This article first appeared on GuruFocus .
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Revenue:EUR152.3 million in Q2 2026, up 6.5% year-over-year on a like-for-like basis.
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Organic Growth:3.5% versus last year.
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M&A-Based Growth:4.6% contribution.
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Currency Effect:Negative 1.7% impact.
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Gross Profit Margin:40.0%, an uplift of 6.9 percentage points versus the same period last year.
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Adjusted EBITDA:EUR30.1 million, up from EUR29.5 million in Q2 last year.
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Adjusted EBITDA Margin:19.8%.
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Ad Impressions:Decreased by 10% versus Q2 last year.
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Net Dollar Retention Rate:Increased to 95%.
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Client Retention Rate:99%.
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Large Client Count:Clients with over EUR100,000 revenue per year were up 21.5% year-over-year.
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Total Customer Count:Increased by 36%.
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Operating Cash Flow (LTM):EUR105.3 million before net working capital; EUR99 million after net working capital.
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Cash Position:EUR132.4 million at end of Q2.
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Net Interest-Bearing Debt:EUR462 million, up from EUR448 million last quarter.
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Adjusted Leverage Ratio:3.3 times, up from 3.1 times.
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Interest Coverage Ratio:4.4 times.
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One-Off Costs:EUR4.2 million related to restructuring and severances; total items affecting comparability of EUR9.3 million.
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Efficiency Gains:Expected EUR8 million per year from organizational measures.
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CapEx Guidance:EUR74 million to EUR79 million for full year 2026.
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Full-Year 2026 Guidance:Revenues between EUR680 million and EUR730 million; EBITDA between EUR145 million and EUR175 million.
Release Date: August 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 6.5% year-over-year to EUR152.3 million, with organic growth of 3.5%.
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Gross profit margin improved significantly to 40.0%, up 6.9 percentage points year-over-year.
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Adjusted EBITDA increased to EUR30.1 million, up from EUR29.5 million in the prior year.
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Customer retention rate remained high at 99%, and the number of large clients (over EUR100k) grew 21.5% year-over-year.
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The company is making strategic progress in retail media, building the largest in-store network in Germany with 17,000 stores and planning a US rollout.
Negative Points
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Organic growth of 3.5% was below expectations due to macroeconomic headwinds and reduced ad spend in key sectors like travel, CPG, and automotive.
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Ad impressions decreased 10% year-over-year due to a deliberate shift away from lower-quality inventory, which impacted revenue growth.
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Net dollar retention rate was 95%, indicating existing customers spent less than the prior year.
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The company incurred significant one-off costs of EUR9.3 million, including EUR4.2 million for restructuring and severances, impacting quarterly profitability.
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Leverage ratio increased to 3.3x from 3.1x, and the securitization facility is nearly fully drawn, with plans to expand capacity.
Q & A Highlights
Q: The full-year outlook implies a significant step-up from the first half run rate. What are the key drivers for this acceleration, and does it assume that budgets postponed in Q2 will be deployed in H2? A: Remco Westermann (CEO) stated that the company is "geared for growth" through several levers: an expanded sales team onboarding more customers, scaling existing client share of wallet, new initiatives like the German retail media network, and further technical platform optimization using AI. He added that normal seasonality and US midterm election ad spending will provide a tailwind. Christian Duus (CFO) confirmed they are seeing "displaced budgets come back in second-half of the year" from sectors like travel, CPG, and automotive, noting "quite good traction" and "good momentum" in recent weeks.
Q: You deliberately reduced lower-quality, non-premium inventory in Q2. How much did this weigh on impressions and revenue, and is the cleanup complete? A: Remco Westermann (CEO) explained the decision was deliberate to fulfill the mission of making "media better" by focusing on valuable traffic. He noted the impact on revenue was smaller than on impressions because the removed inventory was low-priced, but it contributed to the 10% year-over-year decline in ad impressions. He confirmed that the "heavy change" is largely done, stating, "The biggest part of sorting this out has been done," though it remains a continuous process.
Q: What gives you confidence that weaker customer spending reflects postponed budgets rather than a structural shift from the open internet to Walled Gardens? A: Remco Westermann (CEO) acknowledged that some budgets are shifting to Walled Gardens, citing Google's strong growth in YouTube versus declines in its open market. However, he expressed confidence because the open internet represents a much larger share of consumer time, and the key is to demonstrate measurable outcomes. He highlighted retail media as a prime example of how Verve is building closed-loop solutions to prove it can "outperform the Walled Gardens" and capture that potential.
Q: How material is retail media currently, and does the 2026 guidance assume a meaningful contribution before advertisers allocate their 2027 budgets? A: Remco Westermann (CEO) stated that while retail media is not yet a huge revenue percentage, it is showing structural growth. He noted that the network has expanded to over 17,000 stores in Germany, and they are now seeing larger campaign budgets, moving from EUR5,000-10,000 to over EUR100,000. He expects a "nice revenue jump" in the rest of the year, but the "bigger jump" is anticipated next year, as major brand budgets are typically allocated in Q4 for the following year.
Q: The CEO letter puts the quarter's one-off costs at EUR4.2 million, but items affecting comparability were EUR9.3 million. Can you reconcile this? A: Christian Duus (CFO) clarified that the EUR8 million in annualized savings from restructuring are connected to the EUR4.2 million in severance costs. The remaining EUR3.6 million in other non-recurring expenses were largely related to interim management costs to fill critical positions quickly and other factors. Remco Westermann (CEO) added that a significant portion of these costs were also associated with the preparation for the relocation to Ireland and the transition to US dollar reporting.
Q: Given the softer-than-expected Q2, has the mix of outcomes within the EUR680-730 million revenue guidance range changed? A: Remco Westermann (CEO) reaffirmed the guidance, stating they are confident in landing within the range, though it could be on the lower or higher side. He cited a "very good ramp-up" and good momentum. Christian Duus (CFO) added that the general seasonality of H2 versus H1, combined with a potential "pent-up need" for advertising, and the productivity gains from the sales force investments (which take 9-15 months to deliver) should all benefit the second half.
Q: Your securitization program is almost fully drawn. Where are you in the process of increasing its capacity? A: Christian Duus (CFO) stated that they are finalizing documents for an expansion of the securitization program, expecting to sign within the next couple of weeks. While he didn't give exact figures, he noted it will be a "marked expansion" from the current EUR100 million cap. For a company at EUR1 billion in revenue, he estimated they would need a facility of at least EUR150-200 million. He also confirmed that the new entities, including Vivento, Acardo, and Captify, are now largely onboarded to the program.
Q: Why did Chief Revenue Officer Dave Simon leave after four months, and what does this mean for sales productivity? A: Remco Westermann (CEO) stated that Dave Simon's departure was mutually agreed upon, but due to a confidentiality agreement, he could not provide specific reasons. He emphasized that the company is professionalizing and needs the right people in positions. He announced that Alessandro Giuliani has been promoted to oversee the full exchanges, including the marketplace. Westermann expressed confidence in Giuliani, noting his long tenure and past success with the company.
Q: You mentioned preparation for a US listing. Can you provide more details on the timeline after the move to Ireland? A: Remco Westermann (CEO) confirmed the relocation to Ireland is scheduled for October 1st, which will technically enable a potential future direct listing in the US. He stated they are "basically ready" from the end of this year, pending market conditions. He also highlighted the strategic rationale, noting that the US is where their peers are and where the sector is better understood. Christian Duus (CFO) added that they expect to begin reporting in US dollars from January next year.
Q: What is your plan for refinancing the company's debt, and are you looking to buy back bonds trading at around 90% of par? A: Christian Duus (CFO) stated they typically refinance 9-12 months ahead of maturity, and they will assess the market at that time. He noted the combined bond portfolio is now EUR550 million. Remco Westermann (CEO) confirmed they have been selectively buying back bonds at favorable terms, which reduces interest costs, and they will "most likely continue with it" given the strong cash position.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
