Q2 Holdings Inc (QTWO) 2025 Q2 法說會逐字稿

Good afternoon. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 Holdings Second Quarter 2025 Financial Results Conference Call. (Operator Instructions)

午安.我叫蒂娜，今天我將擔任你們的會議接線生。在此，我謹代表 Q2 Holdings 向各位歡迎參加 2025 年第二季財務業績電話會議。（操作說明）

I would now like to turn the conference over to Josh Yankovich, Investor Relations. Sir, please go ahead.

現在我將把會議交給投資者關係部的 Josh Yankovich。先生，請繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining us for our second quarter 2025 conference call. With me on the call today are Matt Flake, our CEO; Jonathan Price, our CFO; and Kirk Coleman, our President, who will join us for the Q&A portion of the call. This call contains forward-looking statements that are subject to significant risks and uncertainties, including, among other things, with respect to our expectations for the future operating and financial performance of Q2 Holdings and to the financial services industry. Actual results may differ materially from those contemplated by these forward-looking statements, and we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct.

謝謝接線生。各位下午好，感謝各位參加我們2025年第二季電話會議。今天和我一起參加電話會議的有我們的執行長 Matt Flake、財務長 Jonathan Price 和總裁 Kirk Coleman，他們將參加電話會議的問答環節。本次電話會議包含前瞻性陳述，這些陳述受到重大風險和不確定性的影響，其中特別包括我們對 Q2 Holdings 未來營運和財務表現以及金融服務業的預期。實際結果可能與這些前瞻性聲明中所設想的結果有重大差異，我們無法保證此類預期或我們的任何前瞻性聲明將被證明是正確的。

Important factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included in our periodic reports filed with the SEC, copies of which may be found on the Investor Relations section of our website including our quarterly report on Form 10-Q for the second quarter of 2025 and the press release distributed this afternoon and filed in our Form 8-K with the SEC regarding the financial results we will discuss today. Forward-looking statements that we make on this call are based on assumptions only as of the date discussed.

可能導致實際結果與前瞻性聲明中反映的結果存在重大差異的重要因素已包含在我們向美國證券交易委員會提交的定期報告中，這些報告的副本可在我們網站的投資者關係部分找到，包括我們 2025 年第二季度的 10-Q 表格季度報告以及今天下午分發並以 8-K 表格形式提交給美國證券交易委員會的關於我們今天將要討論證券交易委員會的財務交易委員會的業務報告。我們在本次電話會議中所做的前瞻性陳述僅基於截至討論日期的假設。

Investors should not assume that these statements will remain operative at a later time, and we undertake no obligation to update any such forward-looking statements discussed in this call. Also, unless otherwise stated, all financial measures discussed on this call other than revenue will be on a non-GAAP basis. A discussion of why we use non-GAAP financial measures and a reconciliation of the non-GAAP measures to the most comparable GAAP measures is included in our press release, which is available on the Investor Relations section of our website and in our Form 8-K filed today with the SEC. We have also published additional materials related to today's results on our Investor Relations website.

投資者不應假定這些聲明在未來某個時間仍然有效，我們也沒有義務更新本次電話會議中討論的任何此類前瞻性聲明。此外，除非另有說明，本次電話會議討論的所有財務指標（收入除外）均採用非公認會計準則。我們新聞稿中包含了關於我們為何使用非公認會計準則財務指標以及非公認會計準則指標與最可比較公認會計準則指標的調節表的討論，該新聞稿可在我們網站的投資者關係部分以及我們今天向美國證券交易委員會提交的 8-K 表格中找到。我們也在其投資者關係網站上發布了與今天業績相關的其他資料。

Let me now turn the call over to Matt.

現在我把電話交給馬特。

Thanks, Josh. Good afternoon, everyone, and thanks for joining us. I'll start today's call by sharing our second quarter results and highlights from across the business. Then I'll hand it off to Jonathan to share more detail on our financial performance and updated outlook before providing any final thoughts. We delivered strong financial results in the second quarter, building on the momentum we established in Q1 and continuing our execution against the priorities we outlined at the start of the year.

謝謝你，喬希。各位下午好，感謝各位的參與。今天，我將首先分享我們第二季的業績以及公司各部門的亮點。然後我會把發言權交給喬納森，讓他詳細介紹我們的財務表現和最新展望，最後再發表一些總結性意見。第二季度，我們取得了強勁的財務業績，延續了第一季取得的良好勢頭，並繼續推進年初制定的各項優先事項。

We generated revenue of $195 million and adjusted EBITDA of $46 million, both coming in above the high end of our guidance. Revenue grew 13% year-over-year. Our adjusted EBITDA margin reached 23.5% and we generated free cash flow of $42 million. These results are a reflection of our execution across the business and the demand for the mission-critical solutions we deliver to financial institutions of all sizes.

我們實現了 1.95 億美元的營收和 4,600 萬美元的調整後 EBITDA，這兩項數據都高於我們預期的上限。營收年增13%。我們調整後的 EBITDA 利潤率達到 23.5%，自由現金流為 4,200 萬美元。這些成果反映了我們在整個業務中的執行力，以及市場對我們為各種規模的金融機構提供的關鍵任務解決方案的需求。

Our bookings in the quarter were highlighted by 6 Tier 1 wins through a mix of net new and expansion deals, further expanding our footprint among some of the largest institutions in the market. We complemented that with success in the Tier 2 and Tier 3 segments as well, which represented a meaningful portion of our booking's performance. We also had notable M&A activity amongst our customers in the quarter.

本季我們的預訂業績亮點在於透過新增和擴招交易贏得了 6 個一級客戶，進一步擴大了我們在市場上一些最大機構中的影響力。此外，我們在第二梯隊和第三梯隊市場也取得了成功，這占我們預訂業績的很大一部分。本季我們的客戶中也出現了顯著的併購活動。

We had two scenarios where an existing customer acquired another financial institution, each resulting in incremental bookings that carried the equivalent of a Tier 1 size deal. In one case, the newly combined entity will be a top 100 U.S. bank and will expand the use of our digital banking platform and relationship pricing solutions across the bank. In the other, a commercial institution opted to retain our relationship pricing solutions and expanded their use across the newly combined entity. Because our platform is already fully trained on the bank's policies and commercial customer base, the bank saw it as a way to provide consistent pricing across their merged teams and to help their new commercial relationship managers rapidly become productive.

我們遇到了兩種情況，即現有客戶收購了另一家金融機構，每種情況都帶來了增量訂單，相當於一級交易的規模。其中一個例子是，新合併的實體將成為美國前 100 強銀行，並將擴大我們數位銀行平台和關係定價解決方案在全行的使用範圍。另一方面，一家商業機構選擇保留我們的關係定價解決方案，並將其使用範圍擴大到新合併的實體。由於我們的平台已經完全針對銀行的政策和商業客戶群進行了培訓，銀行認為這是在合併後的團隊中提供一致定價，並幫助其新的商業關係經理快速提高效率的一種方式。

As we've said in the past, we have tended to be the beneficiary of M&A among our customer base, and these deals underscore that dynamic. We believe expansion through M&A is a compelling potential differentiator for us as customers in these scenarios have frequently continued to choose our technology to help them integrate smoothly, operate more efficiently and scale post acquisition. We also saw solid bookings results for our risk and fraud solutions which continue to be our top cross-sold products and represented one of our Tier 1 expansion wins from the quarter.

正如我們過去所說，我們一直是客戶群中併購的受益者，而這些交易也凸顯了這種動態。我們相信，透過併購實現擴張對我們來說是一個極具吸引力的潛在差異化優勢，因為在這些情況下，客戶經常會繼續選擇我們的技術來幫助他們順利整合、更有效率地運作以及在收購後擴大規模。我們的風險和詐欺解決方案的預訂業績也十分穩健，這些解決方案仍然是我們交叉銷售最多的產品，也是我們本季一級客戶拓展的成功案例之一。

A side of the growing strategic importance and scale of these fraud-related deals, and as Broadtech has seen an explosion of point solutions in recent years, innovation studio is increasingly becoming a key differentiator in this space. not only by complementing our existing risk and fraud solutions, but also by allowing our customers to easily access, deploy and manage many other best-in-class solutions from the broader fraud tech vendor ecosystem. In the second quarter, we also hosted our annual customer conference, Connect, and the energy among the attendees was strong.

隨著這些與詐欺相關的交易的戰略重要性和規模日益增長，以及博通近年來湧現出大量獨立解決方案，創新工作室正日益成為該領域的關鍵差異化因素。這不僅體現在我們現有風險和詐欺解決方案的補充上，還體現在它使我們的客戶能夠輕鬆存取、部署和管理來自更廣泛的詐欺技術供應商生態系統中的許多其他一流解決方案。第二季度，我們也舉辦了年度客戶大會 Connect，與會者的熱情非常高漲。

The big takeaway this year was that financial institutions remain deeply focused on strategic digital initiatives. And there are several key areas where we're seeing investment in engagement accelerate, many of which were front and center at Connect. First, the level of focus on risk and fraud is very high. While the pace of change in the broad landscape is increasing, and as I touched on a moment ago, new fraud technology vendors are emerging rapidly to solve many individual pain points across the bank, which is an increasingly complex challenge for our customers to manage from a technology and vendor management perspective.

今年最大的收穫是，金融機構仍高度重視策略性數位化措施。我們看到，在幾個關鍵領域，對參與度的投資正在加速成長，其中許多領域都是 Connect 大會的重點。首先，對風險和詐欺的關注程度非常高。雖然整體情勢的變化速度正在加快，正如我剛才提到的，新的反詐欺技術供應商正在迅速湧現，以解決銀行業的許多具體痛點，這對我們的客戶來說，從技術和供應商管理的角度來看，是一個日益複雜的挑戰。

We believe Q2 has differentiated ability to help our customers manage the growing fraud challenge more holistically. The power of our platform is that we have visibility into account holder data across the entire customer life cycle in both retail and commercial context. And because we manage the workflows, we also have the ability to intervene and stop fraud in real time. In many cases, something many point solution providers are not able to do holistically. We are also using the innovation studio ecosystem to give customers access to best-in-class fraud solutions across a range of complementary use cases and integrate them seamlessly into their digital banking platform.

我們相信 Q2 具有差異化的能力，能夠幫助我們的客戶更全面地應對日益嚴峻的詐欺挑戰。我們平台的優勢在於，我們能夠了解零售和商業環境中整個客戶生命週期內的帳戶持有人資料。而且由於我們管理工作流程，我們也能夠即時介入並制止詐欺行為。在很多情況下，這是許多單點解決方案提供者無法全面實現的。我們也利用創新工作室生態系統，讓客戶能夠獲得一系列互補用例中一流的反詐騙解決方案，並將其無縫整合到他們的數位銀行平台中。

This gives our financial institutions a single pane of glass to manage their fraud tech capabilities and address the fraud vendor management challenge in a more holistic, integrated and cost-effective way. Finally, we're continuing to drive AI innovation across our product portfolio, and we believe fraud is one of the areas with the greatest near-term potential for further enhancement. For example, at Connect, we shared a recent innovation called Enhanced PayMatch, which uses artificial intelligence to detect and prevent check fraud more accurately and efficient. We continue to see check and ACH fraud grow as a percentage of fraud attacks in the financial industry, making it a major focus area for our customers in protecting their commercial banking relationship.

這為我們的金融機構提供了一個統一的平台來管理其反詐欺技術能力，並以更全面、更整合、更具成本效益的方式應對反詐欺供應商管理挑戰。最後，我們將繼續推動人工智慧在我們的產品組合中的創新，我們認為反詐欺是近期最具改進潛力的領域之一。例如，在 Connect 大會上，我們分享了一項名為 Enhanced PayMatch 的最新創新，它利用人工智慧更準確、更有效率地偵測和防止支票詐欺。我們看到支票和 ACH 詐欺在金融業的詐欺攻擊中所佔比例持續增長，這使得支票和 ACH 詐欺成為我們客戶保護其商業銀行關係的一個主要關注領域。

And based on feedback we received at Connect, I believe our customers are glad to see us driving innovation with AI to deliver even stronger fraud capabilities. Another theme from Connect was the continued demand for commercial innovation. And not just with established commercial banks, but across our customer base. What's resonating with customers is our ability to deliver retail, small business and commercial functionality from a single platform enabling them to scale their capabilities over time without complex conversions or migrations. We also continue to invest in solutions that help our customers compete upmarket for larger and more sophisticated corporate clients.

根據我們在 Connect 大會上收到的回饋，我相信我們的客戶很高興看到我們利用人工智慧推動創新，從而提供更強大的反詐騙能力。Connect大會的另一個主題是商業創新持續成長的需求。而且不僅限於成熟的商業銀行，而是遍及我們的客戶群。真正引起客戶共鳴的是我們能夠從單一平台提供零售、小型企業和商業功能，使他們能夠隨著時間的推移擴展自身能力，而無需進行複雜的轉換或遷移。我們也會繼續投資各種解決方案，幫助我們的客戶在高端市場競爭，贏得規模更大、更成熟的企業客戶。

At Connect, we announced a new direct ERP integration product that allows institutions to embed Q2 digital banking functionality directly into their customers' ERP systems. Placing Q2 at the center of commercial reconciliation of workflows. This product is designed to improve automation, enhance security and reduce reconciliation errors while helping institutions compete for and retain large corporate customers. It's a natural evolution of our existing commercial offerings and has been very well received by early customers.

在 Connect 大會上，我們發布了一款新的直接 ERP 整合產品，該產品允許機構將 Q2 數位銀行功能直接嵌入到其客戶的 ERP 系統中。將 Q2 置於商業工作流程協調的核心位置。該產品旨在提高自動化程度、增強安全性並減少對帳錯誤，同時幫助機構在競爭中贏得並留住大型企業客戶。這是我們現有商業產品的自然演進，並受到了早期客戶的熱烈歡迎。

And finally, innovation studio was central to the conversations at Connect. As it continues to be a cornerstone of our platform and a driver of measurable impact for our customers. During the conference, our customers shared a range of outcomes that are delivering through innovation and studio across some of their most pressing and strategic initiatives. For example, one customer reduced account takeover fraud by 50% year-over-year by implementing an authentication partner, another customer is using a combination of several partners to grow deposits, signing a material increase in new deposits in just one month from a personalized CD campaign.

最後，創新工作室是 Connect 會議討論的核心。它一直是我們平台的核心，也是為我們的客戶帶來可衡量影響力的驅動力。在會議期間，我們的客戶分享了他們在一些最緊迫和最具戰略意義的舉措中，透過創新和工作室所取得的一系列成果。例如，一位客戶透過引入身分驗證合作夥伴，將帳戶盜用詐欺行為年減了 50%；另一位客戶則透過與多家合作夥伴合作來增加存款，並在短短一個月內透過個人化的定期存款活動實現了新存款的大幅成長。

Customers are using it to drive operational efficiencies with one financial institution deflecting 65% or more of support traffic using AI-powered chat and messaging. Today, over 85% of our digital banking customers utilize innovation studio in some capacity, and we're continuing to see this adoption grow, both in volume and strategic importance. In an environment where efficiency, growth and differentiation matter more than ever. Innovation Studio continues to help our customers do more with what they have and do it faster than ever before.

客戶正在利用它來提高營運效率，其中一家金融機構透過人工智慧驅動的聊天和訊息功能，減少了 65% 或更多的支援流量。如今，超過 85% 的數位銀行客戶在某種程度上使用了創新工作室，我們看到這種採用率在數量和策略重要性方面都在持續成長。在效率、成長和差異化比以往任何時候都更重要的環境下。創新工作室將持續幫助我們的客戶以前所未有的速度，以現有資源創造更多價值。

As we look to the second half of the year, our pipeline remains solid and our outlook is positive. Even with our performance to date, we expect the majority of enterprise and Tier 1 activity for the year to land in the back half of 2025. We remain confident with the financial framework we shared at the beginning of the year, and Jonathan will speak to our updated full year guidance and increased outlook for 2025 in just a moment.

展望下半年，我們的專案儲備依然穩健，前景樂觀。即使以我們目前的業績來看，我們預計今年大部分企業和一級供應商的業務活動將在 2025 年下半年完成。我們對年初公佈的財務框架仍然充滿信心，喬納森稍後將介紹我們更新的全年業績指引以及對 2025 年的更高展望。

With that, I'll turn it over to Jonathan to walk through our financials in more detail.

接下來，我將把發言權交給喬納森，讓他更詳細地介紹我們的財務狀況。

Thanks, Matt. Our second quarter results demonstrate continued strong execution across several key metrics, including revenue and adjusted EBITDA, both of which exceeded the high end of our previously issued guidance. These results underscore the continued progress with our profitable growth strategy, reinforced by another quarter of bookings execution and record free cash flow generation. I will now discuss our financial results in more detail and conclude with our guidance for the third quarter and full year 2025.

謝謝你，馬特。我們第二季的業績表明，我們在幾個關鍵指標上繼續保持強勁的執行力，包括營收和調整後的 EBITDA，這兩項指標均超過了我們先前發布的預期上限。這些結果凸顯了我們獲利成長策略的持續進展，並得益於又一個季度的訂單執行情況和創紀錄的自由現金流。接下來，我將更詳細地討論我們的財務業績，並最後給出我們對 ​​2025 年第三季和全年的業績展望。

Total revenue for the second quarter was $195.1 million, an increase of 13% year-over-year and up 3% sequentially. Our revenue growth was primarily driven by subscription-based revenues, which grew 16% year-over-year and 3% sequentially and ended the quarter at 81% of total revenue. The year-over-year and sequential revenue growth was primarily driven by a combination of new customer go-lives and expansion with existing customers.

第二季總營收為 1.951 億美元，年增 13%，季增 3%。我們的營收成長主要由訂閱收入驅動，年增 16%，季增 3%，本季末佔總營收的 81%。年比和環比收入成長主要得益於新客戶的上線和現有客戶的業務拓展。

Our services and other revenues increased 1% year-over-year, reflecting a modest improvement compared to the prior quarter's year-over-year trends. This growth is being driven by higher professional services revenues tied to core conversions, M&A activity and other implementation-related engagements. These increases helped offset ongoing declines in more discretionary professional service offerings, which remain under pressure.

我們的服務和其他收入年增 1%，與上一季的年成長趨勢相比，略有改善。這一成長是由與核心業務轉型、併購活動和其他實施相關項目相關的專業服務收入增加所推動的。這些成長有助於抵消更多非必需專業服務產品持續下滑的影響，這些產品仍面臨壓力。

Looking ahead, we expect total services and other revenue to be roughly flat year-over-year for full year 2025. In the first half, services revenues were down approximately 3% year-over-year, a trend we expect to continue into 2026. The second half will benefit from an easier comp as we lap the impact from First Republic Bank, which will increase year-over-year services revenue growth in the next quarter. Total annualized recurring revenue, or total ARR grew to $861 million up 10% year-over-year from $783 million at the end of the second quarter of 2024. Driven by strength in our subscription ARR, which grew to $716 million, up 13% year-over-year from $634 million in the prior year period.

展望未來，我們預計 2025 年全年服務和其他收入總額將與上年基本持平。上半年服務收入年減約 3%，我們預計這一趨勢將持續到 2026 年。下半年將受益於較低的基數效應，因為我們將不再受到第一共和銀行的影響，這將提高下一季服務收入的年增率。截至 2024 年第二季末，年度經常性收入總額（或稱總 ARR）為 7.83 億美元，年增 10%，達到 8.61 億美元。由於訂閱 ARR 的強勁成長，ARR 成長至 7.16 億美元，比上年同期的 6.34 億美元成長了 13%。

Total ARR growth was fueled by subscription-based bookings from both new and existing customers, partially offset by declines in discretionary services-based revenue. Our subscription ARR growth was pressured by higher than typical churn concentrated within the second quarter. Even with that concentration, full year churn expectations remain in line with our original assumptions with lower churn levels anticipated in the back half of the year. Our ending backlog of approximately $2.4 billion increased by $61 million sequentially or 3% and $403 million year-over-year, representing 21% growth. The year-over-year and sequential increases were primarily driven by expansion with existing customers and was broad-based across market segments.

ARR 總成長主要得益於新舊客戶的訂閱預訂，但部分被非必需服務收入的下降所抵消。第二季客戶流失率高於平常水平，對我們的訂閱 ARR 成長造成了壓力。即使如此，全年客戶流失率預期仍與我們最初的假設一致，預計下半年客戶流失率將降低。我們期末積壓訂單約 24 億美元，季增 6,100 萬美元，增幅為 3%；年增 4.03 億美元，增幅為 21%。同比和環比成長主要由現有客戶的擴張推動，並且遍及各個市場領域。

We saw continued success in the Tier 2 and 3 segments, which represented a meaningful portion of our bookings performance for the quarter. As we have mentioned previously, the sequential change in backlog may fluctuate quarter-to-quarter based on the number of renewal opportunities available within that quarter. Gross margin was 57.5% for the second quarter, up from 55.7% in the prior year period, and slightly below the 57.9% we saw in the previous quarter.

我們在二、三線市場持續取得成功，這部分市場占我們本季預訂業績的很大一部分。正如我們之前提到的，積壓訂單的順序變化可能會因該季度內可獲得的續約機會數量而逐季度波動。第二季毛利率為 57.5%，高於去年同期的 55.7%，但略低於上一季的 57.9%。

The year-over-year increase in gross margin was driven by an increasing mix of higher-margin subscription-based revenues. The sequential decline in gross margin was driven by increased costs including costs related to our cloud migration, which we continue to expect to be complete by early 2026. As the transition progresses through the rest of the year, we expect the gross margin to be roughly flat in 3Q with sequential expansion in the fourth quarter, and we now expect full year gross margin expansion of at least 200 basis points, up from our prior outlook of 150 basis points.

毛利率年增率主要得益於高利潤率的訂閱收入佔比不斷提高。毛利率季減是由於成本增加所致，其中包括與雲端遷移相關的成本，我們仍然預期雲端遷移將於 2026 年初完成。隨著過渡期在今年餘下的時間裡不斷推進，我們預計第三季毛利率將大致持平，第四季度將環比增長，我們現在預計全年毛利率將至少增長 200 個基點，高於我們之前預測的 150 個基點。

Total operating expenses for the second quarter was $75 million or 38.2% of revenue compared to $74 million or 42.7% of revenue in the prior year quarter. And $77 million or 40.7% of revenue in the first quarter. The year-over-year and sequential improvements in operating expenses as a percent of revenue was driven by increased scaling across all operating expense categories. with G&A and sales and marketing showing the biggest year-over-year improvements. As a percentage of revenue, G&A showed the largest sequential improvement in the quarter benefiting from lower payroll taxes tied to annual vesting and bonus payouts concentrated in the first quarter, which positively impacted all expense categories.

第二季總營運支出為 7,500 萬美元，佔營收的 38.2%，而去年同期為 7,400 萬美元，佔營收的 42.7%。第一季營收為 7,700 萬美元，佔總營收的 40.7%。營運費用佔收入百分比的同比和環比改善主要得益於所有營運費用類別規模的擴大，其中一般及行政費用和銷售及市場營銷費用同比改善最為顯著。佔收入的百分比而言，G&A 在本季度環比改善幅度最大，這得益於與年度歸屬和獎金支付相關的工資稅降低，這些款項集中在第一季度，對所有費用類別都產生了積極影響。

Total adjusted EBITDA was a record $45.8 million, up 53% from $29.9 million in the prior year period and up 12% from $40.7 million in the previous quarter. We ended the second quarter with cash, cash equivalents and investments of $532 million, up from $486 million at the end of the previous quarter. In the second quarter, free cash flow was once again strong, benefiting from timing related to collection activity, including a material cash payment that is now expected to land in the third quarter. We generated $49 million in cash flow from operations, driven by improved profitability and continued effective working capital management and delivered $42 million in free cash flow.

調整後 EBITDA 總額達到創紀錄的 4,580 萬美元，比上年同期的 2,990 萬美元增長 53%，比上一季的 4,070 萬美元增長 12%。在第二季末，我們的現金、現金等價物和投資總額為 5.32 億美元，高於上一季末的 4.86 億美元。第二季度，自由現金流再次強勁，這得益於與收款活動相關的時機，包括一筆預計將在第三季度到達的大額現金付款。在獲利能力提高和持續有效的營運資本管理的推動下，我們從經營活動中產生了 4,900 萬美元的現金流，並實現了 4,200 萬美元的自由現金流。

As a result of the timing shift, we expect third quarter free cash flow to moderate relative to the second quarter. That said, we continue to expect second half free cash flow to slightly exceed the first half with a more balanced distribution than in prior years. As usual, we anticipate the fourth quarter will be our strongest free cash flow quarter, consistent with typical seasonality. And based on our performance to date and expected second half strength, we are raising our full year free cash flow conversion outlook from 85% to 90%.

由於時間安排的調整，我們預計第三季自由現金流將比第二季有所放緩。儘管如此，我們仍預期下半年的自由現金流將略高於上半年，分配將比往年更為均衡。與往常一樣，我們預計第四季度將是我們自由現金流最強勁的季度，這與典型的季節性規律相符。根據我們迄今為止的業績和對下半年強勁表現的預期，我們將全年自由現金流轉換率預期從 85% 上調至 90%。

We are also lifting our full year free cash flow conversion expectations to 90% for 2026 as well. Let me wrap up by sharing our third quarter and updated full year 2025 guidance. We forecast third quarter revenue in the range of $196 million to $200 million and we are raising our full year revenue to the range of $783 million to $788 million, representing year-over-year growth of 12% to 13% for the full year. In addition, we anticipate full year 2025 subscription revenue growth of at least 16%, an increase from the 15.5% outlook we previously communicated. We forecast third quarter adjusted EBITDA of $44 million to $47 million and are raising our full year 2025 adjusted EBITDA guidance to $177 million to $181 million.

同時，我們將 2026 年全年自由現金流轉換率預期上調至 90%。最後，我謹分享我們第三季和更新後的2025年全年業績預期。我們預測第三季營收將在 1.96 億美元至 2 億美元之間，並將全年營收預期上調至 7.83 億美元至 7.88 億美元，全年年增 12% 至 13%。此外，我們預計 2025 年全年訂閱收入將成長至少為 16%，高於我們先前公佈的 15.5% 的預期。我們預測第三季調整後 EBITDA 為 4,400 萬美元至 4,700 萬美元，並將 2025 年全年調整後 EBITDA 預期上調至 1.77 億美元至 1.81 億美元。

Representing 23% of revenue for the full year. In summary, we delivered a strong financial performance, which exceeded the high end of our previously issued guidance. This performance, coupled with our outlook for the remainder of the year, has given us the confidence to raise our full year guidance on both revenue and adjusted EBITDA and increase our full year outlook for subscription revenue growth and free cash flow conversion.

佔全年收入的 23%。總而言之，我們取得了強勁的財務業績，超過了我們先前發布的業績指引的上限。這一業績，加上我們對今年剩餘時間的展望，使我們有信心提高全年收入和調整後 EBITDA 的預期，並提高全年訂閱收入增長和自由現金流轉化率的預期。

We remain dedicated to delivering growth, profitability expansion and improved capital efficiency and believe that our results to date collectively illustrate our progress and potential as we continue to evolve the business and drive shareholder value.

我們將繼續致力於實現成長、提高獲利能力和提升資本效率，並相信我們迄今為止的業績共同展現了我們所取得的進步和潛力，我們將繼續發展業務並提升股東價值。

With that, I'll turn the call back over to Matt for his closing remarks.

接下來，我將把電話交還給馬特，請他作總結發言。

Thanks, Jonathan. Before we open it up for questions, I'll close with a few final thoughts. We delivered a solid first half of the year with strong financial results and key wins across the business. Connect, our client conference during the second quarter underscored that our customers are more committed to digital transformation and investment than ever before. And they're entrusting Q2 to help drive the next wave of innovation across key areas like fraud, AI, commercial growth and profitability and platform extensibility through innovation studio.

謝謝你，喬納森。在開放式提問環節之前，我先補充幾點想法。今年上半年我們取得了穩健的業績，財務表現強勁，業務各方面也取得了重要進展。第二季的客戶大會 Connect 強調，我們的客戶比以往任何時候都更致力於數位轉型和投資。他們委託 Q2 透過創新工作室，在反詐騙、人工智慧、商業成長和獲利能力以及平台可擴展性等關鍵領域推動下一波創新浪潮。

As we look to the second half of 2025 and beyond, we remain focused on disciplined execution, capitalizing on the market demand and expansion opportunities. delivering operational excellence and helping our customers address their most important strategic initiatives.

展望2025年下半年及以後，我們將繼續專注於嚴謹執行，充分利用市場需求和擴張機遇，實現卓越運營，並幫助客戶應對其最重要的戰略舉措。

Thank you. And with that, I'll hand it over to the operator for questions.

謝謝。接下來，我將把電話交給接線員，回答他們的問題。

(Operator Instructions) Your first question comes from the line of Alex Sklar with Raymond James. Please go ahead.

（操作員說明）您的第一個問題來自 Raymond James 的 Alex Sklar 的線路。請繼續。

Great, thank you. Matt or Kirk, in the prepared remarks, kind of struck a more positive tone on the demand environment. We've seen bank earnings be a little bit stronger this quarter. And the deregulatory agenda seems like it's progressing. Are you seeing any of that kind of show up in your own pipeline growth or new opportunities relative to the last couple of quarters?

太好了，謝謝。在事先準備好的演講稿中，馬特或柯克對需求環境表達了更正面的評價。本季銀行獲利情況略有改善。放鬆管制的議程似乎正在推進。與過去幾季相比，您是否在自己的業務成長或新機會中看到任何類似的跡象？

Yes, Alex. Thanks for the question. The pipeline is strong, and I think it's the fact that those things are coming through. I think they anticipated it. So I haven't seen a big lift, but I'm happy with where the pipeline is. Hopefully, it brings decisions quicker and then that gives them more confidence in the future. And so that usually drives more deals for us. But I haven't seen a big lift in the pipeline, but the pipeline has been healthy for quite a while. So that's how I think about it.

是的，亞歷克斯。謝謝你的提問。管道運作良好，我認為這是因為這些東西正在順利輸送過來。我認為他們預料到了。所以，我還沒看到大幅成長，但我對管道目前的狀況感到滿意。希望這能讓他們更快做出決定，進而增強他們對未來的信心。因此，這通常會為我們帶來更多交易。但我沒有看到管道建設出現大幅增長，不過管道建設已經保持健康狀態相當長一段時間了。我就是這麼想的。

Okay. And then maybe just in terms of the enterprise activity you referenced, Matt, you kind of called out a stronger second half expectations. What are you seeing from that segment of the market exactly? And just remind us how incremental would enterprise activity this year be versus what you saw in 2024?

好的。然後，就你提到的企業活動而言，Matt，你似乎對下半年的期望更樂觀。您從該細分市場具體觀察到了什麼？請您提醒我們一下，今年的企業活動與您預測的 2024 年相比會有多大的增量？

Well, as we talked about, you kind of those deals take a while to build them up in the pipeline, you work them, the decisions usually come slower. So we had a strong finish to the year last year in the pipe and the sales teams are out working those deals. So what's happening, they're evolving. We're going through all the processes. You've got to go through, it's a significantly more exhaustive diligence process.

正如我們之前討論過的，這類交易需要一段時間才能在流程中建立起來，你需要努力推進，決策通常也會來得比較慢。所以去年年底我們積壓了很多項目，銷售團隊正在積極洽談這些交易。所以現在的情況是，它們正在進化。我們正在按部就班地進行所有流程。你必須走完整個流程，這是一個徹底得多的盡職調查過程。

And so we see the engagement, and so we feel good about the number of opportunities, and we've talked about that at the beginning of the year. It's going to mix more to larger deals in the back half so now the team's got to go out and close them, and that's what we're focused on right now, but feel good about it. incrementally (inaudible).

因此，我們看到了參與度，也對機會的數量感到滿意，我們在年初的時候也討論過這個問題。下半年交易量會更轉向大單，所以現在團隊必須努力完成這些交易，這也是我們目前的工作重點，但我們對此充滿信心。（聽不清楚）

Yes, I would just I would add, it's Jonathan. Alex. From a mix in '24, you saw a much heavier than, I would say, typical mix historically of Tier 2 and Tier 3 deals. And as we look at 2025, Matt said at the beginning of the year and would reiterate here in the second half that it's a much more normal mix where you have more of the Tier 1 enterprise level deals. And those within '25 were concentrated in the back half of the year, if that makes sense.

是的，我還要補充一點，他是喬納森。亞歷克斯。從 2024 年的交易組合來看，二級和三級交易的比例比歷史上典型的交易組合要高得多。展望 2025 年，馬特在年初就說過，在下半年他還會重申，屆時市場結構將更加正常，一級企業級交易將會更多。如果這樣說你能理解的話，那麼 '25' 中的那些病例都集中在下半年。

All right, perfect. Thank you both.

好的，完美。謝謝你們兩位。

Thank you, Alex.

謝謝你，亞歷克斯。

Your next question comes from the line of Adam Hotchkiss with Goldman Sachs. Please go ahead.

你的下一個問題來自高盛的亞當·霍奇基斯。請繼續。

This is Greyson Sklba on for Adam Hotchkiss of Goldman. You talked a little bit about the risk and fraud opportunity and that being the number one cross-sold product within the base. I was wondering if you could sort of quantify the penetration there just on those specific products within the existing base.

這裡是格雷森·斯克爾巴，替高盛的亞當·霍奇基斯為您報道。您剛才談到了一些風險和詐欺機會，以及該產品是客戶群中交叉銷售排名第一的產品。我想知道您能否量化一下這些特定產品在現有客戶群中的滲透率。

Yes. I guess what I'd say there is we have when it comes to the Centrix portfolio, and that's a product we've owned since 2015, when we did that acquisition, we have hundreds of stand-alone clients for that portfolio. And then we have a meaningful component of our digital banking customer base that also has Centrix products, along with our other risk and fraud solutions that are native to the digital banking platform as well as our innovation studio partners.

是的。我想說的是，就 Centrix 產品組合而言，自 2015 年我們收購該公司以來，我們一直擁有該產品組合，目前我們有數百個獨立客戶。此外，我們數位銀行客戶群中有相當一部分人也使用 Centrix 產品，以及我們數位銀行平台原生提供的其他風險和詐欺解決方案，還有我們創新工作室合作夥伴提供的產品。

So depending on how you slice it, penetration is tough to quantify. I think what we're saying is it is a pain point that is top of mind for all financial institutions right now, and we're helping them solve that pain point through products that are native to the digital banking platform when it comes to real-time fraud prevention, products that are part of the Centrix portfolio that we've been distributing and developing for many years since 2015 and now an innovation studio ecosystem of fraud partners that we're also selling into them and helping them address those challenges.

所以，從某個角度來看，滲透率很難量化。我認為我們想表達的是，這是目前所有金融機構都非常關心的痛點，我們正在透過數位銀行平台原生的即時防詐騙產品來幫助他們解決這個痛點。這些產品是我們自 2015 年以來一直在分銷和開發的 Centrix 產品組合的一部分，現在我們也向他們銷售創新工作室反詐騙合作夥伴生態系統的產品，並幫助他們應對這些挑戰。

So really strong penetration in terms of individual FI as having one or more of those, but lots of opportunity to continue to sell additional fraud products into all of our customers.

因此，就擁有一個或多個此類產品的單一金融機構而言，滲透率確實很高，但我們仍有許多機會繼續向所有客戶銷售其他防詐騙產品。

Got it, thank you. And then I just wanted to quickly touch on the slightly higher than normal churn in the second quarter. Anything to call out there on what drove that as well as what's baked into your expectations for that sort of normalizing in the second half?

明白了，謝謝。然後，我想簡單提一下第二季客戶流失率略高於正常的情況。有什麼需要指出的嗎？是什麼原因導致了這種情況？以及你對下半年這種正常化趨勢的預期是什麼？

Yes. No, I would just say when we look at the shape of 25% and the churn that we expected the concentration was higher in the second quarter than the back half of the year, which is what we mentioned in the prepared remarks. And then I would also say when in a couple of instances, there was some M&A transactions where that was also known for a couple of quarters now where that manifested itself in the second quarter.

是的。不，我只想說，當我們觀察 25% 的趨勢和流失時，我們預期第二季的集中度會高於下半年，這正是我們在準備好的發言稿中提到的。此外，我還想說，在一些併購交易中，這種情況在過去幾個季度也為人所知，並在第二季度有所體現。

So that was really just the pressure that was localized in the second quarter. But again, when we think about full year churn, when we think about second half churn, it's where we expected it and feel good about churn being lower in the second half than the first half.

所以，那其實是第二季局部地區面臨的壓力。但話說回來，當我們考慮全年的客戶流失率，尤其是下半年的客戶流失率時，它符合我們的預期，而且我們對下半年的客戶流失率低於上半年感到滿意。

Great, thank you guys.

太好了，謝謝大家。

Thank you.

謝謝。

Your next question comes from the line of Parker Lane with Staple. Please go ahead.

你的下一個問題來自帕克巷和史泰博的交會處。請繼續。

Hey guys, thanks for taking the question here today. Sticking on the risk and fraud side of the business. I know there's a lot of products on the head there. Are you finding that in a lot of the cases, you're winning here incremental solutions for customers, something they've never really addressed before? Or is there a number of different vendors that you're having success displacing out there to that piece specifically?

大家好，感謝你們今天回答這個問題。專注於業務的風險和詐欺方面。我知道頭上有很多產品。您是否發現，在許多情況下，您是透過為客戶提供漸進式解決方案來贏得客戶的，而這些解決方案是他們以前從未真正考慮過的問題？或者，您是否已經成功地將市場上其他一些供應商的產品取代到這個特定產品上？

Mark, it's Kirk. I'll take that. So we're seeing a little bit of both. In some cases, what we're seeing is that, again, this is a pain that's so acute inside banks and credit unions that maybe products that they had that were a little bit behind from an innovation perspective. They're looking for better solutions. And so that's where we're seeing some replacements of existing product. and that's been very healthy growth for us.

馬克，我是柯克。我接受。所以我們看到這兩種情況都有一些。在某些情況下，我們看到的是，銀行和信用社內部的這種痛點非常嚴重，以至於他們可能有一些產品在創新方面有點落後。他們正在尋找更好的解決方案。因此，我們看到一些現有產品被替換，而這對我們來說是一個非常健康的成長點。

Worth mentioning there that part of that also is like in our Centrix product family that is also like positive pay products that they're turning around and selling to their customers. That's kind of an important part of that chain of value. The second part is that there's definitely a new innovation, most notably in some of the releases we've done earlier in the year around alloy and tools like that, and -- what I would say about that is that back to Jonathan's point on innovation studios is there's like this portfolio of capabilities that we could put into the field that we feel like we're uniquely prepared to kind of orchestrate across all of them. And so that's net new functionality for our customers and getting them new capabilities to fight fraud.

值得一提的是，其中一部分也類似於我們的 Centrix 產品系列，這些產品也是正向支付產品，他們正在將其轉售給他們的客戶。這是價值鏈中非常重要的一環。第二部分是，確實有一些新的創新，最值得注意的是我們今年早些時候發布的一些關於合金和工具之類的產品，而且——關於這一點，我想說的是，回到喬納森關於創新工作室的觀點，我們擁有一系列能力，我們可以將這些能力投入到實踐中，我們覺得我們有能力將它們統籌協調起來。因此，這為我們的客戶帶來了全新的功能，並賦予他們打擊詐欺的新能力。

Understood. And then one for you Jonathan, just a clarification on the gross margin uptick in the outlook for this year. Is that a reflection of faster-than-expected migration to the cloud and maybe some benchmarks being achieved there? Or is that just a mix shift of revenue?

明白了。喬納森，還有一個問題想問你，我想澄清一下今年毛利率預期上升的問題。這是否反映出向雲端遷移的速度快於預期，以及可能在雲端達到了一些基準指標？還是這只是收入結構的改變？

A little bit of both actually. I think what you saw in the second quarter with the slight sequential decline was a little bit of a pull forward of costs as we got further into the journey than planned. And so you had some higher costs in the second quarter. And so as we get into the back half, you see the reciprocal of that happen, and so we see some lighter costs, especially in the fourth quarter when it comes to some of the remaining cloud migration activity.

其實兩者兼而有之。我認為你在第二季度看到的環比小幅下滑，是由於我們比計劃走得更遠，導致一些成本提前攤銷所致。所以第二季的成本增加。因此，到了下半年，情況就相反了，我們看到一些成本降低，尤其是在第四季度，剩餘的雲端遷移活動成本降低。

And then to your other point, as we continue to see what is typically seasonally strong fourth quarter subs growth you see the mix shift occur and that also aids the back half margin dynamic.

至於你的另一點，隨著我們繼續看到通常在第四季度出現的強勁的訂閱用戶成長，你會看到產品組合發生轉變，這也有助於下半年的利潤率動態。

Got it. appreciate to be back here.

明白了。很高興能回到這裡。

Thanks, Parker.

謝謝你，帕克。

Your next question comes from the line of Matt (Blake) with Cantor. Please go ahead.

你的下一個問題來自 Matt (Blake) 與 Cantor 的對話。請繼續。

Hey, good afternoon. Thanks for taking the question. I guess first on Innovation Studio, as you've now gotten that into a vast majority of your customers. Has there been any evolution of the monetization strategy there? Should we expect that to be a more maybe meaningful contribution of revenue growth going forward? Are you still thinking about that more as just a demand engine and kind of qualifying customers and getting more entrenched. Maybe just what are you thinking about that? And any impact on the raised margin guidance going forward?

嘿，下午好。感謝您回答這個問題。我想首先應該介紹的是 Innovation Studio，因為你們現在已經將其推廣到了絕大多數客戶中。那裡的獲利模式是否有任何演變？我們是否可以預期，這將在未來對營收成長做出更有意義的貢獻？你仍然認為它更像是一個需求引擎，用來篩選客戶並鞏固自身地位嗎？你到底在想什麼呢？那麼，上調後的利潤率預期會受到什麼影響呢？

Yes. A few things I would add from my perspective, the impact, we do think the impact will continue to grow in terms of the financials, both from a revenue perspective. And as you know, the model is such where that's very high margin dollars. So we feel really good about that. From an evolution standpoint, I would just say it's less around the model and the fact that we're trying to monetize it. It's more around as adoption grows, we're seeing revenue grow alongside it.

是的。從我的角度來看，我想補充幾點：我們認為，就財務方面而言，無論是從收入角度來看，其影響都將持續成長。如你所知，這種模式的利潤空間非常大。所以我們對這一點感到非常滿意。從發展的角度來看，我認為這與模式以及我們試圖將其貨幣化關係不大。隨著用戶數量的成長，我們看到收入也隨之成長。

So we're seeing all the strategic halo effects of the impact it's having on our net new win rates, the impact is having with existing customers and retention. But as we're selling more and more and we're driving more adoption, we're seeing more meaningful revenue. So, yes, we feel good about it. It's a long journey to go when we say 85% plus adoption. That means an FI is using it in one of the programs of at least one product.

因此，我們看到了它對我們的新客戶淨成交率、現有客戶和客戶留存率產生的所有策略性光環效應。但隨著銷量不斷成長，用戶採納率不斷提高，我們看到了更可觀的收入。所以，是的，我們對此感到滿意。要達到 85% 以上的採用率，還有很長的路要走。這意味著金融機構正在至少一款產品的某個程式中使用它。

And so as you think about the journey to go from one product to multiple products, as you think about the journey from launching one of those products and then getting broad-based adoption within the institution, there's a long arc there where we have to grow and drive adoption alongside the FI.

因此，當你思考從一個產品到多個產品的歷程，當你思考從推出其中一個產品到在機構內獲得廣泛採用的歷程時，你會發現這是一個漫長的過程，我們必須與金融機構共同成長並推動其採用。

Okay. Very helpful. And then on the Helix side of the business, with, I guess, a more open or at least more known approach to the digital assets and crypto overall from the current administration. Are you seeing that as a potential opportunity to grow that business again or any of your current partners or customers looking to expand, whether it's on stable coins or other digital assets? Any thinking of how that business might grow on a go-forward basis?

好的。很有幫助。然後，就 Helix 的業務而言，我認為，現任政府對數位資產和加密貨幣採取了更開放或至少更加公開透明的態度。您是否認為這是一個再次發展業務的潛在機會，或者您目前的合作夥伴或客戶是否希望拓展業務，無論是在穩定幣還是其他數位資產方面？有沒有考慮過這項業務未來如何發展壯大？

Yes. It's Kirk. I'll take that. So from a stable point perspective, I'll do just say more broadly across is that we're seeing a lot of cooperation across our customers and partners to make sure that they can all participate in stable coin. And as they think about how they're going to banks are going to service issues or custodians or gateways or all three, when you couple that with the need for that kind of regulatory clarity that you were mentioning and kind of infrastructure maturity, consumers and businesses kind of catching up to the use cases for what they're going to do.

是的。是柯克。我接受。所以從穩定性的角度來看，我只想更廣泛地說，我們看到我們的客戶和合作夥伴之間有很多合作，以確保他們都能參與穩定幣。當他們思考如何解決銀行、託管機構或網關或三者之間的服務問題時，再加上你提到的監管清晰度和基礎設施成熟度的需求，消費者和企業正在逐步適應他們將要使用的應用場景。

Some of that is pretty early. But we do see opportunity there for us and for our bank customers more than a threat from a Helix perspective, there's obviously, there's some crossover there. But I would say that the current regulatory environment has at least settled out kind of what those business models look like from a fintech perspective. All through this kind of cycle over the last two years, we've really focused on kind of who the high-quality operators are.

有些內容還很早。但從 Helix 的角度來看，我們認為這對我們和我們的銀行客戶來說更多的是機會而不是威脅，顯然，兩者之間存在一些交叉點。但我認為，從金融科技的角度來看，目前的監管環境至少已經大致確定了這些商業模式的形態。在過去兩年的整個週期中，我們一直專注於尋找高品質的營運商。

And we've had some nice wins along the way, some good expansion with existing customers. We're seeing some green sheets there, which is encouraging. So we're pleased with that performance.

我們一路走來也取得了一些不錯的成績，與現有客戶也實現了良好的業務拓展。我們看到一些綠色的床單，這令人鼓舞。所以我們對這個表現很滿意。

Great, thank you for taking my question.

太好了，謝謝你回答我的問題。

Your next question comes from Ella Smith with JPMorgan.

下一個問題來自摩根大通的艾拉史密斯。

Good evening. Thank you for taking my question. So first, as you move upmarket and win additional Tier 1 and enterprise digital banking customers, what core offerings or competencies of Q2 help secure these deals?

晚安.感謝您回答我的問題。首先，隨著您向高端市場拓展，贏得更多一級和企業級數位銀行客戶，Q2 的哪些核心產品或能力有助於達成這些交易？

Yes. Thanks for the question,. I think whether it's precision lender or relationship pricing tool, which we have, I think, 9 of the 14 largest banks in North America, we're firmly entrenched there, and you can sell. And the data set we have around deposits and loans is really the differentiator for them when they're trying to price the relationships. On the digital banking side, the fact that we have best-in-class retail, small business and corporate banking all on the same platform.

是的。謝謝你的提問。我認為，無論是精準貸款工具還是關係定價工具（我們在北美 14 家最大的銀行中有 9 家都擁有這些工具），我們都已穩固立足，而且可以銷售。而我們掌握的存款和貸款數據，才是他們在評估這些關係時真正具有差異化優勢的關鍵。在數位銀行方面，我們擁有業內一流的零售銀行、小型企業銀行和公司銀行服務，所有這些都在同一平台上。

That's where you're seeing the expansion. We had an opportunity. We had an expansion opportunity with about a $40 billion bank where they took the commercial live and then they've signed for the retail business with us in the quarter. So the fact that it's a single platform so you get a better user experience, one login ID, one password for a customer where they're a small business owner, and they can see the retail accounts and the business accounts or it's a corporate customer that can see their small business accounts or whatever is the single platform drives a better user experience.

這就是擴張的體現。我們曾有機會。我們曾有機會與一家資產規模約 400 億美元的銀行進行業務拓展，他們先是推出了商業服務，然後在本季度與我們簽署了零售業務協議。因此，由於它是一個單一平台，您可以獲得更好的用戶體驗，客戶只需一個登入 ID 和一個密碼，無論是小型企業主還是企業客戶，都可以查看他們的零售帳戶和企業帳戶，或者企業客戶也可以查看他們的小型企業帳戶等等，單一平台都能帶來更好的用戶體驗。

It's more efficient to operate one system, one back office system to upgrade to manage your customers, one set of interfaces to all of the different back-office systems. And we can get you technology faster since it's a single platform. We write one [taco] that upgrades all the different features across the board. So That, coupled with all of the data we get from all the customers is more informative to the customer. So that story, whether you're a $400 billion bank or a $400 million bank, it resonates with them.

使用一個系統來操作效率更高，只需升級一個後台系統即可管理您的客戶，只需一套介面即可連接所有不同的後台系統。而且由於它是一個單一平台，我們可以更快地為您提供技術。我們寫了一個[taco]，全面升級了所有不同的功能。因此，結合我們從所有客戶獲得的所有數據，這對客戶來說更有參考價值。所以，無論你是一家資產規模 4,000 億美元的銀行，還是資產規模 4 億美元的銀行，這個故事都能引起他們的共鳴。

And that's why we have 40% of the top 100 banks and 40% of the top 100 credit unions do business with us today. So we continue to expand in that space, both on the net new side and with the existing customers.

正因如此，目前排名前 100 的銀行中有 40% 和排名前 100 的信用社中有 40% 都與我們開展業務。因此，我們將繼續在這個領域擴張，既包括開發新客戶，也包括服務現有客戶。

That's very helpful, thank you. And for a quick follow-up, beyond retiring your 2025 and 2026 convertible debt, what are you seeing as the most attractive uses of capital?

非常感謝，這很有幫助。最後，除了償還 2025 年和 2026 年到期的可轉換債券之外，您認為最有吸引力的資金用途是什麼？

Yes. Thanks, Ella. I mean, sort of traditional answer there in terms of where we're always exploring the M&A environment. A lot of things have to line up. We have a very different financial profile now. So the criteria for M&A obviously, value expectations and being disciplined on value. But then when it comes to the criteria in terms of our growth expectations, margin requirements are just tougher.

是的。謝謝你，艾拉。我的意思是，就我們一直在探索的併購環境而言，這算是比較傳統的答案。很多事情都必須恰好吻合。我們現在的財務狀況與之前大不相同了。所以，併購的標準顯然是價值預期和對價值的嚴格把控。但是，就我們的成長預期而言，利潤率要求就更加嚴格了。

And the environment, when I look at the corp dev pipeline, you still don't see all of those things lining up where we see great assets that have the financial profile we're looking for at reasonable value. So in the long run, I think we're a very strategic acquirer, and we can think about the right deals that make sense for this business. But a lot of those things have to line up, and we're not going to be undisciplined when it comes to M&A execution.

而從企業發展管道來看，目前還沒有出現所有條件都滿足的情況，我們仍然無法找到既符合我們財務狀況又具有合理價值的優質資產。所以從長遠來看，我認為我們是一家非常有策略眼光的收購方，我們可以考慮對公司業務有意義的正確交易。但許多因素都必須協調一致，我們在併購執行上絕對不會缺乏紀律。

The other obvious things we'll always look at is where we can reinvest back into the business. And as we think and talk more as we enter 2026 around the opportunity for more EBITDA margin expansion. There is that question of how much more incrementally do we want to invest back into the business versus dropping it to EBITDA and free cash flow in '26 and beyond to ensure that elongated growth rates. And so that's a big part of capital allocation.

我們始終會關注的另一個顯而易見的問題是，我們可以將資金再投資到業務中。隨著我們進入 2026 年，我們將更多地思考和討論如何進一步擴大 EBITDA 利潤率。問題在於，為了確保2026年及以後的長期成長率，我們應該逐步增加對業務的投資，還是應該將投資減少到EBITDA和自由現金流。所以，這是資本配置的重要組成部分。

And then the last one would be opportunities around return of capital, which we haven't done historically, but we will always consider and be thoughtful around if that makes sense. So hopefully, that gives you a bit of a picture.

最後一點是關於資本回報的機會，我們過去沒有這樣做過，但如果這樣做有意義，我們會一直考慮並認真思考。希望這能讓你對情況有個大致了解。

Very helpful. Thanks so much.

很有幫助。非常感謝。

Thanks Ella.

謝謝你，艾拉。

Your next question comes from the line of Terry Tillman with Truist Securities. Please go ahead.

你的下一個問題來自 Truist Securities 的 Terry Tillman。請繼續。

Yeah, thanks for taking my questions. Hi, Matt, Jonathan, Kirk and Josh, I'm just curious when and this is more of a bigger picture question. When you're talking to customers and prospects, is there any kind of tilting of the conversation from deposits gathering and retention of deposits versus lending and maybe more of a friendly environment.

謝謝你回答我的問題。嗨，Matt、Jonathan、Kirk 和 Josh，我只是好奇什麼時候會發生，這更多的是一個比較宏觀的問題。在與客戶和潛在客戶交談時，談話內容是否會從存款的收取和保留轉向貸款，並營造更友善的氛圍？

The reason I'm asking this is, you all had really good tailwinds on the deposit account on the deposit side. So with your digital banking and retail and commercial. Just trying to understand what kind of ongoing tailwinds you see there with a focus on deposits? And then I had a follow-up for Jonathan.

我問這個問題的原因是，你們的存款帳戶在存款方面都獲得了非常好的順風。所以，包括您的數位銀行、零售和商業領域。我只是想了解一下，您認為在礦產資源方面，目前有哪些持續的利多因素？然後我向喬納森提出了後續問題。

Well, deposits are still fundamental to the bank and with the rates where they are and the fairly today, they're staying where they are. it's real competition to get deposits. So I think that historically, over the last 100 years, that's the way it's been. We had a little bit of a unique environment from 2012 to 2022. So I don't think this is a trend that's going to go away, and I think there's even more competition for deposits.

存款對銀行仍然至關重要，鑑於目前的利率和市場行情，存款水準會保持不變。因此，銀行間爭奪存款的競爭非常激烈。所以我認為，從歷史角度來看，過去100年的情況一直都是這樣。從 2012 年到 2022 年，我們經歷了一個略微獨特的環境。所以我認為這種趨勢不會消失，而且我認為存款競爭會更加激烈。

So I think the deposit the drive to retain and grow deposits and the most profitable ones or commercial, as we've talked about, is still out there. On the lending side, I haven't seen a big pickup there. But hopefully, that will start to pick up back half of this year, early '26.

所以我認為，存款、留存和成長存款的動力，以及我們之前討論過的那些最賺錢的商業存款，仍然存在。貸款方面，我還沒有看到明顯的成長。但希望這種情況能在今年上半年或 2026 年初開始好轉。

Terry, I'd just add to that, right. Each of those deposit accounts represents a relationship where they can also generate fees. So it's really work to the bottom line of the bank, obviously. And when the rates are at a more favorable place, it also represents lending opportunities for those banks. So that deposit account being the anchor rather than when you go back years where the lending might have been anchored to the relationship, I think, is an important shift.

特里，我還要補充一點，對吧。每個存款帳戶都代表著一種關係，在這種關係中，他們也可以產生費用。所以，這顯然是直接關係到銀行的獲利。當利率處於更有利的水平時，也意味著這些銀行有機會放款。因此，將存款帳戶作為錨點，而不是像過去那樣以貸款關係作為錨點，我認為這是一個重要的轉變。

That's helpful. And I guess just, Jonathan, for you in terms of it looks like the subscription ARR, and I know that is kind of that can move around a little bit, but you have a tough comp for 3Q, but hearing Matt talk about kind of the lining up have a strong pipeline for second half. Could you foresee subscription ARR picking up some from what we saw in the first half? Thank you.

那很有幫助。喬納森，我想說的是，就你而言，訂閱 ARR 看起來……我知道這個數字可能會有些波動，但第三季度的同比數據比較高，不過聽馬特說，你們下半年的產品線很強勁。您認為訂閱收入（ARR）能否比上半年回升？謝謝。

Yes. I mean, it's a tricky one because you're right, we were facing -- we are starting to face more difficult comps versus the subs ARR growth metrics you saw essentially throughout all of '24 until the fourth quarter where the more difficult comp came into play against Q4 of '23. So sort of where we are now in terms of the baseline of ARR and [inaudible] in particular, it feels like we're sort of at a level that's sustainable and durable.

是的。我的意思是，這確實是個棘手的問題，因為你說得對，我們正面臨——我們開始面臨更艱難的比較，與你在 2024 年整個時期看到的訂閱用戶 ARR 增長指標相比，直到第四季度，與 2023 年第四季度相比，更艱難的比較才開始顯現。所以就 ARR 的基線而言，特別是 [聽不清楚]，感覺我們已經達到了一個可持續和持久的水平。

You're right, there will be variability quarter-to-quarter depending on the bookings in totality as well as the mix we had a quarter here in the second quarter where you had a little bit of suppression due to localized churn that I already talked about. But when you think about the last several quarters and as we look ahead, it seems like sequentially, these quarters are typically shaking out in the 2% to 4% sequential growth a quarter. And in the absence of a mega quarter like Q4 of '23, but it feels like this range of, call it, 12% to 14% subs ARR growth is where we feel comfortable and where we feel there's sustainability and durability at that level.

你說得對，每個季度都會有所不同，這取決於整體預訂量以及組合情況。我們在第二季就遇到了一些抑制情況，這是由於我之前提到的局部客戶流失所造成的。但回顧過去幾個季度，展望未來，這些季度的環比成長率通常在 2% 到 4% 之間。雖然沒有像 2023 年第四季那樣的超級季度，但我們感覺 12% 到 14% 的訂閱用戶 ARR 成長率是我們比較滿意的，也是我們認為在這個水平上具有可持續性和持久性的。

Okay, thank you.

好的，謝謝。

Our next question comes from the line of Dan Perlin with RBC. Please go ahead.

我們的下一個問題來自 RBC 的 Dan Perlin。請繼續。

Thanks, so Matt, I wanted to come back to your comment around notable M&A kind of in the quarter. And I guess the question there, clearly, the narrative is that there's a lot of that going on. I feel like last quarter, I think you called out like you were involved in 21 transactions. I think you went out in 20 of those. So is it picking up relative to what we've seen and then just maybe, again, as a reminder, at least for us, just why you feel so confident that you typically are beneficiaries in that type of transaction?

謝謝，馬特，我想回應一下你之前關於本季度值得關注的併購活動的評論。我想，很明顯，問題在於，目前的說法是，這種情況非常普遍。我覺得上個季度，你好像公開宣稱自己參與了 21 筆交易。我想你參加了其中的20次。那麼，相對於我們之前看到的，情況是否有改善？另外，或許再提醒一下，至少對我們來說，為什麼你們如此自信地認為自己通常是這類交易的受益者？

Yes. Dan, the M&A environment is still the actual transactions or so. I think there's been $150 in the first half of the year. And so but the amount of conversations we're having with banks about M&A there's a lot of talk about it happening. I think sellers and buyers have to get aligned and the more transactions that happens, the more will establish the valuations of these banks.

是的。丹，併購環境仍主要指的是實際的交易。我認為今年上半年已經達到 150 美元了。所以，我們與銀行就併購進行的對話很多，都在談論併購即將發生。我認為買賣雙方必須達成一致，交易越多，這些銀行的估值就越能確定。

But my confidence comes from in year-to-date, we have 52 M&A events within Q2 customers and 49 of those Q2 was the acquirer that surviving into the MOE. So 94% historically, we've been 90% to 95% the successor in those. And that's really the nature of our clients are they're buying a new digital banking system.

但我的信心來自於今年迄今為止，我們在第二季的客戶中發生了 52 起併購事件，其中 49 起是收購方在經濟衰退期倖存下來的。所以從歷史資料來看，我們有 94% 的時間是這些領域的繼承者，有 90% 到 95% 的時間是這些領域的繼承者。這就是我們客戶的本質：他們購買的是一套全新的數位銀行系統。

They're paying more than they were, they're committed to the digital channel, and they believe it's how they're going to grow their bank in the future as opposed to some that are trying to sell the bank. And we typically don't sign those types of customers. So my confidence comes from historical numbers. It doesn't mean that's just going to happen to move forward, but we certainly hope it does. But I do think you'll see M&A pick up in the back half later in this year and then in '26, I think you're going to see quite a bit more.

他們支付的費用比以前更多，他們致力於數位化管道，他們相信這是他們未來發展銀行的方式，而不是像一些試圖出售銀行的人那樣。我們通常不會與這類客戶簽約。所以我的信心來自歷史數據。但這並不意味著這種情況一定會發生，但我們當然希望如此。但我認為，今年下半年併購活動將會回升，到了 2026 年，我認為併購活動會更活躍。

But the numbers are not accelerating in any more than they were last year.

但這些數字的成長速度並沒有比去年更快。

Okay. That's great. That's great color. I also wanted to just circle back on the Risk and Fraud Solutions. I know there's a few questions on this already. But the commentary around like a lot of new point vendors expanding broadly I guess the question is, it's pretty clear, like it sounds like the clients are gravitating towards your solutions.

好的。那太棒了。顏色真好看。我還想再跟大家談談風險和詐欺解決方案。我知道已經有人問過這個問題了。但是，圍繞著許多新興的軟體供應商的廣泛擴張的評論，我想問題是，很明顯，聽起來客戶正在向你的解決方案靠攏。

But as you have so many of these incremental new vendors points, which is kind of coming into the market, are they creating like moments of pause because it has like this decision tree that your clients have to kind of go through just in vetting what they're offering relative to you? Or do you feel like because there's so much of that noise that's being created by them that it actually is benefiting kind of your holistic product today.

但是，隨著越來越多的新供應商進入市場，這是否會造成一些停頓，因為客戶需要經歷一個決策過程，才能將他們提供的產品和服務與你提供的產品和服務進行比較？或者你覺得，正因為他們製造了這麼多噪音，反而對你目前的整體產品有利？

Yes, Dan, to be clear, a lot of those vendors are coming to us to sell to the banks and they do the renovation studio because we have the integration to the customer for their core, their payment systems, and then we have where the transaction takes place in our system, so authenticating the customer, ensuring that they're paying their who they intend to pay that somebody else is in paying them. They want to work with us and we have so many commercial customers, which is what people are dependent the retail front, but that's usually not the same scale as the commercial customers.

是的，丹，說清楚點，很多供應商來找我們是為了向銀行推銷產品，他們之所以會進行翻新工作室，是因為我們能與客戶的核心系統、支付系統進行集成，然後在我們的系統中進行交易，從而驗證客戶身份，確保他們向他們打算付款的對象付款，確保其他人也確實在向他們付款。他們想和我們合作，我們有很多商業客戶，零售業依賴商業客戶，但零售業的規模通常與商業客戶的規模不同。

So a lot of these vendors are partnering with us, we are packaging them in our solution through innovation studio to offer a comprehensive fraud solution. Now we have our own products, but some of these other vendors are nice add-ons to us, and we partner, we put them in and we cross-sell them and their upsells for us.

因此，許多供應商都與我們合作，我們透過創新工作室將它們整合到我們的解決方案中，以提供全面的反詐騙解決方案。現在我們有了自己的產品，但其他一些供應商的產品對我們來說是很好的補充，我們與他們合作，將他們的產品引入我們的產品線，並進行交叉銷售和追加銷售。

Got it. Okay. That point of clarification. I kind of thought you were thinking there was other kind of competitive dynamics there. So that's great.

知道了。好的。這一點需要澄清。我原以為你認為那裡存在其他類型的競爭動態。那太好了。

Thanks, Dan. Appreciate it.

謝謝你，丹。謝謝。

Our final question comes from the line of Chris Kennedy with William Blair. Please go ahead.

我們的最後一個問題來自克里斯·肯尼迪和威廉·布萊爾的對話。請繼續。

Yeah, good afternoon. Thanks for taking the question. Can you just give us an update on your cross-selling initiatives? I think that's one of the bigger opportunities that you've had, and you've had a lot of renewals recently, just how the cross-selling is going?

午安.感謝您回答這個問題。能否簡單介紹一下貴公司的交叉銷售計畫進度？我認為這是你遇到的較大機會之一，而且最近續約率也很高，交叉銷售進度如何？

Yes. We've had obviously a solid year. One of the things that always drive more cross-sell is our client event, and it was in late May this year. And so typically, they leave the event. They've got the inventory list of all the products we have. They're excited about it.

是的。顯然，我們度過了穩健的一年。促進交叉銷售的因素之一是我們的客戶活動，今年的活動在五月下旬舉行。因此，他們通常會離開活動現場。他們有我們所有產品的庫存清單。他們對此感到很興奮。

And so I think you're going to see a strong back half of the year in not just the risk product, innovation studio and it could be commercial banking cross-sell, but there's a lot of energy behind it. The team has done an amazing job on the renewal side and renewing at a greater value, and they're focused on that in the back half of the year. So we should have a strong back half of the year on renewals as well.

所以我認為，今年下半年不僅風險產品、創新工作室會表現強勁，商業銀行交叉銷售也可能如此，背後蘊藏著巨大的能量。球隊在續約方面做得非常出色，而且續約價格也更高，他們將在今年下半年繼續專注於此。因此，我們下半年的續約情況應該也會很強勁。

Great, thank you for that. And then just as you think about the data center migration to the public cloud, can you just talk about the long-term benefits of that? Thanks for taking the question.

太好了，謝謝你。那麼，當您考慮將資料中心遷移到公有雲時，您能否談談這樣做的長期好處？感謝您回答這個問題。

Yes. From a financial standpoint, I think there are many benefits. I think the most near-term one, we can get to long term in a minute because I think there's some strategic ones we can talk about. But when I think about it from a financial standpoint, the near-term benefit comes through as we enter 2026, the exiting of the data center just has a very quantifiable cost component that goes away for us that we've historically had.

是的。從財務角度來看，我認為這有很多好處。我認為最近期的問題，我們很快就能談到長期問題，因為我認為我們可以討論一些策略性問題。但從財務角度來看，短期利益將在 2026 年顯現，資料中心的退出將為我們帶來非常可量化的成本，而這項成本是我們過去一直面臨的。

So and sort of, if you will, the end of the double bubble or right near the end. And so there's a clear benefit there, and you see that in the 26' gross margin expansion that we've talked about. Beyond that, as we think about the next leg of being in the cloud, there's a whole opportunity around DevOps and how do we think about optimizing for elasticity. And once we've been in the cloud for some period of time, understanding how to manage the cost structure more efficiently is a common exercise that we're already starting to think about how do we take that next leg up. I don't know if Kirk, you'd add anything from like a strategic perspective, when you think about.

所以，可以說，這是雙泡沫的尾聲，或者說接近尾聲。因此，這樣做顯然是有益的，正如我們之前討論過的 26 年毛利率擴張所表明的那樣。除此之外，當我們思考下一步的雲端發展方向時，DevOps 領域蘊藏著巨大的機遇，我們需要思考如何優化彈性。一旦我們使用雲端服務一段時間後，了解如何更有效地管理成本結構就成了一項常見的任務，我們已經開始思考如何邁出下一步。我不知道柯克，從策略角度來看，你還會補充什麼。

Yes, I did. I would just add that it's an exciting time to be completing our cloud transition and one of the reasons for that is kind of the transformational opportunities that lie ahead of us, whether that's cloud native technology, which continues to AI is getting a lot of the headlines, but cloud technology continues to evolve rapidly.

是的，我做了。我還要補充一點，現在正是我們完成雲端轉型的激動人心的時刻，其中一個原因是擺在我們面前的變革性機遇，無論是雲端原生技術（人工智慧一直佔據著許多頭條新聞），還是雲端技術本身，都在快速發展。

The tool are available to us. kind of the industrial strength kind of development environments that are available to us in the fight and return to our customers. And then I think also in terms of the role that all the various kinds of AI is going to play in that cost environment. I think is really exciting because we're bullish on the opportunities ahead of us.

我們擁有各種工具，包括工業級的開發環境，這些工具可以幫助我們贏得客戶，並最終回饋給我們的客戶。然後，我認為還要考慮各種人工智慧將在成本環境中發揮的作用。我認為這真的很令人興奮，因為我們對未來的機會充滿信心。

Great. Thanks for taking the questions.

偉大的。謝謝您回答問題。

And we had one final question, Michael Infante with Morgan Stanley.

我們還有一個問題，來自摩根士丹利的邁克爾·因凡特。

Hey guys, thank you for squeezing me in. Jonathan, I could have let the regulatory question on 26 passes by. So two-part question there. Was the net new subscription ARR that you added on a sequential basis in line with your expectation, sort of when you strip out that atypical M&A-related churn you mentioned? And two, how is the deal composition and just the mix between larger and smaller deals that you saw in the first half and expect in the back half factoring in there?

嘿，各位，謝謝你們擠出時間讓我來。喬納森，我本來可以對第 26 號監管問題不予理會。所以這個問題包含兩個部分。剔除您所提及的與併購相關的非典型流失後，您依序新增的淨訂閱 ARR 是否符合您的預期？第二，您在上半年看到的大額交易和小額交易的組合情況，以及您對下半年的預期，會如何影響交易構成？

Yes. So yes, if you were to back out the sort of concentrated churn and even if you look at sort of 2Q trends from last year, you saw directionally, the sequential subs ARR at is where we would have expected and certainly would have been in a good place relative to expectations, absent that concentration of churn.

是的。所以，是的，如果你排除那種集中流失的情況，即使你看看去年第二季度的趨勢，你會發現，從方向上看，連續訂閱用戶年度經常性收入 (ARR) 處於我們預期的位置，而且相對於預期而言，如果沒有那種集中流失的情況，情況肯定會很好。

So feel good there. And then from a deal composition and mix standpoint, it was very much in line with what we said at the beginning of the year and then what we're reiterating now where while we did have the 6 Tier ones that we talked about, the volume of Tier 2 and Tier 3 deals was really high, and the bigger Tier 1 opportunity set is more in the back half. And so while we had the Tier 1 deals, the biggest opportunities fall in the back half. And so that sort of explains a little bit of the mix shift that we saw in the first half and again, right in line with expectations.

所以，祝你一切順利。從交易構成和組合的角度來看，這與我們年初所說的以及我們現在重申的觀點非常一致，雖然我們確實有我們談到的 6 個頂級項目，但二級和三級項目的數量非常高，而更大的一級項目機會更多地出現在下半年。因此，雖然我們達成了第一梯隊交易，但最大的機會卻在後半段。所以，這在某種程度上解釋了我們在上半場看到的陣容變化，而且也完全符合預期。

Helpful. Matt, maybe just a higher level one for you. Obviously, it has been a lot of commentary coming out of certain banks that have the intention to begin to charge third-party aggregators for API access to customer account data. Is there anything we should be aware of in terms of the percentage of your subscription business that relies at least in some form or fashion on data aggregators.

很有幫助。馬特，或許你需要一個更高階的版本。顯然，一些銀行已經發表了大量評論，表示有意開始向第三方聚合商收取存取客戶帳戶資料的 API 費用。就貴公司訂閱業務中依賴資料聚合商的比例而言，我們是否應該注意某些事項？

And if that proposed pricing structure or the concept of it becomes pervasive across the banking landscape, like how do you think about the impact both on your customers on your margins as well as some opportunities you have on the margin side with the ERP integration initiatives that you have underway?

如果這種建議的定價結構或其概念在銀行業得到廣泛應用，您認為這會對您的客戶和利潤率產生什麼影響？同時，您認為正在進行的 ERP 整合計畫在利潤率方面會帶來哪些機會？

I'll have Jonathan cover some of that. But it's a very small amount of customers that were actual aggregation is taking place where I think you would have any fee issues.

我會讓喬納森負責其中的一些內容。但實際發生聚合的客戶數量非常少，我認為在這種情況下不會有任何費用問題。

Yes. It's early to quantify. I think as we think about it with the partners we work with when it comes to the universe of aggregators and then we think about what the potential economic implications are, we're working through with them. I agree with Matt. I don't think from a materiality standpoint, we're worried about it. I think it's something we're watching and monitoring.

是的。現在量化還為時過早。我認為，當我們和合作夥伴一起思考聚合器領域時，我們會考慮潛在的經濟影響，我們正在和他們一起解決這個問題。我同意馬特的觀點。從實質角度來看，我認為我們並不擔心。我認為這是我們正在關注和監控的事情。

And I think as our partners begin to engage with us on it, I think they still think this is very early in terms of how this is going to play out and what it will mean for their business in terms of passing that cost along to the end user versus who would eat the incremental that are being proposed. So nothing there that we're worried about, but we're watching it. And again, I wouldn't say it's an issue from a materiality standpoint.

我認為，隨著我們的合作夥伴開始與我們探討此事，他們仍然認為，就此事將如何發展以及這對他們的業務意味著什麼而言，現在還為時過早，因為成本將轉嫁給最終用戶，還是由誰來承擔所提出的增量成本。所以沒什麼好擔心的，但我們會密切注意。而且，從實質角度來看，我並不認為這是一個問題。

Makes sense. Thank you, guys.

有道理。謝謝大家。

And with that, thank you for joining us today. This does conclude today's conference call. You may now disconnect.

那麼，感謝各位今天收看我們的節目。今天的電話會議到此結束。您現在可以斷開連線了。