Core Insights - Integrating credit or buy now, pay later (BNPL) options into the purchase flow increases conversion rates and average order values, while also reducing cart abandonment [1][8] - Customers expect speed and simplicity in payment processes, with 77% of UK shoppers wanting instant payment completion and 58% preferring one-click checkout [3] - The shift towards embedded finance is evolving from merely accepting payments to enhancing customer relationships and adding value at the point of transaction [6][17] Payment Integration - Embedded payments have addressed acceptance issues, but affordability remains a challenge, especially for high-ticket items [2] - Frictionless checkout is critical, as nearly 70% of online shopping carts are abandoned due to slow or confusing payment processes [4] - The expectation for seamless payment experiences is raising standards for merchants [4] BNPL Growth and Regulation - BNPL in the UK has surged from virtually zero in 2017 to over £13 billion by 2024, prompting increased regulatory scrutiny [8] - New regulations from the FCA, effective July 2026, will mandate clear terms and affordability checks for deferred-payment credit [8][9] Subscription Models - Subscription models are becoming integral to consumer habits, fostering customer loyalty and predictable revenue [10] - Integrating subscription management into apps enhances convenience for customers, allowing easy sign-ups and plan management [11] - New UK regulations require that consumers can cancel subscriptions as easily as they can start them, promoting sustainable business practices [12] Currency Conversion in Global Commerce - International ecommerce faces challenges with currency conversion, as 94% of international shoppers prefer to pay in their own currency [13][14] - Embedding currency conversion tools directly into checkout processes can enhance trust and reduce cart abandonment [14] Industry Evolution - The fintech landscape is shifting towards durable innovation, focusing on refining existing services rather than creating new products [15][16] - Companies that embed value into transactions, such as financing and loyalty programs, can enhance customer relationships and reduce friction [17]

Core Insights - Inbank reported a total net income of €85.1 million for 2025, marking a 13% year-on-year increase, with net profit rising 57% to €19.2 million and return on equity improving to 12.3% [4] - The company’s total assets reached €1.58 billion, with a loan and rental portfolio of €1.28 billion and customer deposits of €1.3 billion as of December 31, 2025 [2][4] - Inbank's originated volume grew by 10% year-on-year to €770 million, driven by strong performance in Central and Eastern Europe [4] Financial Performance - Operating expenses remained stable at €46.3 million, leading to an improved cost-income ratio of 54.4% [4] - The total capital ratio stood at 18.81% and the CET1 ratio at 14.13% as of December 31, 2025, indicating a strong capital position [4] Market Position - Inbank partners with over 6,000 merchants and has 900,000 active customer contracts across 7 European markets [2][4] - Merchant solutions accounted for the largest segment of originated volume at €272 million, with a 7% year-on-year increase, primarily driven by demand for Buy Now, Pay Later services [4] Growth Segments - Green financing was a significant growth contributor, increasing 65% to €146 million, particularly supported by demand in Poland [4] - Direct lending saw a 33% increase to €119 million, while car financing declined by 15% to €178 million due to the introduction of Estonia's car tax [4]

Group 1 - The merger between AS Inbank and Inbank Ventures OÜ was officially registered on 1 March 2026, completing the merger process [1] - AS Inbank became the legal successor to Inbank Ventures OÜ, with all assets, rights, and obligations transferred to AS Inbank, and Inbank Ventures OÜ was removed from the Estonian Commercial Register [2] - The balance sheet date for the merger was set as 1 July 2025, and since the merger occurred within the Group, it did not affect the consolidated financial position of the Inbank Group [2] Group 2 - Inbank is a financial technology company with an EU banking license, facilitating connections between merchants, consumers, and financial institutions through its embedded finance platform [3] - The company partners with over 6,000 merchants and has more than 900,000 active contracts, collecting deposits across seven European markets [3] - Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange, indicating its presence in the capital markets [3]

Core Insights - Inbank achieved a consolidated net profit of €19.2 million in 2025, marking a 57% increase year-on-year, with a return on equity (ROE) of 12.3% for the full year [1][6] - The fourth quarter of 2025 saw a net profit of €6.1 million, a staggering 339% increase year-on-year, with an ROE of 14.7% [1][4] Financial Performance - Total net income for 2025 reached €85.1 million, a 13% increase from the previous year, while operating expenses remained stable at €46.3 million [6] - The cost-income ratio improved to 54.4% in 2025 [6] - Inbank's originated volume grew by 10% year-on-year to a record €770 million, driven by strong performance in Central and Eastern Europe [6] Segment Performance - Merchant solutions, the largest segment, reached €272 million in originated volume, a 7% increase year-on-year, primarily due to strong demand for Buy Now, Pay Later services [6] - Green financing was the strongest growth contributor, increasing 65% to €146 million, supported by demand in Poland [6] - Direct lending increased by 33% to €119 million, while car financing declined by 15% to €178 million due to the introduction of Estonia's car tax [6] Asset and Liability Management - By year-end 2025, Inbank's loan and rental portfolio grew 11% year-on-year to €1.28 billion, and customer deposits also increased by 11% to €1.3 billion [6] - Total assets reached €1.58 billion at the end of 2025 [7][9] - The total capital ratio stood at 18.81% and the CET1 ratio at 14.13% as of December 31, 2025 [6] Customer and Market Position - Inbank had 900,000 active customer contracts and over 6,000 active retail merchants by the end of 2025 [6][9] - The fourth quarter results were positively impacted by a one-off tax effect in Poland and a low comparison base from the previous year [4][6]

Core Insights - The company has achieved significant operational efficiency, resulting in more than double the adjusted EBITDA while moving towards sustainable GAAP profitability [1] - Value-added services have seen a substantial increase, with gross profit contribution doubling year-over-year and being utilized by 18 of the top 20 customers for fraud mitigation and user engagement [1] - European operations are showing strong growth, with Total Processing Volume (TPV) increasing at twice the rate of the overall company, projecting 2025 volume to reach eight times that of 2022 [1] Strategic Initiatives - A strategic pivot towards enterprise-level embedded finance has led to the signing of three Fortune 500 customers and an increase in average deal sizes by over 20% year-over-year [2] - The lending and Buy Now, Pay Later (BNPL) sectors have experienced nearly 60% growth, driven by geographic expansion and the adoption of innovative flexible network credentials [2] Financial Performance - The company achieved a historic milestone with quarterly TPV exceeding $100 billion, reflecting a 36% year-over-year growth and consistent sequential acceleration [3] - Management anticipates a full-year GAAP net income of approximately $10 million in 2026, indicating a transition to bottom-line profitability [3] - Gross profit growth for 2026 is projected at 10% to 12%, considering a 7-percentage-point headwind from the timing of two major renewals and a pricing tier shift for Block [3] - TPV growth is expected to moderate to the high 20s in 2026 as the company faces strong comparisons from the previous year [3] Future Outlook - The company plans to focus on expanding its end-to-end European offering following the TransactPay acquisition and enhancing its credit product capabilities [3]

Financial Data and Key Metrics Changes - The Bancorp reported earnings per share (EPS) of $1.28 for the fourth quarter, reflecting an 11% year-over-year growth [4] - Gross Deposit Value (GDV) increased by 16% for the quarter compared to the prior year [4] - Revenue growth for the quarter was 3% year-over-year, excluding credit enhancement income [4] - Return on Equity (ROE) reached a record 30.4% for the quarter and 28.9% for the full year [8] - Total assets increased to $9.4 billion, up 7% from the prior year [8] Business Line Data and Key Metrics Changes - Credit sponsorship balances ended at $1.1 billion, up 40% from the third quarter and 142% year-over-year [5] - The total loan portfolio increased by $919 million to $7.26 billion, with consumer fintech loans constituting 15% of the portfolio [8] - Non-interest income, excluding credit enhancement, accounted for just over 30% of revenue in the quarter, with approximately 90% of fees coming from the fintech business [9] Market Data and Key Metrics Changes - Average deposits in the quarter were $7.6 billion, with an average cost of 177 basis points [9] - Delinquency rates declined from 2.19% at the end of the third quarter to 1.6% at the end of the fourth quarter [7] Company Strategy and Development Direction - The Bancorp is focused on three main fintech initiatives aimed at creating significant shareholder value [5] - The company is targeting a guidance of $5.90 EPS for 2026 and $8.25 EPS for 2027, which includes stock buybacks [12] - The strategy emphasizes platform efficiency, productivity gains from restructuring, and AI tools [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the EPS guidance for 2026 and highlighted the positive impact of tax season on business [21] - The company anticipates continued growth in credit sponsorship and overall fintech business, with significant improvements in credit metrics [9][10] - Management acknowledged challenges from legal fees and the unexpected duration of the government shutdown affecting GDV [18][19] Other Important Information - The company repurchased $150 million of its stock in the fourth quarter, totaling $375 million for the year [11] - Criticized assets decreased from $268 million to $194 million, a 28% decline quarter-over-quarter [7] Q&A Session Summary Question: Can you provide more building blocks to help bridge the EPS gap? - Management indicated large revenue opportunities and confidence in upcoming initiatives, including credit sponsorship and the embedded finance platform [16] Question: What were the primary drivers affecting fourth-quarter results? - Key drivers included legal fees, the impact of the government shutdown on GDV, and the timing of credit sponsorship growth [18][19] Question: Can you discuss the economics of off-balance sheet deposits? - Management explained that off-balance sheet deposits are used to optimize funding costs and generate revenue as deposit growth exceeds balance sheet capacity [22][41] Question: What is the plan for the Aubrey property? - The company is nearing cash flow break-even and is looking for exit opportunities to maximize value [32][34] Question: How does the company view the threat of fintechs obtaining their own bank charters? - Management believes many partners will not seek licenses and highlighted the scalability and low-cost benefits of their platform [36][39] Question: What is the expectation for net interest margin (NIM)? - Management expects some compression in NIM as the company shifts towards fintech, but anticipates an increase in fee revenue as a portion of total revenue [60][61]

Company Leadership Changes - Solaris has appointed Steffen Jentsch as the new CEO, succeeding Carsten Höltkemeyer, who stepped down at the end of 2025 [2] - Ansgar Finken, the chief risk officer, is also stepping down but will remain in an advisory role, with Matthias Heinrich taking over his position [3] - Jentsch has a strong background in scaling digital financial platforms and expertise in regulatory transformation and digital banking solutions [2][3] Industry Trends in Embedded Finance - The embedded finance sector has matured significantly, transitioning from consumer convenience to a standard business practice in 2025 [5] - Successful implementations of embedded finance are now integrated seamlessly into existing workflows, making them almost invisible to users [5] - The philosophy of "buy, don't build" has emerged, with institutions prioritizing speed and specialization by outsourcing embedded capabilities rather than developing them internally [6] Investment and Market Position - Solaris' leadership change follows SBI's acquisition of a majority stake in the company as part of a €140 million ($164 million) Series G funding round [4] - The company is recognized as a first mover in embedded finance, contributing to the shaping of the market across Europe [4]

Core Viewpoint - Inbank has successfully raised €5.3 million through a direct offering, increasing its market value to €236 million, which reflects strong investor confidence in its business model and financial performance [1][3]. Group 1: Capital Raise Details - Inbank issued 265,000 new shares at a price of €20 each, with a nominal value of €0.10 and a share premium of €19.90 [1]. - The subscription period for the share offering was from 15 December 2025 to 29 December 2025 [1]. - Following the capital increase, Inbank's share capital will amount to €1,178,816.30, and the total number of shares will be 11,788,163 [1]. Group 2: Strategic Positioning - The additional capital will enable Inbank to support the expansion of Mobire Group, a full-service car rental company fully acquired by Inbank in November 2025 [2]. - Inbank operates as a financial technology company with an EU banking license, connecting merchants, consumers, and financial institutions through its embedded finance platform [3]. - The company partners with over 5,900 merchants and has more than 915,000 active contracts, collecting deposits across seven European markets [3]. Group 3: Investor Sentiment - Marko Varik, CFO of Inbank, expressed satisfaction with the strong interest in the share issue, indicating broad-based support from both existing and new investors [3]. - The capital raise has led to Inbank's market value reaching an all-time high of €236 million, showcasing investor confidence in the company's long-term value proposition [3].

Core Insights - Olea Global Pte Ltd has successfully completed a $30 million Series A funding round, led by BBVA with participation from XDC Network, theDOCK, and SC Ventures [1][2][3] Funding and Investment Focus - The capital raised will be directed towards innovation in AI-driven analytics, Web3 readiness, and high-growth solutions like embedded finance, aligning with evolving client needs [2] - This funding follows a previous facility announced in November 2024, arranged by HSBC & Manulife | CQS Investment Management [2] Strategic Partnerships and Expansion - BBVA's role as a lead investor will accelerate Olea's expansion into new markets across Europe, the US, Latin America, and Asia, focusing on digital supply chain solutions and risk analytics [3] - Olea aims to strengthen its capabilities in tokenized and stablecoin-enabled trade flows through its partnership with XDC Network [4] - Collaboration with theDOCK will open new commercial pathways and ecosystem partnerships for Olea [4] Company Vision and Achievements - Olea has established a platform supported by risk management and holds a Capital Market Services license from the Monetary Authority of Singapore, facilitating over $3 billion in financing to suppliers and buyers since its launch in 2022 [4] - The company connects global liquidity with trade and supply chain opportunities, emphasizing its role in economic development, particularly in emerging markets within Asia [4] - Olea currently supports suppliers and buyers in over 70 trade corridors, showcasing its extensive origination network [4]

Core Insights - DXC Technology and Aptys Solutions have formed a strategic partnership aimed at modernizing payments and simplifying connections for financial institutions [1][2] - The collaboration will enhance efficiency, reduce operational risk, and improve customer experiences for financial institutions [1] Partnership Details - Aptys Solutions offers a unified payments platform that includes ACH, wire, instant payments, image exchange, and digital channels, along with fraud controls and funds management tools [2] - DXC will integrate Aptys' payments capabilities with its banking transformation portfolio, allowing financial institutions to streamline payment processing and improve system interoperability [2] Market Impact - The partnership aims to democratize access to advanced banking innovations for financial institutions of all sizes, particularly benefiting community banks and credit unions that typically lack access to cutting-edge capabilities [3] - Financial institutions will gain access to DXC's modernization stack, which includes embedded finance, digital assets, and AI-driven services through Aptys' platform [3] Strategic Approach - The partnership focuses on a phased approach to modernization, combining Aptys' modern payments infrastructure with DXC's expertise in core banking [4] - The collaboration will enable direct bank-to-bank processing, allowing institutions to capture more value from their payments infrastructure and reduce reliance on intermediary fintech services [4] Future Developments - The initial phase will concentrate on core payments API transactions, with plans to expand into digital wallets, custody, and wealth management services in future phases [5] - The partnership is designed to provide the scale and reliability needed for financial institutions to modernize confidently while maintaining trust in payment relationships [5]