Adyen (EURONEXT: ADYEN) delivered solid first-half results as the Dutch payments processor navigated a tougher operating environment that weighed on some of its merchant customers.

The Amsterdam-based company reported net revenue of €1.09 billion for the six months ended June 30, representing a 20% increase from the same period last year. On a constant currency basis, growth reached 21%.

Adyen Maintains Growth Despite Customer Market Pressures

Processed volume, however, tells a more complex story. Total payment volume rose just 5% to €649 billion, but that figure was dragged down by a single large customer. Strip out that merchant, and volume growth jumps to 23% – a healthier picture that better reflects the underlying business momentum.

Adyen's profitability metrics remained strong. EBITDA climbed 28% to €543.7 million, pushing the margin to 50%. Free cash flow conversion hit 87%, while capital expenditures stayed disciplined at 4% of revenue.

CFO Ethan Tandowsky acknowledged the mixed conditions facing the company's merchant base. “In the first half, our disciplined execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term drove continued traction across regions and verticals, even as some customers faced a more challenging operating environment,” he said.

Core Financial Metrics

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Tougher Market

The payments industry has felt pressure from various macroeconomic factors, including changes to U.S. trade policies that have particularly affected online retail merchants. Adyen's shareholder letter specifically mentioned that U.S. tariff changes weighed on its largest online retail customers headquartered in Asia-Pacific.

Growth came primarily from existing relationships rather than major new customer wins. The company's strategy of deepening wallet share with current merchants appears to be paying off, even as some face headwinds in their own businesses.

Adyen's embedded finance products showed promise. The company's issuing business processed over €2 billion in volume during the first half, with customer count nearly doubling year-over-year. This reflects the broader trend of software platforms embedding financial services directly into their offerings.

Segments and Markets

The three business segments performed differently. Digital payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term revenue grew 10% to €638.9 million, the slowest growth among the divisions. Unified Commerce, which handles omnichannel retail payments, jumped 31% to €334.1 million. The Platforms segment, serving software companies that embed payments, surged 55% to €120.5 million.

Revenue by Business Segment

Geographically, Europe, Middle East and Africa contributed 58% of revenue and grew 21% year-over-year. North America represented 27% of revenue with 20% growth, while Asia-Pacific and Latin America made up smaller portions at 10% and 5% respectively.

Cautious Forecasts

The company struck a cautious tone for the remainder of 2025. Management previously anticipated some acceleration in annual revenue growth, but now expects full-year growth to be broadly in line with the first half on a constant currency basis. They cited lower-than-expected market volume growth from their customer base as the primary factor.

“Some aspects of our growth remain tied to our customers' performance,” the company noted in its shareholder letter.

Despite near-term headwinds, Adyen maintained its medium-term financial targets. The company still aims for annual revenue growth in the low-to-high twenties percentage range through 2026, with EBITDA margins above 50% by that year.

Adyen added 223 net new employees during the first half, bringing total headcount to 4,568. The company plans to continue hiring at a similar pace in the second half as it builds capabilities in areas like embedded financial products.