Allegro.eu S.A. (ALE) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Allegro's Second Quarter 2026 Results Conference Call. [Operator Instructions] So without further ado, I will now pass the line to Tomasz Pozniak, Director of Investor Relations.

Thank you, Rafael, and welcome to all participants of our call. Let me introduce the presenters of today. Mr. Marcin Kusmierz, the CEO of Allegro Group, will provide you with the highlights of Allegro performance in Q2 2026; and Mr. Jon Eastick, our CFO, who will guide you through the financials and update of the outlook for the full year 2026. As usual, our results presentation is available for download from our investor webpage at allegro.eu. You may also download the slides from the link available on the webcast. As a reminder, today's presentation and discussion contains forward-looking statements. Our actual results could differ materially from the expectations expressed in such statements. Please make sure that you review the full disclaimer on Slide #2. Also, please note this presentation and the Q&A session are being recorded and will be available for a replay on our website at allegro.eu. With this, I would like to hand over to our CEO, Marcin Kusmierz.

Thank you, Tomasz, for the introduction. Good morning, everyone. I'm very happy to present our results for the second quarter of 2026. This was a strong quarter for Allegro. First of all, we delivered solid financial results, keeping us well ahead of our targets for both the first half of the year and as we look into Q3. A big engine of our growth is our continuous investment in AI, which we are using to boost both sales and our day-to-day productivity. At the same time, our international business surged at integral speed, showing just how much customers across Central Europe love what Allegro brings to the table. On top of that, our financial services advertising view fast. We also made great progress in logistics, and our tests in new services look very promising. Looking at the numbers, Q2 was simply outstanding. In Poland, our main business picked up speed, with GMV growing by 12% year-on-year, backed by 11.3% increase in adjusted EBITDA. Internationally, our business really took off, with GMV jumping by over 82% year-on-year and revenues growing by more than 46%. Because of this strong performance in Q2 and the fast growth we are seeing right now in current Q3 trading, we are upgrading our full year outlook for 2026. To keep this momentum going, our goal is clear. Our main focus is making our core marketplace even better by combining the best parts of 1P and 3P models. We are focusing on building special offers and expertise for key product categories. Second, we are constantly hunting for the new growth opportunities, reaching new customers and product [ niches ] just like we did with our recent launches in travel and health care. And third, we plan to share our best-in-class infrastructure in the future by allowing business partners to use our financial advertising and delivery tools. Thanks to that, we plan to create new revenue streams, optimize our operations and offer much better value to our partners. This strategy showed clearly results in how we will run our day-to-day business during the quarter. We run our best-ever Smart! Week campaign, launching at the same time across all 4 of our markets, with 22% more use offers from our sellers. We also strengthened our position as the undisputed price leader in Poland. Our best price guarantee now covers 2.5 million products, beating major stores at almost 77% of compared offers. On top of that, we brought major new global brands to Allegro like NEXT, Under Armour and S. Oliver, while adding great new services like Lux Med health packages and new holiday options with impact. Technology and AI are moving fast, changing how our buyers and sellers use Allegro. Both shoppers and merchants are adopting our AI tools every day. Our Smart! AI shopping assistant for buyers already has over 500,000 monthly active users. And our AI assistance for sellers is fully up and running, resolving 89% of merchant issues automatically without human help. To push this even further, we teamed up with ElevenLabs, the global leader in AI voice technology. Alongside our partners, Google and OpenAI, we are bringing AI voice agents to customer hotlines, giving assistance, help and creating an amazing customer experience. Our international model is working very well. GMV growth across our international marketplaces accelerated to an impressive 85% year-on-year in Q2. Even better, we officially passed 5 million active buyers across Czechia and Slovakia and Hungary. Customers just also grew fast. Our app reached #1 spot for shopping apps in Slovakia, and customer satisfaction scores in Czechia and jumped by 8 [indiscernible] points year-on-year. Shoppers are really getting into the habit of buying on Allegro. We achieved this by [indiscernible] Allegro to local needs while giving customers unbeatable prices and selection. Across our [ 3 ] international markets, Allegro prices were 12% to 16% lower than local online stores in Q2. We now offer a local buyers [ 40 ] million active products and 120 million offers. At the same time, Allegro serves as a powerful bridge for regional sellers. For example, sales from Czech sellers exporting to buyers in Poland grew by over 100% year-on-year. Moving to fintech. Allegro Pay had another strong quarter. Total loan volume grew 35% year-on-year to PLN 4.5 billion, funding over 16% of our total sales volume in Poland. Customer uptake broke records. Allegro KliK has become our fastest-growing payment feature ever, and the Allegro Pay Card passed 200,000 users who use it daily for everyday shopping outside Allegro. We also supported merchants, with over 4,000 sellers using our financial options to grow their businesses. In logistics, our Allegro Delivery program scaled very smoothly during the quarter. Allegro managed deliveries grew to cover nearly 50% of all parcels in Q2. Our talks for a long-term view with InPost up to 2031 are going very well right now. The new contract will be securing better parcel prices and to long-term delivery capacity. Meanwhile, our network reach over 11,000 One Box machines, keeping [indiscernible] on 12 -- on track to -- for 12,000 by the end of the year. And what is also interesting, we successfully tested our new Zero Energy parcel lockers. To carry out these big plants, we keep adding top industry talent to our leadership team. I'm very pleased to present Katarzyna Ostap-Tomann as our new Chief Financial Officer, taking on her role from October 1. Daniel Roginski, who already joined as Chief Commercial Officer; and Dariusz Mazurkiewicz, Chief Financial Services Officer, who will join the team in the upcoming months. All of them bring strong leadership and vast experience in finance, retail and fintech. And I can say, we have even more great talent joining us pretty soon. And now I will hand over to Jon.

Thank you very much, Marcin. Good morning, everyone. It's great to be with you today. And as you've already heard, it's a really great set of results for us to go through together. And after that, I'll be going over the upgrade of our guidance. So let's get started. And we'll begin with the group overview. And starting with the GMV, the Polish operations grew 0.4% sequentially to 12% growth for Q2. And our international operations, as you've heard, the segment grew by 82.4%, up from 46% a quarter earlier, so really surging. And that meant that the group GMV has gone up by 14.4% year-on-year, and that's 1.6% higher than in Q1. So really good momentum on the top line. Our active buyers is also growing really well, 0.5 million more added just in the single quarter. We're now at 20.9 million, with 400,000 added in international and 100,000 added in Poland. And also very solid growth on the spend per active buyer, 7.3% in Poland and 9.8% for the group as a whole. Looking at take rates. Take rates came in at 12.59%, which is 40 basis points down on a year-on-year basis. As you'll recall, for 2026, we took a decision to pause increases in our take rate policies, our monetization policies. And this is obviously, in itself, supportive of growth in the marketplace. And in addition, we've been strongly supporting our merchants to deliver the best possible prices to the consumers, which has also led to some discounting of the take rates in terms of rebates. On the other hand, the advertising business goes from strength to strength in terms of monetization margin, with the revenue up by 31.1%, and we're now at 2.31% of GMV in advertising revenue. So putting those together, the total revenue was up 14.4% in Poland, and at the group level with 46% contribution from international, 16.1%. So then moving on and looking at profit and cash flow. And I'm really pleased to report that for the first time ever, our group adjusted EBITDA on a quarterly basis has topped PLN 1 billion. We've seen the Polish adjusted EBITDA up 11.3%, supported by that strong advertising and also fintech performance and also very good cost control. And international is 8 percentage points better in terms of loss to GMV margin on a year-on-year basis, which means it's accretive to our overall margin performance. And the group, therefore, is up 11.5% for Q2. Looking at capital investment, PLN 292 million, 37.7% higher year-on-year. The main movement being additional investment into the delivery program. Cash conversion is still superb at 71.6%, and that leads to really strong free cash flow. And that brings us to the leverage, which you can see on the following slide, our -- the strong cash flow and the strong rise in adjusted EBITDA together has contributed to produce a 0.21 of a turn improvement Q-on-Q to 0.72 net debt to adjusted EBITDA as of [ 30th ] of June. So everything very much in line with policy. We have over 3 billion in cash, 2 billion of undrawn RCF and a new facility with EIB with a 6-year maturity, also undrawn coming online for PLN 1 billion. So we have absolutely tremendous financial flexibility. A quick comment on the buyback. As you know, we have a 1.6 billion share buyback program approved by the shareholders. We launched the first phase of that, PLN 800 million on the 15th of July. And as of the 15th of September, we've almost completed this first phase. 777 million spent for 1.71% of stock repurchase. So very near the end of that first stage. So good, let's now zoom in and look at Poland. And as usual, we'll start with the key KPIs that back up the growth. Active buyers is up year-on-year at 3.1% of 15.64 million customers, so 470,000 up year-on-year. And on the spend side, we're up 7.3% year-on-year. This is just moving up inexorably over time, and we're now at PLN 4,482 per active buyer on a 12-month rolling basis. The 7.3% compares very favorably to around 3% inflation in the Polish economy. So as you've heard, the GMV growth came in at 12%, and that means 18.5 billion of GMV for the second quarter. The quarter basically started off dealing with a headwind from the calendar effects around Easter. And that slow start was then offset by an absolutely tremendous Smart! Week, where we performed brilliantly in terms of execution and in terms of pricing. And later in the quarter, demand held up extremely well, and we also saw less competitive pressure, particularly in the marketing area coming from the Chinese platforms. So all of that contributed to a really positive quarter and sequential improvements. The growth was stronger across several categories, so quite broad-based, and higher ASPs have also been helping the performance, and there's now a significant inflation component in the GMV growth. I'm also very pleased to announce that the Polish marketplace is now a 70 billion GMV business looking at the last 12-month basis. So moving on to revenue, which came in at 14.4% year-on-year for Q2. In Poland, that's PLN 3.2 billion. Slightly lower contribution from marketplace than we're used to at 8.2% because of the slightly lower take rates. Sequentially, the take rates were very nearly flat that 12.59%. However, overall, we see really strong contributions from the other segments of our revenue, which allowed us to grow strongly. As I've mentioned, advertising up 31.1%; logistics storming forward 103% growth year-on-year. Price -- retail at 24%; and other, which, of course, is mainly the fintech, another 23%. So then moving on to adjusted EBITDA, and we have 11.3% growth for the Polish business year-on-year, which is PLN 1.153 billion. The GMV margin is a highly resilient 6.23%, and this remains above the 5.7% to 6% target range that we set back in March for the midterm guidance. How is this possible? This is coming from, obviously, the accelerated GMV growth, those strong contributions from ads and fintech, which are very margin accretive and also very, very strong cost control across the operation. Cost of delivery grew by 19.9% year-on-year, 5.4% of GMV. But breaking this down by components, we have roughly 12.4% coming from volume growth, which comes from the higher GMV and increased Smart! penetration. But the biggest -- a very large item is purely accounting, which is where parcels have moved from agent-based accounting, so net of revenue in the prior year to principal-based accounting and gross cost in the current year. And that's obviously coming from our Allegro managed delivery, which is up to 50 -- almost 50% of the total parcel mix. So that's pure accounting that's offsetting logistics revenue that you see on the previous slide. Most importantly, our unit cost per parcel is actually down by 0.3 percentage points year-on-year. And despite the blended mix of pricing going up by 4.8 percentage points across all the players in the delivery space, a 5.1% mix improvement because of the shift towards the cheaper Allegro Delivery and Allegro managed services players means that we were able to deliver that overall cut to the cost per parcel. Marketing, also looking good, 7.2 percentage points slower growth than in Q1, a 14.3% growth. And this is partly reflecting the easing competition for share of voice towards the end of Q2, presumably as the Chinese players began to get ready for the changes to the duty environment that they live with. Other SG&A, also looking really good, 7.6% growth year-on-year, very tight cost control over staff costs and numbers of employees and also on IT expenses. Lastly, for Poland Capital Investments, PLN 284 million is up 47.2% year-on-year. There's about 100% growth across the hard CapEx at PLN 160 million. And the biggest element of the acceleration here are the investments into the Allegro One delivery network. You've heard about APMs already. We're also working on a big sourcing center and additional depot Korea network assets. Looking at capitalized development costs, the increase is much more moderate at 9.4%, reflecting a stable team, higher productivity also aided by AI-based coding assistance. And looking overall, we're at 23.9% year on -- year-to-date Polish CapEx, which is within the 25% guideline that we set earlier in the year. So that's Poland, which is clearly going very well. And now let's look at the strong momentum that is building in the international business. As always, I'm going to start with the pro forma view of the marketplace only, leaving out the legacy mall activity, which I remind you is something that we closed down at the end of the first quarter of 2025. Now this means that what you see here is a GMV gap or GMV of 85% for the marketplace only is starting now to converge very tightly with the result for the overall segment, which is now up to 82.4%. And that's because the -- that legacy activity is really now slipping away into the distant past in the baseline. And I'll try and cover that as we go through. But let's start first with that 85% growth that we've achieved on the international marketplace, which is a really phenomenal result. That comes in at PLN [ 1.058 ] billion, and is up sequentially by 17 percentage points from Q1. And I think the first thing to look at is that this has been achieved with 30% traffic growth, which means that the conversion is moving up really, really significantly. And that's because the customers are developing the habit. The purchase intent is up significantly. The trust in the platform is up significantly. All the other factors as well, that Marcin mentioned, shows that there's really strong momentum building. Looking at the components, active buyers is up by 33.5% at 5.3 million customers, and the spend per buyer is up by a strong 23% year-on-year at PLN 663 per active buyer. Now when you look at the same KPIs presented for the segment as a whole, the legacy active buyers are still visible in the last 12-month metrics that you see on the left-hand side of the slide, but not beyond Q4. Only in the first -- not beyond Q4 of 2025. And if you look at the blended spend per active buyer, the last impacts of this last 12-month metric from the legacy business, which we closed Q1 '25, comes in Q1. So the Q2 2026 numbers are purely the marketplace activity, and it will be the same going forward from here. You see the same thing in the GMV at the segment level, which grew 82.4% versus the 85% delivered by the marketplace itself. And the reason for that is just an PLN 8 million difference in the baseline for Q2 of 2025 that related to the legacy store closed down back in 2025. Looking at segment revenue, it is up by 46.3%, and this is obviously driven by the marketplace, which is up 65.5% year-on-year. That's lower than the GMV growth of 85% because the take rate is at 7% for the second quarter, and that is reflecting promotional programs that we're running, both in terms of pricing similar to what we do in Poland to help the merchants at really great price points. And secondly, also new unique selection is also receiving promotional take rates to really drive extra selection into the marketplace, which is also way superior to anything else that's available across CE 3, but we want to double down on that and keep growing selection. Looking at the overall retail -- the overall revenue performance, retail is also a bit of a drag on the overall revenue as it was up 7.1% on a year-on-year basis, but we do expect that to be much stronger in the third quarter. So lastly, on the international section, let's look at the adjusted EBITDA. The loss edged up very slightly by 8% year-on-year to PLN 122.8 million. This is reflecting the investments that we're making to scale the marketplace growth and we're really leaning into the evidently very, very strong demand conditions that we're seeing in order to drive the flywheel faster and faster. The marketplace component of the adjusted EBITDA loss was at PLN 100.7 million, but the margin is improving significantly, 11.6% negative to GMV versus 19.6% a year earlier. And the extra spending is coming in areas such as ATL, with an extra 12 million spent during Q2, including the first ATL campaigns that we run in the Hungarian market. And we're also spending more on PPC, but at much better ROIs to help drive that flywheel faster. Last thing to point out is that mall as a merchant, now operating in a lean model, has had a loss of PLN 22.1 million, down 53% on the old model a year earlier. So that's the international, and that is the end of the tour of those results. Now let's move on to look at the management outlook. Let me start with current trading for the third quarter, and these comments all relate to GMV. In the first -- starting with Polish operations. In the first 10 weeks of Q3, we've seen a further acceleration in the business, with the growth moving up to between 14% and 15% year-on-year. Now that means that on a year-to-date GMV basis, the growth has now moved beyond the 11% higher end of the outlook that we set earlier in the year. When it comes to Allegro International segment, again, in the first 10 weeks of the quarter, we've seen the business going from strength to strength with further acceleration, and we now are seeing growth rates typically around 100% year-on-year. As a result of that, on a year-to-date basis, the GMV in the International segment is now above 70%. So looking at the consolidated group, this means that for the 10-week period, we're seeing 17% to 18% across the group. And on a year-to-date level, about 15% growth. So this really, really strong performance has obviously prompted us to make a significant full year outlook upgrade across the group. And I'll go through that now. So on the left-hand side, you've got the last updated guidance in May. On the right-hand side, the new outlook. And let me start with GMV in Poland. So we're moving up the guidance for 2026 to 11% to 13% growth for Poland. And Allegro International, we're now seeing for the whole segment, between 65% and 70% growth for the full year, and that's translating to a group result now of between 13% and 15% growth. On revenue, we're seeing 13% to 15% growth for Poland, higher than before, and Allegro International segment moving up strongly to 35% to 45% growth. For the group, therefore, 14% to 16% growth. On adjusted EBITDA, we're seeing 11% to 14% growth for Poland, so moving up significantly. That's coming from the higher GMV and also for the strong cost control performance. On Allegro International segment, we're seeing a fractionally lower improvement in the loss at 3% to 7% lower loss versus the prior year. We're continuing to invest to support the growth into the fourth quarter. And on the group level, therefore, we're seeing 13% to 17% growth in our adjusted EBITDA, which equates to PLN 3.9 billion to PLN 4.1 billion of adjusted EBITDA. On the CapEx side, no changes required to the guidance. So that's the outlook. And the final slide of the presentation covers financial takeaways for anyone who's going to be reading this coming to the document later. Marcin has graciously given me the last word today as this will be my final earnings report as Allegro's CFO. And it's probably going to be the last one in my career as well, which I've calculated, I'm up for around about 78 of these during many, many years. So as I'm standing down on the 1st of October, after nearly 9 years in this role, it's really great to be finishing it such a really strong set of results. And even more so because I'll be handing over to my successor with the group in such an excellent financial condition. It's been a great privilege to be the CFO of this amazing business and work with this tremendous team for such a long period of time. I wish Marcin and the team great success as they continue to explore new avenues to grow the business in a more and more exciting way. And lastly, I'm really excited that Katarzyna Ostap-Tomann has agreed to take over the role. She's a really highly experienced CFO and also in public companies. And she's coming from a sector which is highly relevant to our business. I'm sure she's going to do a really great job, and I'm going to be here for another 4 months after the 1st of October to actually help her with her onboarding. So that's it for me. I'm just going to hand it back very quickly to Marcin.

Thank you, Jon. And I'd like to thank Jon on behalf of the whole Allegro team. Thank you, Jon, for helping us grow, helping us to -- or pushing us to achieve the highest standards and mainly for being a true model for all of us. We wish you all the best in your next chapter and finger crossed for everything up ahead.

Thank you, Marcin.

Thank you, Marcin. Thank you, Jon. We are now ready for the Q&A session. [Operator Instructions] And we will start the session with a question coming from Andrew Ross from Barclays.

Great. Let me start by congratulating Jon on your time at Allegro. Thank you for all of your support in the 6 years since the IPO, and also wishing you all the best going forward. I've got 3 questions, if that's okay. The first one is about the competitive environment. It sounds like you've seen some easing in Q2. Curious just talk about was just towards the end of Q2 or for the whole quarter? And then if you can give us some color in terms of how that's changed into Q3 would be very helpful. Second one, built on that. Just remind us how much share of volume or GMV in the market you felt that the Chinese platforms had and how much back you think you can gain back? And I guess, third one also built on that. Clearly, you see an acceleration in Q2 that's continuing nicely into Q3. Do you guys think about this as being a onetime benefit of competition normalizing, but then as you annualize through, that growth goes back to a kind of more normal trend rates? Or are you seeing something in the KPIs and cohort behavior that might suggest this could be the start of a kind of multiyear improvement in the growth profile of the business?

Andrew, thank you very much and really appreciate the cooperation over the years and also really, really good questions. So let's start with the Q2 to Q3 competitive environment. Obviously, when it comes to the Chinese platforms, the key topic has been the 1st of July, the introduction of the EUR 3 per parcel charges. And what we saw was some level of disengagement during Q2 on the part of the Chinese platforms when it came to the top of the funnel activity and acquisition of traffic. So share of voice became easier to come by and the cost per click started to come down during the second quarter. Obviously, the more recent data is showing both lower traffic or sequentially lower traffic month-on-month for these players. And we're also hearing anecdotal or reported evidence around Europe as significantly less parcels coming in to the -- across the continent. And I think that's true of Poland as well. When it comes to the impact on growth as a whole, this is obviously a factor, but it is not the only factor that we see in our strong performance. The -- I think the first thing to say is that the Polish consumers are holding up very well. Despite all the global turbulence and the fuel prices, demand is pretty stable. But we've actually been executing extremely well in addition. On surfacing the best possible prices for the consumers, you see it in the take rate changes or the take rate discounts that we've been giving to help the partners hit those great price points. They're really responding to that. I think the merchants themselves, the partners are also responding positively to the fact that we're not changing take rates this year. So there's also growth coming from that. And I also need to say that Marcin has given Daniel, our new Head of Marketplace, and the whole team really, a lot more flexibility to move at their own speed and to be innovative. And this is really also starting to pay off at the marginal level in terms of how quickly we're moving. So there's quite a lot going on. It's also worth pointing out that Q1 was a bit flattered because of the Easter calendar, and Q2 was negatively impacted because of the Easter calendar in April, which actually means the growth was picking up more strongly than it looks, more strongly than the 0.4% that you see in those numbers. And that's continued, obviously, into the Q3 with the 14%, 15% growth that we're seeing. So China is part of the story, but it's not the only thing. The second part of your question was how much do we think the Chinese platforms have. We think it was mid-single digits, sort of 5%, 6% type of area between those players. Altogether, we think that the alternative platforms to us have about 10% share when you throw the numbers on and a few others. So some of that will go into reverse in the short term, obviously, because of these charges. But we don't underestimate the Chinese players. We're hearing lots about them taking warehousing space around Europe, and they may obviously start to experiment with other ways of doing business to change the situation. What really matters is this is long overdue, this regulatory change, and it levels up the playing field. And fair competition, we have no problem with.

Next question will -- comes from Cesar Tiron from Bank of America.

Yes. Congrats on the results and best of luck to Jon on your new ventures and thanks for the help over the years. I have 3 questions, if that's okay. The first one relates to the acceleration of revenue and GMV growth. I think we spent some time on Poland. But if you can please also explain the very substantial acceleration in international, especially in Q3. Linked to that question, if my GMV growth accelerates and reach a certain milestone in GMV, in international, is it not possible to break even earlier than 2029? Let's say, if international GMV continues to surprise your business plan on the upside. And then I think last question. I noticed all the new hires. Just had a question just on fintech. Any read there? I mean, if fintech strategy with the changes that you hire, can it become a bigger component for Allegro?

Obviously, I'll give the second part of that question, Cesar, to Marcin. Yes, on the first part, I think the -- the key point with the growth in international is that we have, totally in our control, the take rate lever. And we're deliberately holding that one back until we choose to monetize a little bit more strongly with our partners. And as you saw, right now, it's running at 7% take rate. So it's about 5 points down on the Polish rates. So whilst the demand is growing the way it is at the moment and the customers are responding with such enthusiasm and the momentum is building the way it is, it doesn't make sense to take of our foot off the gas. It makes sense to keep supporting the business and try and grow it into being as big a business as we possibly can. So getting to that breakeven in 2029 is something that we're committed to, and take rates will be part of that story to make that happen. On the other hand, it doesn't mean that the trajectory that we're following may not -- won't be somewhat better than it would have been otherwise, obviously, if the GMV growth was lower because obviously, the fixed costs are going to be spread over a much bigger base. Second question, Marcin, on fintech.

Thank you, Jon. So of course, we do believe that with fintech business, we can do much more. We are very strong [indiscernible] providing by an operator service on the Polish market, the most better one and the strongest one. But of course, hiring values and making the team stronger, we have much higher ambition to concur some new parts of the market. We want to do much more with insurance, like for example, extended warranty related to some products we have on the marketplace. We have a pretty strong pipeline related to new products also based on some partnerships like we do it with PKO BP. What we mentioned today during the presentation. We have a great example of Allegro KliK, the fastest growing payment network on the marketplace historically. So we feel that we can be much stronger. And of course, some of services will be provided by ourselves, and we want to increase our expertise in this field, but also some of them will be provided based on partnerships like with PKO BP because we see that the appetite of some partners is also very high, and they see that can also achieve with us much more.

The next set of questions comes from Roman Reshetnev from Goldman Sachs.

Congratulations on strong results. And thank you, Jon, and all the best to your next chapter. So firstly, based on your guidance, the implied range for Q4 poly GMV growth looks quite wide [ at just 6% to ] 14%. So could you please help us understand what would drive the low end versus the high end of that range? And in particular, what operational competitive or macro variables do you see as a key swing factor over the next few months? Secondly, could you please give us an update on the discussions with InPost following the letter of intent? And where do things stand today? And what are the main areas that still need to be resolved before the final agreement can be reached? And actually, as a follow-up to the second question, on delivery economics, how do you think about the long-term target for net cost of delivery as a percentage of GMV? In particular, in the medium term, would you consider simply stabilizing that ratio as a good outcome? Or is ambition to drive it lower over time? And in the context of your negotiations, is it focused mainly on preventing further cost inflation? Or are you also pushing for a meaningful reduction in per parcel delivery costs that could technically support margin upside going forward?

Okay. Thank you, Roman, for those questions. Yes, you're absolutely right. The range is effectively quite large on the Polish GMV. If I'm totally honest about it, the lower end of the range is partly just the mathematics of the fact that we're trying to work with round numbers here. It's as simple as that. But the top end of the range, I think deserves more examination. The fourth quarter, every year in Poland for Allegro brings some uncertainty for us because we always worry about what version of the consumer is going to turn up because there's a lot more discretionary demand in the fourth quarter than we see in the everyday shopping that people are doing in the rest of the year. And the fourth quarter does have quite a big weight of around about 40% -- 35% rather in the overall GMV. So we always try to take something of a cautious position on the fourth quarter. And this year is no different to the others, although the geopolitical aspects and the fuel prices, I would say, are the major threats to the momentum that we're seeing at the moment. But because the mix is a little bit different, it's hard to be 100% confident that what we're seeing in Q3 is going to continue into Q4. So we're being cautious on that. I'll pass over to Marcin to tell you how the InPost situation is developing.

Thank you, Jon. I can say that we stay optimistic. And of course, I said before, we continue our negotiations with InPost. And I think this is -- we are on the right path. And of course, we expect the economics related to logistics costs will be significantly better, but we should wait because, again, we are still negotiating some conditions. And at the same time, we want to continue our investments to develop our network and to have better capacity on our side and to improve efficiency of the whole network. So we don't expect any revolution, thinking about the future in logistics. Of course, year-over-year, improving efficiency of the whole network and cooperating also with our partners quite closely.

Roman, sorry, the last part of that question was around cost of delivery to GMV. Yes, we are not going to say anything specific regarding guidance until that contract is actually signed. We don't want to preempt that. Obviously, the lower prices that we've got negotiated in the NOI will have the margin, a positive impact on us. But we don't want to say too much more than that at this moment. I mean, as Marcin said, we're still committed to developing our own capabilities. We're committed to being diversified in terms of suppliers. And most importantly, what we really like is the fact that the consumers have got access to just about every locker in the country, which is around 60,000 plus, at this point, 70,000 even. And that means closest locker to you is going to be available if you're shopping on Allegro and that's a brilliant situation.