RT Max (@MdeZegher)Despite investing billions in Superchargers, range anxiety is often the #1 concern for buying a Tesla.With Passport, we want to(1) inspire more customers to hit the road. I'm already motivated by "Longest Trip"!(2) have customers share their Passport, amplifying the epic journeys they're taking with Superchargers.Word of mouth from friends, showing their actual trips, feels the most trustworthy. Range anxiety → range confidence! ...

Financial Data and Key Metrics Changes - The company reported a 9% increase in net revenue for Q2 2025, reaching $239.8 million, with adjusted gross profit growing by 13% to $92.4 million and adjusted EBITDA increasing by 9% to $56 million [4][5][6] - Adjusted EPS rose by $0.15 year over year to $0.26, and adjusted gross profit margin improved by 135 basis points to 38.5% [4][6] - For the year-to-date, revenue grew by 9% to $464.4 million, with adjusted gross profit up 14% to $179.7 million and adjusted EBITDA up 10% to $107.3 million [6][12] Business Line Data and Key Metrics Changes - The SMB segment generated Q2 revenue of $163.2 million, a 5.2% increase year over year, with adjusted gross profit remaining consistent at $35.4 million [12][14] - B2B revenue grew by 14.4% year over year to $25 million, with adjusted gross profit increasing by 30.8% to $7.3 million [15][16] - The Enterprise segment saw a revenue increase of 20.6% to $52.7 million, with adjusted gross profit rising by 22.6% to $49.7 million [17][18] Market Data and Key Metrics Changes - The company ended Q2 with over 1.6 million total customer accounts, up from 1.3 million in the previous quarter [4] - Annual transaction volume increased by nearly $5 billion to $140 billion [4] - Average account balances under administration improved to $1.4 billion from $1.3 billion [4] Company Strategy and Development Direction - The company is focused on its Connected Commerce platform, which integrates payments and banking capabilities to enhance operational success for customers [5][10] - There is a strategic emphasis on expanding recurring revenue, which now represents 62% of total adjusted gross profit, indicating a shift towards more stable revenue streams [24][25] - The company is also pursuing tuck-in acquisitions to enhance its service offerings and capitalize on favorable market conditions [21][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10% to 12.5% revenue growth for 2025, citing strong growth trends and a favorable business mix [5][22] - The company anticipates moderating headwinds in the SMB segment and expects to see an acceleration of growth in the second half of the year [22][32] - Management noted that the economic environment has not significantly impacted performance, with resilience observed in various customer segments [38][56] Other Important Information - The company successfully refinanced its debt, lowering interest rates and extending maturities, which is expected to save approximately $7 million in annual interest expenses [20][21] - A material weakness related to automated controls has been substantially remediated, with testing currently underway [23] Q&A Session Summary Question: What was the core growth net of the VAMP and the residual headwind versus the 1Q growth? - Core growth was 9.5% for the quarter, slightly down from 10% in Q1, driven by strong performance in larger ISOs despite some attrition in lower-end accounts [30][31] Question: Can you talk about the underlying assumptions at the low end versus the high end of the revised 2025 revenue guide? - The acceleration in the second half is expected due to moderating headwinds in SMB and the onboarding of large customers, with potential upside from deposit balances [32][34] Question: Have you seen any shift in volume trends given the softening jobs and business sentiment? - The portfolio has performed well, with resilience noted in various sectors, although same store sales have been a headwind [38] Question: How have you been thinking about capital allocation in the near and longer term? - The allocation strategy remains focused on deleveraging while being opportunistic in acquisitions, particularly in a favorable market [39] Question: Can you describe the go-to-market strategy of larger ISOs? - The company leads with a technology suite that allows for flexibility in solutions, emphasizing high-quality customer service as a key component [60][63]