Investment Pitches

Pitch Summary:
AI re-emerged as the dominant narrative, driving much of the market’s leadership in the second quarter. Oracle was our top-owned relative contributor, up 56% in the quarter (and 76% since the market bottom on April 9) as the market embraced a meaningful acceleration in growth driven by the Oracle Cloud Infrastructure (OCI) segment. The company appears to be in the early stages of a significant increase in revenue growth, fueled in part by its position as a go-to cloud infrastructure provider for training generative AI models. This is only one facet of the investment thesis. Oracle has been successfully migrating enterprise software customers to the cloud and is, for the first time, able to bring its database clients to the cloud as well—creating a multi-pronged growth investment thesis. As the air came out of many perceived “AI beneficiaries” amidst elevated tariff-related uncertainty in 1Q, we noted in our previous Quarterly Letter that this had pressured Oracle shares. We took advantage of this weakness by adding to our position in 1Q. Oracle is now one of our largest portfolio weightings.

BSD Analysis:
Oracle is the ruthless, deeply leveraged AI infrastructure pure-play whose stock is trading at a massive 40% discount from its September high, creating a volatile but high-conviction entry point. The core thesis is a structural pivot to the Cloud Infrastructure (OCI) business, which management projects will hit $166 billion in revenue by FY2030 with an astonishing 75% Compound Annual Growth Rate (CAGR). This growth is fueled by its massive commitments to AI: OCI offers Generative AI features, including the deployment of Google Gemini models and the beta launch of Agent Hub for creating and deploying AI agents. The critical risk is the 4.1x Debt/Equity ratio and the negative Free Cash Flow caused by the colossal AI infrastructure CapEx, but this spending is merely the cost of securing a generational, trillion-dollar market. The company is converting its legacy software dominance into the physical infrastructure required to win the American AI race, a high-stakes bet with no in-between.

Pitch Summary:
For the first time since inception, I bought a pure-play defense company. Kratos (“KTOS”) develops and produces a range of systems for national security with a focus on hypersonic technologies and unmanned aircraft. While they trade at a significant premium to traditional defense primes, this premium is warranted given their market positioning. Predominately, the company’s core business principles are unique in emphasizing the development of products quicker and at a lower cost than their peers. A read through their materials is littered with statements like “affordability is a technology” and “better is the enemy of good enough.” These are not just empty words. In 2024 KTOS was able to develop the Erinyes Hypersonic Test Vehicle in 3 years at a cost of less than $15mm. At a unit cost of just $5 million, Erinyes can provide test runs at a fraction of the cost of alternative prototypes. Their success in this arena is a large reason why they were able to win their first ever prime contract award with the $1.45bn Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program. Under MACH-TB 2.0, KTOS is aiming to achieve 1 test per week, a vast improvement from the monthly cadence under Mach-TB 1.0. Given the rapidly evolving military environment and the need to reduce government spend, speed and cost efficiencies are critical. KTOS is able to achieve these efficiencies due to their operational focus (“fail fast, learn faster”), close integration with development partners, and drawing on alternative resources such as university research departments. KTOS has direct exposure to key areas of growth in defense spend: hypersonic and drones. Both of these markets are forecast to grow at a double-digit rate globally as militaries aim to maintain air superiority and increase autonomy.

BSD Analysis:
Kratos offers leveraged exposure to two of the fastest-growing defense categories—hypersonics and unmanned systems—supported by cost-advantaged development cycles and a culture of rapid iteration. Its MACH-TB prime award validates Kratos’ technological edge and could drive multi-year revenue visibility. Despite premium valuation relative to traditional primes, KTOS’ TAM expansion, improving contract mix, and margin scalability support further upside. Key catalysts include successful MACH-TB execution, additional hypersonic program awards, and rising geopolitical defense budgets.

Pitch Summary:
Nestlé’s origins trace back to 1867, when German-Swiss pharmacist Henri Nestlé developed an infant cereal that helped save a premature baby’s life. More than 150 years later, Nestlé has evolved into the world’s largest food and beverage company, with a portfolio of over 2,000 brands, from KitKat and Nescafé to Purina pet food and San Pellegrino water. Few categories showcase Nestlé’s strength better than coffee, where Nescafé, Nespresso, and its Starbucks licensing deal give it unmatched scale and pricing power. Pet care has become a second major growth engine, driven by the long-term trend of treating pets like family and premiumisation across global markets. Nestlé’s Nutrition and Health Science divisions reflect its origins as a health-focused food company, while its long-held 20% stake in L’Oréal—worth approximately $47 billion—has compounded at over 12% annually for decades. While organic sales growth slowed to 2.2% in 2024 due to prior price increases, pricing is now normalising and sets the stage for a return to volume-led growth. New CEO Laurent Freixe is sharpening focus on the company’s biggest global brands and executing a CHF 2.5bn efficiency programme through 2027, alongside preparing a separation of its slower-growth water division. Most importantly, Nestlé’s fundamental appeal is straightforward: people and pets eat and drink daily, regardless of economic conditions, supporting steady demand, strong cash generation, and enduring brand power.

BSD Analysis:
Nestlé offers a classic defensive compounder profile supported by diversified global brands, leadership in fast-growing categories (coffee, pet care), and a 17% ROIC that reflects long-standing pricing power and distribution advantages. Shares typically trade at a premium to staples peers, justified by stronger category exposure and higher cash conversion, though muted recent volumes present a near-term headwind. Management’s renewed focus on core brands, margin expansion via the CHF 2.5bn cost-efficiency plan, and potential value realization from its water division create identifiable catalysts. Nestlé’s 20% stake in L’Oréal provides hidden asset value and financial flexibility with a multi-decade compounding record. With inflation moderating and consumer demand stabilizing, volume recovery should support mid-single-digit organic growth.

Pitch Summary:
Upslope has owned FTI Consulting (leader in restructuring and dispute advisory) and Evercore (top independent M&A advisor) in the past. The Fund recently re-initiated positions in each of these companies. While they are bets on polar opposite outcomes (Evercore is very pro-cyclical, while FTI is the most counter-cyclical publicly traded company I follow), expectations for each appear modest. This was and remains especially true of FTI although it's more understandable as the company is going through some turmoil (employee turnover/retention challenges) in one of its non-core segments. Nonetheless, the unique macro environment - on/off trade war, the very pro-cyclical "One Big Beautiful Bill," lingering inflation, massive regulatory and technological (e.g. Al) uncertainty and change - should ultimately provide significant opportunities for both businesses ahead.

BSD Analysis:
Evercore is a high-quality, elite independent investment banking advisory firm whose stock is a leveraged bet on the inevitable, multi-year recovery in global M&A activity. The core thesis is driven by its status as a trusted senior advisor to corporations of the highest caliber, which allows it to secure high-value mandates on matters of strategic significance (M&A, takeover defense, restructuring). The firm's focus on objective counsel and its deep bench of restructuring advisory talent provide a crucial hedge against the cyclicality of M&A fees, stabilizing revenue during downturns. The stock is a high-conviction bet on the long-term, non-cyclical growth of corporate financial complexity and the eventual return of M&A volume.

Pitch Summary:
Upslope has owned FTI Consulting (leader in restructuring and dispute advisory) and Evercore (top independent M&A advisor) in the past. The Fund recently re-initiated positions in each of these companies. While they are bets on polar opposite outcomes (Evercore is very pro-cyclical, while FTI is the most counter-cyclical publicly traded company I follow), expectations for each appear modest. This was and remains especially true of FTI although it's more understandable as the company is going through some turmoil (employee turnover/retention challenges) in one of its non-core segments. Nonetheless, the unique macro environment - on/off trade war, the very pro-cyclical "One Big Beautiful Bill," lingering inflation, massive regulatory and technological (e.g. Al) uncertainty and change - should ultimately provide significant opportunities for both businesses ahead.

BSD Analysis:
FTI Consulting is an undisputed, high-margin, specialized business advisory firm whose stock is a conviction bet on the structural complexity and volatility of the global economy. The core thesis is driven by its indispensable role in corporate finance/restructuring, economic consulting, forensic and litigation consulting, and strategic communications. The company's services are non-discretionary and demand spikes during major market dislocations, regulatory changes, and economic downturns, providing a crucial hedge against cyclicality. FTI's competitive advantage is its deep bench of 7,700+ highly specialized staff, who command premium billing rates for their expertise, making it the largest provider of bankruptcy, turnaround, and business restructuring services in the U.S..

Pitch Summary:
Smiths is a UK-based industrial conglomerate operating four segments: John Crane (specialty seals/flow control solutions for energy/power and industrials, ~48% of op profit), Flex-Tek (HVAC and industrial specialty tubing, 24%), Smiths Detection (inspection/screening systems for airport and border security, 15%), and Smiths Interconnect (specialty connectors and electronics, 13%). Historically, Smiths has been perceived by markets as a sleepy, overly diversified conglomerate. Pressured by activist investors (including Elliott, according to the FT) management has committed to drastically simplifying its business by exiting the Interconnect and Detection units (the former to be announced by year-end, the latter next year). Key elements of Upslope's investment thesis include: Attractive core businesses (John Crane + Flex-Tek) that benefit from the "low cost, high importance" nature of their products and strong competitive positions. Although each unit serves reasonably cyclical end markets, they both have a very high (70%+ in the case of John Crane) portion of sales coming from recurring maintenance/aftermarket business. These positive attributes contribute to consistent delivery of mid-20s ROCE and steady mid-single digit organic revenue growth. Significant catalysts likely on the horizon with active portfolio reshaping. "Future Smiths" will be a far more nimble, focused business, retaining the company's most competitively advantaged units. Strong capital return program In recent years, Smiths has maintained an active and reasonably aggressive buyback program. From July 2021 (FYE) to Jan 2025 average shares outstanding declined by almost 15%. In January, Smiths added another £350mm (5% of current market cap) to its buyback authorization. Reasonable valuation and strong balance sheet despite near-term catalysts for unlocking value and a stronger-than-usual balance sheet (<0.5x net vs. ~1-2x historically), Smiths trades in-line with its average historical valuation multiples (11x NTM EBITDA, 17x P/E).

BSD Analysis:
Smiths Group is a high-quality, focused industrial technology leader whose premium valuation is justified by its defensive, non-cyclical product portfolio and aggressive operational excellence. The core thesis is driven by its successful pivot to four specialized, high-margin divisions: John Crane (engineered sealing solutions), Smiths Detection (threat detection), Smiths Interconnect, and Flex-Tek. The company's products are mission-critical and non-discretionary (security sensors, rotating products, fluid management components), leading to high switching costs and stable aftermarket revenue. The stock is a high-quality industrial compounder leveraging its essential technology to deliver predictable earnings and aggressive capital returns.

Pitch Summary:
Clearwater Analytics Holdings Inc. provides software-as-a-service solutions for automated investment data aggregation, reconciliation, accounting, and reporting. The company delivered strong results, including revenue growth. They recently acquired Enfusion, Beacon, and Bistro assets that serve to broaden the product offering. The integration of these assets is the company’s focus in support of their vision of a front-to-back asset management platform. In the near term, there will be a dilutive impact on Clearwater’s financial profile and that caused its shares to drop by -18%.

BSD Analysis:
Clearwater Analytics is a high-growth, cloud-native financial technology pure-play whose stock is a conviction bet on its dominance in investment accounting and reporting. The core moat is its single-instance, multi-tenant SaaS platform, which provides a crucial, unified view of investment data for insurers, asset managers, and corporations. The company is aggressively expanding its market share, driven by strong adoption of its high-margin Clearwater Prism offering. Clearwater is demonstrating superior financial performance, with ARR hitting $450 million and Adjusted EBITDA expanding 29%. The stock is a high-quality compounder leveraging its superior technology to dominate the non-discretionary financial reporting market.

Pitch Summary:
Kratos Defense & Security Solutions Inc. supplies technology products, systems, and software for defense, national security, and commercial markets. Their fiscal second quarter exceeded expectations for earnings and profit margins. While investors were initially cautious on the potential impact of DOGE on the defense budget, we are now seeing augmented defense spending with a major shift towards next-generation priorities such as hypersonic, missile defense, UAVs, and space. As such, Kratos is well placed. We trimmed Kratos on the strength of its 62% ascent.

BSD Analysis:
Kratos is a high-growth, specialized defense technology pure-play whose stock is a conviction bet on the structural shift to affordable, unmanned military systems. The core moat is its leadership in providing attritable drones (XQ−58A Valkyrie) and high-performance training aircraft, which are non-discretionary for modernizing global air forces. The U.S. military's commitment to low-cost, autonomous drone wingmen is the key catalyst. Kratos is demonstrating strong financial velocity, with Adjusted EBITDA projected to grow 22% year-over-year. The stock is a leveraged play on the long-term, accelerating defense procurement cycle.

Pitch Summary:
Krystal Biotech Inc. is a biotechnology company developing and commercializing genetic medicines for patients with rare diseases. First quarter results missed the mark with declining levels of new patient starts and sales. While the quarterly results are disappointing, Vyjuvek is viewed as a durable and high-margin business. That therapy is a topical gel that promotes wound healing for patients with a rare and serious skin disorder called dystrophic epidermolysis. Krystal Biotech currently has seventeen sales reps and plans to add eight more. We reduced the position, which declined by -24% during the quarter.

BSD Analysis:
Krystal Biotech is a high-growth, specialized gene therapy pure-play whose stock is a conviction bet on the successful commercialization of Vyjuvek. The core thesis is driven by Vyjuvek's FDA approval for the treatment of Dystrophic Epidermolysis Bullosa (DEB), a severe genetic skin disease. This is a massive, high-value opportunity in a rare disease market, creating a near-monopoly. The company is rapidly scaling its commercial engine, with Q3 2025 Vyjuvek net product revenue hitting $100 million. The stock is a leveraged play on the successful launch execution and the advancement of its RED−D platform for generating new gene therapy candidates.

Pitch Summary:
Jumping back to the positive was JFrog Ltd., which provides systems to manage and speed up the release of software updates from developers to users. We added to our position on near-term lows at the start of the quarter. Later, its reported revenues and earnings surpassed expectations, and JFrog’s management lifted its prior guidance for 2025. In addition to a stable level of new business wins, there were levels of customer usage beyond their contractual commitments that also boosted revenues. That lifted its shares up by 37% and we trimmed the position.

BSD Analysis:
JFrog is a high-growth, essential DevOps software pure-play whose stock is a conviction bet on the non-discretionary corporate need for secure, fast, and continuous software development. The core moat is its Liquid Software vision, enabling enterprises to manage the entire software delivery lifecycle, from code to production. The company's Artifactory and Xray products are indispensable components in the DevSecOps toolchain, giving it high switching costs. JFrog is successfully transitioning customers to its Universal Platform and expanding its ARR base. The stock is a conviction bet on the accelerating structural growth of cloud-native development.

Pitch Summary:
Among our holdings, we trimmed CrowdStrike Holdings as it gained 44%. A cloud-based endpoint security provider that secures a range of devices, endpoints, and cloud environments, CrowdStrike benefited early in the quarter as cybersecurity was one of the most resilient areas in an uncertain macroeconomic environment. In June, its results were higher than anticipated, especially with gains in net new annual recurring revenues, which are also expected to double in the next fiscal year. There were some lingering impacts from last year's outage, but with the resulting customer retention rebates about to expire, we expect CrowdStrike’s revenues will continue reaccelerating.

BSD Analysis:
CrowdStrike is the undisputed, high-growth leader in cloud-native endpoint security whose stock is a conviction bet on its modular platform dominance. The core moat is its Falcon platform, which operates a singular, lightweight agent using a massive security graph in the cloud to detect and prevent threats. The company is aggressively monetizing its platform by cross-selling modules, evidenced by a 7.5 module adoption rate in its top-tier subscription bundles. This strategy is generating superior financial results, with ARR growing 33% to $3.78 billion. CrowdStrike is an indispensable, high-quality giant whose platform strategy is securing its long-term dominance in the non-discretionary cybersecurity market.

Pitch Summary:
Rounding out our top 3 for the quarter was Compagnie Financière Richemont SA (CFR:SWX) +8.5%. The company’s core Jewellery Maisons (Cartier and Van Cleef & Arpels) continue to prove more durable than nearly any other luxury jewelry brand. Our original thesis—that the top branded jewelry brands would outperform the luxury sector over time—is largely playing out with Richemont’s jewelry segment growing 11% in the most recent quarter. Richemont may have a few more tricks up its sleeve. Since acquiring Italian jeweller Buccellati in 2019, sales have increased almost 5x following a strong 2025. Additionally, Richemont recently expanded its portfolio with the acquisition of another Italian jeweller, Vhernier, in June. Both brands were acquired for relatively low dollar amounts, and management continues to manage the company conservatively and for the long term. We expect strong tailwinds over the medium to long term across the luxury industry and believe Richemont remains well-positioned to capitalize on the industry’s growth.

BSD Analysis:
Richemont’s dominant position in branded jewelry provides superior pricing power, resilience in downturns, and structural growth, as evidenced by double-digit segment expansion. The Buccellati and Vhernier acquisitions strengthen its high-end portfolio at attractive valuations, adding long-term optionality and enhancing margin mix. Management’s conservative capital allocation and brand stewardship ensure disciplined growth without overextending the balance sheet. As the luxury sector increasingly polarizes toward top-tier brands, Richemont’s maisons are primed to capture disproportionate share. The stock remains compelling given its durable competitive moat, diversified global demand, and multiyear catalysts through portfolio expansion and secular luxury growth.

Pitch Summary:
Our second-best performer in the quarter was Alphabet Inc. (GOOGL) +13.5%. During the quarter, Alphabet hosted its annual developer conference, highlighting its advancements in AI tools across its product suite. Google’s AI Overview product continues to gain traction with over 1.5 billion monthly users, and its direct ChatGPT competitor, Gemini, is now used by more than 400 million people each month. Recent updates have reinstated the company’s models to the top of the AI power rankings. Importantly for shareholders, AI Overviews have been increasing the total number of queries at Google, which the company is monetizing at a similar rate to traditional search. Google’s business fundamentals remain healthy, with operating earnings growing 20% in Q1.

BSD Analysis:
Alphabet is executing a major AI transition from a position of strength, with massive user scale, top-tier model performance, and strong early monetization indicators via AI-enhanced search. Query growth driven by AI Overviews signals incremental engagement, boosting long-term ad inventory and monetization capacity. Gemini’s fast adoption reinforces Alphabet’s competitive moat across consumer and enterprise AI applications. With operating income growing 20% and Cloud accelerating, Alphabet remains fundamentally strong while still trading at a reasonable multiple relative to its durable growth prospects. Continued gains in AI relevance, monetization efficiency, and infrastructure leadership position the company for sustained long-term compounding.

Pitch Summary:
The top contributor to the portfolio in the second quarter was American Express (AXP) +18.6%. AXP’s affluent customer base continued to spend in Q1, with revenues up 8% at constant currency, causing the stock to end the quarter just shy of its all-time high. During Q2, AXP announced upgrades to its US Consumer and Business Platinum cards, which will be released later this year. AXP continues to tailor its products to capture the spending of younger consumers, with Millennials and Gen Z now accounting for 35% of total US consumer spending. We believe these investments will strengthen the company’s network effect and further lock young consumers into AXP’s ecosystem as their incomes and card spending continue to rise. Additionally, AXP is widening its use cases on the commercial side of the business with recent product launches tailored towards working capital and expense management. This should expand the number of transactions that AXP can participate in and increase switching costs with commercial card users.

BSD Analysis:
AXP continues to demonstrate strong brand power, premium customer positioning, and a widening network advantage as younger cohorts increasingly adopt the platform. Revenue growth in the high single digits highlights healthy spending trends and durability in its affluent client base, supporting further operating leverage. The company’s strategy of enhancing premium card rewards and expanding commercial-use cases should deepen engagement and boost lifetime customer value. With consistent mid-teens ROE, disciplined expense control, and a resilient credit profile, AXP trades at a valuation that still underappreciates its long runway for compounding. The fund’s view that ecosystem reinforcement and higher switching costs will continue to drive durable growth remains well supported.

Pitch Summary:
Edenred is the largest employee benefits provider globally, connecting over 60 million users, one million corporate clients, and two million partner merchants across 45 countries. Its meal voucher ecosystem benefits from strong network effects and decades-long market concentration. While regulatory scrutiny has intensified in Italy, France, and Brazil, the financial impact to date has been modest. The company’s valuation has compressed materially, from ~30x forward PE to ~10x, despite continued ~10% organic growth and resilient earnings. Management believes today’s lower valuation and greater clarity around regulatory outcomes set up a favourable asymmetry for future returns. :contentReference[oaicite:5]{index=5}

BSD Analysis:
Eedenred is evolving from a meal-voucher issuer into a full-stack workplace payments platform with real pricing power. Digitalization has turbocharged its economics, shifting the business from paper logistics to high-margin software and fintech rails. The company benefits from regulatory frameworks that essentially force adoption of its products in multiple markets, creating natural moat effects. Cross-selling between benefits, mobility, and corporate payments is still in early innings, giving Edenred a long runway for wallet-share expansion. The recurring nature of its contracts makes revenue durable even during economic soft patches. While the stock occasionally trades like a utility, the underlying growth profile looks more like a fintech compounder. Investors underestimate how much operating leverage Edenred can still unlock.

Pitch Summary:
Dollarama was the largest contributor to the Fund’s FY25 performance. The company operates the largest dollar store chain in Canada with over 1,500 stores – six times more locations than its nearest competitor. It sells general merchandise, consumables, and seasonal items up to $5. Dollarama appeals to a broad demographic, using multiple price points to maintain affordability while attracting higher-income shoppers. FY25 represented another period of relentless execution, with same-store sales growing ahead of expectations, international expansion plans progressing, and sentiment improving. :contentReference[oaicite:4]{index=4}

BSD Analysis:
Dollarama’s defensive traffic trends, exceptional cost controls, and industry-leading margins (>25%) support consistent double-digit earnings growth. Expansion into Latin America and Australia extends its unit growth runway. Despite a richer multiple, sustained share gains, strong cash generation, and disciplined capital allocation justify a premium valuation.

Pitch Summary:
Icon, a top-tier global clinical research organisation (CRO), saw a 25% reduction in consensus 2027 EPS estimates during the year, and a more than 50% decline in its stock price. In our view, its currently depressed valuation reflects one of two market narratives: either investors believe the reduction in R&D spending by pharma companies in recent years is permanent, thereby limiting Icon’s future growth potential, or more likely, the market sees no immediate growth catalysts and views the stock as ‘dead money’ in the near term. With the stock trading at a 10% free cash flow yield, we consider the downside risk limited and are content to be patient. :contentReference[oaicite:3]{index=3}

BSD Analysis:
Icon’s valuation reset embeds pessimistic assumptions on pharma R&D cycles despite its entrenched competitive positioning and long-term outsourcing tailwinds. With CRO peers trading at materially higher EV/EBITDA multiples, mean reversion offers upside as funding conditions normalize. The company generates strong cash conversion, enabling deleveraging and buybacks. Contract wins and biotech funding recovery serve as forward catalysts.

Pitch Summary:
Visional is the leading anonymous professional job matching service in Japan. It operates a reverse-search model, where professionals create searchable profiles while maintaining privacy until they choose to engage with potential employers or headhunters. Visional has a leading share in a secularly growing market. Traditionally, Japanese professionals have remained employed by the same company for the long-term, with far less mid-career mobility than in other developed markets. This is now changing as Japan’s declining population creates labour shortages and accelerating corporate transformation demands more dynamic workforce management, driving more frequent job changes and higher wages. :contentReference[oaicite:2]{index=2}

BSD Analysis:
Visional benefits from powerful marketplace network effects and structural labor shifts in Japan. With secular tailwinds pushing mid-career mobility, Visional can sustain >15% revenue growth with expanding margins. Its high-ROE, asset-light model suggests substantial free cash flow compounding. Catalysts include enterprise adoption, new vertical expansion, and continued penetration of recruitment budgets.

Pitch Summary:
Heico develops and sells aircraft parts that serve as alternatives to the expensive parts sold by original equipment manufacturers. Its non-original parts continue to take share of the total parts market due to their high quality and low prices – the latter maintained even as original part competitors price rapaciously. Strong demand from commercial airlines, coupled with optimism around higher defence spending and greater government efficiency, lifted Heico’s sales and earnings growth outlook during FY25. :contentReference[oaicite:1]{index=1}

BSD Analysis:
Heico’s long runway in PMA parts, plus consolidation tailwinds in aerospace maintenance, positions it for durable mid-teens earnings growth. Trading at a premium EV/EBITDA multiple versus peers is supported by consistently high ROIC and recurring aftermarket revenue. Defense budget expansion provides an incremental growth lever, while M&A remains a reliable compounding engine.

Pitch Summary:
Wise is the largest non-bank FX transfer service globally, with a Founder-led dedication to lowering fees on cross-border transactions. It has grown strongly for years as consumers and small businesses have gravitated to its attractively priced, convenient, fast, and transparent transfer offering. However, Wise’s ultimate goal is to replace the aging financial plumbing that banks use to facilitate currency transfers, a market multiples the size of the consumer market. During FY25 Wise saw several large legacy banks adopt its B2B service, increasing the likelihood of it achieving this long-term goal. :contentReference[oaicite:0]{index=0}

BSD Analysis:
Wise’s model benefits from scale, strong unit economics, and a structurally advantaged cost base versus incumbents. Shares trade at a premium to traditional payment processors, supported by ~20–25% revenue growth and expanding operating leverage. With improving B2B traction and rising take rates, Wise’s multi-year earnings CAGR could exceed 20%. Key catalysts include additional bank partnerships, increasing international penetration, and continued margin expansion.