.

The next question again comes from Alice Eklund from First Berlin. Alice, please go ahead.

Alice, are you there?

Guys, I don't know if you can hear me, but it seems that I lost connection, so...

It's your turn with the question. I still have one question from you in the chat.

You want to proceed? No, obviously you cannot hear us.

Of course, Alice, please, if your connection is stable again, then please just queue in again. The next question again comes from Christopher General from Inderes via the chat: 'The number of large software clients improved slightly in Q3, but still remained below the level in Q1.

How much of this is due to continued mitigation effects from the platform audit in scaling these customers above the $100,000 thresholds versus actual churn?'

Let's say, there's, of course, differences per customer, and thank you for the question first. The how to say it, the effect is really mostly based on the unification because we had periods where customers just were able to do less revenues on the platform, and if you do less play revenue, you can get under the $100,000.

What we nicely see is that, let's say, that the new customers onboarding is strong, but that still the over-$100,000 shows a positive movement, but it's still, how to say it, not at a level where we were a year before. We have, let's say, confidence that we will soon see that again based on, let's say, the performant platform now.

Really those, let's say, one and a half months basically in each of the quarters has really hurt revenues, and that also brings people then, of course, under the $100,000. It's LTM revenues, 12 months revenues, especially with two quarters, it doesn't help.

I hope that answers your question.

Great. Thank you, Remco.

The next question comes also via the chat from Sebastian Weißhuhn from Paladin Asset Management: 'The delta in working capital changes in Q3 amount to around €60 million. You quantified the securitization effect at €29 million.

What are the remaining working capital movements?'

Okay. I think you are now comparing to Q3 last year, if I'm not mistaken, and it's true that there is a delta of 60 million.

I would have to look into exactly the combination of securitization at that point in time. This was before I took on CFO role.

I would have to come back to you and just look into the combination of the different effects back in Q3 to answer that question.

Fair enough. Then Christopher General from Inderes has queued in again after his questions from the chat.

Christopher, now the microphone is all yours.

Hello. I was missed in the queue, I tried the chat instead.

Since my two longer questions has already been touched on, I just had two shorter questions. The first one is if you could sort of quantify the political ad spending impact in your Q3 and Q4 last year, and I can take the next question after that.

Yes. We can, actually.

In Q3, there was an impact of roughly a little bit close to $3 million, and in Q4, we had political spend that totaled something like $7 million in Q4 last year.

All right, thank you. I think that's helpful.

Just to get this sort of clarified, will you only report the gross revenue going forward, or will you also show the net revenue for the year?

We will continue to report as per the standards at least for Q4 in the way we've done, but we will provide comparison figures as well back in time. We have also done it in this interim report, just basically to show fully the effects of the revenue recognition.

I think there is a discussion how we would report next year, but we will provide a comparison table so that you can look at it both in terms of the old revenue recognition principle and the new one for this year.

All right, thank you.

Thanks, Christopher. The next question comes from Jörg Schorpp from Smile Invest.

Jörg, please go ahead. No, he withdrew his question, I think that has already been answered now.

We have one more question from the chat from our analyst Edward James from Cantor Fitzgerald: 'Please can you provide more clarity on revenue guidance and the impact of M&A? Prior guidance was $485 million to $515 million of net sales.

The new guidance is $492 million to $512 million if we take the Q4 implied figures you provided. How much are the completed acquisitions after the Q2 expected to contribute to the net revenue in Q4, and what does this imply for the change in net sales guidance excluding M&A?

Thanks.'

That was a long question, but I think I got the gist of it, which is really the contribution of the M&A for the Q4. Here we would have consolidated in Acardo for one quarter, and we would have consolidated in Captify for one quarter and a half month.

We would estimate approximately a contribution of revenue combined across the acquisitions of around $15 million. That's not a definitive number, that is approximately $15 million for the contribution for Q4.

I think thereby you can also deduct that and see what that means.

Great. Thank you, Christian.

I think overall we are within guidance. I think that's what the question is striving at, but we do have all these effects that will come into play in Q4, and that's also why we try to provide a all-in figure for where we're going to report for the year as a whole.

Thanks for the clarification, Christian. Are there any further questions?

As a reminder, if you want to queue into the Q&A line, click on the blue live Q&A button on the left side of your screen. Seems there are no further questions at this time.

Thank you very much again for participating in this Q&A session. Of course, in case additional questions should appear, please always feel free to reach out to the Investor Relations team.

With this, we have reached the end of today's call. Thanks for participating.

Have a good week, and talk to you soon. Bye-bye.