Thank you. Welcome everyone to our Q4 presentation for Qliro.

I'm Christoffer Rutgersson, the CEO of the company. Today, I will talk about some repetitions on our strategic highlights, where we're heading, go through our financial update, talk about the outlook, and then leave some time for for Q&A.

In terms of our strategic highlights, we still see a large opportunity to build a new European leader in composable payments, and we are continuing to broaden our kind of integration in the composable payment space with platforms across the Nordics and different kind of best-of-breed solutions that our merchants are working with. We want to deliver a world-leading experience for merchants and their consumer journey, and see that as a foundation for our growth over the coming years.

We see good indications in Q4 on this momentum, with the 46% volume growth in in the quarter, leading up to full-year growth of 39%. That is also leading to that our BNPL volume, which is our most profitable volumes on the the part payment side of the business on on the pay-later volumes, that we are accelerating with 32% growth in Q4, up from the growth we had in Q3.

As that been lagging a bit in kind of early 2025, our income generation come a bit later than expected, but we see that momentum now kind of increasing to 32% on the BNPL, leading to an income growth in the quarter of 14%, which is in within our guidance for the quarter. This is also fueled by our success in the small and medium segment of of e-commerce, where we see a growth of more than 40% of new volume growth is coming from this segment, with new sales also reaching all-time high in Q4.

We expect this kind of growth momentum to continue also going forward. We see improved profitability in Q4 from Q3.

We're reducing the losses by by more than half compared to the last quarter, and we're still targeting profitability in Q1 2026. As our vision is to build a European leader in composable payments, as I mentioned, and we do that through delivering a world-leading experience for merchants and customer journey.

I still believe, with my kind of more than 10 years experience in European payments, that both merchants and consumers are a bit underserved, especially in the SME segment. We see that there's no one else that kind of handling the consumer on pay later as the merchant's consumer.

We we by doing that, we have a strategic difference compared to all our kind of local competitors. Our ambition is to be the local market leader in the Nordics within the next 3 to 5 years, and we if we keep up the growth momentum we now have, we confident we will get there.

That's also based on our product performance. This is a bit of repetition, but we, during the summer this year we in 2025, we launched the the third generation of the Qliro Checkout on our new infrastructure, built for higher performance, and we see that we have, in benchmarks, the strongest performance in the Nordics.

When new merchants are upgrading to our platform, we typically measure the performance compared to the previous supplier, sometimes ourselves, sometimes with this kind of external validation from the merchant's kind of growth partners and conversion analysts, and we typically see a conversion uplift of up to 5 to 6 percentage points compared to what they have before, which is directly leading to more revenue and more profit for the merchants. We also see, when we benchmark to local niche banks that are offering payment solutions, that we see a higher share of pay later in the checkout, more consumers are choosing Qliro due to the consumer experience, where we want to create a great consumer experience where the merchants kind of where consumers come back again and again, both to us and to the same merchants.

We see that kind of boosting the share of pay later in the checkout, which is good for us and it's also good for the merchants. Why do leading merchants choose Qliro?

I just mentioned some of the most important factors, which is on the top of the list here, of kind of leading conversion, getting more sales, and also working with upsell. We had a good example in the quarter when we launched Upsell 2.0 for Lyko, one of our largest merchants, which include that we can do now do upsell after a transaction on all payment methods.

That's a unique functionality in the Northern European kind of payment space, where we can offer more value for our merchants, keeping orders open, enabling merchants to add more products into the same order, increasing their order value, and hence kind of increasing their gross margin, getting more value out from every every kind of user on the site and from every kind of package they they shipping anyway. That's a clear value driver.

We see more than 150% uplift in the upsell orders for the first merchants being live, and we expect to roll this out on all our kind of integrated platforms kind of going forward. With that, and and the other functionalities we have, we see a positive business case for merchants of more than 10 to 20x the kind of the return on investment for for the cost of changing.

That is driving more and more merchants to kind of upgrade to our platform. We're quite unique in that we we working doing both a a great both digital and kind of service-led merchant experience and a great kind of digital consumer experience.

With that said, we have also, during the last kind of 18 months, launched new markets from a sales perspective. Qliro have always been active for kind of for consumers kind of across the Nordics, but in August 2024 and in April last year, we launched first Norway and then Finland.

We see stronger and stronger momentum as kind of both our salespeople and kind of the pipeline we have kind of are maturing. We see a growth good potential to continue to increase momentum in the new markets going forward.

We're also starting to integrate more and more local e-commerce platforms. Far, we have mostly sell sold to merchants that been integrated on either kind of Swedish or international kind of e-commerce platforms that we've been integrated for for the Swedish market, but now we also kind of getting live with more and more local capabilities, increasing our addressable markets in both Norway and Finland.

That is leading to, as I mentioned, that we grow 39% for the full year 2025 and 46% in Q4. We also have a lot of merchants that been going live during the year, and that merchants that we have signed contract with that are not yet live or not yet fully live on the platform.

All that contracted volume, also including expected churn, we are estimating that we will continue to grow at least 21% only from those contracts. On top of that, we will continue to sell in 2026 so we can keep up kind of the growth momentum going forward.

In new sales, we had a new all-time high on the SME side also in Q4, so that momentum is continuing. We see that volume growth on total payments volume is converting into BNPL volume with some lag of kind of a few quarters.

When we were growing quickly in the beginning, we also faced more new consumers, and it took some time for new consumers to adapt to use our first invoice products and then, to a larger degree, start to use our different BNPL part-payment products. We had a growth of 19% in Q3 and 32% in Q4, the BNPL volume growth is catching up with the the total payments volume growth.

As we grow the BNPL volume, that will over time build our loan book. If we take, for an example, a 36-month part payments, if you take such a product from us today, we earn nothing today.

We get the cost of credit reserves, variable costs, scoring costs, and so on, and then we start to earn some money next month, and we will do that for kind of continuously for the next 36 months. The more volume we have, that build up that kind of part-payment loan book over time, that's in turn kind of build income over time.

We see that now on the income side also starting to to catch up with some lag behind the BNPL volume. We we going from 3% growth in Q3 to 14% in Q4, in line with our guidance for the quarter.

Moving on to look at the SME business, where we also typically see higher margins than the enterprise business and lower competition. We in total, and this is also including number of enterprise merchants, but the majority in number of merchants are SME, we're growing 155% in the quarter compared to last year, and it's the first quarter we have more than 100 merchants going live on the platform.

That is leading also to an accelerated growth in the contribution to operating income from the SME segment, now representing 18% of our total operating income, up from 6% last year. We expect that kind of momentum to continue.

For our profitability program and kind of efficiency measures that we've been working on during last year, together with the program we launched in September, we are expecting profitability in Q1. We're doing multiple things here.

We are optimizing our pay-later products and and offering to improve the consumer experience and to kind of improve the share of checkout of our BNPL products. We're also modernizing our platform.

As I mentioned in the beginning of today's presentation, we launched our new generation of the checkout during the summer, and we're now rolling out our new platform for more flexible part payments, starting in Sweden and then at a later stage also for the other Nordic markets. We changing kind of the core of Qliro to be more scalable, more cost-effective, and more flexible to kind of improve our capabilities to meet demands from consumers and merchants, and potential new markets in the future.

That's the biggest tech investment Qliro have done in in kind of a long time. We're also investing in in process automation, including also kind of AI agents and automations across functions.

We we do targeting all our larger functions with a lot of staff to kind of boost our automation. We can see that, for example, on the onboarding side, where we have stronger onboarding performance now than in the past, which is also leading to what I just mentioned, kind of more SME merchants going live quicker, and we also doing this on on our different support teams and sales teams.

We did a staff reduction in September-October that we talked about before, that is now behind us, and we expect full impact from that on both opex and capex in Q1. We're also lowering our credit losses, over the last 18, 24 months, we have invested in a new credit analytics and data science team, as well as kind of improving or upgrading our whole data platform and credit models for all the Nordic markets.

We have started to see the results of that, and we'll come back to that in the the financial part of the presentation, where we've seen a drastic reduction of cases going to debt collection, which is the the clear kind of leading indicator for us of how expected credit losses will evolve going forward. We also kind of, during 2025 and especially the the end of 2025, have worked with kind of strict cost control, including renegotiating most of our external vendors, and we also expect that kind of impact to materialize during the coming year.

Together with this organizational changes and the growth that we expect, we will reach profitability in Q1. Some strategic highlights if you're looking ahead.

Mid-term, our ambition is to build a market-leading position in the Nordics, as we're focusing on the Nordic markets for now, even if we have a long-term vision of going also for more European markets. We see the same need from a merchant and partner perspective across all of Europe and not only in the Nordics.

Secondly, our commercial momentum continue to drive TPV growth momentum, we expect that momentum to continue going forward. We see that income growth is expected to accelerate, lagging behind the BNPL growth, but is expected to catch up during 2026.

We also see that SME efforts will will kind of continue to grow, and that we continue to grow within that space, both with new partners and merchants, with expectations of more than 30% of our growth in new volumes coming from SME, which will also improve our margin profile over time. We expect also our Nordic expansion to accelerate further, given the potential.

In total, Norway and Finland combined is is roughly as large as Sweden in terms of e-commerce volume, and we have just started to penetrate those markets, and we see similar needs for Norwegian and Finnish merchants as we see in Sweden. We also have a focus to improve our income generation, scalability, and efficiency during the coming year, but the the program as such from a profitability program perspective is now behind us.

With that said, we expect profitability in Q1 2026. From here on, I will move into a bit of more the kind of financial details for the quarter.

I've also already mentioned some of the the key drivers, some of our KPIs, with total payments volume growing 46%, operating income growing 14% in the quarter. We've also seen credit losses coming down with 15% in absolute numbers compared to last year, despite kind of the growth in volume and loan book.

Hence, our kind of gross profit is increasing even more than than income, to to 26% on gross profit 1 level and 22% on gross profit 2 level, which is after all our variable costs. That is, over time, kind of expected to cover our fixed costs, which were growing 12% in the quarter compared compared to last year, mostly driven by our investments in our new markets and sales and marketing.

We also had some items affecting comparability in the quarter relating to our profitability program of 4.9 million, reaching roughly 25 million in total, in line with our guidance for the program. If we move on to the loan book development, we see that growing with 5% in the quarter, it's growing less than our income growth, which means that we are becoming a bit more kind of capital-efficient in our growth than in the past.

We also see the kind of the BNPL volume as share of our total payments volume is continuing to go in the right direction. Here is where we had some kind of challenges in the beginning of the year where this kind of share of total volumes were declining as we were facing more new merchants, new markets, and new consumers, but that is now rebounding, and we expect that to to continue.

Looking at the growth of operating income, it's been, in absolute numbers, fairly flat the the previous 4 quarters, but for Q4, we are now growing with 14%, reaching 115 million in operating income. As part of that, SME is now representing 18% compared to 6% in kind of before, and that is also part of why we see kind of the the gross margin and gross profit improving in in the quarter, given that we have a higher margin on the SME segment than enterprise.

Looking at credit losses, I already mentioned credit losses going down 15% in absolute numbers compared to last year. We also see that exports debt collection is reduced by 33% on our BNPL loans, which is and BNPL are the ones driving the majority of credit losses in the portfolio.

We see this as a good leading indicator for continued improvements in credit loss performance also going forward, given that the majority of our portfolio is on solution rate agreements. It is when the debt is going to debt collection we know what kind of the future kind of credit loss is going to how that's going to materialize.

That's why we use that as a leading indicator. If you look at the restructuring program that we launched in in September, we had 4.9 million of costs relating to that in the quarter, reaching 24.5 million for the full program.

That program is not now behind us. We will expect the the majority of the impact to materialize in Q1, and some of the vendor negotiations will kind of materialize when contracts kind of renew kind of during the year in 2026.

We are now done with the program, in line with kind of expectations on the guidance. On our kind of cost development in the quarter, the cost increase is primarily driven by our volume growth, which we can see on the variable cost.

We also have a mix shift here of kind of markets and products, so that is increasing slightly more than than volume. We have our investments in our new markets, seeing the growth on kind of sales and marketing, and then kind of D&A for our kind of platform investments increasing a bit, while fixed costs is increasing 10%.

From a capital perspective, we have a good buffer to kind of our regulatory limits. In in the quarter, we have a 110 million CET1 buffer to our regulatory limit on Pillar 2, and on the Pillar 2 guidance, we have a 30 million buffer.

We're still well-capitalized after kind of the high season in in Q4. If we look at the outlook going forward, we expect profitability in Q1, and we expect at least kind of 21% in volume growth only from what's already contracted, also including some churn that we have kind of forced out to improve our kind of margin kind of going forward, that will materialize in in 2026.

On top of that, we have all the new sales that we are expecting this year, that will lead can continue to accelerate our SME and enterprise sales engine. That's something that we have not not touched a lot in our restructuring program, keeping up the sales momentum in all our new markets.

We are continue to build growth momentum also in in Norway, Finland, given that we we're keeping those investments and and continue to support kind of high growth in in our kind of new markets. We will also continue to focus on initiatives to accelerate income generation, improve scalability and efficiency, especially some of our AI initiatives, even if the cost program as such is now behind us.

We we'll also continue to deliver a market-leading experience for merchants and their consumer journey, and it's important for us that it's the merchant's consumer, we can guide the consumers back to the merchant they come from. If we continue to do this really well, I'm confident that we will, over time, establish a new leader in European payments.

Thank you, and with that, I open up for questions.

Let's see. We have a few written questions.

I will just pick it up here. We have one questions on our enterprise portfolio in the beauty space where one of our competitor announced that NordicFeel decided to leave Qliro.

If we look at our beauty segment in total for Q4, we signed 1 billion SEK of new volume from new merchants in that segment, including, for example, GlowID and local merchants in Norway, Finland. We also renewed our agreement with Lyko, the largest merchant in Qliro's books, for kind of the coming years.

We're still very confident on our traction in the kind of the beauty and fashion space. We also renewed contract with Nelly in the quarter and other part of our large merchants, our overall enterprise portfolio is secured kind of for the coming years.

Typically, merchants are sometimes always looking for kind of better pricing, and we are looking to increase our margins, and in that, I think we will always have some churn while we continue to grow with new merchants. Secondly, I have a question on some color on the process about the indicative bid that we announced in the summer.

We will announce news when we have news, the latest message is still what we can share at this point. Then I have a question on payment volume that's required to be the leader in the Nordics in the next few years.

If we continue this momentum, we definitely believe that we can reach above 50 billion in the next 3 to 5 years. With that growth momentum behind us, I would definitely classify ourselves as the new leader in the Nordics.

We have also one questions on churn, if that's included in the 21%, and yes, our expected growth on 21% in total payments volume is included both new merchant and expected churn. We have also a question on gross profit 2.

It's true that that's definitely kind of improved by our better credit loss performance. We also have one question on our take rate declined in quarter.

Take rate is our operating income divided by volume. Typically, when we see a very strong volume growth, as we kind of explained before, we have a delay until we see a similar level of income growth.

As the total volume growth is in turn kind of driving BNPL growth, and BNPL growth in its turn driving loan book growth, which in turn is driving kind of income growth. Given that we have a lag between the volume growth and the income growth, we will also see a reduction or that the take rate will decline when we accelerate, and then stabilize when kind of growth rates are kind of stabilizing.

Then we have one question on churn, which we already covered. If there's no more questions, I suggest we close the call for today.

Thank you very much, and we looking forward to talk again in 3 months from now. Have a nice day.