Wallbox Stock

Hello, everyone, and welcome to Wallbox's Second Quarter 2026 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Michael Wilhelm from Wallbox.

Thank you, and good morning, and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss Wallbox's Second Quarter 2026 results. This event is being broadcast over the web and can be accessed from the Investors section of our website at investors.wallbox.com. I'm joined today by Enric Asunción, Wallbox' CEO; and Isabel Trujillo, Wallbox's CFO. Earlier today, we issued our press release announcing results from the second quarter ended June 30, 2026, which can also be found on our website.

Before we begin, I'd like to remind everyone that certain statements made on today's call are forward-looking that may be subject to risks and uncertainties relating to future events and/or future financial performance of the company. Actual results could differ materially from those currently anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including annual report on Form 20-F for the fiscal year ended December 31, 2025, filed on April 9, 2026. We will be presenting unaudited financial statements in IFRS format that reflect management's best assessment of actual results. Also, please note that we use certain non-IFRS financial measures on this call and reconciliations of these measures are included in the presentation posted on the Investors section of our website.

Also, a copy of these prepared remarks can be obtained from the Investor Relations website under the Quarterly Results section, so you can more easily follow along with us today. So with that out of the way, I'll turn it over to Enric.

Thank you, Michael, and thanks, everyone, for joining us today. We will start today's call with an overview of our second quarter 2026 results, provide our perspective on order intake and backlog and spend time discussing operational improvements. Isabelle will offer a closer look at our financial results, key financial metrics and our current financial position after the completion of the refinancing, including the new capital raise in the quarter. After, I will close the conversation to highlight what we are focused on for the upcoming quarters. Q2 revenue came in below our guided range at EUR 23.9 million, down 19% compared to the previous quarter.

During the quarter, we delivered approximately 22,900 AC units and 46 DC units. Important to mention here is that this is not a demand problem as order intake for our AC and DC products was up 11% compared to the first quarter, reflecting solid sequential momentum. In fact, as order intake exceeded revenue, we have been building a backlog rather than losing business, resulting in close to EUR 12 million of total backlog.

The gap between what we book and what we invoice is the result of operational constraints related to the final stages of our restructuring process in which we have been negotiating new terms with our vendors. This limited our ability to convert that improved order intake into shipments this quarter. The positive impact of building a backlog and part of our plan is enhanced visibility related to our supply needs and the possibility for more efficient, more reliable operations. Gross margin for the quarter was approximately 38%, a low enough, but essentially in line with our guided range of 38% to 40%.

The sequential improvement of 70 basis points in gross margin was a good outcome given the softer top line and a sign that our product mix and cost discipline held up even as volumes were constrained. Variable cost and operating expenses landed at EUR 17.3 million, approximately flat compared to last quarter, but improving 29% year-over-year. The progress on the cost base reduction is flattening out as we continue to invest selectively in sales and service capacity to support the backlog build while holding the line on our broader cost base.

In addition, as mentioned in the last earnings call, we continue to see options to reduce costs by improving processes and systems, reduce complexity in our operations and centralized activities. Adjusted EBITDA loss for the second quarter of 2026 was EUR 7.8 million, outside of our guidance range and wider than the EUR 6 million loss in the first quarter, but approximately flat compared to the same period last year. This was driven by the loss of operating leverage on lower revenue, as just discussed and not by [ aberration ] in unit economics.

Gross margin held up, but with EUR 23.9 million of revenue instead of the EUR 33 million to EUR 36 million we guided to, we did not generate enough gross profit to absorb our cost base as planned. As the backlog converts into shipments in the coming quarters, we expect this operating leverage to work back in our favor. Although we did not achieve all our expectations in the second quarter, we have seen growth momentum in order intake, secure the longevity of the company with the completion of the refinancing process, including new capital and improve the operations for near-term profitability improvement.

The main driver to break through the profitability barrier is improved revenue levels, which are within reach as proven by the momentum increase investment in sales and services are starting to show results. Europe or EMEA contributed EUR 17.7 million of consolidated revenue or approximately 74% of total top line. This reflects a 22% decrease compared to last quarter, again, a reflection of the invoicing gap rather than weaker demand. Regarding AC and DC charger order intake, EMEA was a real bright spot, growing 14% sequentially. We also strengthened our commercial reach in the region this quarter. In May, we announced a partnership with -- by Leap to support tax electrification across Germany, France, the U.K., Ireland and Spain, giving fleet operators and individual driver access to Pulsar Max, Pulsar Pro and eM4 charging solutions depending on their needs. We see this kind of channel partnership as an important way to convert our growing backlog into durable recurring demand. In addition, we are also seeing our Net Promoter Score improve and our response times on spare parts get faster. We are not yet where we want to be on this, but we're making progress, and we are dedicating additional resources to our priority markets, which are Spain, France, Benelux and Germany alongside North America.

North America contributed EUR 5.6 million or approximately 23% of total revenue, reflecting a decrease of 16% compared to last quarter and approximately 50% compared to the same period last year. The slowdown can partly be attributed to the softer North American EV market, which is down 22% compared to the same period last year. Order intake of AC and DC products in the region was approximately flat versus the first quarter, essentially stable and consistent with normal seasonality.

We are increasingly reliant on a small number of large key accounts with a stable smaller base of long-tail customers. We expect a stronger contribution from large accounts in the second half of the year.

LatAm was a revenue highlight this quarter, growing 64% sequentially, although from a small base, landing at EUR 615,000 or approximately 3%. APAC sales continue to be almost negligible, similar to last quarter. While regions remains [indiscernible] at this moment, but the strong improvement in LatAm shows how effectively selected distribution partners can contribute to sales growth. AC sales, including ABL and quasar totaled EUR 15.8 million or approximately 66% of global consolidated revenue, down 25% versus last quarter. However, order intake for AC overall was EUR 22.6 million, up 6% sequentially, with AC Europe and Rest of World, the clear driver as order intake there was up 26% quarter-over-quarter, while AC North America order intake declined modestly.

As discussed, the revenue decline reflects the timing gap between that order intake and our ability to ship and invoice against it this quarter rather than a change in underlying demand. We also launched the new Pulsar Pro across the European Union this quarter, purpose built to simplify EV charging reimbursement for drivers, employers, fleets and property managers through integrated MID-certified energy metering.

Corporate vehicles account for around 60% of new car registrations across the EU, and we believe Pulsar Pro is well positioned to capture this workplace and shared charging opportunity. DC sales landed at EUR 1.6 million or approximately 7% of revenue, down 37% versus last quarter, again, largely a function of the same supply side timing constraints. The right side is the DC order, which grew 80% sequentially to EUR 3 million with DC Europe and rest of the world more than doubling versus the first quarter. Our DC customer base is also diversifying as we are seeing more orders from smaller customers and becoming less dependent on a handful of large charge point operators like we were in the past.

We also completed the first real a deployment of our Supernova powertrain architecture in Europe this quarter, installing a shared fast charging system at. The product is capable of delivering up to 400 kilowatts to a single vehicle with a shared system capacity of up to 720 kilowatts. Given the order intake trend, we are optimistic about the contribution Powertrain can make to DC growth as we move through the second half of the year. Software, services and other generated EUR 6.5 million or approximately 27% of total revenue, up 8% versus last quarter.

Electromaps continue to be a standout, growing strongly again both sequentially and year-over-year. And this category overall give us growing high-margin base of recurring revenue that is largely insulated from the hardware supply dynamics affecting AC and DC this quarter. In our addressable market, which we define as all regions except China, approximately 2.5 million EVs were sold during the second quarter, up 20% sequentially and up 30% year-over-year.

Europe, our largest market, sold approximately 1.36 million EVs in the quarter, up 18% sequentially and up 28% year-over-year. The continued strong growth in the underlying market is consistent with the 14% sequential growth we saw in our EMEA order intake this quarter. North America sold approximately 373,000 EVs, up 12% sequentially, though still down 22% year-over-year as the market continues to digest the removal of incentives and tax credits discussed on prior calls.

The sequential improvement is an encouraging signal that the market might be stabilizing. Rest of World, which includes APAC and LatAm was again the strongest growth pocket in our addressable market, up 65% sequentially and up over 150% year-over-year, though it remains a small part of our current business given our deliberate decision to prioritize resources elsewhere.

Overall, the EV transition continues to progress, and the market backdrop this quarter has been supportive. This positive market trend provides Wallbox with plenty of opportunity to reaccelerate growth as investments in sales and service and improved operations are starting to pay off. Isabelle, over to you.

Thank you, Enric. Good morning and good afternoon to everyone. Second quarter revenue was EUR 23.9 million, outside our guided range and down 19% sequentially. As Enric explained, the shortfall versus guidance was not the main driver. Order intake was up 11% versus last quarter with stronger sequential gains in AC Europe and DC Europe and Rest of World. The gap reflects operational constraints during the final stages of our restructuring as final negotiations with vendors limited how much of that order intake we could convert into shipments and invoicing within the quarter, resulting in a backlog of close to EUR 12 million. Although we rather convert orders directly into revenue, we are focused on building a backlog as it will allow us to streamline our operations, improve predictability and unlock cost efficiencies.

Gross margin for the second quarter was approximately 38%, at the lower end of, but essentially in line with our guided range of 38% to 40%. This tells us the revenue shortfall was a volume story, not a mix or pricing story. In addition, as part of our financial strategy, we are having closer control of margins by shifting our priority to high gross margin deals. Q2 labor costs and operating expenses totaled EUR 17.3 million, down approximately 29% compared to the same period last year and approximately flat sequentially, reflecting continued target investment in sales and service capacity even as we held our broader cost base flat.

We remain focused on cost control, but additional efficiencies will result from the implementation of better processes and systems. This is high priority as we work across the organization to identify opportunities to streamline processes, enhance flexibility and reduce fixed costs.

Consolidated adjusted EBITDA loss for the quarter was EUR 7.8 million versus our guided range of EUR 5 million to EUR 3 million and versus EUR 6 million loss last quarter. To be clear on the drivers, this was a function of lower operating leverage on the softer top line, not a deterioration in gross margin or in our underlying cost discipline. As our backlog converts into revenue and we can accelerate sales momentum in the coming quarters, we expect the same cost base to support a meaningfully better adjusted EBITDA outcome.

Now moving to key financial items. We continue to progress on key milestones that materially strengthen our financial position. In May, the Commercial Court of Barcelona approved our comprehensive financial restructuring plan and following the expiration of the applicable objection and appeal periods without any challenges being filed. That court approval is now final and nonappealable. Followwing the effectiveness of the renewed capital structure, total loans and borrowings landed at EUR 191.3 million, up from EUR 168.2 million last quarter. The increase is related to the reclassification of trade payables to long-term debt. Approximately EUR 13 million worth of payables was included in the restructuring, additional working capital facility provided by our banking partners and several other items related to the refinancing. In addition, the majority of our debt has now been reclassified as long term with long-term debt increasing to EUR 140.1 million from EUR 44 million and short-term debt representing working capital lines decreased to EUR 51.1 million from EUR 124.2 million, reflecting maturities that have largely been pushed out towards 2030.

Subsequent to quarter end, we completed the approximately EUR 11.8 million equity raise contemplated under the plan, which includes the previously announced EUR 5 million investment from the Generalitat de Catalunya through IFEM together with the capitalization of accrued interest on the April bridge loan. In addition, separate from the intended fundraising related to the refinancing, we secured a separate EUR 4 million investment from FOCUS on -- next Frontier, the investment vehicle of Rafael Ruiz, who joined us as a new shareholder. In addition, we received approximately EUR 10.5 million through Canada's Clean Fuel credit framework for 2025. generated by eligible EV charging activity across our connected AC charger base in Canada. In line with program requirements, these funds will be reinvested in the region to support and accelerate EV adoption, but they are also a good proof point that our connected installed base can create value well beyond the initial hardware sale.

Taken together with continued disciplined management of working capital, we believe these items support our strong liquidity position. We end the period with approximately EUR 25.1 million in cash, cash equivalents and financial investments, a significant improvement compared to the EUR 7.6 million we held at the end of the first quarter. CapEx was minimal again this quarter, essentially 0 versus EUR 0.3 million in the first quarter, consistent with our continued discipline on capital expenditure as we prioritize leveraging our existing asset base.

Inventory landed at EUR 38.8 million, a reduction of 4% to last quarter and down 32% compared to the same period last year. As discussed, we are building a backlog this quarter as the priority right now is to establish a more robust, predictable operating rhythm with our suppliers. This includes better terms, more stable shipping schedules and more resilient supply chain overall. We view this as the necessary middle step between the cost discipline of the past several quarters and the reacceleration of profitable growth.

Separately, in early July, we received confirmation that the New York Stock Exchange has accepted our plan to regain compliance with its continuous listed standards following the notice we received in February regarding average global market capitalization and total stockholders' equity. This gives us an 18-month cure period with semiannual reviews from the New York Stock Exchange to restore stockholders' equity or average market capitalization to at least $50 million over a consecutive 30 trading day period. Importantly, this does not affect our normal course of business, and our Class A shares have continued to be listed and trade on the New York Stock Exchange throughout. Overall, between the finalization of the restructuring, the new capital from FOCUS and IFEM, the carbon credit proceeds and the New York Stock Exchange acceptance of our compliance plan, Gogo's financial position and long-term stability have improved significantly since our last earnings call, even before accounting for the commercial momentum we are seeing in the business. Enric, I'll turn it back to you to provide some closing commentary.

Thank you, Isabelle. Our second quarter results do not fully reflect the positive underlying momentum we are seeing. Although revenue was lower, order intake grew 11% sequentially, outpacing our ability to supply due to final vendor negotiations related to our refinancing plan. Demand for our products remains healthy, and we continue to build our backlog. This is the initial proof point that our renewed customer focus supported by investments in our sales and service organization is starting to pay off.

In addition, we are focused on utilizing the opportunity of the backlog buildup to streamline the supply chain and improve the efficiency of our operations. We can improve our profitability by converting our growing backlog into more robust, predictable operations, better terms with our suppliers, steadier shipping and supply chain that is in line with the demand we are generating. As we enter the second half of 2026, we are operating from a position of renewed strength. With the financial restructuring finalized, our balance sheet strengthened and our listing compliance plan accepted by the MIS.

We have effectively removed the over that define our first cost. Our priority for the third quarter is clear, execution. We are now pivoting from rebuilding our foundation to converting our healthy order backlog into revenue. We have already addressed the operational bottlenecks caused by vendor negotiations. And with the new capital providing us with the necessary runway, our focus is on improving our throughput and delivering on the demand we are generating. While it will take time for this full operational efficiency to be reflected in our margins and adjusted EBITDA, the building blocks for our return to growth are now in place. With that momentum behind us, I would like to turn to our expectations for the third quarter. Revenue in the EUR 29 million to EUR 31 million range, gross margin between 38% and 40% and negative adjusted EBITDA between EUR 6.5 million and EUR 4.5 million. Thank you for your time.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Hello, everyone, and welcome to Wallbox's First Quarter 2026 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Michael Wilhelm from Wallbox. Michael, please go ahead.

Thank you, and good morning, and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss Wallbox's first quarter 2026 results. This event is being broadcast over the web and can be accessed from the Investors section of our website at investors.wallbox.com.

I am joined today by Enric Asuncion, Wallbox CEO; and Isabel Lopez Trujillo, Wallbox's CFO. Earlier today, we issued our press release announcing results from the first quarter ended March 31, 2026, which can also be found on our

website.

Before we begin, I would like to remind everyone that certain statements made on today's call are forward-looking that may be subject to risks and uncertainties relating to the future events and/or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including the annual report on Form 20-F for the fiscal year ended December 31, 2025, filed on April 9, 2026.

We will be presenting unaudited financial statements in IFRS format that reflect management's best assessment of actual results. Also, please note that we use certain non-IFRS financial measures on this call and reconciliations of these measures are included in the presentation posted on the Investors section of our website. Also, a copy of these prepared remarks can be obtained from the Investor Relations website under the Quarterly Results section, so you can more easily follow along with us today.

So with that out of the way, I'll turn it over to Enric.

Thank you, Michael, and thanks, everyone, for joining us today. We will start today's call with an overview of our first quarter 2026 results, provide our perspective on the EV market and spend time discussing our operational improvement. Isabel will offer a closer look at our financial results, key financial metrics and our current financial position, including updates on the recently signed refinancing. After, I will close the conversation to highlight what we are focused on for the upcoming quarters.

Q1 revenue was softer than expected. But overall, we had a solid first quarter as adjusted EBITDA improved sequentially due to continuous operational efficiency improvements. Total revenue landed at EUR 29.7 million, below guidance and down 12% compared to the previous quarter. The primary driver of the decline is DC sales, which are down 28% quarter-over-quarter. Although this is a disappointing result, customer feedback shows this is not product related, but rather the requirement to have clarity on Wallbox refinancing process. With the signing of the refinancing plan, we immediately secured EUR 11 million in interim financing and are now able to provide better long-term financial visibility to our customers, vendors and shareholders.

The other business activities, AC sales and software, service and others also experienced a slowdown compared to last quarter related to the refinancing, but with a less significant impact. From a geographical perspective, the North American market due to a significant decline in EV sales, APAC and South America due to the shifting resources and priorities, all have been down sequentially. In total, during the first quarter, we delivered over 30,000 AC units and 79 DC units. It is important to note that although revenue declined quarter-over-quarter, the ratio of revenue to labor cost and operating expenses improved significantly compared to the same period last year.

Gross margin was 37.3% in the first quarter, in line with the previous quarter, but landing below the 38% to 40% guided range. The main reason for the guidance miss relates to the lower-than-expected DC sales, resulting in a negative impact from the product mix. However, we have achieved another quarter with inventory improvement, which provides bill of materials cost improvement opportunities for the long term.

Labor cost and operating expenses landed at EUR 17.1 million, improving 22% quarter-over-quarter and 31% compared to the same period last year. This is the result of the continuous efficiency efforts of the last quarters. It only reflects cost improvements, but also shift in resources and investment in sales and services. With optimized cost base, we believe there is opportunity to grow the top line while continuing to work on operational improvements in processes and systems. By centralizing certain activities and reducing the operational complexity, we are leaner and more flexible in responding to the volatile EV market, both to scale up in EV markets where there are opportunities and scale down in EV markets which experienced headwinds.

Adjusted EBITDA loss for the first quarter of 2026 was EUR 6 million, missing our guided range, but improving 18% quarter-over-quarter. Compared to the same period last year, adjusted EBITDA loss improved by 23%. Softer-than-expected sales due to the refinancing process were the main reason for missing guidance this quarter. But considering this revenue level, the bottom line improvement is impressive.

We continue to execute our plan towards profitability based on, one, continuous operational efficiency improvements; two, implementations of the restructured balance sheet for long-term financial visibility; and three, reestablishing our growth by leveraging our product portfolio with more sales and service capacity. The implementation of the refinancing is almost completed. We have made solid progress on the operational efficiency improvements and expect to see the results of our investment in sales and service soon.

We have a more optimized organization with a stronger financial position and believe that operational profitability is within reach, assuming revenue improvement. For the first quarter of 2026, Europe or EMEA contributed EUR 22.6 million of consolidated revenue or 76% of total top line. This reflects an 8% decrease compared to the last quarter, which is in line with the market in the first quarter, which was down 9% in Europe after several strong quarters.

In parallel, we continue to focus on recapturing market share by improving our capacity in the sales and service teams to better support our distribution partners and our end customers. We have started to see the initial effects but require more ramp-up time before we see the full impact of revenue. North America contributed EUR 6.7 million or 23% of the total revenue, reflecting a decrease of 41% compared to the same period last year. The drop can be attributed to a softer North American EV market, which was down 27% year-over-year and limited DC sales.

However, we recorded a strong result in Canada, reflecting solid growth compared to last quarter. Looking ahead, we see opportunities to grow sales with Quasar 2, which is already commercially available and the CTEP certified Pulsar, which will be available soon for commercial applications. APAC and LatAm currently remain small region for Wallbox, consistent with the last quarter as attention and resources have been shifted to key markets.

APAC sales were almost negligible this quarter and LatAm sales landed EUR 387,000 or approximately 1%. The shifting of resources is a conscious decision and part of our [indiscernible] improvement efforts towards profitability. We continue to sell through distribution partners, allowing us to potentially accelerate growth in this market in the future.

AC sales of EUR 21.1 million, including ABL and Quasar, represented approximately 71% of our global consolidated revenue and down 8% compared to last quarter. Pulsar Max continues to be the best sold product with the Pulsar Max ABL, growing the fastest as we continue to support cross-selling.

Other products, including Quasar 2 show a smaller contribution to our results than last quarter. In general, AC sales also experienced impact from the noise around the refinancing process as distributors and commercial partners stock up or less inventory that is typical. We aim to reverse this trend now we have the refinancing in place, assuming we receive required court approval and as we ramp up our efforts to complement then the strong value proposition of our products with improved sell-out support and service coverage.

DC sales landed at EUR 2.5 million or 8% of sales and was down 28% compared to last quarter. In the case of DC, the refinancing process has had the largest impact as customers require long-term financial visibility and support from their suppliers. With the signing of the refinancing agreement at the beginning of April, Wallbox can now provide the required clarity and this resulted immediately in new orders.

We have a strong [ DC ] charging product portfolio, which provides customers with a wide range of different and scalable charging configurations, including battery storage options. With the introduction of the Supernova PowerRing, we expand the product portfolio with a charger that can go up to 400 kilowatts per outlet. Our reliable and user-centric chargers proved to be a competitive option for charge point operators, and we believe we can establish growth in this category.

Software, services and others generated EUR 6.1 million for the fourth quarter or 21% of the total revenue declined 16% quarter-over-quarter. The largest driver of the decrease was installation and service activities, which were down 19% compared to last quarter. This was compensated by a 6% quarter-over-quarter increase in software compared to the same period last year. Software, which includes the Electromaps Solutions, grew 91%.

Looking forward, we expect this category to continue contributing in Italy, especially with a strong growth in software. In our addressable market, which we refinance all regions except China, 2.1 million EVs were sold during the first quarter. While this represents a 23% increase year-over-year, the market slowed down on a sequential basis, declining 2% compared to last quarter. Turning in our key markets, which are North America and Europe, we see conservative trends. In North America, the EV market remained soft due to the removal of incentive and tax credits discussed during the last quarter. Compared to the same period last year, the sales in the region decreased with 27%, but only 3% quarter-over-quarter, potentially indicating we reached a plateau. While we anticipate the North American EV market will remain challenging through the year, we are optimistic about the opportunities presented by our Quasar 2 and, particularly in states like California where vehicle electrification is continuing to grow.

Growth persists within the European EV market, this quarter up by 27% compared to the same period last year. However, growth has slowed down sequentially and declined with 9%. The same trend where there is a year-over-year growth, but quarter-over-quarter slowdown was visible in almost every European country, except Ireland, Italy and the U.K., where growth remains strong across the board.

The momentum in the region is expected to pick up for the remainder of the year as across the region, many countries continue to incentivize electrification and new affordable EV models are becoming available. The growth in the rest of the world, which includes APAC and LatAm was the strongest of the regions considered in our addressable market.

EV sales in the region increased 79% compared to the same period last year. Considering our shifting resources to focus on our path to profitability instead of servicing all our addressable regions in the same way, we did not capture the market growth. However, we keep working with a wide range of distribution partners and key accounts. This will allow us to keep our footprint in the region and ramp up sales efforts in the future.

Overall, EV transition continues to progress, but at the same time, volatility remains. The recent geopolitical tension and subsequent price spikes in oil shows again the importance, especially in Europe for energy independence and decreased reliance on fossil fuels. This provides an opportunity for Wallbox as a provider of smart charging products and energy management solutions. The future is electric. But in the meantime, it is important as an organization to remain flexible. We have made progress in creating a more lean organizational structure, which is better suited to respond to market volatility as we move towards profitability. Isabel, over to you.

Thank you, Enric. Good morning and good afternoon to everyone. The first quarter revenue was softer than expected and landed at EUR 29.7 million, outside our guided range and down 12% sequentially. However, relative to our cost base, revenue grew both compared to last quarter and the same period last year.

The main reason we missed our guidance was an unexpected slowdown in orders for both DC and AC related to the pending refinancing. We anticipated an impact on sales as we were in the process to finalizing the refinancing agreement and customers require long-term financial clarity. Although we can't provide this clarity now as the agreement recently has been signed, the impact in Q1 was larger than initially expected as DC customers postponed their orders and AC distribution partners decreased the size of their orders.

We are confident that we can reverse this trend now and have already received additional DC and AC orders directly after the announcement of the signing. Gross margin for the first quarter was 37.3%. This was lower than anticipated and has a strong correlation with the slower DC sales. As our DC fast charger products have a higher gross margin, lower sales in this category results in a negative impact from the product mix.

Shortly, I will comment in more detail on our continuous inventory reduction, but we have a positive impact on bill of materials costs in the long run as we rotate our existing components. Q1 labor costs and operating expenses totaled EUR 17.1 million, reflecting a 31% improvement compared to the same period last year and a 22% sequential improvement. This is a positive result and is a strong proof point that we can continue to improve our operating leverage. Also, in the upcoming quarters, we plan to continue streamlining the organization with additional efficiency measures, strategic capital allocation and introduction of the right processes. If you compare the historical development of our cost base compared to our revenue development, we believe we are on the right path to find the correct equilibrium between sales and cost.

On top of that, with the shift of resources and investment in sales and service, we believe the cost base we are working towards allows for additional revenue growth, further enhancing the efficiency of the company. Consolidated adjusted EBITDA loss for the quarter was EUR 6 million, outside the guided range, but still a solid improvement considering the lower-than-expected top line result.

Compared to the same period last year, the adjusted EBITDA loss improved 23% and sequentially improved with 18%. Also top line revenue growth is important to reach profitability, the Q1 result reflects the outcome of our plan to shift the focus from only growth to focusing on profitability as our core objective. We have worked hard on the disciplined transformation of the organization to improve operating efficiency. And now our focus can return to reacceleration of growth, but with the same discipline on cost. With the investment in sales and services, I believe we can improve our sales in the upcoming quarters, following our path to profitability.

Now moving to key financial items. We have completed one of the most important milestones with the signing of the refinancing plan. The plan is submitted with the court for final approval. Additional large institutions such as HSBC and Citibank have now joined the plan, and we received EUR 11 million in interim financing. It has been great to be able to bring together all the stakeholders and align on a strong capital structure solution to provide financial stability for Wallbox and clarity for the upcoming years.

We would like to thank our banking partners and shareholders for their continued support and recognition of the strategies ahead.

Turning now to the results of the first quarter. We ended the quarter with approximately EUR 7.6 million in cash, cash equivalents and financial instruments. This is excluding the EUR 11 million of interim financing just mentioned as it was received at the beginning of Q2. Based on the operational improvements discussed, the execution of the refinancing plan and our ongoing actions to manage capital expenditures and working capital, we believe our current cash position is sufficient for our near-term needs.

This assessment assumes the timely receipt of additional liquidity in upcoming quarters, including proceeds from the refinancing plan and anticipated carbon credit payments. Loans and borrowings totaled EUR 168 million, reflecting a slight increase of 2% sequentially, consisting of EUR 44 million in long-term debt and EUR 124 million in short-term debt. The increase in the debt position is related to use of working capital lines and accrued interest liabilities related to the refinancing process.

Following the implementation of the renewed capital structure, long-term and short-term debt will be reclassified as a majority of the debt maturities will be pushed to 2030. CapEx was light again this quarter and landed at EUR 0.3 million, of which EUR 0.1 million was related to investments in property, plant and equipment.

Consistent with the last quarters, we are limiting spending on CapEx and are focused on leveraging our existing assets. A clear example is the effort to simplify our existing product portfolio and further innovate this portfolio to continue to provide the latest technology and comply with the customer requirements in an evolving industry. Compared to the same period last year, CapEx investment decreased 55% Inventory landed at EUR 40.3 million, a reduction of 15% to last quarter and down 37% compared to the same period last year. This is consistently one of the most successful financial metrics and allows us to continue to release cash from inventories supporting the overall operations.

In addition, we remain focused on our overall cash management related to working capital to better align ourselves with our suppliers and ensure our supply chain is organized efficiently. Wallbox's financial position has improved following the execution of the refinancing plan. In addition, we have made progress on operational initiatives that have contributed to a reduction in cash burn, including actions to optimize working capital and capital expenditures.

Enric, I turn it back to you to provide some closing commentary.

Thank you, Isabel. Although the refinancing process impacted top line results in the first quarter of the year, we continue to execute our plan and take steps towards our objective to achieve profitability. Adjusted EBITDA result continues to improve. We have reduced our cash burn significantly, have clarity on our new capital structure and unlock significant operational efficiencies.

If we look at the objective we need to complete as part of the plan for our new Wallbox, we achieved, one, the continuous operational efficiency improvements; and two, completed the refinancing plan. Now we need to move from disciplined transformation to reaccelerating growth again. We expect to see the results of our investment in sales and service in the coming quarters. It is crucial to improve Wallbox as a customer-centric organization and better support our commercial partners. If we can execute the third pillar of our plan well, there is significant growth opportunity as the new market continues to develop.

With that, I would like to discuss next quarter guidance. For the second quarter of 2026, we have the following expectations: revenue in the EUR 33 million to EUR 36 million range, gross margin between 38% and 40% and negative adjusted EBITDA between EUR 5 million and EUR 3 million.

Thank you for your time.

Thank you, everyone. There are no questions in queue. We will be closing the call. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

Hello, everyone, and welcome to Wallbox's Fourth Quarter and Full Year 2025 Earnings Conference Call and Webcast. [Operator Instructions]. I would now like to turn the call over to Michael Wilhelm from Wallbox. Michael, please go ahead.

Thank you, and good morning, and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss Wallbox's fourth quarter and full year 2025 results. This event is being broadcast over the web and can be accessed from the Investor section of our website at investors.wallbox.com.

I am joined today by Enric Asuncion, Wallbox's CEO; and Isabel Lopez Trujillo, Wallbox's CFO. Earlier today, we issued our press release announcing results from the fourth quarter and year ended December 31, 2025, which can also be found on our website.

Before we begin, I'd like to remind everyone that certain statements made on today's call are forward-looking, that may be subject to risks and uncertainties relating to future events and/or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including in the Annual Report on Form 20-F for the fiscal year ended December 31, 2024, filed on May 6, 2025.

We will be presenting unaudited financial statements in IFRS format that reflect management's best assessment of actual results. Also, please note that we use certain non-IFRS financial measures on this call and reconciliations of these measures are included in the presentation posted on the Investor section of our website. Also, a copy of these prepared remarks can be obtained from the investor relations website, under the Quarterly Results section, so you can more easily follow along with us today.

So with that out of the way, I'll turn it over to Enric.

Thank you, Michael, and thanks everyone for joining us today. Before we go into the highlights of the fourth quarter, I would like to reflect on achievements and challenges that defined 2025.

We have achieved many of the objectives we set out to do at the start of the year, which all have been focused on building a more resilient organization, navigating a regional volatile market backdrop. Throughout 2025, we executed with discipline across three strategic priorities: first, we focused on operational and leadership excellence. We continued the right-sizing of our organization, which directly improved our bottom line. Simultaneously, we strengthened our leadership team with senior talent across sales, operations, and finance to drive our next phase of growth.

Second, we prioritized efficient innovation. Even as we streamlined our resource base, we remained committed to our innovative DNA. This led to the introduction of the Supernova PowerRing and the commercial rollout of our leading bidirectional charger, Quasar 2. Furthermore, we expanded our U.S. footprint by achieving CTEP certification for our Supernova DC fast-charger, unlocking significant new opportunities in the American market.

Finally, we took action to optimize our capital position and improve the financial stability of the company. We freed up capital by reducing existing inventory and improving working capital management. In addition, we secured $25 million in new investments and reached an indicative commercial agreement with core banking partners and major shareholders for a renewed capital structure.

Commercially, the highlight of the year is the growth in Software, Services and Others with 18% growth compared to full year 2024. The North American market performed the strongest from a geographical growth perspective, up 16% year over year, despite a flat EV market.

Reviewing the overall results for 2025. Revenue totaled EUR 145.1 million, as we delivered approximately 144,000 units, of which 536 were DC units. While this reflects a decrease of 11% on revenue compared to last year, we significantly improved adjusted EBITDA by 51%, landing at negative EUR 29.5 million. This result, which is more than double the adjusted EBITDA improvement we had in 2024, shows our cost optimization efforts are working well as labor and OpEx are down 25% compared to last year.

In addition, we significantly improved the gross margin results, now landing at 38.3%, reflecting a 410 basis points improvement compared to last year. However, the significant efficiency gain partly explained the softer revenue results as well, as the transition to a more optimized organization did require a refocus in our business scope by filtering out non-core and shifting resources, to key markets for Wallbox. We believe we can further clarify the slowdown in revenue growth as AC and DC sales are down 13% and 32% year over year, respectively.

First, we need to improve our sales and service function, which has been impacted by the optimization efforts in the recent years. It is not the only function that has been impacted, but we realize that if we want to restore our growth path, we need to shift resources to better support our customers, distribution partners, installers and commercial partners. We have a strong product portfolio, and customers trust our products, but we need to do a better job in supporting them at the point of sale and service afterwards.

The first improvements have already been made, as previously announced, with the appointment of our new CBO, Ignasi Alastuey, the implementation of new sales leadership across the organization and the hiring of additional sales and service personnel. Now, we are implementing the reshaped sales and service strategy, which we expect to start gaining traction in the near term.

The second factor impacting revenue is the pending finalization of our capital restructuring. In the case of DC sales, customers continue to value our products and remain interested in ordering our products. However, we do face certain restrictions to participate in selected RFQs or tenders pending the completion of our refinancing and clarity on the long-term financial structure.

Although the refinancing process currently has an impact on revenue, we believe the completion of this milestone, which is expected soon, will serve as a catalyst for growth as it strengthens our commercial standing. In addition, customers have shown strong interest in the recently launched Supernova PowerRing, which we expect to start selling soon. We believe that with the implementation of the new sales and service organization and the closing of the refinancing, we can re-establish our growth trajectory.

As the EV transition advances, despite regional volatility, we expect to be in a better position to capitalize on the consistent demand for premium charging solutions across residential, commercial and public sectors. In addition, we continue to improve all other aspects of the business as we keep implementing efficiency measures, improving gross margin and developing our product portfolio. We recognize that much is still to be improved and that we did not achieve our sales expectations, but operationally we have a better business than we did in the previous years and revenue has been growing relatively to cost. For that we thank our suppliers, customers, employees, shareholders and banking partners. We appreciate your support and for sharing our vision for Wallbox.

Now we will go into the highlights of the fourth quarter, share our perspective on the market and provide additional details on the sales and service changes we are making. Afterwards, Isabel will offer a closer look at our financial results, our key financial metrics and provide details on the current status of the refinancing process; and finally, I'll return to close the conversation, share my expectations for the year ahead and provide Q1 2026 guidance.

Q4 revenue landed at EUR 33.7 million, below guidance, and down 10% compared to the same period last year. The performance of our different business activities are different if you compare sequentially or the same period in 2024. First, we have improved our AC sales compared to last quarter by 3% with a solid performance in Europe on the back of the continuous momentum in the region, but down 15% compared to the same period last year. DC sales have declined significantly sequentially, but up 29% compared to the same period in 2024.

From a geographical perspective, the North American market, due to the significant decline in EV sales, APAC and South America, due to shift in resources and priorities, all have been down quarter over quarter. In total, during the fourth quarter, we delivered over 33,000 AC units and 114 DC units in a flat sequential overall addressable market, which we define as all regions except China, in terms of EV sales.

Gross margin was 37.3% in the fourth quarter landing in the 37% to 39% guided range. This is lower than the previous quarter, but approximately in line with the average gross margin results during 2025. The main reason for the decrease is product mix and unexercised carbon credits. In contrast, we continue to improve the bill-of-material costs and have a positive price effect. Isabel will come back to this topic later in the call.

Labor costs and operating expenses landed at EUR 22.1 million, improving 3% quarter-over-quarter and 23% compared to the same period last year. Cash costs, which is defined as labor costs and OpEx excluding R&D activation, non-cash items and one-off expenses, improved 25% year over year. As highlighted in the previous earnings call, we are and have been making great progress on cost reduction while improving our revenue relative to labor costs and OpEx compared to the same period last year.

While our primary objective is restoring our growth momentum, we believe that additional efficiencies are possible by improving processes and systems as we reshape the organization for this new phase. In addition, we aim to continue to improve the revenue relative to labor costs and OpEx by investing in the sales and service organization while in parallel adjusting costs in the rest of the organization.

Adjusted EBITDA loss for the fourth quarter of 2025 was minus EUR 7.3 million, missing our guided range, and slightly up from last quarter. Compared to the same period last year, adjusted EBITDA loss narrowed by 46%. Softer than expected sales was the main reason for missing guidance this quarter. Re-establishing our growth is crucial for our path to profitability by investing in sales and service, finalizing our refinancing and leveraging our existing position as leader in the EV charging market.

For the fourth quarter of 2025, Europe contributed EUR 24.6 million of consolidated revenue, or 73% of total topline. Compared to the last quarter, this reflects a 4% growth for the region with markets such as Spain, France, UK and Portugal showing strong results. Even though the growth in the results does not match the growth in EV sales in Europe, which is up 22% quarter over quarter, it shows the positive trend that we are recapturing our position in certain European markets.

Looking forward, as the EV transition in Europe continues to have solid momentum, we believe the region will be an important driver for near-term growth, especially with our increased focus on accelerating cross-selling activities, where we aim to sell more Wallbox products in the DACH region and cross-sell the commercial EM4 product in others. The recent partnership announcement with Eneco for the scaling of commercial EV infrastructure with the EM4 charging solution in the Benelux underlines these efforts.

North America contributed EUR 8.5 million or 25% of the total revenue, reversing the strong momentum of the last quarters, as the region is down 19% compared to the same period last year. This is mainly driven by a 40% year-over-year decline in the US EV market due to the removal of incentives and tax credits. In addition, the Canadian EV market remained soft, as it has been all year. However, considering this market backdrop, the results have been solid and we even see opportunities to grow in the region looking forward.

First, we expect additional growth in the US resulting from our bi-directional chargers, Quasar 2, which showed strong growth in Q4 compared to the previous quarter. This product is less correlated to EV sales as it is considered a home energy management solution, opening a different addressable market. In addition, we are working on a CTEP certified Pulsar for commercial applications allowing us to tap into the California market at a large scale.

In Canada a new EV incentive scheme has been introduced and a new trade agreement with China is in place, which we believe will boost the EV market. On top of that, we introduced a hybrid sales structure in this country to capture growth opportunities, utilizing independent sales agents to increase our local presence. Consistent with the prior quarters, both APAC and LATAM are currently small regions for Wallbox, now contributing approximately EUR 87,000 or less than 1% and EUR 538,000 or approximately 2%, respectively, for the quarter.

The small impact on the overall results was expected as we shift our resources to our key markets, but we continue to sell through distribution partners allowing us to potentially accelerate growth in these markets in the future without the need for significant investments. AC sales of EUR 23.1 million, including ABL and Quasar, represented approximately 69% of our global consolidated revenue, up 3% compared to last quarter. We are happy to see the first signs of the improvement in our AC sales.

The Pulsar Max was the largest contributor to the overall revenue with Pulsar Max Socket, Pulsar Pro and Pulsar Pro Socket showing the strongest growth quarter over quarter. While the combined Pulsar category experienced a slower overall quarter in North America due to a significant drop in EV sales and temporary slowdown of key account orders, the Pulsar Pro sales grew well compared to the previous quarter, reflecting our efforts in improving our foothold in the commercial market in this region. In addition, the contribution of Quasar 2 is growing more than 200% compared to last quarter, and we expect this trend to continue.

Overall, Wallbox has a leading AC product portfolio with a wide range of smart charging and energy management functionalities, now with improved reliability and additional warranty for our best selling product, the Pulsar Max. The value proposition of the products is very attractive and soon being accompanied with an improved sales and service organization, we expect the AC category to perform well, which is already reflected in a stronger pipeline for the upcoming quarters.

DC sales have been disappointing in the fourth quarter, landing at EUR 3.4 million or 10% of sales. This result reflects a significant reduction quarter-over-quarter of 41%, which is an unfortunate break in the improvement trend we have seen in this category in the first 3 quarters. However, it does reflect a 29% increase compared to the same period last year. We believe this mixed trend is related to certain restrictions to participate in selected RFQs or tenders for DC fast-charging solutions due to the pending finalization of our refinancing and also to seasonality.

As touched upon earlier, customers remain interested in acquiring our DC fast-charging solutions, and Isabel will shortly comment on the refinancing process in more detail to provide additional comfort on our financial stability. On the product development side, and following up on a preview we shared last quarter, we introduced the Supernova PowerRing, the next generation DC fast-charging solution of Wallbox.

This new charging solution is driven by DC Link, our proprietary technology that connects multiple Supernova chargers into shared power systems. In a PowerRing cluster, chargers exchange unused power in real time, ensuring every kilowatt is used efficiently. Clusters of 2, 3 units can deliver a total capacity of up to 720 kilowatts or 400 kilowatts from any outlet, and capacity expands easily by adding more rings without major infrastructure upgrades.

The category Software, Services, and Others generated EUR 7.2 million for the fourth quarter or 21% of the total revenue, approximately flat compared to last quarter. The installation and service activities grew modestly compared to last quarter with 6%, but was down year-over-year. In the case of Software, growth was 112%, compared to the same period last year, continuing to show strong momentum. Overall, it continues to represent an important category, where we see opportunities to grow both Software and Services.

In our addressable market, which we define as all regions except China, 2.1 million EV were sold during Q4. While this represents an 18% increase year-over-year, growth stalled on a sequential basis, remaining flat compared to the previous quarter. The largest offender was the North American market, which showed a significant drop in EV sales due to the removal of incentives and tax credits in the US. This was foreseen as commented on in our Q3 earnings call and we expect this, including the rollback of federal emissions rules, will impact the overall US market in the near-term.

In contrast, on a state-level there are initiatives aiming to support the development of the EV market such as in California. The state is proposing a $200 million electric vehicle incentive program for first time EV buyers. As mentioned, in the US we plan to reprioritize our efforts in the states where the EV market remains solid, introduce a new commercial product for the California market, and expect growth opportunities with the Quasar 2 as a home energy management device.

In Canada, the market has been soft all year and the Q4 was no exception. However, recently there have been two important developments that can revive the EV market in this country. First, the new Electric Vehicle Affordability Program was introduced, allowing up $5,000 for battery-electric and fuel cell electric vehicles. Second, Canada has announced a preliminary trade agreement with China, which we expect will allow the introduction of affordable electric vehicles over time.

The European EV market remains strong, growing 40% compared to the same period last year, and the largest contributor in our addressable market with 1.3 million EVs sold. Germany, Spain, Italy and Portugal were amongst the countries that showed the strongest growth as their EV penetration rate is catching up with the Northern countries. While the EU's 2035 zero-emissions target did not hold up in its original form on an European Union level, individual countries have announced additional incentives to support the transition to electric vehicles.

Germany has launched a new EUR 3 billion EV incentive program, Spain announced its Auto+ Plan, with EUR 400 million allocated in 2026 for direct subsidies for the purchase of electric vehicles, and France extended its existing EV purchase incentive scheme throughout 2026.

Looking ahead we believe the momentum in Europe will remain and that we can profit from this positive trend with our new sales and service organizations. The growth in the Rest of World, which includes APAC and LATAM, slowed down in the last quarter of the year, but compared to the same period last year was up 47%. As mentioned before in this call, at the moment this region is not our core focus, but we keep working with great distribution partners and key accounts. With the strong growth in EV sales for this region, we have the ability to capture the opportunity while limiting our organizational exposure.

Now, I would like to touch upon an important topic, which is highlighting the changes we are making to improve our sales and service organization.

As mentioned at the start of the call, we are happy with the progress we made on rightsizing the organization, but now we need to re-establish our growth trajectory with this more efficient set-up. With our new Chief Business Officer, Ignasi Alastuey, we have redefined our sales strategy and how we can best address our key markets, which are North America and selected European countries. The strategy centers around 3 pillars in conjunction with improving our service set-up.

The first pillar is recovering lost customers, where we aim to rebuild trust by focusing on our recent improvements of -- and our strong commitment to, quality of our service and products, including the extended 5 -- year warranty on our most popular product, the Pulsar Max.

The second pillar is the acquisition of new customers where we, with new sales development representatives, have adopted a more active approach to transfer our value proposition, which we consider to include the charging solution, sell-out support and strong service coverage, to the customer, as we mature from a product-oriented company to a customer oriented company.

The third pillar is the consolidation and further development of existing customers by stricter NPS monitoring, quarterly business review sessions, joint events, dedicated customer success managers and introducing additional products for cross-selling opportunities. We believe with this categorization of customers, and the improved serving of each category, will allow us to re-accelerate the growth trajectory. However, this cannot be achieved without improving our service organization as well, in parallel to the improvements we made in the quality of our product and warranty offering. Therefore, we are implementing a new structure, which includes doubling the existing capacity, re-aligning the service to the needs of each stakeholder, and insourcing more technical support capabilities.

The key stakeholders in need of service are B2B customers, such as distribution partners or direct accounts, installers and the end-customers. In the case of our B2B customers, we have introduced regional level 2 support, bringing more technical support closer to the customer on a country level and working hand-in-hand with the sales team.

For the installers, we have introduced a highly technical level 2 support hub in our headquarters to provide our certified installation partners with more in depth knowledge. In the past, installers and end-user have been supported at the same point of contact, but the service requests are materially different as installers face potential urgent technical questions during an installation process. Quicker and more tailored support is crucial to help our installation partners to be successful.

In addition, we plan to make Cosmos, our product diagnosis systems with real-time telemetry, directly available for our certified installers for faster issue resolution without the need to interact with Wallbox first. In the case of the end-user, we are improving our level 1 support by introducing more automation and artificial intelligence. Most of the issues at the end-user side are generated by misinterpretation or incorrect configuration, which we aim to solve with quick multi-channel problem resolution and information distribution. Customers will be able to chat and call with AI agents from the Wallbox App, Whatsapp or just dialing our number. More specific issues will be handled by the in-house level 1 human support team.

Now, before I turn it over to Isabel to comment further on our financial details, I would like to welcome her as she rejoined Wallbox as our new CFO. With 20 years of international financial leadership experience across the technology, industrial, and services sectors, Isabel returns to play a central role in supporting Wallbox's next phase of disciplined financial execution and sustainable growth. She previously served as Wallbox's Vice President of Finance from May 2021 to January 2025, where she oversaw global finance operations and supported key initiatives, including the company's transition to a publicly listed company and its international expansion.

Isabel, over to you.

Thank you, Enric. Good morning and good afternoon to everyone. It's a pleasure and an honor to serve as the new CFO of Wallbox, and I am excited to share with you today what we are working on to reestablish our growth trajectory, refinance the organization and improve the finance function.

We are at a turning point in the history of the company and many things to be excited about looking ahead. For me, the objectives are clear, with the highest priority to close the refinancing as soon as possible, which I will comment on shortly. In addition, the objective for me and for my team is supporting the whole organization, especially the sales teams, by providing the financial base and insights to keep pushing for growth opportunities.

Lastly, there continues to be an opportunity to streamline the organization by introducing the right systems and processes, which can enhance efficiency, support cost discipline, but also allow for strategic capital allocation.

Wallbox is a great company with a strong product and well-known commercial partners. The measurable improvements in our sales and service organization, coupled with the finalization of our refinancing, provide a solid foundation for me to contribute to our return to a growth trajectory.

Now, before I go into the details of our refinancing process, I would like to provide you with some color on the final quarter of 2025. The fourth quarter revenue missed our guided range by landing at EUR 33.7 million, down 5% compared to last quarter and down 10% compared to the same period last year. The main offender was slower sales in DC fast-charging, which was down 41% quarter-over-quarter. In addition, the softer EV market in North America is starting to be reflected in our results as Q4 was the slowest quarter of the year.

On the opposite side, AC has shown a positive quarter over quarter trend, which we believe we can continue with the reinforcement of our sales teams and opportunities with commercial AC charging, especially in Europe. Gross margin for the fourth quarter was 37.3%, within our guided range. This reflects a solid result where improvements in bill-of-materials and pricing were off-set by a negative impact from product mix.

DC fast chargers are the products with the highest margin and a quarter-over-quarter decrease in DC sales impacted the group gross margin negatively. In addition, in the fourth quarter, the impact of carbon credits, as discussed in the last earnings call, have been limited due to lower sales in the Canadian market.

Overall, we are satisfied with the positive trend in BOM cost improvements and higher prices. This means that fundamentally the gross margins are improving, but now this needs to be reflected in our results as topline growth will provide us more scale.

Q4 labor costs and operating expenses totaled EUR 22.1 million, representing a 23% improvement compared to the same period last year and a small improvement compared to last quarter. Cash costs, which is defined as labor costs and OpEx excluding R&D capitalization, non-cash items and one-off expenses, was down 25% year-over-year. As communicated before, we continue to strike a balance between rightsizing the organization while investing in our sales and service organization.

In addition, we see opportunities for efficiency enhancement by implementing more automation and the correct processes, not to reduce costs, but to support growth with the same costs base. Consolidated adjusted EBITDA loss for the quarter was EUR 7.3 million, outside the guided range. This reflects an impressive 46% improvement compared to the same period last year, a testament to our significant efforts in improving operating leverage. The topline was the main reason why we did not achieve our adjusted EBITDA guidance and going forward we expect most of the improvement on the bottom line will result from revenue growth.

In December 2025, we reached a milestone commercial agreement with our core banking partners: Santander, BBVA and CaixaBank alongside our major strategic shareholders to renew our capital structure. This agreement provides a clear, sustainable financial framework and a solid financial base for the coming years, positioning Wallbox to grow in parallel with the maturing global EV market. Under this plan, we are restructuring and extending the existing debt through 3 key components: a EUR 55 million syndicated term loan maturing in 2030. This features a back-loaded amortization schedule, beginning with limited quarterly payments in Q3 2026 that scale gradually through 2030.

A EUR 63.2 million bullet instrument maturing in December 2030. This utilizes payment-in-kind interest to preserve our immediate cash position. A EUR 52.3 million syndicated working capital line. This matures in December 2028 and includes 2 successive automatic 12-month extensions to support our operational scaling. In addition to the debt maturity extension, the structure includes a proposed EUR 22.5 million liquidity injection. This consists of EUR 12.5 million in new trade commitments from participating banks and a EUR 10 million equity investment from existing and new shareholders.

Over the last few months, we have worked hard to progress this agreement and incorporate additional debt holders. While our initial December announcement covered approximately 65% of our existing debt, I am pleased to announce that we have now secured participation from additional principal lenders, bringing our total to more than 86% of the company's total existing indebtedness. We expect the remaining debt holders to follow as negotiations continue.

Furthermore, we recently achieved another milestone with a commitment from the Institut Catala de Finances to invest EUR 5 million as part of the EUR 10 million equity injection. We expect to finalize these negotiations and complete the refinancing in the coming weeks. This coordinated support from our lenders, long-term shareholders and more recently, semi-public investment funds, underscores confidence in Wallbox's products, strategy and business plan.

With this new balance sheet structure and enhanced liquidity, we believe we have the necessary runway to drive the business toward positive cash flow generation. We expect this resilient foundation, combined with our improved operational set, to put us in a strong position to capture global opportunities in EV charging and energy management.

Considering the significant progress on the refinancing process and the context of how we are improving the financial stability of the company, I would like to comment on our Q4 2025 financial metrics.

We ended the quarter with approximately EUR 9.6 million in cash, cash equivalents and financial instruments. Loans and borrowings totaled EUR 165 million, reflecting a 8% sequential decline, consisting of EUR 55 million in longterm debt and EUR 110 million in short-term debt. The decline in cash and debt position is related to the retiring of a Lombard credit facility that was not adding any value to the overall cash operations.

CapEx was nonexistent for the period, as spending remains limited, with a small negative impact due to accrual adjustment during the quarter. While CapEx investment almost decreased by 100% compared to the same period last year, this does not mean that we stopped innovation. We keep introducing new products, such as the Supernova PowerRing recently, and we keep developing the existing product portfolio.

Inventory landed at EUR 47.5 million, a reduction of 6% to last quarter, and down 32% compared to the same period last year. With this result at the end of year, we achieved our inventory reduction target, which reflects a significant release of cash from operations and opportunity for a more efficient bill of materials. In addition, we have focused significantly on our working capital management, also in relation to the overall cash management during the refinancing period.

Many of our suppliers are cooperating with us in optimizing inventory levels and payment terms to be more resilient in a volatile EV market. We appreciate their continuous support. With all these efforts, sales expansion, operational excellence, disciplined cash management, inventory reduction, limited CapEx investment and debt refinancing, we are significantly reducing our cash-burn and improving the financial situation of the company. We believe we can have a long-term capital structure in place soon, which we expect to mitigate uncertainty and provide a solid foundation for the future of Wallbox.

Enric, I will turn it back to you to provide some closing commentary.

Thank you, Isabel. While our 2025 results have been impacted by the volatility of the EV market and the tail-end of the company's transition phase, the year has also been defined by foundational milestones towards a more resilient organization. We significantly improved gross margin and operational efficiency, resulting in a fundamentally better business, on our way to profitability and cash generation.

We started 2026 heading in the right direction, where strategic investments in the sales and service organization are expected to return top line growth, leveraging our extensive product portfolio and existing market position. In addition, we are close to finalizing our new capital structure with the support of our banking partners and key shareholders. Once completed, we can shift our focus from stabilization to acceleration and I believe we have all the components in place to achieve that.

These last years have been challenging, but we believe the global EV transition remains inevitable and the market opportunity is significant. Wallbox has navigated a necessary transitional period and, upon the finalization of our refinancing, will emerge as a stronger platform than before. With a leaner organization, a high-margin product portfolio and renewed sales leadership, we believe we are well positioned to capture the significant market opportunity ahead.

With that, I would like to discuss next quarter's guidance. For the first quarter of 2026, we have the following expectation: Revenue in the EUR 33 million to EUR 36 million range. Gross Margin between 38% and 40% and a negative adjusted EBITDA between EUR 5 million and EUR 3 million. Thank you for your time.

Ladies and gentlemen, this does conclude today's call. You may disconnect your lines at this time, and have a wonderful day, and we thank you for your participation.

Hello, everyone, and welcome to Wallbox's Third Quarter 2025 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Michael Wilhelm from Wallbox. Michael, please go ahead.

Thank you, and good morning and good afternoon to everyone listening in. Thank you for joining today's webcast to discuss Wallbox's third quarter 2025 results. This event is being broadcast over the web and can be accessed from the Investors section of our website at investors.wallbox.com.

I'm joined today by Enric Asuncion, Wallbox's CEO; and Luis Boada, Wallbox's CFO. Earlier today, we issued our press release announcing results for the third quarter ended September 30, 2025, which can also be found on our website.

Before we begin, I would like to remind everyone that certain statements made on today's call are forward-looking that may be subject to risks and uncertainties relating to future events and/or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including in the annual report on Form 20-F for the fiscal year ended December 31, 2024, filed on May 6, 2025. We will be presenting unaudited financial statements in IFRS format that reflect management's best assessment of actual results. Also, please note that we use certain non-IFRS financial measures on this call and reconciliations of these measures are included in the presentation posted on the Investors section of our website. Also, a copy of these prepared remarks can be obtained from the Investor Relations website under the Quarterly Results section, so you can more easily follow along with us today.

So with that out of the way, I will turn it over to Enrique.

Thank you, Michael, and thanks, everyone, for joining us today. We will start today's call with an overview of our third quarter 2025 results, provide our perspective on the EV market and spend time discussing our strategic progress. Luis will offer a closer look at our financial results and our key financial metrics before I close the conversation to highlight what we are focused on for the remainder of the year.

Q3 revenue landed at EUR 35.5 million, below our expectations, but up 2% compared to the same period last year. The largest offender has been AC sales across all global regions. In the case of Europe, there have been operational headwinds and changing product regulation, creating delivery challenges, impacting the overall order intake. For the North American market, the strong contrast in terms of EV market growth between the U.S. and Canada creates a blurred view. The U.S. had one of the strongest quarters ever, while Canada had one of the slowest quarters since Q1 2023, in terms of EV sales. These market trends we see are reflected in our results. The contribution of APAC and South America has been limited as resources have been shifted to focus on our key markets.

DC sales has been the highlight of this quarter, reflecting the ongoing strong recovery we have seen during 2025. This category is showing strong growth compared to both last quarter, up 40%; and last year, up 34%. We have seen progress with our commercial partners and solid demand for our new generation Supernova product due to its solid performance and reliability. In total, during the third quarter, we delivered over 33,000 AC units and close to 170 DC units.

Gross margin was 39.8% in the third quarter, which exceeds the 37% to 39% guided range. This reflects a 200 basis points increase compared to last quarter, resulting from improved bill of material costs, higher prices and the impact of carbon credits. Looking ahead, there are several levers we believe can be pulled to sustain and improve the gross margin, which Luis will comment on later.

Moving to the organizational setup. Labor costs and operating expenses landed at EUR 22.9 million. This reflects a 6% improvement compared to last quarter and a 28% improvement compared to the same period last year. In the case of cash costs -- which is defined as labor cost and OpEx, excluding R&D activation, noncash items and one-off expenses -- the result is even more impressive as we achieved a 34% year-over-year reduction. I am pleased with the ongoing progress on efficiency while we are achieving consistent revenue levels, allowing us to make steps towards profitability every quarter. Going forward, we continue to balance cost reduction and investments to achieve a net positive efficiency impact. We plan to accelerate investments to reinforce our sales organization, including customer service to support revenue growth. One of the first major steps in this plan is the appointment of our new CBO, Ignasi Alastuey. Ignasi brings experience and expertise in developing scalable commercial models and driving expansion in strategic markets. In addition, we will integrate our different sales teams across product segments for a more holistic approach, centralized execution, and additional efficiency gains.

Adjusted EBITDA for the third quarter of 2025 was minus EUR 6.9 million, below our guided range, but improving 8% quarter-over-quarter. Compared to the same period last year, adjusted EBITDA loss narrowed by 68%, and this comparison is impacted by one-off items incurred in Q3 2024. The main reason for the guidance shortfall was softer-than-expected sales, as mentioned before. As a global player, we operate in a complex environment characterized by volatile market demand, driven by evolving subsidy frameworks and continually developing product regulations across countries and regions. To manage this, resiliency is crucial, and we believe we are well positioned for growth with a strong brand name, complete product portfolio, well-known commercial partners, global reach, and a more efficient organizational structure. The main area of focus to accelerate our path to profitability is restoring revenue growth. For this reason, we are reinforcing our sales function and leveraging our existing market positioning to elevate our performance across geographies and segments.

For the third quarter of 2025, Europe contributed EUR 23.6 million of consolidated revenue, or 66% of total top line. This reflects a 3% increase in revenue for the region compared to last year, but was subdued compared to the European EV market growth. We showed solid year-over-year improvements in selected countries such as Spain, France, Belgium and the U.K. However, growth for the entire region has been softer than expected. This can partly be attributed to operational headwinds and product regulations.

In the quarter, the Radio Equipment Directive came into force in the EU, which required us to switch to a new product, which has additional functionality, but comes at a higher price point. This product shifts and related market education time impacted overall order delivery. In addition, shipments were subdued due to longer lead times as we shifted one of our most popular products, the Pulsar Max, to a new technology platform for additional functionalities and improved cost. Overall, we believe the positive trend in the EV market for the European region will provide additional opportunities, which we believe we can capitalize on with our strategic position and complete product portfolio.

North America contributed EUR 11 million or 31% of the total revenue. Compared to the same period last year, this region is up 13% and 18% at constant FX. This is consistent with the trend we have seen in the last quarters as we continue to perform well in the North American market. However, breaking down the region in terms of revenue growth compared to last quarter, we saw growth in the U.S. offsetting a slowdown in Canada. This performance is even more impressive considering the Canadian EV market in the third quarter is down 49% compared to the same period last year. Both APAC and LatAm remain a small region for Wallbox, now contributing approximately EUR 160,000 or 1%, and EUR 725,000 or 2%, respectively, for the quarter. As mentioned last quarter, we believe these regions have significant future potential but are currently not prioritized in our resource distribution.

AC sales of EUR 22.4 million, including ABL and quasar, represented approximately 63% of our global consolidated revenue, down 16% compared to last quarter and down 5% year-over-year. This product category had a weak performance across all global regions, partly due to the operational headwinds in Europe and the soft EV market in Canada just discussed.

On the positive side, we continue to roll out the innovative Quasar 2 solution as commercial traction is gaining momentum and have discussions with additional OEMs to become compatible with the product. We are providing additional warranty on our Pulsar MAX at no extra cost, in addition to reinforcing the sales organization. This change reflects the products outstanding reliability and our commitment to delivering long-term value to every customer. In addition, we have launched and expect to launch new features for additional customer value and an improved competitive edge. Earlier this year, we introduced the time-of-use tariffs, allowing customers to optimize their energy consumption; and now we introduce a state-of-charge feature, for additional insights into the charging status of the car. Shortly, I will share more details about these functionalities and the expected long-term strategic impact.

DC sales in the third quarter landed at EUR 5.8 million or 16% of sales, resulting in a significantly higher contribution to our total revenue for the quarter as compared to prior periods. Year-over-year, this category is up 34% and sequentially up 40%. As discussed in the previous quarter, we saw strong progress in the recovery of the DC sales, especially due to introduction of new generation Supernovas, and high demand in North America. Many clients are satisfied with the functionalities, quality and efficient installation, resulting in recurring orders. For example, in the third quarter, we have announced additional commercial partnerships in both Europe and North America with Hera Group and SureCharge Corp., respectively. In the case of Hera Group, Wallbox agreed to provide 58 Supernova 120 kilowatts DC fast chargers to be deployed across Central and Northern Italy by the end of 2025. SureCharge Corp. is building a new public charging network in Canada, across Alberta and British Columbia. The project will establish up to 24 high-speed charging sites, with 96 charging points along key travel corridors, creating an extensive regional fast charging hub and deploy Supernova 180 kilowatts DC fast chargers.

In addition, we are working on an exciting new product, which is leveraging our existing DC technology. This new product will be announced soon, and we believe it will revolutionize the DC fast charging concept. From a technology perspective, we anticipate this new solution based on the Supernova platform will allow for higher power delivery than we ever offered before, but still have the cost efficiency, reliability, scalability, and small footprint our customers value in the existing solutions. We are very excited to launch this product as it underlines our flexibility to continue to innovate and leverage our existing future-proof platform, while in parallel rightsize our organization and limited CapEx investment.

The category, Software, Services & Others remain a consistent contributor to our business, this quarter, generating EUR 7.3 million or 21% of the total revenue. This reflects a small decrease compared to last quarter, but an 11% year-over-year increase. If we break down this category, we see the same trend as the previous quarter. Our software activities with the largest contributor being Electromaps showed the strongest growth, more than doubling the revenue compared to last year. Installation & Service remains the largest contributor, but declined slightly compared to last quarter. We see opportunities for this category to continue to perform well as the EV fleet using our software continues to grow, and we will have more and more DC fast chargers in the field.

Today, we would like to provide you with another update on the innovations we are working on to become the ultimate energy partner and enhance the value of our products for our customers. Last quarter, we talked about our bidirectional charger, Quasar 2, and its capability for enhanced energy management. Now we would like to comment on additional solutions we are bringing to the market, enabling all our chargers to provide additional energy management functionalities. As mentioned earlier in the call, at the beginning of this year, we have introduced the time of use tariff feature, which allow customers to input different daily tariffs provided by their utility. This information can then be used to schedule charging sessions within the Wallbox app and give customers the opportunity to optimize their energy costs based on the different tariffs available.

Currently, we have time of use tariffs data from more than 40,000 customers, which allow these customers to extract more value from their charger on car. The next step, which we are introducing now is a state of charge feature, which provides the customer with insights into the battery level of the car and allows the customer to optimize the energy usage based on its driving needs. Combining the Wallbox energy meter at the home, time of use tariff from the utility, the energy generation of solar panels and the state of charge of the car, the customer has all the elements to do energy management at the home, all powered by Wallbox. With this complete solution, we have more insights and control to support the customer with optimizing their energy usage, receiving tailored energy price recommendations and in the long term, enhancing their energy security with the implementation of the Quasar 2, which is enabled by this Wallbox infrastructure. In the future, we aim to leverage this infrastructure and this integrated Wallbox solution by introducing additional intelligence powered by AI for faster data processing and completely automatized smart charging.

Until now, many of these features we just discussed have been provided in collaboration with partners. But by centralizing more and more of these features within the Wallbox ecosystem, we take another step towards establishing Wallbox as a leading energy player. The EV market continued to perform well in the third quarter of this year. And in our addressable market, which we define as all regions, except China, 2.1 million EVs were sold, reflecting a 39% growth compared to the same period last year. Europe, the largest EV market, continues to recover well compared to the last 2 years, and is up 41% compared to the same period last year.

It is great to see this momentum with positive trends emerging for Wallbox in certain countries such as Spain, France, Belgium and the U.K. However, this rapid growth is not yet fully reflected in all countries and therefore, in our results. But we believe we can better capitalize on these trends going forward with the reinforcement of our sales teams. Long-term commitment to carbon emissions reduction is essential with many European countries, including Spain and France, and various organizations convened under the political initiative Take Charge Europe, pushing to uphold the EU's 2035 zero emissions target, not only to decarbonize transport, but also to remain competitive globally in the long term, as many indicators show that the future is electric. In the case of the North American market, different elements impacted the growth in Q3, which was up 22% compared to last year.

First, the Canadian market has been soft all year due to 100% tariffs on Chinese-made cars and the end of the iZEV incentive program. This softness was offset by strong growth in the U.S. market during the quarter, which was driven by the pre-buying effect as consumers took advantage of the disappearing 30D tax credit at the end of September.

As mentioned during our last earnings call, in the U.S., EV sales still significantly depend on incentive and in addition to the changing sentiment under the new administration. We believe that in the short and midterm, the EV market will be impacted. Therefore, we work closely together with our key commercial partners to maintain our residential AC sales, but also shifting our focus more towards commercial AC sales and further accelerating our DC sales, as these categories are less correlated with EV sales and more with the charging demand of existing fleet. The fastest-growing EV market was the rest of the world, which includes APAC and LatAm, with 63% year-over-year growth as we continue refocusing resources. And on Europe and North America, we have not been able to benefit from this growth, but it does underline the potential of these markets in the future, as mentioned earlier in this call.

Luis, I'll turn it over to you to comment further on our financial details.

Thank you, Enrique. Good morning and good afternoon to everyone. The third quarter revenue was softer than expected and landed at EUR 35.5 million, outside our guided range, but did improve 2% year-over-year. There were different factors impacting the top line, but the largest factor was lower-than-expected AC sales in all global regions. DC sales performed very well, growing 34% compared to the same period last year and up 40% sequentially. This product category was responsible for seeing mild growth in Europe and double-digit growth in North America.

Gross margin improved significantly with 200 basis points, landing at 39.8% and exceeding our guided range. The positive trend resulted from improved bill of materials, the impact of carbon credits, higher prices and a reduction of warranty costs. The bill of materials is improving due to the switch to a new technology platform for selected AC products, which in parallel is improving the reliability and therefore, reducing the warranty cost. We expect this impact to be more clearly visible as we continue to reduce our inventory and start to deliver these new products. A new item contributing positively to our gross margin stems from carbon credits generated in the Canadian market through our existing products. The proceeds from these credits are reinvested into the EV market, offsetting discounts on our new products.

The impact of higher prices resulted from the new generation Supernova sold in the U.S., which have better margins compared to the older version. Overall, we believe there are different levers we can pull to stabilize gross margins and find additional improvements in the future. Q3 labor costs and operating expenses totaled EUR 22.9 million, representing a 28% improvement compared to the same period last year. We continue to rightsize the organization while investing in our sales organization, as explained by Enrique. The key objective is to improve top line revenue, but to remain lean in our operations.

Cash costs, which is defined as labor costs and OpEx, excluding R&D capitalization, noncash items, and one-off expenses declined even further, down 34% year-over-year. Considering the significant efficiency measures implemented over the past 2 years, we are pleased that we continue to identify new areas for optimization.

Consolidated adjusted EBITDA loss for the quarter was EUR 6.9 million, slightly outside the guided range. This represents an 8% improvement versus the prior quarter, continuing the positive sequential trend observed throughout the year. The variance to guidance was primarily driven by softer top line performance as all other key variables met or exceeded expectations. To reach positive adjusted EBITDA, the reacceleration of revenue growth remains critical, a goal we are pursuing by reinforcing our sales organization and strengthening commercial execution. We ended the quarter with approximately EUR 27.7 million in cash, cash equivalents, and financial instruments. Loans and borrowings totaled EUR 179 million, representing a slight sequential decrease and consisting of EUR 67 million in long-term debt and EUR 112 million in short-term debt.

During the quarter, as part of our constructive ongoing conversations, we reached a standstill agreement with the majority of our banking pool, temporarily suspending payments of principal and interest. This agreement provides a stable framework to facilitate the development of a long-term solution of our existing debt and for our capital structure in general. Our objective is for the remaining debt holders to join these discussions as we work toward a structure that aligns with Wallbox's business plan and long-term growth objectives. CapEx was light again this quarter and landed at EUR 0.3 million, of which negative EUR 0.1 million was related to investments in property, plant and equipment. The reason for the negative impact of PPE investments is an accrual adjustment during the quarter and stricter cost controls, which resulted in higher efficiency gains than expected.

Compared to the same period last year, CapEx investment decreased 82% Inventory continued to trend downward, totaling EUR 50.8 million at the end of Q3. This represents a 34% year-over-year reduction and a 10% decrease versus the previous quarter, equivalent to approximately EUR 6 million. We are pleased with this progress as we continue to release cash from operations and the lower inventory levels position us to replenish at a more efficient bill of materials, supporting further gross margin improvement in the coming quarters. In recent quarters, we have been focused on stabilizing Wallbox's financial position. While we have made strong progress across multiple fronts, further improvements remain ahead. We will continue to prioritize sales expansion, operational excellence, disciplined cash management, inventory reduction, and limited CapEx investment alongside constructive ongoing discussions with our banking partners to establish a long-term capital structure as soon as possible.

Enrique, I'll turn it back to you to provide some closing commentary.

Thank you, Luis. The third quarter 2025 results were mixed. Revenue came in below expectations, but overachieving expectations on gross margin, efficiency gains and operational improvement. Overall, I believe we are still heading in the right direction, especially considering strategic achievements such as constructive progress with our banking partners, but we are now looking to accelerate this momentum.

The EV transition continues to move forward, though at different speeds in different regions. And after a period of rightsizing the organization, we have identified where to invest in our sales organization to capitalize on that growth. In parallel, we continue to expand and improve our leading product portfolio by commercializing our bidirectional solution, Quasar 2, introducing a revolutionizing DC fast charging concept and launching new software features to develop the Ultimate energy management solution. All of these give us a solid platform, together with our strong commercial partnerships to continue to drive revenue growth and progress toward profitability. Even though we are not yet where we want to be, the positive trend is clearly visible, and we make incremental steps each quarter.

With that, I would like to discuss next quarter's guidance. For the fourth quarter of 2025, we have the following expectations: revenue in the EUR 36 million to EUR 39 million range, gross margin between 38% and 40% and negative adjusted EBITDA between EUR 6 million and EUR 4 million.

With that, we are ready to take questions from our analysts.

[Operator Instructions] Your first question for today is from George Gianarikas with Canaccord Genuity.

I sort of wanted to focus on market share, particularly in Europe. You gave some explanation around some product issues that you may have had. But can you just sort of talk about how that market share is trending and how you expect it to trend over the next few quarters?

George, this is Enrique. So it depends on the product line and the country. I will say that a big part of the growth in EV sales that we share, first of all, it's based on PHEVs and EVs, and PHEVs obviously is a big part of the EV sales or at least 50%. So the attachment rate on -- of PHEVs versus EVs in terms of chargers is not the same. So normally, an EV has an attachment rate of 80% with an EV charger. And therefore, the user charges at work or in a public space if they don't have a home charger. And the same happens with PHEVs where the attachment is around 30%. So it's lower attachment. And also, I think it's important to remark that some of these Chinese EV manufacturers like Tesla are bringing their own products. And they, therefore, we don't include it in our market share assessment when we look at the serviceable market.

With all in all, in general, we believe that in countries like Spain, France, Belgium, the U.K. and Germany, our market share remains stable or trending up. And markets like Benelux -- sorry, Netherlands, Italy and the Nordics, we've seen this quarter a trend going down. So if we look at the overall Europe, it will depend on the EV sales. But in general, what we are trying to do, given all these operational headwinds we've seen this last quarter with the change of platform and so on is to maintain it or to increase market share moving forward in AC.

Maybe just to focus on the last question on the balance sheet. You mentioned the standstill agreement. When should we expect maybe some -- a little bit more of a formal announcement from the company around what should happen with the EUR 179 million in debt.

George, I'll take that one. As we announced, the standstill matures as of the 9th of December, and so that's what we're working towards.

So, we should expect some sort of news between now and the 9th of December. Is that the guidance?

Correct.

That was it from us today. Thank you all for joining. We hope you found today's call a good use of your time. Let us know if we can help you in any way.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.