BSP

Image source: The Motley Fool. Thursday, Aug. 13, 2026, at 8 a.m. ET Head of Investor Relations-James Cordwell Co-Founder and Chief Executive Officer-Luca Ferrari Co-Chief Financial Officer-Enrico Martinelli Co-Chief Financial Officer-Davide Scarpazza Chief Technology Officer-Francesco Mancone Co-Founder and Head of M&A-Francesco Patarnello Operator: Good day, and thank you for standing by. Welcome to the Bending Spoons Q2 2026 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I would now like to hand the conference over to your first speaker, James Cordwell, Head of Investor Relations. Please go ahead. James Cordwell: Thank you, and hello, everyone. Welcome to Bending Spoons Q2 2026 Earnings Conference Call. With us today to discuss our results are Luca Ferrari, Co-Founder and CEO; and Enrico Martinelli, Co-CFO. For the Q&A portion of the call, we'll also be joined by Davide Scarpazza, Co-CFO;Francesco Mancone, CTO; and Francesco Patarnello, Co-Founder and Head of M&A. But before we begin, let me cover the safe harbor statement. Some of the information you'll hear today will consist of forward-looking statements, including those regarding our objectives and outlook. These statements reflect our current expectations and are subject to a variety of risks and uncertainties. Actual results and events may differ materially. For more information, please refer to our registration statement on Form F-1, including the risk factors described there. We assume no obligation to update any forward-looking statements. During the call, we'll discuss both GAAP and non-GAAP financial measures. You can find the definitions of our non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures in today's earnings press release, which is available on the Bending Spoons Investor Relations website at investors.bendingspoons.com. Unless we say otherwise, all comparisons refer to year-over-year results. And now over to you, Luca. Luca Ferrari: Thanks, James, and thank you all for joining Bending Spoons first quarterly earnings call. I'll first explain what Bending Spoons is, then I'll briefly summarize the quarter. Finally, I'll address a question central to our long-term prospects. What could constrain our ability to scale. Our playbook is simple. We acquire digital businesses, undertake deep integrations and transformations to improve them and reinvest the cash they generate together with incremental leverage in further acquisitions. Underlying this playbook is our long-term aspiration to build what we think of as the perfect operating machine. We've been refining this model since 2013. At its foundation is what we call our platform, which consists of three elements: our people, our proprietary technologies and our proprietary data. Today, our platform brings together nearly 700 selectively recruited core team members, whom we call Spooners, powerful internally developed technologies spanning everything from A/B testing to AI model orchestration and valuable insights accumulated through more than 50 acquisitions and thousands of experiments. And our results to date have demonstrated what we can achieve with this platform. Since the start of 2023, we've deployed nearly $6 billion across 15 acquisitions, consistently applying 25% unlevered and 65% levered IRR hurdles in our underwriting process. Through the execution of our playbook, we've more than tripled revenue, operating income and adjusted operating income in the 2 years to 2025. I'll turn now to Q2 2026, where we delivered a similar level of growth. Revenue increased 126% to $704 million. Operating income increased 139% to $240 million, representing a margin of 34%. Adjusted operating income increased 150% to $381 million, representing a margin of 54%. Diluted earnings per share was $0.28, up 163% and adjusted earnings per share was $0.46, up 167%. Operationally, we made encouraging progress in the transformations of AOL, Eventbrite and Vimeo. During the quarter, we released more than 70 product improvements across these three businesses. We also made substantial progress modernizing their underlying technologies, creating a stronger foundation for a faster pace of product development and monetization improvement. We continue to strengthen our proprietary technologies, added dozens of Spooners to our team, expanded our sources of financing, completed the acquisition of Tractive for an enterprise value of $759 million and undertook negotiations to acquire Airtable with us last week announcing we had reached an agreement to acquire the business for an enterprise value of $1.29 billion. While we're pleased with what we've delivered in Q2, our focus remains on the long term. In particular, given how quickly we've been growing, a natural question is how far Bending Spoons can scale and what could ultimately limit that growth. We think about this constantly and see at least 3 potential constraints: the availability of attractive acquisition opportunities, our operational capacity to integrate and transform the acquired businesses and access to capital at reasonable terms. To expand our capacity to grow and fulfill our ambitions for Bending Spoons, we continually work to ease these constraints. I'll discuss our approach to each in turn and highlight some of the actions we have taken recently. The first potential constraint is the availability of attractive acquisition targets. As we described in our IPO prospectus, our bottom-up analysis has identified more than 1,000 digital businesses that could be attractive targets over the next several years. Collectively, those businesses generate nearly $400 billion of estimated revenue in 2025. We, therefore, don't currently view target availability as a material constraint, at least for the next few years, and our acquisition pipeline is as strong as at any point in our history. However, to maximize our prospect of generating attractive returns for many years to come, we believe it's important to continue expanding our addressable market and broadening the range of businesses within this addressable market with acquisitions we can underwrite with conviction. We approach this deliberately. Ideally, for any acquisition of material size, the core economics should be familiar to us and any new capability the business brings should have the potential to be reused across our platform. Tractive is a good example. It's the market-leading pet tracking and health monitoring service, and we were attracted to the business due to the growth potential of the category and the opportunities we saw to continue improving the product offering, broaden distribution and optimize marketing. Tractive primarily generates revenue through subscriptions, an area in which we have extensive experience. However, it also incorporates a physical device, giving us an opportunity to deepen our capabilities in areas such as hardware design, device connectivity, supply chain management and support for an installed base. Success with Tractive would give us confidence in further expanding our addressable market. Airtable provides another example. Airtable is a no-code, low-code platform that enables teams to organize data and manage critical workflows. The strength of its brand and product, its positive revenue trajectory and the still sizable opportunity in the category all contributed to our decision to acquire the business. A substantial portion of Airtable's revenue is generated through the self-serve channel, again, an area very familiar to us. However, the pending acquisition would also create an opportunity for us to deepen our experience serving enterprise customers through direct sales. Enterprise SaaS is included in our $400 billion addressable market estimate, and we already have a foundation in this area through Brightcove and Vimeo. At the same time, further enhancing our platform in connection with direct enterprise sales will improve our ability to confidently underwrite more acquisitions of this kind going forward. The second potential constraint is the operational capacity required to undertake the deep integrations and transformations that are often needed to achieve our return objectives. AI is becoming increasingly important in expanding that capacity. And during Q2, we made further progress incorporating AI into our day-to-day work. One example is Alt-Spooner, a personal AI agent that we developed during the quarter and made available to every Spooner in early July. It operates within each user's existing access permissions and can work with that person's authorized history and connected accounts. Alt-Spooner runs on open-weight models that we host ourselves and its model-agnostic architecture allows us to use and compare different models, including closed weight ones as their performance and economics evolve. During its first 3 weeks of general availability, Alt-Spooner processed more than 100 billion tokens. The speed of adoption and its effectiveness have been encouraging. I personally had some wow moments with Alt-Spooner. During Q2, we also introduced AI-enabled interactive tasks into parts of our recruiting process. Our testing indicates that these tasks provide a predictive input into candidate assessment. They also make our recruiting process more scalable. These initiatives build on a broader, sophisticated and long-standing use of AI across our platform. And our overall progress in expanding operational capacity can be seen in our productivity metrics. In Q2, revenue per Spooner exceeded $4 million on an annualized basis. We're also undertaking increasingly large transformations without a comparable increase in the number of Spooners deployed. For instance, around 60 Spooners worked on Vimeo during Q2, broadly in line with the number of Spooners who worked on the Evernote transformation in 2023. This is despite Vimeo being roughly 4x the size of Evernote in revenue terms and a more complicated business from both a technical and operational perspective. Even with these efficiency gains, Spooners are likely to remain our scarcest resource. Therefore, we'll continue to invest in our ability to attract, select, retain and develop exceptional talent at scale. We'll also continue to make aggressive trade-offs as we deploy resources to what we judge to be the highest return activities. Most often, this is the integration and transformation of recently acquired businesses. Finally, we can't rule out the possibility that from time to time, we'll have to slow down our acquisition activity in light of operational capacity constraints. The third potential constraint is access to capital. Through the actions taken during Q2 and after quarter end, both the scale of the resources available to us and the breadth of our financing options have improved. During Q2, we entered into new euro-denominated term loan facilities totaling EUR 255 million and increased our euro-denominated revolving credit facility by EUR 460 million for a total of $1.58 billion based on the quarter end exchange rate. After quarter end, we secured a further EUR 590 million of term loan financing, increased our revolving credit facility by another EUR 30 million and received net proceeds of $1.10 billion from our IPO. These actions, together with our existing cash balances and the cash we expect our businesses to continue generating, provide sufficient funding for the pending Airtable acquisition while preserving flexibility to pursue additional acquisitions that meet our return thresholds. We intend to exercise that flexibility while maintaining plenty of headroom under our debt covenants and sufficient liquidity to meet our obligations in a range of downside scenarios. As a public company, we now have access to a broader range of financing sources. We'll select among those sources carefully, remaining focused on the objectives of maximizing long-term shareholder returns while keeping a prudent risk profile. With that, I'll hand the call over to Enrico to discuss our financial results in greater detail. Enrico Martinelli: Thank you, Luca, and hello, everyone. In Q2, we delivered triple-digit revenue growth and expanded our profitability with contributions from across our diversified portfolio of businesses. Cash generation and our financial position remains strong. I'll cover each of these areas before discussing our outlook. For Q2, total revenue was $704 million, up 126%. Organic revenue growth was 3%. Underpinning this organic revenue growth, the strongest contributions came from WeTransfer and Tractive, partly offset by a decline in Remini and Splice revenue. Relative to our expectations, we primarily saw better-than-anticipated performance in AOL advertising. Q2 operating income totaled $240 million, increasing 139% and adjusted operating income reached $381 million, increasing 150%. To calculate adjusted operating income, we remove amortization and impairment of acquired intangible assets, transaction-related expense, reorganization-related expense and other items that we don't consider indicative of core or ongoing operating performance. Operating income margin was 34% and adjusted operating income margin was 54%, expanding 2 percentage points and 5 percentage points, respectively. This margin expansion resulted from scale economies as well as operational efficiencies unlocked as we continue to improve our platform. In addition, we keep redeploying Spooners to areas offering the highest return, which we see as an advantage of our approach. Looking at the major components of our cost base, cost of revenue increased to $241 million, representing 34% of revenue, unchanged from the prior year period. The increase in cost of revenue was primarily driven by 3 factors: first, an increase in amortization of acquired intangible assets, reflecting continued acquisition activity. Second, an increase in IT infrastructure expense, reflecting an increase in cloud infrastructure utilization, mainly driven by acquisitions and third, an increase in distribution and payment processing expense, reflecting the increase in revenue. Operating expenses increased to $223 million, representing 32% of revenue compared with 33% in the prior year period. The increase in operating expenses primarily reflects personnel costs associated with the ongoing operation of newly acquired businesses and separation packages offered to team members in connection with the reorganization of AOL, Eventbrite, Tractive and Vimeo. After adjusting for the items excluded in our calculation of adjusted operating income, cost of revenue increased to $155 million. This represents 22% of revenue, unchanged from the prior year period. The increase was primarily driven by IT infrastructure expense and distribution and payment processing expense. Adjusted to exclude the same cost items, operating expenses increased to $168 million, representing 24% of revenue compared to 29% in the prior year period. We continue to drive productivity across the organization and remain disciplined in our approach to sales and marketing activities. The development and adoption of cutting-edge technological tools has been and should remain a key driver of efficiency gains. Equity compensation expense totaled $14 million in Q2. We do not exclude this expense in the calculation of our non-GAAP financial measures. Returning to our GAAP financials. Interest expense was $109 million, rising 205% year-over-year due to an increase in our absolute debt levels and to a much lesser extent, an increase in the effective interest rate. Other income was $19 million, and we recognized an income tax benefit of $26 million. This resulted in diluted earnings per share of $0.28 and adjusted earnings per share of $0.46, up 163% and 167%, respectively. As we detailed in our earnings release, we have revised our definition of adjusted net income and adjusted earnings per share to exclude 2 additional items. Foreign exchange gains and losses on assets and liabilities denominated in a nonfunctional currency are now excluded as our gains and losses from changes in the fair value of interest rate swaps. These items are recorded in other expense income in our GAAP financial statements and have been excluded from our non-GAAP financial measures as we believe that such adjustments improve period-to-period comparability. Full details of these revisions, together with recast historical results can be found in our earnings release. Turning now to cash flow and our financial position. For the first half of 2026, net cash from operating activities totaled $254 million against capital expenditure of just $4 million. This cash flow was net of cash payments associated with transaction-related expense and reorganization-related expense. In terms of uses of cash, in the first half of the year, we paid $2.29 billion for acquisitions, net of cash received. We also made $204 million in principal repayments of long-term debt. We ended Q2 with total long-term debt of $4.88 billion, cash and cash equivalents of $793 million and thus, net debt of $4.09 billion. Leverage ratio stood at 2.4x. Please refer to the earnings release for the definitions of net debt and leverage ratio. During the quarter, we entered into new euro-denominated term loan facilities with an aggregate principal amount of EUR 255 million and obtained EUR 460 million increase of our existing euro-denominated revolving credit facility. We drew a total of $581 million under a combination of these new term loan facilities and existing term loan and revolving credit facilities. Of that amount, $296 million was drawn under the revolving credit facilities on May 6, 2026, remained outstanding as of quarter end and has since been repaid. After the end of Q2 2026, we entered into additional euro-denominated term loan facilities totaling EUR 590 million and obtained increases of euro-denominated revolving credit facilities for a total amount of EUR 30 million. Also, we sold 39.6 million primary shares at $29 per share in our initial public offering in July. Net of underwriting discounts and commissions, this raised a total of $1.10 billion. The primary shares issued in our initial public offering will be reflected in our basic and diluted shares outstanding as of Q3 2026. Now to guidance. For Q3, we expect revenue to be in the range of $733 million to $745 million and for adjusted operating income to be in the range of $380 million to $400 million. For the full year, we expect revenue to be in the range of $2.78 billion to $2.82 billion and for adjusted operating income to be in the range of $1.46 billion to $1.51 billion. This guidance is based on the set of businesses we own today and doesn't incorporate any contribution from future acquisitions. Specifically, it doesn't include any contribution from the pending Airtable acquisition, which we expect to close before the end of the year. With that, we are ready to start the Q&A portion of the call. Operator: And the questions come from the line of Eric Sheridan from Goldman Sachs. Eric Sheridan: Congrats on the inaugural earnings report. Coming back to the Airtable acquisition, maybe just a few parts. Do you have an expected close date? And then the second part of it maybe when you think about the historical financials of Airtable, where do you think the biggest opportunities sit to continue to grow ARR and/or improve the operating margin of the company post close? Luca Ferrari: Thanks, Eric. Luca here, Co-Founder, CEO at Bending Spoons. Welcome, everybody. So regarding the closing date, we don't know. We are expecting the transaction to close this year, but it's difficult to be more precise. In terms of our -- the opportunity we see with Airtable, I will start with the strength. We believe that the brand and the product are really good. And importantly, they serve a critical use case for organizations. Airtable is used to collect and manage data and build applications that are used across teams and departments. It's often at the center of how companies that choose to adopt Airtable operate. And as such, we believe offers a strong foundation for continued growth and value creation. We are excited -- specifically to your question, we're excited about both the ability to keep growing the top line. We believe that there is significant untapped opportunity to continue expanding within existing accounts and acquire new customers. We look forward to working with the Airtable team to help turbocharge that. And we also believe that there are opportunities for operational efficiency. Operator: And the questions come from the line of Lloyd Walmsley from Mizuho. Lloyd Walmsley: Two questions, if I can. First, just going back to Airtable. -- how much of, I guess, a shift is this in the sense that it's growing significantly faster when you're acquiring it than prior deals. Does this -- is there really an opportunity to really find really attractive businesses like this given the environment we're in with sort of a lot of privately funded software companies that are looking for a home that are still high quality, but struggle to raise money? Is there -- is this sort of like a groundbreaking example of the environment we're in? And then the second one would just be if we think about the enterprise value you've acquired year-to-date at about 3.5, I think that's about where we were for the full year. Is there room to do more this year? Or should we assume the big ones are largely behind us for this year in terms of the future of M&A? Luca Ferrari: So regarding the growth profile for Airtable, we think -- I think it's a little bit of a false myth that we have only acquired more stagnant businesses. We are neutral on the growth profiles of the businesses we acquire. Obviously, we'll tend to pay a higher price for growth businesses, but we are happy to buy businesses that have been growing, and we expect to continue growing faster, grow more slowly, stay flat or even occasionally shrink. Of the businesses we have acquired so far, several were growing nicely. WeTransfer, komoot, Remini back in the day, so attractive recently. So it's not all that new to us. But yes, it's, of course, great news when we can acquire a business with plenty of growth ahead if the price is reasonable. Regarding the ability that we have to continue doing acquisitions going forward, I think only time will tell. We see the environment as favorable, and we have capital to deploy, thanks to both the IPO and recent debt raises as well as our continued cash generation. We have operational capacity, although certainly with Airtable, we will be -- assuming it closes in the next few months, we will be at 5 businesses acquired in the trailing 12-month period, which is, let's say, toward the higher end of what we generally feel ideal for us, but we have more capacity to do a little bit more if the appropriate opportunity presents itself. And so we're positive. Our pipeline looks probably as good as it ever has, to be honest. Yes, but we'll see. I mean, M&A remains an opportunistic endeavor. So it's impossible to be 100% certain what will happen. Operator: The next questions come from the line of Doug Anmuth from JPMorgan. Douglas Anmuth: I just wanted to ask about the recent Tractive acquisition and just the fact that it's one of your first deals that has a hardware component. Just curious how you're thinking about hardware-enabled businesses and where that has a place in your M&A philosophy going forward? Luca Ferrari: Thank you for the question. So in general, we -- almost everything we do at Bending Spoons is aimed at trying to maximize the probability that we can fully realize the ambitions we have for this company, which is a massive ambition of growth over the very long term. And with that in mind, expanding our addressable market many years before it becomes a constraint is important. So we shared in our prospectus that we found approximately 1,000 digital businesses that we think could become attractive acquisition targets over the next several years, and they aggregate to approximately $400 billion in revenue -- estimated revenue for 2025. By the way, there is growth overall in this sample. So presumably, the size will be a little bit bigger in 2026. So that's -- we think that's a huge addressable market, and that's a fully digital stuff. But becoming world-class at almost any difficult thing takes a while. And so once we found Tractive, which was primarily -- where we think you win primarily through the digital experience and where monetization is primarily through subscriptions areas that we understand, we believe, really well, yet where hardware was a part of the overall equation, we jumped at it. We saw a wonderful company with a very good opportunity ahead of itself. And at the same time, the added bonus of being able to train our muscles when it comes to, in this case, the consumer hardware. So that was the thinking behind it, we are extremely happy with the acquisition so far. And we're finding that, although clearly, we have limited experience with hardware, we are already finding ways of adding value. We're learning a lot from the team. So the market for businesses that have a hardware plus software component is massive clearly. And so maybe in time, we'll be able to do more in this, let's say, adjacent area. So, so far, so good, but of course, the jury is still out. Operator: And the questions come from the line of Stefan Slowinski from BNP Paribas. Stefan Slowinski: Congrats from me as well on the first quarter. Just wanted to ask about the organic growth in the quarter of 3%. I believe it was down from 6% in Q1. So just wondering if the underlying business, if that's in line with your expectations? And then the follow-up would just be if you're seeing any accelerating AI impact on the portfolio today, whether it be in terms of disruption in those markets or whether it be in terms of opportunity from a product standpoint or a pricing standpoint? Luca Ferrari: Thanks. So regarding the 3%, it came in a little bit higher than we expected. The close, but a little bit higher than we expected. The largest contributors as we included in our disclosures where WeTransfer and Tractive and then Remini and Splice were the negative contributors. Obviously, as we added -- recently added AOL, Eventbrite and Vimeo, which in aggregate, grew in the low-single-digit, that also affected the overall growth rate of the company. So that's the short explanation for the 3%. Obviously, the blended growth rate will depend each time on the composition of our portfolio at that point in time, the performance of individual businesses a year prior, sometimes some business may be doing well, but had an especially good quarter a year prior. It will depend on the sequencing of monetization improvements, which can also influence blended organic growth rate substantially. Anyway, that's at 3%. And then taking a step back, I think this is a good opportunity to reiterate -- we talk about this in our prospectus, but I'd like to reiterate on how we look at organic revenue growth. So our goal, and I mentioned it a few minutes ago, is to maximize shareholder value, the success of this company 10 years out, and that translates into trying to compound revenue and operating income, earnings per share on a per share basis, including revenue and operating income as quickly as we can. And we are pretty much neutral when it comes to the underlying characteristics. We're happy to do it at any particular organic growth rate. We're happy to do it at any particular margin structure within reason. And we believe that's the mathematically sound way of approaching creating shareholder value. So sometimes, as we approach our M&A activities with that objective in mind, we find that the best return opportunity is in a slow-growing business, such as AOL, an acquisition we're actually extremely happy with, like I said, growing low single digit. We think actually a much better business than people realize. And even sometimes shrinking businesses, if the IRR is what it needs to be, we're happy to pick those up. But equally, if we find that great returns are promised with fast-growing businesses, you mentioned not you specifically, but one of your peers mentioned Airtable a moment ago, and I mentioned Tractive and komoot as other examples of fast-growing businesses we have acquired somewhat recently. We're happy to get those done as well. So organic revenue growth will just be an output of our capital deployment activities, and it could be higher or lower, and it's not something we particularly focus on or -- and certainly not something we optimize for. Regarding AI, we haven't seen, say, any noticeable disruption in any of our businesses really because of AI. I think at least none of the significant ones. I think you could make an argument -- I'm not entirely convinced, but I think you could make an argument that Remini's decline could be connected to progress in AI. Frankly, we see that Remini's existing users and customers continue to behave exactly as before. We haven't noticed any change in behavior. It's just that acquiring new users and customers was particularly challenging for that business in recent quarters. And we believe it's mostly due to saturation in the market. Ultimately, this is a market that was born only a few years ago. Automatic generation of image and video content and a lot of progress has been made by us and others. There's -- it's more difficult now to come up with novel ideas and a lot of Remini's growth was driven by, let's say, viral spikes where with major innovations, and we were able to attract new users and drops here and there. An unusual pattern, by the way, I would say Remini is the only one business in our portfolio where customer acquisition was spiky. All of our other businesses of any significance are perhaps much more boring, but also much more predictable in that the acquisition comes from word of mouth and it's quite steady over time. And so I think mostly it's saturation, but I think it's a reasonable argument that one could make that because it's now more commoditized, the generation of content, especially image, but also video content through AI, competition has intensified. And therefore, while this has not apparently impacted the behavior of our existing users and customers has made it more difficult or expensive to attract new users and customers. So that's the only area of our business where I think potentially AI has had a negative impact. Other than that, we haven't seen anything whatsoever. In terms of upside, I'm probably not seeing anything shocking here, but we are seeing massive opportunity in terms of operational efficiency. We mentioned our recent release, internal release of a tool called Alt-Spooner like alternative Spooner. It's a pretty wonderful technology, in my view, that enables people to be super human in their productivity. I'll give you an example. Quite recently, I was in a Slack channel with one of our general managers, she leads Evernote specifically. And this channel is meant to be a place where we provide feedback on how the product could be improved. And this person posted by asking Alt-Spooner because you talked to Alt-Spooner as if it were a colleague on any company channel. She asked her Alt-Spooner to investigate a bug she had noticed and check with our internal technologies, there was one called [ Moros ] that enables tracking customer support tickets for product insights. So she asked her Alt-Spooner to look for this bug if it had been reported by other customers. And so if we could conclude it's a prevalent bug or just something extremely rare that she encountered. And then assuming that the answer was this has been reported by others, she asked her Alt-Spooner to investigate the root cause in the code, program a fix and then reach out to Evernote's tech leader asking that he review and hopefully approve the pull request so that the bug can be fixed and pushed to production. And I witnessed this. This was the first time I saw Alt-Spooner in full force. And in a matter of probably, I don't know, 5 minutes or something like that, 5 or 10 minutes. All of these tasks have been completed. And the only reason why the bug was fixed the day after is because the technology leader was not checking Slack at that particular point in time, which maybe we can improve on that, too. But it is mind-blowing because this is a process in the past would have taken optimistically a week and probably a few tens of person hours and was completed in maybe, I don't know, like half an hour by Spooners, real humans. So that's an example where our operations have really picked up in efficiency, thanks to AI. There are many more, but this hopefully makes the case. And then in terms of, let's say, the more visible ways AI can be helpful. Of course, you can serve customers better through AI. Most of our product work -- yes, I would say most is probably accurate to say. Certainly, a big part of our product work across our portfolio over the past maybe 6 months or so has been focused on AI-related or even AI-centric functionality. I thinking at Brightcove, we introduced auto translations, audio track dubbing, live captions in 50-plus languages. It's all basically done with AI. This was a transformative feature for our enterprise customers. We introduced Content Multiplier, which enables content organizations, media companies to take their high-quality content and produce all sorts of alternative formats, shorter versions, highlights they can post. It's just a few clicks. It makes them a lot leaner, faster, more successful. We introduced recommendations so that once -- if you're a media company using Brightcove once a user of yours, your audience has completed watching one of your videos, then you can enable recommendations YouTube a little bit, and these are now very smart, and we saw improvements in viewership for our customers ranging between 20% and 40%, which obviously is a game changer for a media company. Again, just to stay on Brightcove, I'd rather go a little bit deeper on 1 or 2 businesses than provide you a quickly and shallow touch point on all. But we introduced in the back end, so basically the part of the product that the administrators and actual users on the customer side of things use to then reach their audience, their viewership. We introduced all sorts of agent functionality. You can now use an agent to perform previously menial and cumbersome tasks such as reordering videos and organizing things finding videos. We have created a much more advanced layer for developers so that you don't necessarily have to go through the pretty good API that we had in place, but you can use an MCP to basically skip that and let your AI agents operate with Brightcove effectively. The list is long. But generally speaking, what I just described for Brightcove would apply with the due adjustments to probably 80% of our businesses. So it's exciting. I will say it's still unclear. I don't think this is a thing. I think this is almost any company thing, exactly to what extent these AI-enabled features translate into incremental revenue. We're seeing -- certainly, we're seeing uplift here and there, but I wouldn't say we've seen massive uplift where all of a sudden a customer who is paying, say, $100 is willing to pay $200, -- maybe they're willing to pay $110, which is good, but not transformative. Now the good news is that none of our strategy is in no way predicated on that being the case, but we'll keep an eye on it, and we'll let you know if things change. Operator: The questions come from the line of Kirk Materne from Evercore. S. Kirk Materne: I guess my question would be with Airtable adding some enterprise sales motion to a portfolio that's traditionally been a little bit more weighted to consumer and self-service subscription businesses. Should we view this as a bit of a shift in your M&A philosophy toward more enterprise? Or is this just one example and obviously, a very big M&A pipeline you all have? I'm just kind of curious if there's any kind of longer-term shift we would expect to see you all go a little bit more toward enterprise, just given maybe the machinations in the M&A market right now. Luca Ferrari: Great question. So we -- even before Airtable, we served -- we were serving -- we are serving many more businesses than people necessarily realize. We believe it's difficult to draw a precise line, but we believe that approximately 50% of our revenue comes from consumers and about 50% from professional businesses, enterprises. Again, it's difficult sometimes to know whether something is how big a company is, you don't always have the precise data, but I think that's directionally accurate. It's just that some of the more well-known brands we own are consumer brands. Consumer brands tend to be better known in the market for obvious reasons. And so I think that's why people think about Bending Spoons as primarily consumer, but it's not as skewed toward consumer as people think. Having said that, there has been a shift over time. We acquired Brightcove in early '25. We acquired Vimeo in late '25, which is -- has a big enterprise component to it. And we signed the acquisition of Airtable, which is primarily enterprise. And so we have not shifted toward enterprise because of a thematic view. Our guiding principle is to take every dollar we have available, whether it's free cash flow or prudent levels of debt or opportunistically could also be equity, and we've done that occasionally and put it to use in the most efficient way possible to try to generate as much value for our shareholders over a window of maybe 10 years, very long term. And so -- and we focus on being as good as possible, that perfect operating machine when it comes to running these businesses because that's how we can pay attractive prices and prices that are attractive to the sellers and at the same time, deliver the high returns, I believe we have consistently over time. So that's the part we control and how we think about things. The rest is really what the market offers. And so in our view, most enterprise businesses were valued at irrationally high levels until somewhat recently where we don't -- again, it's just our view, but at least looking at these businesses through the lens of someone who's trying to make money through free cash flow over the long run rather than speculating on reselling at the same or a better multiple. We never saw those prices making any sense. Whatever the reason as the market has shifted and prices are now more reasonable, sometimes still high, in my view, but overall, I'd say, more reasonable. We're finding more opportunities to acquire some of these businesses, which can often be wonderful. I think Airtable, we have plenty of respect for Airtable. We think it's an absolutely wonderful business, and there is a very competent team there at prices that are appealing. So I think if the boundary conditions remain similar as in valuations remain similar, you'll probably see us do more of this sort of thing, but not because we like it more now than we did 2 years ago simply because considering the price now, it's more reasonable for us to achieve really high returns. Operator: And the questions come from the line of Alec Brondolo from Wells Fargo. Alec Brondolo: I think you started increasing AOL prices for customers at the end of June. Could you quantify the magnitude of the price uplift and help us understand how customers have responded to the increase thus far? Luca Ferrari: Thanks for the question. So we have run experiments, not just on prices, but dozens of different variables across all of our properties all time at all times. Last year, we ran, I believe, 3,000 or 3,500 experiments, probably over 10,000 throughout our history. So if you could pick pretty much any one of our businesses and products and almost at any particular point in time, you could find someone with whom we're experimenting on new prices, new feature sets, new experiences, new, let's say, structures of free versus premium features and so on and so forth. That's just for context for those who don't know necessarily Bending Spoons all that well. We try to be -- to run our business as a scientist and that a big part of that is being experimental. Now with AOL, it's true. We have been experimenting with a number of things, including pricing. And it's too early to draw definitive conclusions. We'll share any such conclusions once we have them. But so far, we're seeing promising responses across multiple different configurations in our experiments. So stay tuned. Operator: The questions come from the line of James Heaney from Jefferies. James Heaney: Excellent. Appreciate you having me on. It would be great if you could talk about the progress you've seen out of Eventbrite. Curious what specific changes you've made since acquiring the asset and how that's kind of impacted metrics like usage, revenue, profitability. Luca Ferrari: Eventbrite, very recent acquisition. We closed it in March a few months ago. We're very happy with it so far. I would say it's lived up to our expectations, maybe exceeded our expectations a little bit overall. We completed a deep reorganization of the company. We published that news a few months ago. which we believe was important to set things up for long-term success. We have a leaner team and that we think is better positioned to progress rapidly now on both technology and product and then from there, monetization. We have shipped around 40 improvements on the product. There is an interesting blog post, I think people can go and check that details a significant number of these 40 improvements. I'm not going to go through all of them because I don't think a lot of the audience here is a ticketing geek. But I would say that the overall angle is we spent a lot of time with customers and collected a long list of pain points some small, some bigger ones, and we just got to work aggressively solving these problems. We improved the reliability of the entire platform. There were issues with loading times and bugs. Just one of countless examples now. If you create an event, loading times are roughly 40% faster. So for people who create hundreds of events over a year, that's a very nice improvement. We improved creator tools. There's now all sorts of new functionality to manage. If you're an organizer, your checkout is a critical moment of the ticket sale experience, obviously. We have improved event discovery in different ways among others. We have completely redesigned the profile page for creators. On and on, I really recommend taking a look at the blog post and in general, you can follow us. We try to make sure that each of our businesses, at least the main ones, publishes all reasonable -- not reasonable, sorry, important or significant product improvements so that people can keep an eye on our work, but we're quite excited about the amount of work that we have done considering just how recently we acquired it. We also -- that was product. So then we managed to improve monetization from advertising by approximately 20% -- now advertising is a smaller component of Eventbrite's overall revenue, but that's 20% improvement still translates into low single-digit growth. It's nice. It's good for organizers, too, because essentially, the service here is that we're helping them get more visibility for their events. We managed to lower paid user acquisition spend by approximately 30% without impacting any, let's say, top-of-funnel metrics. We found different pockets of unprofitable expenditure and got rid of those. And then we migrated the back end to a more modern infrastructure. So we're rewriting all the, let's say, underlying core components. We believe this will be important as we look to accelerate product innovation and also our ability to iterate quickly on the different aspects of the user experience and monetization. So I think an exciting start. We'll see. I believe we'll have something more substantive to show over the next few quarters, still a bit early, but so far, so good. Operator: The questions come from the line of Omar Dessouky from Bank of America. Omar Dessouky: I'd like to double-click into AOL and specifically your comments around advertising. You said that advertising was ahead of your expectations. And I was hoping you could give a little bit more color as to why. For example, was it related to the market? Was it something that you did to the assets or the technology? And when you say it was ahead of your expectations did it grow? Or was it down, for example? If you could just give us some more color around what happened there, we'd appreciate it. Luca Ferrari: Sure. Thank you for the question. So yes, it did grow. I don't think we can take -- certainly not [ full credit ], some credit, but not full credit. Some of it is just probably fortunate fluctuations in some of the underlying phenomenon. Yes. So I mean, we're advertising on AOL, we have a pretty ambitious plan. And we believe that one is creating the appropriate foundations, foundations so that we can max out advertising. It's a pretty long discussion, but I would -- I think it can be reduced to essentially 2 branches. One hand, we need to greatly improve our ability to serve interesting content to our users, particularly on the web portal. For emailing, that's really up to all of us sending interesting emails. So please try harder. But with the web portal, we have a lot of leverage, and we want to make sure that we improve the selection of content, the recommender system so that people find it more pleasant to spend time on the portal. And there's tens of millions of people who are very loyal users of that portal. And that alone, we could talk about it for a long time, but I think one of the interesting opportunities is to use modern technology and AI to find better recommendation for people. And so we're working on that. We wrote the content management system like 100% rewritten from scratch, and that will be one of the building blocks for this future optimization. The other big branch of optimizing advertising revenue because that I just described, hopefully, would give you the engagement and the retention. And then the other part is to actually select inventory properly and more ad tech. So for that one, we also completely rebuilt the advertising technology stack from scratch. We are now in the process of deploying it gradually because it's a risky change. We incorporated some revenue disruption in our guidance precisely for this reason. Even if we do it perfectly, we believe there will be some revenue disruption. Clearly, we believe this is ultimately very, very net positive in the long run, but it could be slightly negative in the very short run. So that's the overall approach. But yes, we remain at least as excited about AOL as we were when we acquired it. It's a really nice asset. Operator: The questions come from the line of Yi Fu from StoneX. Yi Fu Lee: Congrats on a very strong start as a public traded company. So Luca, in the beginning of the conversation, you spoke about sustainability of the business model. And I think that's the biggest investor pushback we received in the market. And you addressed it by pipeline, talent, Spooners and capital financing, right? So since 2023, management has generated exceptional acquisition returns. So my question for Luca and team is, what gives you confidence that Bending Spoons can continue generating similar returns at significantly larger scale? And what role does the proprietary operating system play in maintaining that advantage versus like traditional players like private equity firms, software acquirers? I mean you talked about Alt-Spooner earlier, but just want to get your take and double-click on this topic. Luca Ferrari: Yes, it's a critical topic. So what we know is that our returns have not so far deteriorated, at least not in the last -- maybe acquisitions we did in 10 years ago, a tiny acquisitions did even better. But at least in the last 3, 4, maybe even 5 years, we haven't seen a deterioration of returns. I'm -- if I were an investor, I would assume returns will deteriorate in the future, although we haven't seen any such deterioration simply because if we keep compounding at the current rate, you guys have seen we just posted another triple-digit growth quarter. It's a long lease at this point, a long sequence. This is so much faster to our knowledge than any serial acquirer in history, like by a mile. And so it's just reasonable to expect that there will be some deterioration in the growth rate, although we haven't seen any signs of it yet. Now the good news is that even if we were to grow a lot more slowly, it may still be incredibly fast by almost any measure. So there is plenty of room for deterioration to occur while still things being extremely exciting in our view from a capital allocation and investment perspective. Of course, we do everything we can to achieve the highest possible returns for as long as possible. In fact, we don't think about it as in how do we avoid any deterioration. We think about it as in how can we make things even better. Like nobody -- it's not written in the stars, and we can't find further pockets of improvement. So we believe the overall addressable market is large, and we have not yet found that larger companies offer an inferior opportunity for optimization. The level of improvement we've been able to bring, whether it's product, technology, team, monetization at some of the larger acquisitions is comparable to the one we were able to bring to smaller acquisitions. The financial results we have achieved so far appear to be in line with those previous acquisitions. So there doesn't seem to be a phenomenon necessarily where bigger means more difficult or worse. I mean, probably more difficult, yes, but we also get better at what we do with our resources increase. So that's advantageous. We believe there's plenty of capital out there, although we are not, of course, guaranteed to be able to access it. But hopefully, we can continue to serve our investors, both lenders and shareholders at an excellent level, plenty of people who want to participate. So we hope that capital does not become a bottleneck in the next several years. Operational capacity is certainly a potential bottleneck we are doing fine right now. But as we mentioned in our remarks, we cannot rule out the possibility that from time to time, we may need to slow down to be able to hire more people and coach more people. At the moment, we're still seeing a pretty significant ramp up in terms of our ability to attract new talent. We're just expanding in London, opening in Madrid and Warsaw. We may be expanding in other geographies in the near term, and that means tapping a potentially much, much larger talent pool. We still have plenty of room for increasing compensation. With this quarter, we have exceeded $4 million per Spooner on a run rate basis in terms of revenue. So we try to set our compensation levels in an efficient way. But if it means being able to attract a lot more great people, we could easily raise compensation in a major way without critically impacting our overall economics, and that supposedly should help us find even more great people. And yes, the technological aspect of things remains a key focus for us. We believe we're just scratching the surface of what we can accomplish, particularly with AI, which is changing the rules of the game. And we -- as far as we can tell, we are at the very cutting edge of using AI in our operations. We have yet to see a company that does it better. I'm sure there is someone out there, but we are pretty confident we're among the best in this area at a minimum. So are we certain we're not going to see deterioration? No. Would I recommend an investor, a prudent investor to assume we don't see our returns deteriorate? No, I would say, stay prudent, assume some deterioration. But do we see, as of now, signs of such deterioration happening? We don't, and we are as excited as ever to keep pushing. Yi Fu Lee: Luca, like let's say, if a deal market deteriorates, right, become less favorable, let's just say, right? If you just patiently wait you get the portfolio technically should generate higher cash flow, continued consistent cash flow, right? Would you patiently delever the balance sheet if that's the case? Luca Ferrari: Sure. Thank you. So well, we try to optimize our capital structure for maximum returns while keeping a risk profile that we consider very prudent. And so at all times, we try to keep the perfect amount of leverage. Obviously, it's not like there's an element of judgment there. We disclosed that leverage ratio is around 2.4x as of the end of the reported quarter. We think that's an appropriate level of leverage. It could go up a little bit or go lower a little bit over time. Naturally, if we were to pause acquisitions for whatever reason at some point, you would presumably see our leverage ratio decline quite rapidly. And if we found particularly exciting opportunities for generating high returns for our shareholders, you may see our leverage ratio go up a little bit. But I don't think you'll see it go up dramatically for sure. And so basically, we just try to be mathematical overall in maximizing the rate of compounding and a significant component of that equation is picking the right sources of capital, including -- it's interesting now that we're a publicly traded company, there are interesting things we can do with our equity, which we will be exploring in due course as opportunities arise. So every decision you see us make will be aimed at maximizing long-term returns while keeping risks at what we consider a very prudent level. Operator: There are no further questions at this time. So I'll now hand back to the management team for closing remarks. Unknown Executive: Thank you for joining us. We look forward to speaking to you again next quarter. Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you. Before you buy stock in Bending Spoons S.p.A., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bending Spoons S.p.A. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Bending Spoons S.p.A. (NASDAQ:BSP) just released its first earnings report as a public company, and it was impressive by almost every headline measure. Investors focused on a different number entirely. On August 13, the company released second-quarter 2026 earnings that exceeded Wall Street estimates across the board. Revenue increased by 126% year-over-year to $704 million, far exceeding analyst expectations of $685 million. Adjusted earnings per share of $0.46 outperformed the $0.27 consensus forecast by $0.19, a margin of more than 70%. Operating income increased 139% to $240 million, with an operating margin of 34%, while adjusted operating income increased 150% to $381 million, bringing the adjusted operating margin up five percentage points to 54%. Despite this strength, shares plummeted as much as 6.9% in pre-market trade. The disconnect stems from guidance rather than the quarter itself. Bending Spoons S.p.A. (NASDAQ:BSP) expects full-year 2026 revenue of $2.78 billion to $2.82 billion, a figure that is significantly lower than the $2.895 billion Wall Street average. In contrast, third-quarter guidance came in slightly ahead of expectations, making the full-year slump appear less like near-term weakness and more like a longer-run growth rate that the market was unprepared for. There's also the matter of how much growth is real versus bought. Organic revenue growth was only 3% for the quarter, a stark contrast to the 126% headline figure. The majority of the growth comes from newly acquired businesses such as AOL, Eventbrite, Harvest, MileIQ, Tractive, and Vimeo. That acquisition-heavy approach encompasses the entire Bending Spoons S.p.A. (NASDAQ:BSP) philosophy. Since the beginning of 2023, the company has invested around €6 billion in 15 acquisitions, more than tripling revenue, operating income, and adjusted operating income by 2025. For the time being, the balance sheet supporting that plan appears to be solid: $793 million in cash and $1.28 billion in borrowing capacity. Operating cash flow for the first half of 2026 was €254 million, though interest expense increased 205% year-over-year to €109 million, highlighting the rising cost of debt-funded acquisitions. Every headline number beat expectations and Q3 guidance crossed expectations, implying near-term momentum remains intact. The acquisition strategy also has a proven track record: €6 billion spent since 2023 has more than tripled key financials, with the balance sheet still holding opportunity for better execution. That said, almost all reported growth came from acquisitions instead of the core business, and organic growth of only 3% raises concerns about sustainability as easy comparisons begin to fade. A lower full-year forecast means that management expects a slowdown, and an increase in interest expense of 205% indicates that the acquisition engine is becoming more expensive to feed just as dealmaking heats up. For the time being, it appears that Bending Spoons S.p.A. (NASDAQ:BSP) is caught between a solid quarter and a market that is revising its growth expectations. Investors comfortable with the acquisition-led model may still see a compelling long-term case, but the key metrics to watch are organic revenue growth, net leverage, and the company's ability to integrate recent purchases without allowing financing costs to erode cash generation. A steady or improving organic growth rate over the next few quarters would lend credibility to the bull case that this is only a temporary guidance revision, not a structural slowdown. While we acknowledge the potential of BSP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

Bending Spoons S.p.A. (NASDAQ:BSP) shares fell 1.5% in Thursday premarket trading despite the Milan-based software company reporting second-quarter earnings and revenue above Wall Street expectations. Strong acquisition-driven growth helped more than double quarterly revenue, but a full-year sales outlook below analyst forecasts tempered the market’s reaction. Bending Spoons reported adjusted earnings of $0.46 per share for the second quarter, comfortably exceeding the analyst consensus of $0.27 by $0.19. Revenue reached $704 million, ahead of Wall Street expectations of $685 million and up 126% from $311.1 million in the same quarter of 2025. The sharp year-over-year increase reflected the company’s aggressive acquisition strategy, with businesses including AOL, Eventbrite, Harvest, MileIQ, Tractive and Vimeo contributing to reported growth. Organic revenue growth was considerably more modest at 3% during the quarter. Tractive and WeTransfer were the largest positive contributors, while declining revenue from Remini and Splice partially offset those gains. For the third quarter of 2026, Bending Spoons expects revenue of between $733 million and $745 million. At $739 million, the midpoint of the guidance is slightly ahead of the analyst consensus forecast of $738.6 million. The company also expects adjusted operating income of between $380 million and $400 million for the third quarter, indicating continued strong profitability as its expanded portfolio contributes to earnings. The near-term outlook therefore remained relatively solid despite greater caution surrounding expectations for the full year. For fiscal 2026, Bending Spoons forecast revenue of between $2.78 billion and $2.82 billion. The midpoint of $2.80 billion sits below Wall Street’s consensus estimate of $2.895 billion, providing a potential explanation for the decline in the shares despite the second-quarter earnings beat. Full-year adjusted operating income is expected to range from $1.46 billion to $1.51 billion. Investors are likely to focus on whether the company can accelerate organic growth across its portfolio, particularly given that acquisitions accounted for much of the substantial increase in reported second-quarter revenue. Profitability improved significantly alongside the expansion in revenue. Operating income increased 139% year over year to $240 million, while adjusted operating income surged 150% to $381 million. The growth in adjusted operating income outpaced the already substantial increase in revenue, highlighting the company’s ability to generate significant earnings from its enlarged software portfolio. Maintaining that level of profitability while integrating recently acquired businesses will remain an important measure of execution as Bending Spoons continues to expand. The second quarter also marked an important milestone for Bending Spoons as the company completed its initial public offering on the Nasdaq Global Select Market. The transaction generated approximately $1.10 billion in net proceeds after underwriting costs, strengthening the company’s financial resources as it continues pursuing acquisitions and investing across its software portfolio. Bending Spoons ended the quarter with $793 million in cash and cash equivalents. It also had approximately $1.28 billion of borrowing capacity available through its revolving credit facilities, while its leverage ratio stood at 2.4×. Bending Spoons continued its acquisition activity during the quarter, completing the purchase of Tractive in May. The pet tracking and health monitoring business was acquired at an enterprise value of $759 million. The company also entered into a definitive agreement to acquire Airtable for $1.29 billion in an all-cash transaction, potentially adding another major software platform to its portfolio. These transactions follow a broader acquisition strategy that has already brought businesses including AOL, Eventbrite, Harvest, MileIQ and Vimeo under Bending Spoons’ ownership. While the strategy has driven rapid reported revenue growth, the 3% organic growth rate means investors are likely to continue assessing how effectively the company can expand its acquired businesses independently of further transactions. Bending Spoons delivered a substantial earnings beat, 126% year-over-year revenue growth and strong operating income expansion during the second quarter. However, the midpoint of its full-year revenue guidance remains below analyst expectations, helping explain the 1.5% premarket decline. With a growing portfolio, substantial IPO proceeds and further acquisitions underway, attention will now turn to integration and organic growth as investors assess whether Bending Spoons can sustain its rapid expansion while maintaining strong profitability. Bending Spoons stock price

MILAN, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Bending Spoons S.p.A. (Nasdaq: BSP) today announced its results for Q2 2026. Highlights from Q2 2026: Revenue was $704 million, up 126% from Q2 2025. Operating income was $240 million, up 139% from Q2 2025. Adjusted Operating Income1 was $381 million, up 150% from Q2 2025. Diluted earnings per share was $0.28, up 163% from Q2 2025. Adjusted Earnings per Share2 was $0.46, up 167% from Q2 2025. In May 2026, we completed the acquisition of Tractive for an enterprise value of $759 million. Tractive provides pet tracking and health monitoring services, and monetizes primarily via subscriptions. At the end of the quarter, leverage ratio3 was 2.4×. Cash and cash equivalents totaled $793 million, and we had $1.28 billion of available borrowing capacity under our revolving credit facilities, net of amounts drawn. After the end of Q2 2026, the following took place: We completed an initial public offering on the Nasdaq Global Select Market under the symbol “BSP,” raising aggregate net proceeds of $1.10 billion, after deducting underwriting discounts and commissions. We entered into new or expanded euro-denominated term loan A facilities totaling €590 million, and increased our euro-denominated revolving credit facilities by €30 million. We entered into a definitive agreement to acquire Airtable in an all-cash transaction at an enterprise value of $1.29 billion. Operating results (unaudited) The following table presents our operating results for the periods shown. ______________________1 See Non-GAAP financial measures—Adjusted Operating Income and Adjusted Operating Income Margin below for the definition of Adjusted Operating Income and a reconciliation of operating income to Adjusted Operating Income. 2 See Non-GAAP financial measures—Adjusted Earnings per Share below for the definition of Adjusted Earnings per Share and a reconciliation of diluted earnings per share to Adjusted Earnings per Share. 3 “Leverage ratio” as of a reporting date is defined as net debt as of such date divided by adjusted EBITDA for the twelve months ending on such date. “Net debt” is defined as financial debt and the capitalized value of finance lease obligations, less available cash. “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, and amortization, determined on a pro forma basis to include the results of the acquired businesses as if they had been owned throughout the entire twelve-month period, adjusted to exclude transaction-related expense, reorganization-related expense, and equity compensation expense, among other items. In addition, adjusted EBITDA reflects achieved cost savings from reorganizations as if such savings had been achieved at the beginning of the twelve-month period, as well as certain expected cost savings. These calculations are based on assumptions and are subject to risks and uncertainties. The disclaimer included in Forward-looking statements below applies. Revenue grew by $393 million, or 126%, from Q2 2025 to Q2 2026, primarily driven by acquisitions. The businesses acquired from the start of Q2 2025 until the end of Q2 2026 are AOL, Eventbrite, Harvest, MileIQ, Tractive, and Vimeo. Organic revenue growth4 was 3% in Q2 2026, with Tractive and WeTransfer making the largest contributions. Growth in these businesses was partly offset by a decline in Remini and Splice revenue. Gross profit grew by $259 million, or 127%, from Q2 2025 to Q2 2026, as cost of revenue increased by $134 million, or 126%. The increase in cost of revenue was primarily driven by the following: An increase in amortization of acquired intangible assets, reflecting continued acquisition activity An increase in IT infrastructure expense, reflecting an increase in cloud infrastructure utilization primarily driven by acquisitions An increase in distribution and payment processing expense, reflecting the increase in revenue In Q2 2026, cost of revenue included the following items, which were adjusted in the calculation of our non-GAAP financial measures: $82 million of amortization of acquired intangible assets $2 million of transaction-related expense $1 million of reorganization-related expense Operating income grew by $140 million, or 139%, from Q2 2025 to Q2 2026, resulting from the $259 million increase in gross profit noted above, partially offset by a $120 million increase in operating expenses. The increase in operating expenses primarily reflects personnel costs associated with the ongoing operation of newly acquired businesses, and separation packages offered to team members in connection with the reorganizations of AOL, Eventbrite, Tractive, and Vimeo. In Q2 2026, operating expenses included the following items, which were adjusted in the calculation of our non-GAAP financial measures: $50 million of reorganization-related expense $5 million of transaction-related expense $1 million of other items not considered indicative of core or ongoing operating performance Net income grew by $112 million, or 171%, resulting from the $140 million increase in operating income noted above, and the net impact of the following: A $73 million increase in interest expense, primarily driven by higher borrowings associated with acquisition financing A $22 million decrease in other expense (income), primarily driven by favorable changes in currency exchange rates A $23 million increase in income tax benefit, primarily driven by the remeasurement of equity compensation obligations at our subsidiaries In Q2 2026, other expense (income) included the following items, which were adjusted in the calculation of our non-GAAP financial measures: $20 million of foreign exchange gains on assets and liabilities denominated in a non-functional currency $5 million of losses from changes in the fair value of interest rate swaps Diluted earnings per share increased by $0.17, or 163%, resulting from the 171% increase in net income, partially offset by a 3% increase in diluted weighted-average shares outstanding. ______________________4 “Organic revenue growth” for a given period is defined as our revenue in that period divided by the revenue (including estimated pre-acquisition revenue, where applicable) generated by the same businesses in the corresponding period of the prior calendar year, minus 1. If a business contributed to our revenue for only part of the current period, both the numerator and the denominator reflect only the corresponding portion of the respective periods. For example, when calculating organic revenue growth for 2025, a business acquired on November 1, 2025, contributes to the numerator its revenue for the period from November 1 to December 31, 2025, and to the denominator its estimated revenue for the period from November 1 to December 31, 2024. The following table presents our adjusted measures for the periods shown. ______________________1 We have revised our definitions of Adjusted Net Income, Adjusted Net Income Margin, and Adjusted Earnings per Share, now also adjusting for foreign exchange gains and losses on assets and liabilities denominated in a non-functional currency, and gains and losses from changes in the fair value of interest rate swaps. For additional information regarding these changes, see Non-GAAP financial measures below. For additional information regarding these non-GAAP financial measures, see Non-GAAP financial measures below. Financial condition (unaudited) At the end of Q2 2026, net debt totaled $4.09 billion, and leverage ratio was 2.4×. Our net debt position resulted from long-term debt of $4.88 billion, partially offset by cash and cash equivalents of $793 million. Our revolving credit facilities provided borrowing capacity of up to $1.58 billion, of which $1.28 billion was undrawn at quarter end. As of the end of Q2 2026, $794 million of debt was scheduled to mature within the following twelve months. During the quarter, we entered into new euro-denominated term loan facilities with an aggregate principal amount of €255 million, and obtained a €460 million increase of our existing euro-denominated revolving credit facility. We drew a total of $581 million under a combination of these new term loan facilities, and existing term loan and revolving credit facilities. Of that amount, $296 million was drawn under the revolving credit facilities on May 6, 2026, remained outstanding as of quarter end, and has since been repaid. After the end of Q2 2026, we entered into additional euro-denominated term loan facilities totaling €590 million, and obtained increases of euro-denominated revolving credit facilities for a total amount of €30 million. Moreover, we completed an initial public offering on the Nasdaq Global Select Market under the symbol “BSP,” raising aggregate net proceeds of $1.10 billion, after deducting underwriting discounts and commissions. Other highlights In May 2026, we completed the acquisition of Tractive for an enterprise value of $759 million, including a deferred consideration of $115 million payable one year after closing. Tractive provides pet tracking and health monitoring services, and monetizes primarily via subscriptions. During Q2 2026, we introduced Alt-Spooner, a personal AI agent that operates with the same access as the person it works for, and draws on their own history and connected accounts. It runs on open-weight models we host, and can be switched at will to any model (including closed-weight ones), or several at once. Rolled out to every Spooner in early July, Alt-Spooner processed over 100 billion tokens in the first three weeks of general availability. Leveraging technology in our recruiting process remains a focus area. During Q2 2026, we introduced the use of interactive tasks with AI agents in the candidate selection process, scored asynchronously by recruiters. After conducting significant testing, we believe these tasks have demonstrated predictive power. We continued to broaden our presence beyond our Milan headquarters, opening offices in Madrid and Warsaw, and expanding our London-based Spooner team. Of the Spooners hired during Q2 2026, over 50% were based outside of Italy. Highlights of our progress with recent acquisitions: AOL. We migrated AOL’s news portal to a new, self-developed content management system, rebuilt the advertising technology stack, completed the re-authoring of the webmail frontend, started migrating the user base to this new email platform, and undertook extensive testing of monetization optimizations. Eventbrite. We completed the reorganization, shipped nearly 40 product improvements, increased first-party advertising revenue by approximately 20%, reduced paid user acquisition spend by 30% by curtailing unprofitable expenditure, and started migrating the backend infrastructure to a more modern environment. Vimeo. We introduced over 30 product improvements, reduced system stability incidents by approximately 90% versus pre-acquisition levels, accelerated video upload and search functionality by at least 30%, materially lowered customer support resolution times, and experimented with a new self-serve subscription structure that has so far yielded positive results. Outlook For Q3 2026, we forecast the following results: Revenue of $733 million to $745 million, implying year-over-year growth of 113% at the midpoint Adjusted Operating Income of $380 million to $400 million, implying year-over-year growth of 111% at the midpoint5 For the full year 2026, we forecast the following results: Revenue of $2.78 billion to $2.82 billion, implying year-over-year growth of 114% at the midpoint of the range Adjusted Operating Income of $1.46 billion to $1.51 billion, implying year-over-year growth of 142% at the midpoint of the range5 This outlook is based solely on the portfolio of businesses owned as of August 12, 2026, and does not include any contribution from additional acquisitions. Webcast and conference call We will host a conference call to discuss our results at 8:00 a.m. ET (2:00 p.m. CET) today. The live webcast of the call, along with this press release, will be available on our investor relations website at investors.bendingspoons.com. Following the call, a replay will be available on the same website. We publish important information on our investor relations website, and may use it from time to time as a means of disclosing information to the market, potentially including material non-public information. Accordingly, investors should monitor our investor relations website, in addition to our press releases, filings with the U.S. Securities and Exchange Commission, public conference calls, and webcasts. ______________________5 We have not provided forecasts of operating income or reconciliations of forecasted operating income to forecasted Adjusted Operating Income because, without unreasonable effort, we are unable to predict operating income and the amounts of the reconciling items with sufficient confidence. Forward-looking statements This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements. Forward-looking statements include statements about our objectives and outlook. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “anticipate,” “aim,” “intend,” “plan,” “believe,” “estimate,” “potential,” “continue,” “foresee,” “forecast,” “in our view,” “probably,” “likely,” or other similar expressions. Forward-looking statements reflect our current expectations and are based on assumptions and information available as of the date of this press release. Actual results and events may differ materially from those expressed or implied by such forward-looking statements due to a variety of risks and uncertainties, some of which are beyond our control. These include the risks and uncertainties described in the sections Risk factors and Management’s discussion and analysis of financial condition and results of operations in our registration statement on Form F-1, which is on file with the U.S. Securities and Exchange Commission and is available on our investor relations website at investors.bendingspoons.com and on the U.S. Securities and Exchange Commission website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable law, we assume no obligation to update any forward-looking statements. About Bending Spoons Bending Spoons is built on the conviction that operational excellence enables efficient growth through acquisitions. We acquire digital businesses, implement deep transformations and ongoing optimizations to sustainably expand earnings, and reinvest in additional acquisitions, thereby continuing the compounding cycle. We have executed this strategy for more than a decade and, to date, have never sold a material business. We strive to envision the most successful version of an acquired business, and work to close the gap between its current state and that vision as quickly and completely as possible. The transformation is typically deep and entails reorganizing teams, overhauling technology, redesigning user interfaces, accelerating product development, and enhancing marketing and monetization. AI is often both a central component of our vision for the acquired business and a key tool in implementing the transformation. Our performance is driven by our Platform—comprising our people, proprietary technologies, and proprietary data—and reflects our intense focus on achieving exceptional talent density, cultural strength, and technical capabilities. Bending Spoons' main businesses include AOL, Brightcove, Eventbrite, Evernote, komoot, Remini, StreamYard, Tractive, Vimeo, and WeTransfer. Contacts Investors James Cordwell [email protected] Press Christy Keenan [email protected] ______________________1 Amounts have been retrospectively adjusted to account for the stock split that was approved on April 23, 2026, and became effective on April 28, 2026, and the reverse stock split that was approved on May 28, 2026, and became effective on May 29, 2026. 2 The effect of dilution is excluded from diluted earnings (loss) per share attributable to Bending Spoons shareholders when a net loss is reported for the period. Non-GAAP financial measures To inform our strategy and plans, we regularly monitor certain non-GAAP financial measures. These are presented for supplemental informational purposes only, are not a substitute for GAAP financial information, and may differ from similarly titled or defined measures used by other companies. The definitions of our non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, are provided in their respective sections below. Investors are encouraged to review these definitions and reconciliations. Adjusted Operating Income and Adjusted Operating Income Margin Adjusted Operating Income for a given period is defined as operating income for that period, adjusted to exclude amortization and impairment of acquired intangible assets, transaction-related expense, reorganization-related expense, and other items that management does not consider indicative of core or ongoing operating performance. Adjusted Operating Income Margin for a given period is defined as Adjusted Operating Income divided by revenue for that period. When considered together with comprehensive GAAP financial information, Adjusted Operating Income and Adjusted Operating Income Margin may help evaluate our operating efficiency and improve period-to-period comparability, particularly during periods in which acquisition and transformation activities were especially intensive. The following table presents a reconciliation of operating income to Adjusted Operating Income for the periods shown. Adjusted Net Income and Adjusted Net Income Margin Adjusted Net Income for a given period is defined as net income for that period, adjusted to exclude amortization and impairment of acquired intangible assets, transaction-related expense, reorganization-related expense, foreign exchange gains and losses on assets and liabilities denominated in a non-functional currency, gains and losses from changes in the fair value of interest rate swaps, other items that management does not consider indicative of core or ongoing operating performance, and the income tax effect of the foregoing adjustments. Adjusted Net Income Margin for a given period is defined as Adjusted Net Income divided by revenue for that period. When considered together with comprehensive GAAP financial information, Adjusted Net Income and Adjusted Net Income Margin may help evaluate our profitability and improve period-to-period comparability, particularly during periods in which acquisition and transformation activities were especially intensive. The following table presents a reconciliation of net income to Adjusted Net Income for the periods shown. We have revised our definition of Adjusted Net Income and Adjusted Net Income Margin so that, for a given period, we also adjust net income to exclude foreign exchange gains and losses on assets and liabilities denominated in a non-functional currency, and gains and losses from changes in the fair value of interest rate swaps. These items are recorded in other expense (income) in our GAAP financial statements. Management believes that these adjustments improve period-to-period comparability. The following table presents a reconciliation of the original and revised definitions of Adjusted Net Income for the disclosed quarterly periods of Q1 2025, Q2 2025, Q1 2026, and Q2 2026, and the disclosed annual periods of 2023, 2024, and 2025. Adjusted Earnings per Share Adjusted Earnings per Share for a given period is defined as diluted earnings per share for that period, adjusted to exclude, net of the portion attributable to non-controlling interests, the per-share impact of amortization and impairment of acquired intangible assets, transaction-related expense, reorganization-related expense, foreign exchange gains and losses on assets and liabilities denominated in a non-functional currency, gains and losses from changes in the fair value of interest rate swaps, other items that management does not consider indicative of core or ongoing operating performance, and the income tax effect of the foregoing adjustments. The effect of dilution is excluded from diluted earnings per share when a net loss is reported for the period, while Adjusted Earnings per Share reflects the effect of such dilution. When considered together with comprehensive GAAP financial information, Adjusted Earnings per Share may help evaluate Bending Spoons’ profitability and compounding efficiency, as well as improve period-to-period comparability, particularly during periods in which acquisition and transformation activities were especially intensive. The following table presents a reconciliation of diluted earnings per share to Adjusted Earnings per Share for the periods shown. The per-share figures reflect the stock split approved on April 23, 2026, which became effective on April 28, 2026, and the reverse stock split approved on May 28, 2026, which became effective on May 29, 2026. We have revised our definition of Adjusted Earnings per Share so that, for a given period, we also adjust diluted earnings per share to exclude foreign exchange gains and losses on assets and liabilities denominated in a non-functional currency, and gains and losses from changes in the fair value of interest rate swaps. These items are recorded in other expense (income) in our GAAP financial statements. Management believes that these adjustments improve period-to-period comparability. The following table presents a reconciliation of the original and revised definitions of Adjusted Earnings per Share for the disclosed quarterly periods of Q1 2025, Q2 2025, Q1 2026, and Q2 2026, and the disclosed annual periods of 2023, 2024, and 2025.