I'm excited to have the Paysafe team with us. We have CEO Bruce Lowthers, CFO John Crawford, Kirsten from the IR team. So thank you guys very much for being here with us. Maybe just to kick things off, we'll start a little bit higher level. So for those in the room or on the webcast that aren't as familiar with Paysafe, just talk us through the business today as it sits between merchant and digital wallets. And then maybe talk us through some of the end markets, where you guys have had the most success and where you think the Paysafe offerings are most differentiated. Yeah, Trevor, thank you. Really appreciate you having us here again this year. It's great to be here in New York. So, I'll just start with a little bit of background on Paysafe, twenty-nine-year-old company, $1.7 billion. We do business in over 100 different countries. As you said, we have really two business segments. We have a merchant segment and our digital wallet segment. When you look at the markets that we serve, you know, on a total basis, what you'll see is about 40% of our book of business is in the retail hospitality space, so lots of sub-verticals under that, but retail hospitality space. You have the gaming space is second, probably about 34% of the portfolio, and we have about 16% that was in really our digital assets. So that could be FX and money movement, those kind of things within that vertical. So those are the vast majority. That's about 85% of the total portfolio, and then the rest is kinda scattered in much smaller verticals. Okay. No, that's a good start, and you guys reported second quarter results about a month ago. I mean, year to date, the level of execution has been very good. First half was right in line with your outlook. It sounds like the second half is on track to accelerate organically. That had always been the way that you guys had built the year. Is there any... and I wanna talk about the second half acceleration next, but anything in particular coming out of the quarter that you guys wanted to highlight? Yeah, I think as you said, and, when we reported the quarter, we felt really good about the first half of the year. We had a lot of, noise probably in the system from the divestiture, so that, kind of clouds the message a little bit. But when you take that out of the way, and you look at just, kind of a apples to apples, we had really solid, mid-single-digit organic growth, through the first half of the year. We felt, good about that. We see some nice, EBITDA expansion as we're moving into the back half of the year. So, things are kinda lining up as we thought they would. We're seeing really nice acceleration in our new MIDs that we're adding, and we're seeing that continue into Q3, which is fantastic to see. So, you know, again, I'd probably just back up a little bit and just say, when you look at our business, we really have two components within the merchant side. They're performing as we thought they would. We have our e-commerce business that's growing over 30%. We've got our SMB business that's... You know, our growth profile is a mid-single-digit growth profile there. And then we've got our digital wallet business, which is doing very well. We're really having some nice growth there as well. So overall, we feel very good about the first half of the year and how we're lining up into the back half of the year. I think as we talked about in the earnings call, and we'll probably talk a little bit more here, you know, we have a clear path on how to get there, and we tried to lay that out and be very transparent about what needed to happen for us to hit the back half of the year. Maybe we follow up there, and the main drivers of where you get to that 8%-10% growth in the second half of the year, both across both of the segments, it'd be helpful to hear kinda what's embedded for the back half and visibility that you have into that. Yeah, sure. John actually walked us through that at the end of Q2. So if you wanna just kind of go back through that and- Sure ... we'll walk through. Thank you. So it's a combination of factors, not one. I'd say some improvement in attrition, which we've been working on, and we saw some good results, early results in Q2, as well as ramping clients that have been onboarded. You know, as Bruce mentioned, really nice MID growth in Q2. And then, deployment and ramp of new products, and partnership deals that have, you know, in many stages already live, or going live this quarter. And the combination of those things gives us, you know, gives us a good view across both segments, merchant and digital wallet. Okay. And then if we go back to the 2023 Investor Day, you guys had laid out high single digit to low double-digit revenue growth targets over the medium-term businesses today. It's a little bit different today. You talked about the direct marketing divestiture. Is that still the right framework for us to think about kind of the medium term as being the right organic growth profile for the business? Which is essentially what you guys are exiting this year at or, or implied to exit at, if that's kind of the right stepping-off point we should be thinking about for 2026 and beyond. You- The short answer is yes. I'd say the longer answer is, as you know, the business has been through a lot of change in the last year and a half, actually, the whole time Bruce has been here, so the last three years. And so, you know, we would look forward to telling everyone about, you know, a real midterm growth target, you know, probably early next year, as we finish this year. But that's... We are thinking, you know, the very similar to what we expect to achieve this year. You know, I'd say the other thing I'd add is in Q2, seeing 12% EBITDA growth, net of the divestiture, gives us, you know, good comfort in that algorithm as we look forward as well, because we've got the top-line growth, and we're now showing ourselves and hopefully investors too, cost control. ... Yeah, I would just, I think it's what you're starting to see emerge is really a settling into that organic growth run, right? So when we talk about this year of being upper single digits on our revenue growth profile for the company and double digit on EBITDA, as John just said, that's kind of where we feel is a natural spot for the business as it sits today. Yeah. No, and I, I think that's encouraging to see. I have a few just specific to merchant. We've touched on a couple of these as you guys have talked about some of the components of the business. But starting on the e-com portion within merchant, that's been a persistent source of strength. Like you mentioned, Bruce, it was growing over 30% year -over -year in 2Q. iGaming we know is a vertical that you guys do very well in. So maybe talk about the e-com business holistically, where you guys feel like you're particularly differentiated, why iGaming has been such a good vertical for you, and if there's anything else that you think worth highlighting. Yeah, sure. So, as we said, the e-com overall, 30% growth profile. iGaming, though, has really done exceptionally well for us. It's over 50% growth profile in that business year -over -year. The business itself, the e-com business is in Q2, is a 50, just over $50 million revenue business, so it's getting some scale at this point, right? So now it's a $200 million run rate growing at 30%. So that's really nice to see that continue to grow over the last couple of years. As far as why, I think one, we have a background, a history in the gaming space. Obviously, we have a tremendous amount of heritage in Europe in gaming. That's given us a distinct advantage, and it allowed us to go into the US and really think about the risk profile, how do we set ourselves up from a licensing, compliance, and risk mitigation perspective? And I think that's really allowed us to differentiate ourselves. I think also when you look at our customer base, we do business with every major gaming, online gaming, operator out there. So, we really are kind of the leader in this particular space. Okay, that's great. And on the SMB portfolio, you talked about MID growth improving in 2Q. If you could give us more of a state of the union on the direct and indirect sides of the portfolio, maybe we start there and can dig in from there. Yeah, so, look, I think overall, the SMB business is come back around as we anticipated. I think there is a lot of distraction with the divestiture of the direct marketing business at the end of Q4, but we're seeing really nice growth in the beginning of the year, so when we look at the indirect business, we're seeing new MIDs being acquired at a rate that we hadn't done before, so it's exceeding what we've done in the past on the indirect channel, and then we're seeing even on the direct channel, it's kind of returned back to the level we were historically, so we're seeing really nice production picking back up. I think when you look at the first half of the year, I'd say I'm pretty happy with kind of the transition. You'll see some nice growth in Q3 as we continue to move forward in new MID production. So we'll definitely, you know, on the direct side, we'll definitely have double-digit growth in the MID production on the SMB, so we'll see some positive things there. But overall, I think we tried some different things last year, trying to find ways to lower our cost of acquisition. Some of them worked, some of them didn't work. We invested in some salespeople. We've got nice productivity coming out of the sales organization. We've been able to reduce our cost of acquisition about 30% on each MID. So that's really nice to see, our team doing a great job on getting after these MIDs, finding ways to be really efficient. And some of those things are now starting to come to fruition, which is really fantastic to see. And that, the ramp in the MID growth and the direct side, is that a part of where the margin improvement in the second half is also expected to come from? Is that a- Yes. I mean- Just to tie it all together. Yeah. I mean, the longer answer is it's also continued growth in our e-com business, which drives a substantially higher gross margin than the overall merchant segment. So think kind of low sixties gross margin on the e-com side. So as that business continues to grow rapidly- Okay ... contributes, but also it's the direct versus indirect. Okay. No, that, that's helpful. And Bruce, you talked about some of the changes you've made on the go-to-market side, the direct sales force. There's also been some interesting partnerships or things that you've been doing on the partner side. You've expanded what you do with Clover. There was a recently announced partnership with Tilled. We know them as a PayFac, as a service provider. Would be helpful to hear just how those partnerships fit into the broader strategy within m erchant, and anything else you want to add on the build-out of the direct sales force? Yeah. So, I think for us, historically, we didn't really cultivate partnerships to the extent that we should have, so we really put an emphasis on it as we were coming into the year. Our lead Chief Revenue Officer, Rob Gatto, is putting together partnership opportunities for us, and you're starting to see those materialize. You're seeing us expand our relationship with Fiserv on an acquiring basis, doing some things in LatAm, doing some things in Europe, doing some things with our wallet in Clover, so these are all great things. Tilled's been a partner now for the last year or so, but so we really have much more energy around creating these partnerships, and I think Rob's team has done a very nice job kind of building that out. I think it's, for us, it's just something that, it's an improvement on execution. We didn't have a focus on it historically. Now, as we're clearing the deck a little bit, we're much more organized. We have a much better operating model today than we have historically. It's allowing us to focus on bringing in new partners, integrating with new partners, and driving new solutions to market. And we've really created even a vitality index around how we're gonna drive these things and what percentage of revenue comes from these projects. So we've got Bob Legters, who leads our product organization, driving that day in and day out now, where we didn't... you know, four years ago, just didn't have that discipline. Now there's a really a nice cadence around expanding these partners and driving these things into market. It and the only thing I would add there is it's also a very cost-effective way to drive growth so as we then can be very selective about the pieces that we need to build, wanna build versus the pieces where we can partner. Okay, and is there anything more to do on the direct sales force, just where that build-out is at? Yeah, that's a great question. On the direct sales force, I think there's always more to do. I think there's been some pieces that have worked, as we talked about in Q2, that have worked very well. Some pieces that didn't pan out as we had hoped, but, we feel like we've got a good nucleus now that we're building off of. We have good productivity out of them. You see, growth coming out of the groups. So we'll continue to try to figure out how to expand that group and continue to build on the success that they've had so far. But, we feel very good. The return on what we spent on building out that sales organization has been really fantastic. So, we like the use of those funds, and we're seeing it start to come back to us now. And so we'll continue to work on it, but feel very good about what we've done so far. So it feels like we're kind of at the point now where we're harvesting a lot of the changes that we've seen- Yeah, absolutely. Okay. Yep. No, that's great. So if we move over to the digital wallet side, for a bit, maybe just higher level, talk to how we should think about the growth algo there between user growth, ARPU growth. Yeah, I'll leave it higher level to start. Do you want me to start, or you? Start with one quick thing, 'cause I love this topic, which is, I would start, maybe reframe a little bit and say: We think about it in terms of more like a network business. It's user growth and locations where the end users can use the solution first, and ARPU really is more of a result of that. So, adding merchants for the users to use the solution, and then adding engagement into the solution so that those users are making more transactions or as, you know, as we show transactions per active user and those kinds of things. Those then drive ARPU and revenue in the space. So then each part of that requires some effort, some marketing, some people, some tech, whether it's driving marketing to bring consumers into the solution and the ecosystem, sales force and marketing driving more merchants into the ecosystem, and then product and tech driving more into the solution itself to raise engagement and usage. Okay. Yeah, look, I think it's a great business. We've always gone, as John said, we've always gone to market, kind of a B2B2C strategy on the digital wallet side of things. What we hadn't done historically is really taken advantage of the distribution channel. We're really trying to bring that to bear as we're moving forward. We create all these great storefronts from the SMB side. We're not leveraging those enough. That's why we created the business wallet, to try to drive the wallet into that distribution channel, much like we had in Europe, where all of those users really came from gaming sites. They would go to the gaming site, the gaming site would refer them to Skrill, Neteller, or Paysafecard, and they would go use that to buy whatever they were doing or place their bet. That's really. We're trying to leverage that same kind of model of going to the business, leveraging that business to drag in the consumers through that business. We feel very good about the ARPU over the last two and a half years. It's gone up to kind of low teens over the last two and a half years, so we feel good about the ARPU. I think probably a year and a half ago, I came in and told everyone, "Hey, the ARPU is gonna go down, and we're gonna start building out use cases that maybe not doesn't have the same level of ARPU, but we're gonna broaden out the usage." We still believe that's coming. You know, I think we've been very fortunate about the transaction volume has increased quite a bit. And so that's really driving the ARPU up versus pricing. It's just usage has gone up because we cleaned up so much of the applications and how people were using them, so they're much more usable today. We've put cool things in there, like the sports center, so they know what's going on and what they can go bet on, and information about the big events of the day. So, those kind of things are really panning out in that digital wallet business. Is there anything else on the roadmap product-wise, or, anything else we should be thinking about over the next year or so that could be particularly impactful there? Well, I think we've got a lot. We just launched the PagoEfectivo wallet, which we've talked a lot about in the earnings call. We feel very good about that. We were just talking this morning that just since Q2, that's already increased 45% since the end of Q2 when we did our reporting for the quarter. So we're seeing nice uptick in usage there. The thing we really love about the PagoEfectivo wallet is Pago was a big part of Peru and e-commerce network, but it's getting us to triple the transaction volume of the people who use the wallet versus just using Pago. So feel very good about that. It's just beginning. We're just beginning to explore how to continue to expand transactions per user in that market. So, that's obviously been a great launch for us. Last year we launched account card, which has been a great growth profile for us as well. I think one of the things we talked about, too, in Q2, we changed really the distribution, where we allow for in Paysafecard the ability for people to top up online. And just in the last year, that's moved to our largest distributor of Paysafecards. So it's gone from nowhere to number one in a year. That's the preferred method now for people to top up those cards. So while we've got a few things that are out there, plus the business wallet that we talked about, we're seeing a nice, steady cadence of products coming to market at this point. It's not where we want it to be, but we're getting there, and the team's building out. We're bringing in quality people that are really thinking about how to drive that consumer business, how to focus on the e-com and expanding the e-com business into different verticals that we play in today. Okay. No, very interesting. And I have to ask a stablecoin question. Yeah. And just as we think about the digital wallet segment, do stablecoins fit in any way? I'm just curious kind of how you see that potential involvement. So, this question oddly comes up all the time. But we've been using stablecoin for a number of years already. You know, as we have historically done, crypto fiat to crypto, crypto to fiat, we've been leveraging stablecoin as part of that over the last few years. So, it's something that you know, we've found a use case for, albeit small. It is something we've been doing for quite a while. There's also more back office, like it's used more in the treasury side of the house as well. But you know, I... It's an interesting dynamic. I think when you look at kind of the analyst reports out there, it talks about stablecoin only being 3%-5% of the total payments by 2030, so you know, that's still great growth, but it's still very small in the grand scheme of things. You know, I think the big thing. You know, I've talked about this all over the world. I think the biggest thing is people have to find the use cases. There's you know, the use case of cross-border payments, but people are struggling to find use cases on it as to why a consumer would choose that over whatever, prepaid or debit or however you wanna move money, but I think that'll be the thing, is who can figure out a use case for it? Okay, so it sounds like today it's really just been an on and off ramp within the wallet for you guys between fiat and crypto? Yep, that's correct. Okay. Interesting. If we go to margins for a couple questions, I mean, if we look at consolidated adjusted margins for EBITDA margins for the business, there is a ramp in the second half that's embedded. We talked a little bit about the direct mix within SMB improving. Anything else worth calling out there? And same thing, just on level of visibility into that. Yeah, I think it's very related to the increase in top line growth in the second half, would be the biggest driver. So, as we continue to keep the SG&A expense, you know, basically flat with last year, we get a lot more leverage as that revenue grows. And then there's a little bit of mix component in there as the wallet becomes a bigger piece of the overall mix in the second half. Those gross margins are so much higher, they'll drive to the bottom line at a higher rate. And then we're working, as we've talked about on the merchant side, also mix relative to direct and indirect, and within that direct, that includes the e-com piece of the business. Those would be the pieces, you know, and position one for sure is the top line growth and the real control of operating expenses. Okay. Same question on the medium-term margin profile. I mean, if- it sounds like you're comfortable with what you've laid out previously as, you know, the top-line growth profile. I think the margin guide previously had been for 75-100 basis points of annual expansion. Is that still a fair way to think about, you know, what operating leverage should look like over a longer period of time? Yes. I think the, if you look at this year, we're looking to drive double-digit EBITDA growth. I think that if you adjust for the divestiture in last year's margin, you know, our expectation is for margin growth in the range that the company had laid out in that previous midterm guidance. I think again, while I don't really want to give midterm guidance today, I think we do view this kind of as steady state for the business, that we ought to be able to drive top line growth in this range. We ought to be able to drive double-digit EBITDA growth, and that implies/requires margin growth kind of in that range. I wanted to ask on the interest rate exposure, too, 'cause there is a component of that within the digital wallet segment, based on what we know with the rate curve, at least. I mean, it does seem like rates will be going lower over the next year or so. Can you just remind us on the general framework of how, you know, rules of thumb on level of impact, how we think of that potentially as a... Sorry, not to put you on the spot. Just remind us of the interest rate exposure within the digital wallet segment, and if that's something we should be mindful of, you know, outside of just the normalized level of margin expansion. It is, because the wallet side of the business, we have, you know, many hundreds of millions of dollars in float that are sitting out there earning us interest. And so, we can see, and you've seen it in the last several years, before my time, some of it, but you saw interest rates but be a tailwind when they started going up a couple of years ago, and then you've seen it more recently as a headwind. I think we're continuing to see it as a headwind this year, probably into next year, too. We're not making long-term forecasts on it yet, but that's, you know, over hundreds of millions of dollars, up to $1 billion of float. Every point can be a real delta on the P&L, and that, of course, doesn't hit any cost as it flows all the way down from revenue to EBITDA and earnings. And is that all? Oh, Bruce, go ahead. Yeah, I think, you know, when you go back a couple of years, the big difference going into 2023 was really the change of pace in the rate. Like, the rates shot up very, very quickly. This coming down is, it appears to be much more slower cadence, so it's not as dramatic of an impact, 'cause it's kind of walking it down, and deposits are growing for us every month as well. So it gets a little bit more muted on the way down than it did on the way up. It, you know, for us, it really created a big tailwind on those deposits just because it was so quick in the rate change. Yeah. Okay, no, that point is well taken. I want to ask on capital allocation, too. I mean, I think de-levering has been a big part of the story over the last couple of years. You did a big buyback in the second quarter. It sounded like that continued, or there was a continued buyback into Q3. So, how do you frame for folks that are newer to the story, kind of where we are on the de-levering journey, and just how we think about the mix of capital allocation priorities going forward? So, we're still in the deep end of the de-levering story, meaning we're very focused on it, is the short answer. I think we saw in Q2, we tried to help people understand there's an element of leverage increase that is simply due to the divestiture and having to grow through the noise in our LTM EBITDA, which we will get through in the back half of the year. Likewise, we weren't looking at the buybacks as return of capital because we're highly levered. We were looking at it as opportunistic because the stock price was where it is. The whole space has traded off, I'm sure everybody in the room is aware, and that was hard to ignore. But on a go-forward basis, we continue to believe that de-levering the balance sheet will give us more optionality and flexibility to invest behind growth as we go into the forward years, and so it remains a focus. Is there, once we get to the steady state leverage profile from a capital allocation perspective, I mean, is there appetite for M&A? Where could we potentially see you guys if you were to pursue M&A, is there anything in particular that we should be mindful of for kind of where that could be targeted? Yeah, look, I think we're in the payments business. M&A has always been part of the payments industry, and will continue to be. I think we said that when I first came in, was that we were really focused on getting our debt ratio down, so that we could get back in the M&A game, and you know, I think you know that's where we'll look at, but I do want to make sure that it's very clear, we're very focused on our organic growth, so that's really the driver. The organic growth that we execute enables us or gives us the right to go do M&A, and so that's really how we look at it. It's important for us to get the balance sheet in the proper position, continue to execute on upper single-digit revenue growth profile, make sure we're driving double-digit EBITDA, and then, based on that, we'll accelerate our growth rate through M&A. But we needed to get the house in order, and we feel like we're very close to that. Yeah, no, and I, I think that's come through clearly in what the numbers are that you've put up and what's implied for the second half. You did the direct marketing divestiture. How do you think about the current composition of the portfolio? Is there more that could be done to optimize? Do you feel like you have the right... Does the full collection of assets, the way that it sits today, and it's probably a different discussion for both ecosystems, but do you feel comfortable with the collection of assets you have today, or could there be more in a pruning of the portfolio? No, I, from the pruning standpoint, I think we've done what we needed to do. You know, I've talked over the last couple of years that I really thought the regulatory environment was changing quite a bit. There really needed to be more thoughtful approach to kind of consumer duty and how we're taking care of our customers. Some of these businesses were just a little too risky, and so over the last couple of years, we've really turned over a lot of that business. We've moved away from a lot of businesses that were higher risk. We feel today that we're in a very good place with the portfolio that we have. You know, as I said, the vast majority of the portfolio, 40% of the portfolio is really just retail hospitality. So just kind of, you know, apple pie kind of merchant acquiring. So we feel very good about that. And so I think we're positioned well today. We've come a long way in three years, but we're positioned very well to grow and create value as we're moving forward. Okay. I think that's a good place to leave it, but I really appreciate you guys being here, and, and thanks so much. Oh, thank you. We appreciate it. Thank you.