Core Viewpoint - Fiserv's stock has decreased by 73% over the past year, indicating significant challenges despite being a key player in the financial services sector [1] Group 1: Issues Faced - Fiserv has lost market share to smaller, more innovative competitors, which has contributed to its decline [3] - The company's third-quarter report in October revealed a miss on earnings expectations, with earnings per share falling short by $0.61 [4] Group 2: Strategic Changes - A new CEO, Mike Lyons, has been appointed to implement a growth strategy called the One Fiserv plan, focusing on artificial intelligence and new technology [5] - The plan includes hiring a new management team and emphasizing quality recurring revenue streams, although results may take time to materialize [5] Group 3: Market Position and Future Outlook - Fiserv remains a dominant player in several categories and has a robust digital platform to adapt to customer demands [7] - Recent partnerships with Microsoft and Mastercard aim to enhance its technological capabilities and market presence [8] - Investors are looking for signs of higher revenue growth and an improved outlook to indicate a transition from stability to growth [9]

Shareholder Information - As of December 31, 2025, the company's common stock was held by 1,406 shareholders of record, with no dividends paid or anticipated in the foreseeable future [154]. - The company repurchased 32.2 million shares for $5.6 billion during 2025, with approximately 45.9 million shares remaining under the existing repurchase authorization [233]. - The company’s stock performance over five years shows a cumulative total shareholder return compared to the S&P 500 and NASDAQ indices, with no cash dividends declared [157]. Acquisitions and Business Strategy - The company acquired StoneCastle Cash Management, LLC and other businesses for an aggregate purchase price of $856 million, enhancing its deposit funding solutions and expanding the Clover platform [171][168]. - The company expects to divest businesses not aligned with its market or financial strategies, while pursuing acquisitions that meet strategic needs [167]. - The company acquired several businesses in 2025 for a total purchase price of $856 million, funded through available cash and commercial paper [234]. Financial Performance - Total revenue increased by $737 million, or 4%, in 2025 compared to 2024, with Merchant segment growth of 5% and Financial segment growth of 2% [210]. - Total expenses increased by $798 million, or 5%, with total expenses as a percentage of total revenue rising to 72.5% in 2025, an increase of 120 basis points [213]. - Operating income decreased by $61 million, or 1%, with total operating margin decreasing by 120 basis points to 27.5% in 2025 compared to 2024 [218]. - Net income attributable to Fiserv, Inc. per share-diluted increased to $6.34 in 2025 from $5.38 in 2024, supported by a 6% reduction in diluted weighted average outstanding shares [227]. - Income from investments in unconsolidated affiliates was $37 million in 2025, a significant recovery from a loss of $(685) million in 2024, which included a $595 million non-cash impairment [225]. Revenue Composition - Processing and services revenue comprised 80% of total revenue in 2025, generating $16,879 million, while product revenue comprised 20%, generating $4,314 million [204][205]. - Revenue in the Merchant segment rose by $509 million, or 5%, driven by small business volume growth and enterprise transaction growth [211]. - Revenue in the Financial segment increased by $187 million, or 2%, driven by growth in Digital Payments and Issuing [212]. Expenses and Costs - Interest expense, net increased by $298 million, or 25%, in 2025 due to debt financing activities, including the issuance of $2.0 billion in senior notes [222]. - Cost of processing and services as a percentage of processing and services revenue increased to 34.4% in 2025 from 32.2% in 2024 [214]. - Cost of product as a percentage of product revenue decreased to 65.1% in 2025 from 69.4% in 2024, positively impacted by high margin data and analytics sales [215]. Cash Flow and Capital Expenditures - Operating cash flow was $6.1 billion in 2025, a decrease of 9% from $6.6 billion in 2024, primarily due to lower profitability [230]. - Capital expenditures were approximately 8% of total revenue in both 2025 and 2024, totaling $1.763 billion in 2025, an increase of 12% from $1.569 billion in 2024 [229]. - Future cash requirements under contractual obligations total $42.220 billion as of December 31, 2025, with $4.092 billion due within one year [232]. Debt and Financing - Total long-term debt increased to $27.758 billion in 2025 from $23.730 billion in 2024, with significant new issuances including $2.0 billion of senior notes in August 2025 [239]. - The company maintained variable rate debt totaling $2.115 billion with a weighted average interest rate of 11.870% as of December 31, 2025 [245]. - The company has guaranteed $399 million in senior unsecured debt for its Lending Joint Ventures as of December 31, 2025 [252]. Economic and Market Conditions - The global payments landscape is evolving with increasing digital payments and e-commerce, driving competition and necessitating modernization of technology [175]. - Financial institutions are increasingly focusing on innovative payment solutions, with a growing demand for faster and more convenient options across mobile channels, online applications, and digital currencies [181]. - The company actively monitors global macroeconomic conditions, including interest rates and inflation, which could materially affect business operations and financial results [182]. Goodwill and Intangible Assets - As of December 31, 2025, the company's goodwill of $37.7 billion was not impaired, with fair values exceeding carrying values for each reporting unit [188]. - The company performed an additional evaluation of intangible assets and determined no impairment as of December 31, 2025 [189]. - The company has no accumulated goodwill impairment through December 31, 2025, indicating stable asset valuation [188]. Compliance and Credit Ratings - The company was in compliance with all financial debt covenants during the year ended December 31, 2025, and expects to remain compliant [251]. - Fiserv's corporate credit rating was Baa2 with a stable outlook from Moody's and BBB with a negative outlook from S&P as of December 31, 2025 [254].

Group 1 - Bridgewater Associates significantly increased its holdings in technology stocks and gold-related stocks in Q4 2025, including Nvidia, Amazon, and Newmont Corporation [1][2] - The total market value of Bridgewater's holdings reached $27.4 billion in Q4 2025, up from $25.5 billion in Q3 2025 [2] - The top ten holdings accounted for 36.35% of the total portfolio, with SPDR S&P 500 ETF (SPY) and iShares S&P 500 ETF (IVV) being the largest positions [2][3] Group 2 - Bridgewater increased its Nvidia shares from 2.51 million to 3.87 million, a 54% increase, and also raised its Amazon shares to 1.95 million [4] - The largest reductions in holdings were in Uber, Fiserv, Google, Meta, and Microsoft [4] - The report indicates a shift in asset allocation from the U.S. to international markets, with a notable focus on gold as a strong asset class [7][8] Group 3 - Ray Dalio emphasized that the main sources of returns in 2025 were changes in currency values and the underperformance of U.S. stocks compared to non-U.S. stocks and gold [7] - The dollar depreciated against several currencies, with a 39% decline against gold, highlighting gold's status as a strong asset [7] - Current high price-to-earnings ratios and low credit spreads indicate that overall valuations are expensive, with expected long-term stock returns at about 4.7% [8]

Core Insights - Fiserv is focusing on artificial intelligence to enhance its relevance with banks and merchants while managing costs [1][2] - The company is undergoing a strategic review to address an earnings slump, which includes simplifying its business operations [1] Earnings Performance - For Q4, Fiserv reported adjusted earnings per share (EPS) of $1.99, a decrease of 21% from Q4 2024, while full-year EPS for 2025 was $8.64, down 2% from 2024 [3] - Adjusted revenue for Q4 was $4.90 billion, unchanged from the previous year, and full-year adjusted revenue was $19.80 billion, reflecting a 4% increase from 2024 [3] Future Projections - Fiserv anticipates organic revenue growth of 1% to 3% for 2026, with projected EPS ranging from $8.00 to $8.30 [4] - The company's performance is expected to be below expectations in the first half of 2026, with improvements anticipated later in the year [6] Strategic Changes - Following a significant earnings miss in Q3, Fiserv initiated a restructuring plan called One Fiserv, which included leadership changes [5] - The company is particularly focused on developing agentic AI tools for small to mid-sized businesses, addressing the challenges these organizations face in adopting new technologies [2][7]

Core Insights - Fiserv, Inc. (FISV) reported mixed fourth-quarter 2025 results, with earnings exceeding expectations while revenues fell short [1] Financial Performance - Adjusted earnings per share were $1.99, surpassing the Zacks Consensus Estimate by 4.7%, but down 20.7% year over year [1] - Adjusted revenues totaled $4.9 billion, missing the consensus estimate by 1% and declining 6.7% year over year [1] - Processing and services revenues were $4.3 billion, slightly down year over year but meeting the consensus estimate [3] - Product segment revenues reached $1 billion, up 3.6% from the previous year and beating the consensus estimate of $999.6 million [3] - Merchant solutions generated $2.5 billion in adjusted revenues, a 1.5% year-over-year increase, but missed the consensus mark of $2.6 billion [4] - Financial solutions segment reported adjusted revenues of $2.4 billion, a 1.6% decrease year over year, but met the Zacks Consensus Estimate [5] - Operating income was $816 million, down 1.6% year over year, missing the consensus estimate of $833.9 million [4] Balance Sheet & Cash Flow - Fiserv ended the fourth quarter with cash and cash equivalents of $798 million, down from $1.1 billion in the third quarter [6] - Long-term debt decreased to $27.8 billion from $28.9 billion in the previous quarter [6] - The company generated $1.9 billion in net cash from operating activities and reported free cash flow of $1.6 billion, with capital expenditure at $442 million [6] 2026 Guidance - For 2026, management anticipates organic revenue growth of 1-3% and expects EPS in the range of $8-$8.3, with the midpoint of $8.15 exceeding the consensus mark of $8.12 [7]

Core Viewpoint - Fiserv reported quarterly earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.90 per share, but down from $2.51 per share a year ago, indicating an earnings surprise of +4.94% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Fiserv's revenues for the quarter were $4.9 billion, matching year-ago revenues but missing the Zacks Consensus Estimate by 0.97% [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] Group 2: Stock Performance and Outlook - Fiserv shares have declined approximately 10.5% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.76 on revenues of $4.86 billion, and for the current fiscal year, it is $8.12 on revenues of $20.55 billion [7] Group 3: Industry Context - The Financial Transaction Services industry, to which Fiserv belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Financial Data and Key Metrics Changes - Total company Q4 adjusted revenue was $4.9 billion, flat year-over-year, with adjusted operating income of $1.7 billion, resulting in an adjusted operating margin of 34.9% [22] - Full year total company adjusted revenue reached $19.8 billion, up 4%, with adjusted operating income of $7.4 billion, resulting in an adjusted operating margin of 37.4%, a decrease of 200 basis points [22] - Q4 organic revenue was roughly flat, down approximately 40 basis points, resulting in annual organic revenue growth of 3.8% [22] Business Line Data and Key Metrics Changes - Merchant Solutions grew 6% organically for the year, while Financial Solutions grew 2% [23] - Q4 adjusted earnings per share was $1.99, with annual adjusted earnings per share of $8.64, above the guidance range of $8.50-$8.60 [23] - Clover revenue grew 12% in Q4, 2 percentage points higher than guidance, with Clover volume growth at 6% on a reported basis [24] Market Data and Key Metrics Changes - Clover Capital grew 30% in 2025 in North America, indicating significant upside potential [11] - Internationally, the launch in Brazil was highly successful, with results tracking ahead of plan [11] - Canada experienced strong growth in 2025, expected to accelerate with a new strategic relationship with TD [11] Company Strategy and Development Direction - The company is focused on a client-first mindset, building a preeminent small business operating platform through Clover, and delivering operational excellence enabled by AI [7] - The One Fiserv plan is integrated into the 2026 strategy, emphasizing disciplined capital allocation and operational efficiency [6][18] - The company aims to capitalize on opportunities in embedded finance, stablecoins, and merchant liquidity optimization [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the multi-quarter path towards delivering strong, sustainable operating performance [4] - The company anticipates that Q1 will represent the trough for free cash flow conversion, with expectations for adjusted revenue growth in the range of 1%-3% for 2026 [30][33] - Management acknowledged challenges in the first half of 2026 due to a higher mix of non-recurring revenue but remains confident in the execution of their strategy [5][30] Other Important Information - The company repurchased 3 million shares during the quarter for approximately $200 million and paid down over $1 billion in debt [29] - Project Elevate incurred $73 million in expenses related to the program, with expectations for continued one-time costs in 2026 [29] Q&A Session Summary Question: Can you touch on whether the review of the business has accomplished everything needed? - Management feels confident about the progress made and believes the conclusions from the analysis are fully reflected in the Q4 results and 2026 guidance [36] Question: Can you provide more detail on pricing actions within the digital payments segment? - Management noted satisfaction with the sequential improvement in digital payments and growth in network volumes, with no new developments in Q4 [40][42] Question: How much of the expenses for executing One Fiserv are structural versus one-time? - Management indicated that expenses related to One Fiserv are largely baked in, with some startup-related expenses expected to increase as the project broadens [47][49] Question: What do you expect from the non-Clover part of SMB? - Management expects slight growth in the non-Clover SMB for next year, with Argentina no longer being a growth factor [52][54] Question: Can you discuss the outlook for Clover yield and areas for durable value addition? - Management is optimistic about Clover's growth, emphasizing the importance of partnerships and value-added services to drive higher yield [58][60]

Financial Data and Key Metrics Changes - Total company Q4 adjusted revenue was $4.9 billion, flat year-over-year, with adjusted operating income of $1.7 billion, resulting in an adjusted operating margin of 34.9% [22] - Full year total company adjusted revenue reached $19.8 billion, up 4%, with adjusted operating income of $7.4 billion, resulting in an adjusted operating margin of 37.4%, a decrease of 200 basis points [22] - Total company organic revenue was roughly flat, down approximately 40 basis points in Q4, resulting in annual organic revenue growth of 3.8% [22] Business Line Data and Key Metrics Changes - Merchant Solutions grew 6% organically for the year, while Financial Solutions grew 2% [22] - Q4 adjusted earnings per share was $1.99, with annual adjusted earnings per share of $8.64, above the guidance range of $8.50-$8.60 [22] - Merchant Solutions organic revenue growth was 1% for the quarter, while adjusted revenue grew 2% [23] - Clover revenue grew 12% in Q4, 2 percentage points higher than guidance, with Clover volume growth of 6% on a reported basis [24] Market Data and Key Metrics Changes - Clover Capital grew 30% in 2025 in North America, indicating significant upside potential [11] - Internationally, the launch in Brazil was highly successful, with results tracking ahead of plan [11] - Canada experienced strong growth in 2025, expected to accelerate with a new strategic relationship with TD [11] Company Strategy and Development Direction - The company is focused on a client-first mindset, building a preeminent small business operating platform through Clover, and delivering operational excellence enabled by AI [7] - The One Fiserv plan is integrated into the 2026 strategy, emphasizing disciplined capital allocation and operational efficiency [6][18] - The company aims to leverage new technologies, especially AI, to capitalize on opportunities in embedded finance and stablecoins [20] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the multi-quarter path towards delivering strong, sustainable operating performance [4] - The company acknowledged that Q4 results were below expectations but emphasized the importance of investing in the franchise [5] - Management is confident in the strategy and ability to execute, highlighting the unique position in the financial ecosystem [19] Other Important Information - The company repurchased 3 million shares during the quarter for approximately $200 million and paid down over $1 billion in debt [29] - Project Elevate incurred $73 million of expenses in Q4, with ongoing one-time costs expected in 2026 [29] Q&A Session Summary Question: Can you touch on whether the review of the business has accomplished everything needed? - Management feels great about the progress and is confident in the numbers going forward, with no new surprises [36] Question: Can you provide an update on digital payments and pricing actions? - Management noted sequential improvement in digital payments and good volume growth, particularly in debit processing [40][42] Question: How much of the expenses for One Fiserv are structural versus one-time? - Management indicated that expenses related to One Fiserv are largely baked in, with some increase expected as the project broadens [48] Question: What do you expect from the non-Clover part of SMB? - Management expects slight growth in the non-Clover SMB for next year, with Argentina no longer being a growth factor [54] Question: Can you discuss Clover yield and areas for durable value? - Management is optimistic about yield growth through vertical expansions and value-added services embedded in Clover [60]

Financial Data and Key Metrics Changes - Total company Q4 adjusted revenue was $4.9 billion, flat year-over-year, with adjusted operating income of $1.7 billion, resulting in an adjusted operating margin of 34.9% [20] - Full year total company adjusted revenue reached $19.8 billion, up 4%, with adjusted operating income of $7.4 billion, resulting in an adjusted operating margin of 37.4%, a decrease of 200 basis points [20] - Total company organic revenue was roughly flat, down approximately 40 basis points in Q4, resulting in annual organic revenue growth of 3.8% [20] Business Line Data and Key Metrics Changes - Merchant Solutions grew 6% organically for the year, while Financial Solutions grew 2% [21] - Q4 Merchant Solutions organic revenue growth was 1%, while adjusted revenue grew 2% [22] - Clover revenue grew 12% in Q4, with Clover volume growth of 6% on a reported basis and 9% excluding gateway conversion [23] - Financial Solutions saw both organic and adjusted revenue decline by 2% in Q4 [26] Market Data and Key Metrics Changes - Clover Capital grew 30% in 2025 in North America, with significant upside potential [10] - Internationally, the launch in Brazil was highly successful, with results tracking ahead of plan [10] - Canada experienced strong growth in 2025, expected to accelerate with a new strategic relationship with TD [10] Company Strategy and Development Direction - The company is focused on a client-first mindset, building a preeminent small business operating platform through Clover, and delivering operational excellence enabled by AI [5] - The One Fiserv plan is central to the company's strategy, integrating various business lines and enhancing client service [4] - The company is committed to disciplined capital allocation and evaluating businesses to align with its go-forward strategy [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the multi-quarter path towards delivering strong, sustainable operating performance [3] - The company anticipates that headline results will remain below expectations for the first half of 2026 due to investments and a higher mix of non-recurring revenue [4] - Management is confident in the strategy and ability to execute, emphasizing the unique position in the financial ecosystem [18] Other Important Information - The company repurchased 3 million shares during the quarter for approximately $200 million and paid down over $1 billion in debt [28] - Project Elevate incurred $73 million of expenses related to the program in Q4, with ongoing one-time costs expected in 2026 [28] Q&A Session Summary Question: Confidence in business review and future numbers - Management feels confident about the progress made and believes the conclusions from the analysis are fully reflected in the Q4 results and 2026 guidance [35] Question: Digital payments pricing actions - Management noted no new developments in Q4 related to pricing actions, but expressed satisfaction with the sequential improvement in digital payments and network volumes [41] Question: Expenses related to One Fiserv - Management indicated that expenses related to One Fiserv are largely baked in, with no material ramp-up expected, and highlighted the focus on process efficiencies moving forward [46] Question: SMB performance expectations - Management expects slight growth in non-Clover SMB for next year, with Argentina no longer a growth factor [52] Question: Clover yield outlook - Management is optimistic about yield growth driven by value-added services and vertical expansions, with expectations for long-term revenue growth [56]

© 2026 Fiserv, Inc. or its affiliates Fourth Quarter 2025 Financial Results February 10, 2026 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated adjusted and organic revenue growth, adjusted earnings per share, capital expenditures, free cash flow, free cash flow conversion, adjusted operating margin, a ...