MA | Mastercard | earnings call 2026-04-30
Verbatim transcript (source: whisper-large-v3)

 Good morning. My name is Julianne and I will be your conference operator today. At this time, I would like to welcome everyone to the MasterCard Incorporated Q1 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Please only press star one once to queue up for a question as pressing star one multiple times may affect your position in the queue. If you would like to withdraw your question, press star one. Thank you. Mr. Devencore, Head of Investor Relations, you may begin your conference. Thank you, Julianne. Good morning, everyone, and thank you for joining us for our first quarter 2026 Earnings Call. With me today are Michael Mevock, our Chief Executive Officer, and Sachin Mehra, our Chief Financial Officer. Following comments from Michael and Sachin, the operator will announce your opportunity to get into the queue for the Q&A session. It is only then that the queue will be opened. Please be seated. Thank you. Thank you, Devenтор, for joining Earnings Call. Thank you. Thank you, Deven. Good morning, everyone, and thank you for joining us. Thank you, Devin. Thank you for joining us. We are a quantity actions team from Mach нал的控制机枭機枪 mandate区。 We're made of Qu athletics and going to be physically producción Blake Chef Marla Glass' Q&A experience. Thank you. Thank you, Deven. Thank you, Deven. And look at the video. Please pay attention to this window that's out. are a quarter into the new year. Much has happened, but so much opportunity lies ahead. You've seen the release this morning, so let's get into the highlights. Building on 2025 momentum, 26 is off to an excellent start. Net revenue growth was up 12% and net income up 15% in the first quarter on a year-over-year non-GAAP currency neutral basis. Looking at the macro picture, the economic foundation remains generally supportive with healthy underlying consumer and business spending. However, the backdrop remains uncertain, driven by geopolitical tensions, which has put some pressure on cross-border travel. Overall, labor markets continue to be balanced, and wages are still outpacing inflation in most major markets. As we've done consistently, we are monitoring the situation in the Middle East and the global economy, and we will adjust as needed. Quarter-run results were supported by the healthy spending I noted, and, of course, our team's strong execution. But above all, this is a very important moment for the economy, and we will adjust as needed. This quarter continues to reflect the strength and resilience of our network. We have built and diversified our network over decades, navigating and innovating through every cycle. It's a foundation spanning four pillars. One, unparalleled global reach. We have hundreds of millions of acceptance locations and digital access points across 150 currencies. The last five years alone, we have grown acceptance locations nearly 70%. MasterCard powers payments when and where it's needed. We have a lot of money in the bank, and we have a lot of money in the bank. And that's what makes thebruj цин go up. It's also strongly worth mentioning that the USAID fund grants all 50 of us with running loans, savings, and payments in only $500,000 in 110 dollars from the supercharger first. Here's an example of how we see broken nakledays. First, we have an entireいい pool of assets. During the first Turkey-era inflation, there was nearly two Shanus and San Bucs in the last commercial period. But collected costs Ins pivoting rates have fallen, and people are seemingly Uranians and can be resolved and people have zero liability for unauthorized transactions. That trust allows global acceptance at scale. Three, best-in-class technology. We invest to make payments faster and simpler. Core card network upgrades are already delivering faster transaction flow and near real-time settlement. These capabilities are live in South Africa today, already driving new wins and incremental switching. And we look to extend into other markets over time. And remember, our payments infrastructure goes well beyond cards, including account-to-account, and we're now further embedding digital assets. Fourth, our differentiated value-added services and solutions. Powered by data from our networks and AI, we have curated unique services that make the network secure, drive more payments, and help our customers make smarter decisions. And many of these services are tied to and brought to market through the network. That's our virtuous cycle, strengthening the franchise and improving our services. And we're now further embedding digital assets. And for less than 40 years, Industry tea paint has been our duż continues to evolve. Our payment solutions are ready, and we are engaged, shaping what comes next with key players, including Google, Microsoft, OpenAI, and other partners across the ecosystem. We're deepening our partnership with OpenAI, reinforcing their use of MasterCard AgentPay, working to enable agent-to-agent payments, and collaborating to embed our services across their solutions while using their tools as an enterprise customer. I'm also happy to share that nearly all MasterCards around the world are now enabled for MasterCard AgentPay. And we continue to develop our agent-related services. In quarter one, we launched Verifiable Intent, a tamper-resistant record of what a user authorizes when an AI agent acts on their behalf. In fact, the FIDO Alliance is now using it as a foundation for setting security standards in this space. And earlier this month, we announced a partnership with CrossMint, a leading blockchain infrastructure platform. CrossMint will integrate MasterCard AgentPay and Verifiable Intent to enable secure MasterCard transactions for AI agents in its ecosystem. This will initially launch on the OpenClaw platform with plans to expand. That is a lot of moving pieces, but as agent-driven commerce gains traction, our network is there with tokenized credentials, powering the payments, bringing the security and trust and reach that everyone is looking for. It's very clear there's even more incremental opportunity in transactions, and we're going to be able to do that. And in service, we want towortpara.com and access our echo service to our network. One of the unique things for us is that we can caption documents and handleATE синapses of the IoT reamped. In addition, Kolbe released traceability for ride-al dzięki and Óttely mountediliyor context to allow users to paste emails from自kitlisted to打 XXXopin or by Boston Exchange. On very same date, we stopped interweaving with ASést, who are helping us baker in business to will us exchange in bay courageful business. Дoret, we allow our API to callen expanding its MasterCard crypto card program into Europe. And remember, we also enable purchases of digital assets using MasterCard, and we allow stablecoin settlement, and we integrated stablecoins into MasterCard Move. But we also see a broader need to connect stablecoin rails to fiat rails. As digital assets scale, complexity grows. The need for interoperable, reliable, and trusted infrastructure grows. That is why we are excited about our planned acquisition of BVNK. We do not see a change in how consumers pay. Cards continue to deliver a seamless experience, but given the speed, 24-7 availability, and programmability, we see clear potential for stablecoin technology, especially when paired with our network, in use cases like payouts, remittances, me-to-me, and cross-border B2B payments. BVNK has leading technology that serves as an important enabler to stabilize and support the B2B market. BVNK is a company that can send, receive, convert, and hold stablecoins. They also directly address the interoperability challenge in digital assets. They bring together liquidity providers, stablecoin issuers, market makers, and more. BVNK also holds important hard-to-get licenses and offers critical compliance and regulatory tooling. So when you bring together the strength of our network and you add continuous innovation, including most recently in agentic commerce and digital assets, you see continued leadership in payments. And that fuels the virtual cycle across our three strategic pillars, consumer payments, commercial flows, and value-add services and solutions. Let's take them one by one. Turning to the first pillar, consumer payments. I'll start with two exciting portfolio wins that reinforce the enduring value of MasterCard across the globe. One with CIV in Egypt. Our partnership will expand meaningfully with new markets and services. This includes the conversion of an affluent portfolio and the expected issuance over 5 million new MasterCards over the term of the deal. The second is a renewal and expansion of our partnership with Westpac, one of the largest banks in Australia, putting MasterCards in the hands of more Westpac customers than ever before. We also continue to see strong momentum in the affluent space as issuers look to differentiate and deepen relationships with high-spend customers. Since launching World Legend last year, US World Legend cards have demonstrated higher overall spend and more than three times higher cross-border spend on an average monthly basis compared to the US World Elite portfolio. Two growing value propositions that ring true to the segments they were designed for. Still early days in bringing World Legend cards to market, but very encouraging. Our affluent value proposition, including the new globally connected MasterCard collection, is resonating around the globe. In North America, our new World Legend has been launched by Rogers Bank, with Safran National Bank to launch in the coming months. And MasterCard will now be the network of choice on the new United Airlines Canada co-brand program. In Latin America, Bancolombia and PTG in Brazil are also launching new World Legend portfolios. And we are excited to partner with Aeromexico in bringing their co-brand to MasterCard. And in Asia, HSBC Hong Kong is launching a set of affluent products, including World Legend. And in Indonesia, Bank Mandiri is launching a new private banking card in the super-affluent segment. These card wins reinforce the importance of offering payment choice. We continue to scale MasterCard One credential, a single MasterCard credential linked to multiple funding sources such as credit, debit and installments. We're launching with SoFi, its SoFi smart card. And through partnerships with Fiserv and Blossom, MasterCard One credential will be more than just a credit card. One credential will be more easily accessible to community banks and credit unions. Now turning to the second pillar, commercial and new payment flows. We continue to deliver value by building on our strengths. In the U.S. alone, small business fuel nearly half of GDP. We're proud to say that the U.S. Amazon small business co-brand card issued by U.S. Bank will move to MasterCard. That is very exciting. These partners saw value in MasterCard's differentiated SME offerings, including easy savings, analytics tools and our overall partnership approach. There's so much potential in commercial and we're doubling down in segments where we already lead. Fleet and distribution continue to be long-standing strengths for MasterCard, especially in the U.S. where we are the partner of choice for most of the industry's largest lead players. This quarter, we added multiple new U.S. partners in the segment, including Freely, which enables card-based invoice payments for wholesale food distributors. And we are extending our capabilities outside of the U.S., where our expertise in the space helps secure Ride, a European digital fleet and in-car payment system operator, converting its closed-loop free program to open-loop MasterCard. On B2B travel flows, issuers continue to select MasterCard for seamless B2B travel payments using virtual cards for their online travel agency customers. While external events might drive slower growth in the short term, we have long-term conviction in the space and continue to do so. We have a strong commitment to the U.S. market for the future. Thank you. MasterCard units are top of the chain. We continue to pursue it in globalrie economics space. This quarter, we signed Hi Note and Heisei, Reuters Ogawa and diffégem sin Beijing price. supporting SME trade, international tuition, and remittances into and out of China. He will now further penetrate U.S. insurance disbursement flows with a renewed agreement with One Inc. And recently introduced an AP, MasterCard Move will now power MasterCard Global Commerce Suites for small business. This solution helps banks support small business cross-border money movement needs by bringing together payments with collections and expense management in one solution. Turning to value-add services and solutions, demand remains high and we continue to drive strong growth. VAS is built on our data, curated into differentiated products, and delivered alongside our payment network. We combine proprietary, global, real-time transaction data with petabytes of permission data from our services and solutions. That scale and quality of our data power smarter insights, stronger fraud rules, and better outcomes for customers, especially in an AR. We are now a fully AI-driven world. In March, we announced a new foundational generative AI model leveraging capabilities from NVIDIA. Trained on our VAS dataset, it will help anticipate behaviors beyond the scope of traditional models. Spotting unusual activity, predicting where a cardholder may spend next, and signaling shifts in consumer behavior. These insights can then be embedded across our products or power new use cases. This early-stage work is very exciting. It's not just about the future. Our services are already helping customers solve real needs today, including with many solutions that are unique to us. You've seen how MasterCard has modernized dispute resolution over the years. That innovation continues to provide value and trust to our customers. Dispute resolution includes our unique network tools, powered by Ethica, that help connect issuers and merchants post-transactions. Collectively, Ethica products grew around 25% year-over-year last quarter. Checkout.com will embed Ethica Alerts into their global digital experience and enable merchants to enroll directly in pre-chargeback dispute resolutions. This is also a great example of one-to-many distribution. And for issuing customers, Ethica's consumer clarity enhances merchant details and enables receipt visibility, curbing friendly fraud. Which third-party research estimates costs issuers and merchants in the U.S. over $100 billion annually. Elsewhere? Westpac and Capitec will now leverage some of these network agnostic services, as well as subscription management capabilities from Minna. Cybersecurity is mission critical, and the stakes keep rising. As you know, we acquired Recorded Future in 2024, a leader in this space. Last year, we launched MasterCard Threat Intelligence, bringing MasterCard and Recorded Future capabilities together. In a short period of time, more than 500 customers are already engaged. Using the product, partners have taken down millions of customers. And now, more than 500 e-commerce sites have taken down malicious domains responsible for the payment cost that's impacting over 10,000 e-commerce sites. That's tangible value. In open finance, we power use cases from account opening and smarter lending to simple account-to-account payments and better cash flow visibility for small businesses. We continue to see traction across all. In healthcare, Optum Financial initially deployed our account opening verification services for HSA accounts. They are now expanding into additional account types. Webster Bank's HSA bank selected MasterCard Open Finance to support both identity verification and account linking, making onboarding increasingly seamless for its members. And that brings me to consulting and marketing services. Offerings we have been growing for many years, built around payments expertise and fueled by our unique data to solve customer problems. We're enabling highly targeted, insight-driven actions that generate measurable ROI. We're enabling highly targeted, insight-driven actions that generate measurable ROI. We're enabling highly targeted, insight-driven actions that generate measurable ROI. This is evident. Nearly three quarters of our customers from 2024 returned to use these services last year and increased their usage by more than 20% year-over-year. Nearly three quarters of our customers from 2024 returned to use these services last year and increased their usage by more than 20% year-over-year. Nearly three quarters of our customers from 2024 returned to use these services last year and increased their usage by more than 20% year-over-year. Nearly three quarters of our customers from 2024 returned to use these services again last year and increased their usage by more than 20% year-over-year. In fact, many customers embed these services within customer business agreements. In fact, many customers embed these services within customer business agreements. In fact, many customers embed these services within customer business agreements. In fact, many customers embed these services within customer business agreements. DCBA LinkedInpack armsnan political with us to boost cart penetration and usage. Combining advanced analytics and portfolio optimization with always-on marketing across both Intesa and its digital bank, EasyBank. Now, that's a lot to fit into one quarter, but all these examples reinforce how we continue to execute and deliver on a proven strategy. We are a strong global network, deeply leveraging proprietary data, extended through innovation, scaled through partnership, diversified through our products and services. Thank you for your continued trust and partnership, and with that, I'll turn it over to Sachin. Great. Thanks, Michael. Turning to page three, which shows our financial performance for the first quarter on a currency-neutral basis, excluding where applicable special items and the impact of gains and losses on our equity investments. Net revenue was up 12%, reflecting continued growth in our payment network and our value-added services and solutions. Operating expenses increased 9%, and operating income was up 13%. Net income in EPS increased 15% and 18%, respectively, driven primarily by the strong operating income growth in the quarter. EPS was $4.60, which includes a $0.10 contribution from share repurchases. During the quarter, we repurchased $4 billion worth of stock and an additional $1.7 billion through April 27, 2026. This quarter, we accelerated the pace of our share buybacks, given current valuations, and increased our share buybacks. This is a great way to increase our share buybacks, given current valuation levels and our strong conviction in our long-term growth potential. Now, turning to page four, where I'll speak to the growth rates of our key volume drivers for the first quarter on a local currency basis. Worldwide gross dollar volume, or GDV, increased by 7% year-over-year. In the U.S., GDV increased by 4%, with credit growth of 8% and debit growth of 1%. Excluding the impacts from the migration of the Capital One Debit Portfolio, our U.S. debit GDV growth would have been 7%. The migration of the debit portfolio is now basically complete. Outside of the U.S., volume increased 9%, with credit growth of 9% and debit growth of 8%. Overall, cross-border volume increased 13% globally for the quarter, reflecting continued growth in both travel and non-travel-related cross-border spending. As one would expect, the U.S. Debit Portfolio is now at a 9% growth rate. This is a great way to increase the growth of our credit growth. As one would expect, the U.S. Debit Portfolio is now at a 9% growth rate. As one would expect, starting in March, we began to see some impact on cross-border travel from the conflict in the Middle East. Turning now to page 5, switch transactions grew 9% year-over-year in Q1. Excluding the impacts from the migration of the Capital One Debit Portfolio, our switch transaction growth would have been 10%. We continue to drive contactless penetration, which in Q1 stood at 78% of all in-person switch purchase transactions. This is up 5%. This is up 5% of all in-person switch purchase transactions. In addition, card growth was 5%. Globally, there are 3.7 billion MasterCard and Maestro-branded cards issued. Turning to slide 6 for a look into our net revenue growth rates for the first quarter, discussed on a currency-neutral basis. Payment network net revenue increased 8%, primarily driven by domestic and cross-border transaction and volume growth. This also includes growth in rebates, debits, and incentives. Value-added services and solutions net revenue increased 18%, primarily driven by growth in our underlying drivers, strong demand across security solutions, digital and authentication, business and market insights, and consumer acquisition and engagement, and pricing. Now let's turn to page seven to discuss key metrics related to the payment network. Again, all growth rates are described on a currency-neutral basis unless otherwise noted. Looking quickly at each key metric, domestic assessments were up 6% while worldwide GDD grew 7%. The difference is primarily driven by mix, partially offset by pricing. Cross-border assessments increased 18%, while cross-border volumes increased 13%. The 5ppg difference is driven primarily by pricing in international markets. Transaction processing assessments were up 15%, while switch transactions grew 19%. The 6ppg difference is primarily due to favorable mix and pricing, slightly offset by lower revenue from FX volatility. Other network assessments were $277 million this quarter. Moving on to page eight, you can see that on a non-GAAP currency-neutral basis, excluding special items, total adjusted operating expenses increased 9%. The growth in operating expenses was primarily driven by increased spending to support various strategic initiatives including investing in our infrastructure, geographic expansion, and enhancing and delivering our products and services, as well as the increase in foreign exchange activity-related expenses within the quarter. Turning now to page nine, let me comment on the operating metric trends for Q1 and the first four weeks of April. As we look across Q1 and April, growth rates of our operating metrics were impacted by timing of holidays, namely Ramadan and Easter. The growth in operating metrics was also impacted by timing of the month of March and April, and the growth in operating metrics was also impacted by timing of the month of March and April. March would have seen the benefits from the timing, while February and April saw a negative impact. Looking at the Q1 operating metrics on a sequential basis, switch metrics were generally in line with Q4, and underlying spend remains stable. Of note, U.S. switched volume was flat sequentially as the strength in consumer and business spend offset the impact from the migration of Capital One's debit portfolio in the quarter. Excluding capital one, Q1 and Q2 were generally in line with Q4, and underlying spend remained stable. On a like-for-like basis, U.S. switched volume growth was over 1 ppt higher in Q1 as compared to Q4. Now on to switch transactions. Excluding the migration of Capital One debit, growth was generally in line with Q4. Moving to our cross-border metrics, our overall cross-border volume remains healthy, with growth at 13% in the first quarter. Cross-border card-not-present X travel grew at 18% and remained strong. And the sequential decline in cross-border travel was due primarily to the conflict in the Middle East and portfolio shifts. Now looking specifically at cross-border travel for the first 4 weeks of April, the sequential decline from Q1 is due to an acceleration of the impact of the conflict, the portfolio shifts, and the negative impact from the timing I just mentioned. None of these factors were particularly significant in Q1 and Q2, as the trade-off between Q1 and Q2 was reduced by 1.1%. factors relate to any fundamental change, and underlying consumer and business spend remains healthy. Turning to page 10, I wanted to share our thoughts for the remainder of the year. We delivered another solid quarter fueled by the strength of our payment network and value-added services capabilities. Despite elevated geopolitical risks, the macroeconomy has remained largely supportive with healthy underlying consumer spending, and the fundamentals of our business remain strong. With that said, we are operating in a period of heightened uncertainty, magnified by the ongoing conflict in the Middle East. Since the outbreak of the conflict at the end of February, we have seen restrictions on travel and a reduction in the world's energy supply. And as I noted earlier, we are seeing impacts from that in our cross-border travel metrics. But let's take a step back. We are a global company, and we are heavily diversified across geographies, products, consumer segments, services, and so on. This diversification reduces concentration risk while enabling us to deliver consistently on solid top-line and bottom-line growth. So while the conflict in the Middle East is a headwind, our global diversified business positions us well to sustain growth, both in the short and long term. We are confident in our strategy, delivering value to our customers and partners across the globe, and innovating to power the next wave of digital payments. As we look at Q2, we are looking at a new era of digital payments. We are looking at a new era of digital payments. In Q2 and the full year, our base case assumes underlying consumer spending remains healthy outside of the impact of the conflict in the Middle East. We assume the conflict ends in Q2, and the related headwinds will be largest in Q2 and then progressively recover as we move through the second half of the year. As it relates to our expectations for the second quarter of 2026, year-over-year net revenue growth is expected to be at the low end of low double digits range on a currency neutral basis, excluding inorganic activity. This includes our current estimates for the impacts from the conflict in the Middle East, without which we would have expected Q2 growth to be generally in line with the first quarter on a currency neutral basis. We expect minimal impact from a disposition that we anticipate to close within the quarter, and a tailwind of approximately one to two PPT from foreign exchange. From an operating expense standpoint, we expect Q2 growth to be at the low end of low double digits range versus a year ago, again on a currency neutral basis, excluding inorganic activity. We anticipate a zero to one PPT benefit from the disposition, while foreign exchange is forecasted to be a headwind of approximately zero to one PPT for the quarter. On other income and expense, in Q2, we expect an expense of approximately $150 million. This excludes gains and losses on our equity investments and our net revenue growth. We expect a zero to one PPT benefit from the disposition, while foreign exchange is forecasted to be at the low end of low double digits range. On the other income and expense, in Q2, we expect a zero to one PPT benefit from the disposition, while foreign exchange is forecasted to be a headwind of approximately $150 million. This excludes gains and losses on our equity investments, which are excluded from our non-GAAP metrics. This higher sequential expense is primarily driven by the following. First, Q1 came in better than expected, aided by a few one-time items. We do not expect these to repeat in the second quarter. Second, we expect lower cash balances and higher debt levels in the second quarter. Cash balances tend to be seasonally lower in the second quarter, and as I noted earlier, we have accelerated the pace of our share repurchases. And lastly, a one-time unfavorable impact from the disposition I mentioned earlier. As it relates to our expectations for the full year of 2026, net revenue growth remains at the high end of the fiscal year, and it is expected to be a slowdown in the fiscal year. This is a significant step in the fiscal year, and we expect a full-time increase in the fiscal year. And finally, we expect a low cash balance, and a higher debt level in the fiscal year. This excludes gains and losses on our equity investments, which are excluded from our non-GAAP metrics. This excludes gains and losses on our equity investments, and it is expected to be a slowdown in the fiscal year. Second, we expect a zero to one PPT benefit from the disposition, while foreign exchange is forecasted to be at the low end of low double digits range. And lastly, a one-time unfavorable impact from the disposition I mentioned earlier. As it relates to our expectations for the full year of 2026, net revenue growth remains at the high end of the low double digits range, on a currency neutral basis, excluding inorganic activity. We anticipate minimal impact from the plan disposition, and a tailwind of approximately 1.5 PPT from foreign exchange. Thank you. From an operating expense standpoint, we expect growth to be at the low double-digits range versus a year ago on a currency-neutral basis, excluding inorganic activity. We expect a 0.5 to 1 ppt tailwind from the disposition and a headwind of 0.5 to 1 ppt from foreign exchange on a full-year basis. And finally, we expect a non-GAAP tax rate in the range of 20 to 21 percent for both Q2 and the full year. As a reminder, the Q1 tax rate was lowered primarily due to discrete tax benefits, including those related to share-based payments. And with that, I will turn the call back over to Devin. Thank you. Julianne, you may now open up for questions. Thank you. At this time, I would like to remind everyone, in order to ask a question, please press star followed by the number 1 on your telephone keypad. Please only press star 1 once to queue up for a question, as pressing star 1 multiple times may affect your position in the queue. We'll pause here. We'll pause for just a moment to compile the Q&A roster. Our first question comes from Will Nance from Goldman Sachs. Please go ahead. Your line is open. Hey, guys. Thank you for taking the question. Michael, I wanted to ask on the VAS strategy and the growth you've been putting up there. I think there's been a focus on how you differentiate yourself with the strategy. And I think historically, you know, MasterCard has been very forward-leaning on embracing new networks and things like A-to-A payments. Can you talk about the evolution of that strategy? Maybe in the context of the plan divestiture and how some of these types of activities fit into the broader strategy around VAS? Thank you. Right. Will, great question. So we've always believed in consumer choice when it comes to payments and business choice when it comes to payments. So it's clear that cards is a great answer for P2M, but it's not the answer for everything. So this set of dedicated use cases and a lot of volume out there for us to go after to apply our service. So that was originally the idea to go into a, what we called at the time, a multi-rail proposition account to account. So you know that history, acquisition of Vocalink and so forth and various other real-time payments assets around the world. And then we exported a stack to run about 12 such systems around the world right now. So that strategy still holds. There's no question about that because real-time is very much in focus. Okay. So you're saying that a lot of governments choose real-time payment systems to go and facilitate payments of all types across their respective markets. We're a known and respected partner in this space. So strategy hasn't changed. What we're really evolving is to ensure that we find more and more services that we can apply to these payments. So the franchise rules are different in that space than they are in a card space. But you know, something like cybersecurity is particularly in focus as a counter account, fraud, and fraud. And account scams are rising. Our account to account protect solution is being an excellent example of how we found a way where we can rally a market and drive value for us and for the market. So cybersecurity is in focus. Generally, this gives us a seat at a table with government in the current world where more countries are inward looking, looking for more resilient infrastructure. That puts us also in a very unique position. So strategy continues. We're... We're... We said we're not, you know, looking into grow a lot more new geographies because we're in the markets that we want to be in. United States, UK, Thailand, Philippines, large economies where this, you know, this business runs at scale and very profitably for us. And Willard, very quickly, I just want to clarify because you alluded to the disposition. The disposition I referred to in my commentary relates to Session M, which is our loyalty business, which is one of the acquisitions we had done. A few years ago. And that's the sale which was announced, I guess, a couple of months ago. So that's what I was referring to in... And I glanced over that other market rumor because we don't comment on market rumors. Thanks for taking the question. Appreciate it. Sure. Our next question comes from Sanjay Sakrani from KBW. Please go ahead. Your line is open. Thank you. Good morning. I want to talk about the assumptions on the out... For the outlook on the war ending. In 2Q. I'm just curious if you could just elaborate on the assumptions you're making on cross border. I assume that's sort of where the biggest impact is. And then, you know, so where the offsets are that are helping you sort of raise the guidance because I'm sure some other things are outperforming and offsetting it. And then just one follow on the portfolio shift point you made. Does that impact cross border for a year now going forward? I'm just curious if I can... If you could elaborate on that. Thank you. Sure. So, Sanjay, first I'll kind of, you know, kick off by saying we have taken what we believe to be our best estimate as it relates to our base case, as it relates to the conflict, you know, ending in Q2. We had to predicate this on some assumption and that's what we shared with you right here. So let's just start with that piece of it. The impact is most pronounced and assumed to be most pronounced in cross border travel. That is a correct statement on your part. Thank you. Thank you. The second point I'd make there is that the impact would be in our assumptions most pronounced in the second quarter and while there will be some impact in Q3 and Q4, we expect that there will be a gradual recovery, a progressive recovery which will take place in Q3 and Q4 based on the assumption that the conflict ends in Q2. So that's kind of two things I wanted to kind of just mention. You also asked a part 1 B question to that which was, what are the offsets? So I think what you're asking is, you know, our full year guidance. And I think that's good. I think that's a good point. Okay. Okay. So we'll move over to the next question. which, by the way, on a currency-neutral basis is basically unchanged, right? The increase you're seeing in the full-year guide is primarily being driven by a change in FX assumptions for the year. So on a currency-neutral basis, it's unchanged to what I shared, you know, a quarter ago. Anyway, notwithstanding the fact, you know, look, we started the year strong. Consumer spending is healthy. We're executing on our strategy. We had a first quarter where we outperformed our own expectations. So, you know, we're off to a good start in the year. That obviously provides a little bit of a buffer relative to three months ago versus today, notwithstanding the fact that there are other things which have moved around, such as the impact of the conflict, which is kind of offsetting, you know, that as well. So that's kind of component number one, which we've got to keep in mind. The other piece I'd mention is that, look, I mean, as you go through the year, a few things to keep in mind, I think you know this already, Sanjay, is that in Q2 of last year, we had the highest levels of FX volumes. So that creates the biggest headwind in Q2 of this year, right? We have some headwind from FX volatility in Q3, but it's less than what was there in Q2. So that's something to keep in mind. And then in Q4, we had more normalized levels of FX volatility. So the headwind kind of dissipates as you go across, you know, the end of the year. So that's kind of the second point. The last point I'd make is that from a value-added services and solutions standpoint, which represents roughly 40% of the revenues of the company, look, the business continues to perform. We delivered 18% currency. We had a pretty neutral growth in the first quarter, another solid quarter. And, you know, we're seeing strong demand for those capabilities. So that's something which, again, as I think about the rest of the year, we'll have to keep on executing. And that's kind of based in the assumptions and the guidance that I've shared with you. If I can just add one point on that. I think it's a great question, important question. What happens here with cross-border size is a general shift in spending patterns. So our customers are coming to us and say, well, what do you see? What do you see in your data? How is spending shifting? Where else is it going? Where do we meet our customers and their customers in terms of solutions that they need? This is something that we took to, you know, as science back in COVID, because at that time, you know, recovery insights were kind of a key thing. So we now have kind of like crisis insights. Within 24 hours, we had a website up for our customers in the Middle East to say, here's shifting spending patterns. Take a look at it. Let's work on it together. So this is an opportunity for us to lean in. Let's work on it together. And we're going to try to move forward. And that will be a compensating factor. And Sanjay, I know you asked the question also as part of your question. One C was the impact of portfolio shifts. Yeah. And you're right. I mean, the impact of portfolio shifts will stay with us for quarters. Again, you know, every portfolio is a different migration schedule, but that kind of factors in there. You are seeing a more pronounced impact in travel because some of the portfolios were more travel heavy. So that's something to kind of keep in mind. Our next question comes from Harshita Rawat from Bernstein. So let's go ahead. Your line is open. Hi. Good morning. I want to ask about switch transaction growth, Sachin and Michael. Historically, it used to grow kind of in the low double-digit to low teens range. More recently, the growth has decelerated a little bit to 9%. I know there's one TPT of cap one debit in there. But maybe talk about some of the other drivers within that switch transaction growth and some deceleration versus history. And then as we think about. The high end of low double-digit medium term revenue objective. Maybe talk about the growing importance of that value services in that algorithm and remind us about kind of your conviction in the sustained strong growth of that. Thank you. Sure, Harshita. So on your question on switch transactions, I think you kind of got the first part, which I shared in my prepared remarks, which is adjusted for the capital one migration. We grew it about 10%. But I think your question was a little bit beyond the fact that it's 10%. You said we were growing at higher rates previously. I think one of the bigger factors that influences switch transaction growth is the mix of our portfolio. And so I'll give you a real life example, right? So back in the days when we were operating in Russia before we suspended operations in Russia, right? We had significantly higher growth in switch transactions. And at that point in time, when we suspended operations, one of the things which I called out was that recognize that this market is a low average ticket size market. And so. The fact that we no longer do business there impacts us, which transaction growth rates because average ticket size kind of plays a part point number one. And then if you just extend that logic through to different parts of the globe, depending on where we're seeing more and less growth and what the average ticket sizes that influences what our switch transaction growth is. And the reason I say this is because mixes in geography are going to impact where our switch transaction growth is. But fundamentally, what's going on in terms of the impact? There's percent success. Of course, and that carries out among ordinary individuals, but also trains effort between real estate and convention. But let's just say there're austeetization, which means companies tend to do things based on their initialing native exports from an app. So you know, you know, you speak about twinξ with different worlds. How would you try and get that stuff to work, particularly in these times where as you were talking about HelloFish, say an app is 20 years old, and you should is likely to get a double bond, which is incredibly opportunity. You get so many companies say, well, you know, if you, if you do where you can get a io call upon where you're currently. I'm sure you're in Shanghai. I don't think it could, you might go to that strategy. Maybe it would. You can deliver value-added service and solutions, which drives incremental revenue. So really important. And just as another metric point so that you're aware, in our most recent quarter, our proportion of switch transactions is now north of 70%. So the reality is we are executing on the switch transaction strategy. We continue to remain very focused and believe that's an important area, especially in light of what we shared with you at Invest-A-Day a year and a half ago, when we talked about the sizable opportunity, which remains from a secular standpoint, in terms of switch transactions, which still remain to be, or other transactions, which still remain to be digitized. Very much a focus area for us. Yeah, so you mentioned the 70%. In 2020, it was 60%. So that's a very sizable increase. And if we just think for a moment where it's coming from, it's coming a lot from, I mentioned it earlier, a lot of countries are looking to have their own payment systems. There's many domestic schemes out there. But it turns out that digital capabilities are really hard to do, and they're really hard to scale. So that's part of our strategy, and that's how we're winning volume. It's a better proposition from a safety security perspective. Tokenization, those are all things that we can bring to those countries, and that is what the biggest driver is. So this is one of the key metrics for our company and our people to bring across the value that we bring there, and then compete against these domestic schemes. So a significant driver, and it has a lot of other digital capabilities. When we talk click-to-pay, when we talk contactless, various other things that are just really hard to do for these kind of systems. So that brings switching onto us, and that's fueling the services opportunity in turn. Thank you. Our next question comes from Adam Frisch from Evercore ISI. Please go ahead. Your line is open. Thanks, guys. Quick clarification and then a question. Getting a bunch of questions from investors. Sasha. So I'm going to ask you a question. If the word will go longer or near-term impact would be more destructive, what's the calculus on how that might impact your outlook, if at all? And then my question is on Stablecoin. And a shout out to Devin and Jordan for a terrific call explaining the rationale for the BBNK deal a few weeks ago. Do you feel like the mounting challenges with getting the Clarity Act passed in D.C. delays the timeframe for the industry in general, or is there enough motion to keep the momentum going and having BBNK's capabilities helps you shape? That's a Ioannou gang question. So, Adam, again, I think we're down on time. Yeah, absolutely. It feels a little like a jump just cut. So we're going to let Adam edible speak to us minutes because there are certain things in the room I think a lot more and others sort of have kept us moving forward on thevision. And out of the world, where I think we have to, you know, like a mantle of like stimulus, which is combating inflation and monetization as the way our world dorms, which actually from the point of view of 그래도 misschien the organization that we're in IndoorGear andży reporting this Heat Rays this Washington eight for a well for people in different perspective people want, but it's a volleyball position from one side of the ball and �ot perspectives. It probably is electrical. It's well worth watching. It should have been measure four cards even. in line with what we had in Q1. So, you know, the reality is things will move. We do understand that, you know, the conflict is something which is outside of our control. Like Michael mentioned, it's not like we're sitting on our hands. We're working with our customers to try and find opportunities where we can be helpful to them and even in this environment. And if it's useful, maybe I can just size for you, really for the impacted countries, which is, you know, let's take the GCC and Israel, right? From a cross-border volume standpoint, right, GCC and Israel represent roughly 6% of our cross-border volumes. And so, and this is both inbound and outbound. You have to take both into consideration because if you don't, I mean, we have impact from an issuing and an acquiring standpoint. So, it's important for you to just get a general size of what we're talking about here. Good. So, coming to the other, or the actual question versus the clarification. So, stablecoins, BVNK, Clarity Act, a lot going on. So, first of all, I just want to go back to what I said when I shared our excitement about the BVNK acquisition. So, fundamentally, what we see is that stablecoins and tokenized deposits, actually not just stablecoins, are here to stay. They're going to be an important part of the financial ecosystem, the financial fabric going forward. So, we've been looking at the economic future in SEB Yes, yes, but that and B ma qsh clandest إX your back we see it in the volumes tay When I talk about healthy, I know this extends in a state kind of way. But I think that, for a into stable coins to start with already. There are use cases. So we're moving forward on that, which is why the timing of BB&K was important because it feels it's this unlock moment at this time. Now, we also think that when this world is growing at a higher speed, let's assume the Clarity Act is coming through, and then there will be even more momentum on this. We're going to face a world that is a world of multiplicity. So there's going to be more coins. It's going to be more change. It's going to be more non-dollar denominated coins out there, et cetera, et cetera. So that will bring about a future where interoperability and trust and licensing and compliance needs are super critical, and that is where BB&K is a leader. And that is, in my customer conversations, everybody is asking, what are you doing? How can we work together? What do I do first? And we talk about BB&K. Well, it's not closed yet, so I should say that. But we're very excited about it because we already see the demand. Everybody is trying to figure this out regardless of Clarity Act, yes or no. Now, on the Clarity Act, it would establish a clear regulatory framework for digital assets. That would be good. Can't be sitting here and speculating when it happens, but it doesn't hold us back. We believe that BB&K puts us in a position in-house natively to drive that interoperability and trust layer in that digital assets world. Stable coins, tokenized bank deposits, etc. So, very exciting. And it truly sets us apart. Our next question comes from Tinjin Wong from JP Morgan. Please go ahead. Your line. This opens. Hey, thanks a lot. Just want to ask on the agenda side, if that's okay, and MasterCard agent Bay. Like we talked about some of the partners and some activity on the ground. But can you give us a little bit more detail on On the agenda five part? you know, volumes or any surprises with respect to actual activity or actual demand. And I'm curious if you were to maybe talk about it in the context of who's pushing the hardest across all the players in the four-party model, what are you listening to for clues on how to invest harder, et cetera? Right. So on a GenTIC, so this all kind of really got into motion in April last year, just about a year ago. This is kind of where we started to get out there with agent pay, other protocols were there. This is when Google and others, you know, Microsoft started to put out protocols that are commerce-oriented protocols. So that was a push for those players, LLM players, people getting in, seeing a tremendous opportunity for them. And then the payment world, us with agent pay, we got in and say, well, we got to facilitate those transactions. So we got to facilitate those transactions. So we got to facilitate those transactions. So we got to facilitate those transactions. So we got to facilitate those transactions. And we want to deliver everything that people are generally used to from us in a regular transaction. So that's what agent pay does, leveraging our tokenization capabilities. So we pushed equally hard. In terms of where volumes are, we're still at early stage. So that is also true. Because a few things were not quite in place yet. So the question of what goes wrong, I talked earlier about disputes. What goes wrong in an agent transaction? How do you prove that? So the significance of verifiable intent cannot be underestimated. That is a really important step. We worked on this together with Google. That is now a standard. So again, part of the urgency needs to be, we got to be in there with the trust that we bring and make sure that the standards are there. And that's what we're doing with great urgency. And that is where our urgency lies. And then we're ready to see when the volume comes. Where do we see some of the upside, new use cases, spreading baskets on the ground? And that's where we're ready to see when the volume comes. So that's the consumer side transaction opportunity. Of course, there could be more services opportunities inside tokens and the like would be such an example. So all of this is happening. And then I haven't even started to talk about agents in the B2B space. So you heard us talk about agent suite, which we started to launch, where we're going to get into the business of building agents with our customers and the B2B space, etc. So early stage on B2B earlier than on the consumer side. But I would say, yes, we're ready to see what happens. And I think that's a great question. this is the much bigger opportunity and it fits right into our focus on commercial payments. So early stage ecosystem building, covering your basis, that's what we're doing. Our next question comes from Darren Peller from Wolf Research. Please go ahead, your line is open. Hey, thanks guys. Just first a quick follow-up, Sachin. Just when you think about the way to normalize cross-border for the effects of Ramadan and Easter shifting or any other normalization, just to give us a sense of what you see as sustainable given the portfolio shift, I'm curious if you could help us quantify that. And then Michael, I want to ask about MasterCard threat intelligence more broadly. We're all hearing about instances of fraud picking up around AI on payments. Are you seeing that inflection demand really pick up pace for your value-added services and offerings around cyber and fraud? I mean, clearly that could be a nice boost sustainably for VAS. So Darren, I'll go first on your clarifying question. I'm going to actually save the cross-border travel metric and I'm going to actually speak to the growth rate for Q1 compared to the first four weeks of April. Right? Because that 8% number that you see there going down to 2% growth is driven by primarily three things. Number one, conflict. Number two, portfolio shifts. Number three, the timing of Easter, right, and Ramadan, these are the three factors, right? And those factors can come together to a certain scale or should. I can reference our results from Gujarat Dawa at Baltimore puts an今日 R loca losing 3.33% Uns doc someday once. So, And, you know, I kind of laid them out in order of significance as well, right? But don't assume that the conflict is the biggest and then the other two are insignificant. It's kind of generally, directionally, the three of them are the key contributors to what you're seeing there. I think the more important thing, honestly, Darren, out here is that by its very definition, what you're seeing, let's take each one of them, you know, individually. Conflict, out of our control, don't expect for that to stay with us over the long term. So fundamentally, nothing challenges the cross-border value prop as it stands. Number two, as it relates to the portfolio shifts, look, we're very clear in our mind in terms of what our approach on portfolio wins and losses are. We want to win the right kinds of portfolios. We already maintain that. We've always maintained that. And we will continue to be very disciplined on that. So you're going to see wins, which you've seen more of. And on occasion, you'll see things which will actually move away from us. Which is part of what's going on from a portfolio shift standpoint. And I won't spend a lot of time on timing, because timing of Ramadan and Easter is what it is, right? You know, week over week, you're going to see movements and changes on that. So that's what I was going to share with you there. And in every one of these calls, we talk about wins and losses and shifts. So if you just think about what I said earlier, Aeromexico, United Airlines Canada, four travel agency wins. So there is a lot going on in the space. We've historically been focused and continue to see it as a strength and we'll lean in on that. But not always at all prices. Good. So on the safety security piece and recorded future. And, you know, the rising stakes in a world, in an AI-powered world, that's absolutely true. We hear this everywhere. We see it everywhere. And it's not dramatic. It's not that new. It's just rising. So when we looked at recorded future and said, you know, our historic position in being a leader in fraud management and payment fraud management expanded to a multilayer strategy with risk recon, where we looked at general cybersecurity stance of smaller businesses. That was a big part of our business. So we're not just fraud any longer. We're already talking to the CISOs and companies. And then AI has been around for some time now. 2023 was really where it started to really accelerate. So when we bought recorded future in 2024, that was already with a perspective on, we got to look at broader threat vectors because companies, our customers in the, in, in our space, in the payment space, you know, for them, it's very hard to do to defend. You cannot really outspend against all threat vectors. So we needed to have reliable information that we could give them that says, well, here's where your biggest risk is. This is where you really need to invest. And that's what recorded future has brought to us. And you can imagine right now, this is a, such a differentiated activity for us. Now, in a world of geopolitical tensions, and so forth, you can also see that, you know, a lot of governments are focused on the space, uh, asymmetrical warfare, state actors, all of that is going on and recorded future puts MasterCard in a very unique position to be a trusted partner to provide, uh, those kinds of insights. Um, so when I look at the customer sets of, uh, recorded future, it includes the intelligence community, government entities, as well as private sector companies and so forth. So this has just been the, you know, perfect acquisition at the right time. And, uh, you know, when we brought together our data set on the MasterCard side was recorded future and MasterCard threat intelligence. That's a real synergy because then you have even more powerful data. So how is it going? Um, we, uh, you know, closed in December, 2024. Uh, we all got running last year and there's significant demand. So that continues. Uh, we put out a bunch of products, uh, you know, I mentioned MasterCard threat intelligence earlier, but there's others malware intelligence, autonomous threat operations, et cetera. So, so it is just the right thing at the right time. And, uh, we do expect that security solutions is going to be a continued, uh, significant growth driver for us. Um, you know, yes, exactly that. All right. All right. Thanks guys. Our next question comes from Andrew Schmidt from KeyBank. Please go ahead. Your line is open. Hi, Michael. Hi, Sachin. Thanks for taking the question. Um, I appreciate the comments, Michael on the, the being selective with deals. Uh, but if you just comment on whether the competitive intensity for deals has changed at all, or whether that's relatively stable and then Sachin, if you have any comments around how we should think about, uh, rebates and incentives trending this year or in, in subsequent years, that'd be great. Thanks so much. Right. So, um, you know, selective is a, is maybe a great word. Um, but also we want to win deals. Um, we want to win deals. Um, so that's our mindset. Uh, that is, uh, fueling transactions. That's helping us get it after the secular opportunity, drive our vast growth, the virtual cycle. So that is the mindset to start with. Um, and that has been the mindset for years. Um, so when it comes to competitive intensity around that, because others might have the same mindset, um, I think that hasn't dramatically changed. Um, I think our ability to provide value that is, has dramatically changed. So if you look at our services portfolio today and, you know, the kind of bells and whistles that we put on a MasterCard payment, that is a lot of value that we can bring and that we can have, you know, considered as we, you know, you know, engage customers on what kind of value exchange works for these deals. Um, and that's why we continue to win. So nothing dramatic. I see on that front, um, just being leaned, you know, leaning in, but you know, you'd say it's not every market where you would say, do I want to, if I have a relevant market share and I'm well positioned in the, in the market, then I might have a different consideration as if this is a new geography and I really want to grow my business. So, you know, we also make these kind of judgments as we grow our, uh, global presence. Yeah. And just, you know, um, picking up on, on Michael's comments, look, I mean, at the end of the day, we have a rich pipeline. Our, our teams are super active in terms of, you know, um, winning the right kinds of deals. And we will continue to stay focused on, on that. You know, the impact obviously will come through in terms of what you see on rebates and, and incentives. But again, we look at rebate and incentives, but we also look at overall net revenue yield for the company. And you can see the net revenue yield for the company is increasing more specifically in your question on rebate and incentives. What I'll share with you is in the second quarter, uh, we expect for, uh, rebates and incentives as a percentage of our, uh, payment network assessments to be slightly lower sequentially as compared to the first quarter. Thank you very much. Our next question comes from Matthew O'Neill from, from Bank of America. Please go ahead. Your line is open. Yeah, thanks so much for taking my questions. Um, uh, just curious if you take a step back from a high level, how, how is MasterCard think about, um, you know, a stable coin transaction versus a local, you know, currency, uh, transaction, you know, from an economic contribution standpoint, um, in a future with a lot more stable coin utilization is MasterCard, you know, kind of economically agnostic. Are there opportunities for accretion or, or the opposite? Thanks so much. Right. So, uh, let me start on that. Um, so generally when you see where, where is our most of the volumes today, um, there's a lot of on and off ramp, um, uh, opportunities. So we have these, uh, these cobrand programs and in that you basically have card economics. So that's just a straightforward. So, um, now in this space going forward, uh, where we drive interoperability layers and so forth, you can see it. We started to build out a whole set of new services and additional opportunities. Um, so we see the space driving more value for us going forward, but for now it is, it's that volume. That is the most pressing need. How do I get onto, um, you know, in stable coins, I have an off ramp at the other end of the transaction. So we got to be adult, all those spaces and invest to do that. Um, so that's how, how I see it. Um, overall, I think it is a significant, uh, you know, net new growth opportunity for us is, which is why we felt we are going to, um, deepen our, um, our capabilities through the acquisition. So we want to drive all of that value and be a center, um, the central network that facilitates that, uh, you know, value exchange over those digital assets and the economics on the acquisition, right? Once it's complete, I mean, think about the value properties coming through there, which is Michael talked about send, you know, uh, basically it was about convert and receive and store, right? There are these different attributes which come with the acquisition. The revenue model on that is basis points on volume. So you were asking as to how you generate revenue. That's kind of the mechanism and that's all an addressable market, which we don't participate in today. That's the accretive part of what Michael is alluding to. Thanks so much. Uh, it's very much in line with my understanding, but I think important that, uh, it keeps getting mentioned. I'll jump back in the queue. Our next question is from Zion. From Brian Bergen from TV Cowan. Please go ahead. Your lines open. Hey guys, morning. Thank you. No, that's funny. You'll can just dig in on the key drivers and the TPA spread uptick and any important considerations on pricing changes as you move through the balance of the year. Look at me again. I, you know, from, from a pricing standpoint, a lot of what we do is again predicated on the value we deliver in the market. And so I would use what I would tell you from a pricing standpoint, you know, all of our, uh, plan pricing is already contemplated in the guidance and I, that I've shared with you and, you know, I've kind of given you a little bit of color as to what the cadence by quarter looks like as well, um, without giving you specific numbers for Q3 and Q4. But the reality is all of that already contemplates what kind of value we plan to deliver and for which we plan to actually have pricing. So that's closer. Hey, one last question. Our last question comes from Jason Kupferberg from Wells Fargo. Please go ahead. Your line is open. Good morning guys. Thanks. Um, Michael, in your prepared remarks, you mentioned how much growth we've seen in acceptance points in recent years. And I think some of that will continue to come from geographic penetration. But can we get an update on how you guys are thinking about the most fertile new categories of acceptance over the coming years, just as you continue to grow the network? Um, and then Sachin, just can you clarify on the vast growth currency neutral that you were actually steady on an organic basis year over year? Because I think you left, uh, recorded future. Thanks. Right. So acceptance, um, you saw the growth. Um, so that is very significant and it follows a very clear plan. So we are looking at, um, going after domestic schemes. Um, we're going after a closed loop of it going after under penetrated verticals. Those are all aspects on how we're finding new volume and creating new acceptance. And this is not limited to the consumer side. This is also happening in a B2B side. Uh, one of the things I should say is under penetrated verticals. Very interesting. So, um, insurance housing, uh, our programs with built, um, just finding, you know, making sure that it's understood that cards can solve issue, you know, needs that are out there, um, in spaces that we haven't historically been in. VCN is another such example. So driving VCN acceptance, um, uh, which we continue to do. So under penetrated verticals, I think is a, is a significant, um, uh, opportunity for us. Um, and then it's the bread and butter business of just driving acceptance every day. Small business, for example. And Jason, your question on VAS growth. So in Q1, we had approximately 18% growth in our, in our VAS revenues, and that has no impact from acquisitions. In other words, there's no incremental impact coming through. If you're looking at it sequentially compared to Q4 in Q4 of last year, we had about 22% VAS growth and that had about three points of an acquisition impact. So we're not going to be able to get that much growth in there. Thank you. Thank you. Any closing comments, Michael? Yeah. So, uh, brings us to the end of the call. Um, we overran a bit today, but there was a lot to cover. We appreciate your questions, um, and your interest and your support. Um, all of this, uh, work that we just discussed today is only possible because of the work of our teams around the world. Um, the first quarter gave us some pause to really worry about the safety of our people in the Middle East, uh, in Israel and the GCC. Um, and, uh, you know, that is hopefully coming to a conclusion soon. Um, but it is that work that is so critical. So thank you very much. And we'll speak to you in a quarter. Thank you. This concludes today's conference call. You may now disconnect.