Financial Data and Key Metrics Changes - In 2024, the company achieved 16% organic revenue growth and returned $5.5 billion to shareholders through share repurchase [15] - Adjusted operating margins expanded by 70 basis points, and adjusted earnings per share increased by 17% to $8.80, marking the 39th consecutive year of double-digit adjusted EPS growth [15] Business Line Data and Key Metrics Changes - The company is generating accelerated growth with bank partners and small to mid-sized businesses through its small business integrated suite with Clover [16] - Investments are being made in cutting-edge cloud-based account processing systems for banks, credit unions, card issuers, and fintechs [17] Market Data and Key Metrics Changes - The company is focused on extending the reach of merchant solutions, including Clover, outside of the U.S., where significant growth opportunities exist [20] - The acquisition of Payfair enhances the company's embedded finance offering, connecting merchant and financial institution ecosystems [21] Company Strategy and Development Direction - The company remains committed to expanding its portfolio of value-added solutions to deepen client relationships globally [16] - There is a focus on operational excellence and creating sustainable long-term shareholder value [18] Management's Comments on Operating Environment and Future Outlook - The management believes the company is well-constructed to thrive in both the short and long term as commerce and banking become increasingly interconnected [17] - The company is excited about the enhanced capabilities brought by recent acquisitions and plans to continue investing both through acquisitions and organically [21] Other Important Information - The board of directors has been strengthened with recent additions who bring diverse experience in strategy, innovation, and technology [19] Q&A Session Summary Question: Recent changes to the board - The board aims to maintain a highly skilled and qualified team, with recent additions bringing strong backgrounds in strategy and technology [19] Question: Recent acquisitions - The company announced four small but strategic acquisitions in Q1, focusing on extending merchant solutions and enhancing embedded finance offerings [20][21]

Company Leadership Change - Fiserv has appointed Michael Lyons as the new CEO following the departure of Frank Bisignano, who has been nominated to lead the Social Security Administration [1][2] - Lyons has extensive experience in the banking sector, previously serving as president of PNC Financial Services Group and holding leadership roles at Bank of America [2] Company Vision and Strategy - Lyons emphasized Fiserv's commitment to innovation and delivering exceptional solutions to financial institutions, merchants, and communities, while also focusing on growth and long-term value for shareholders [2] - The company has a history of being a transformative force in financial technology for over 40 years [2] Previous CEO's Transition - Frank Bisignano's nomination to the Social Security Administration was confirmed by the U.S. Senate, with a vote that reflected party lines [3] - Bisignano had previously served as CEO of Fiserv since 2020 and was instrumental in overseeing the integration of First Data after its acquisition by Fiserv in 2019 [6]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Fiserv, Inc. for the quarterly period ended March 31, 2025. It includes the Consolidated Statements of Income, Comprehensive Income, Balance Sheets, and Cash Flows, along with detailed Notes to the Financial Statements. Management affirms that all necessary adjustments for a fair presentation have been included. - The financial statements are unaudited and include all normal recurring adjustments deemed necessary by management for a fair presentation. They should be read in conjunction with the 2024 Annual Report on Form 10-K[20](index=20&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, Fiserv reported total revenues of $5.13 billion, an increase from $4.88 billion in the prior year period. Net income attributable to Fiserv, Inc. rose to $851 million, or $1.51 per diluted share, compared to $735 million, or $1.24 per diluted share, in the same period of 2024. Consolidated Statements of Income Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$5,130** | **$4,883** | **+5.1%** | | Processing and services | $4,045 | $4,000 | +1.1% | | Product | $1,085 | $883 | +22.9% | | **Operating Income** | **$1,395** | **$1,181** | **+18.1%** | | **Net Income Attributable to Fiserv, Inc.** | **$851** | **$735** | **+15.8%** | | **Diluted EPS** | **$1.51** | **$1.24** | **+21.8%** | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Fiserv's total assets were $80.4 billion, up from $77.2 billion at year-end 2024. The increase was driven by growth in settlement assets and other intangible assets. Total liabilities also increased to $53.9 billion from $49.5 billion, primarily due to a rise in long-term debt. Total Fiserv, Inc. shareholders' equity decreased slightly to $25.9 billion. Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$80,402** | **$77,176** | | Goodwill | $36,983 | $36,584 | | **Total Liabilities** | **$53,881** | **$49,490** | | Long-term debt | $27,016 | $23,730 | | **Total Fiserv, Inc. Shareholders' Equity** | **$25,884** | **$27,068** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2025, net cash provided by operating activities was $648 million, a decrease from $831 million in the prior-year period. Net cash used in investing activities was $925 million, mainly for capital expenditures and acquisitions. Net cash provided by financing activities was $627 million, reflecting debt proceeds and share repurchases. Cash Flow Summary (Three Months Ended March 31) | Activity | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $648 | $831 | | Net cash used in investing activities | $(925) | $(397) | | Net cash provided by (used in) financing activities | $627 | $(189) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial statement items. Key disclosures include information on revenue recognition, recent acquisitions of Payfare and CCV, intangible assets, debt structure, and segment performance. The company adopted ASU 2023-07 for segment reporting, enhancing disclosures. - In March 2025, the company acquired Payfare, Inc. for **$95 million** and CCV Group B.V. for **$229 million**, expanding its embedded finance and POS payment solutions capabilities, respectively[52](index=52&type=chunk)[54](index=54&type=chunk) - Upon the expiration of the Wells Fargo Merchant Services (WFMS) joint venture on April 1, 2025, Fiserv received a cash payment of **$453 million**[59](index=59&type=chunk) - Total debt increased to **$28.3 billion** at March 31, 2025, from **$24.8 billion** at year-end 2024, primarily due to increased commercial paper borrowings[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q1 2025, highlighting a 5% increase in total revenue and an 18% rise in operating income year-over-year. The growth was driven by strong performance in both the Merchant and Financial segments. The discussion also covers liquidity, capital resources, including significant share repurchases and debt management, and recent acquisitions. [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenue grew 5% to $5.13 billion in Q1 2025, driven by higher processing revenue. The Merchant segment revenue increased 5% to $2.37 billion, and the Financial segment revenue grew 6% to $2.42 billion. Operating income increased 18% to $1.40 billion, with operating margin expanding by 300 basis points to 27.2%, benefiting from scalable revenue growth, expense management, and favorable revenue mix. Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$5,130M** | **$4,883M** | **+5%** | | Merchant Revenue | $2,372M | $2,253M | +5% | | Financial Revenue | $2,417M | $2,285M | +6% | | **Operating Income** | **$1,395M** | **$1,181M** | **+18%** | | **Operating Margin** | **27.2%** | **24.2%** | **+300 bps** | - Merchant segment growth was driven by a **5% contribution** from Small Business, primarily from increased payment volumes on the Clover platform, and a **2% contribution** from Enterprise transaction growth[150](index=150&type=chunk) - Financial segment growth was led by a **3% contribution** from Digital Payments (including Zelle transaction growth and data sales) and a **2% contribution** from Issuing due to more active accounts[151](index=151&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow for Q1 2025 was $648 million, a 22% decrease from Q1 2024, mainly due to higher working capital use. The company repurchased $2.2 billion of its common stock. Total debt stood at $28.3 billion, with primary liquidity sources being cash from operations, commercial paper programs, and a $6.0 billion revolving credit facility. The company remains in compliance with all debt covenants. - Net cash from operating activities decreased by **22%** to **$648 million** in Q1 2025 from **$831 million** in Q1 2024, primarily due to higher working capital use[168](index=168&type=chunk) - The company repurchased **$2.2 billion** of its common stock in the first three months of 2025. As of March 31, 2025, approximately **68.3 million shares** remained under existing repurchase authorizations[170](index=170&type=chunk) Debt Summary (March 31, 2025) | Debt Category | Outstanding Borrowings (in millions) | | :--- | :--- | | Fixed-rate senior notes | $21,800 | | Commercial paper programs | $4,124 | | Foreign lines of credit | $856 | | Revolving credit facility | $72 | | **Total Variable Rate Debt** | **$5,052** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Fiserv's primary market risks stem from fluctuations in interest rates and foreign currency exchange rates. The company actively monitors these risks and uses derivative instruments like forward exchange contracts and cross-currency swaps for hedging. Key foreign currency exposures include the Argentine Peso, Brazilian Real, British Pound, Euro, and Indian Rupee. There were no significant changes to market risk exposure in Q1 2025. - The company is primarily exposed to market risks from interest rate and foreign currency fluctuations[187](index=187&type=chunk) - Major foreign currency exposures are to the Argentine Peso, Brazilian Real, British Pound, Euro, and Indian Rupee. The company faces risks from currency devaluation, particularly in highly inflationary economies like Argentina[188](index=188&type=chunk) - No significant changes to the company's quantitative and qualitative analyses about market risk occurred during the first quarter of 2025[189](index=189&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes to the company's internal control over financial reporting during the quarter. - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[190](index=190&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal controls[191](index=191&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits in the normal course of business. Management does not expect the outcomes of these proceedings to have a material adverse effect on its consolidated financial statements. An accrual of $32 million was maintained for these matters as of March 31, 2025. - Management believes that liabilities from ongoing legal proceedings are not expected to have a material adverse effect on the company's financial statements[192](index=192&type=chunk) - The company maintained a legal accrual of **$32 million** as of March 31, 2025, with a possible range of exposure up to approximately **$120 million** in excess of amounts accrued[103](index=103&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during the first quarter of 2025. Fiserv repurchased a total of 9.72 million shares. The board of directors authorized the purchase of up to 60.0 million additional shares on February 19, 2025. Share Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 2,166,917 | $207.67 | | Feb 2025 | 3,230,000 | $232.02 | | Mar 2025 | 4,324,451 | $219.00 | | **Total** | **9,721,368** | **N/A** | - On February 19, 2025, the board of directors authorized the repurchase of up to an additional **60.0 million shares** of common stock[194](index=194&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, none of the company's directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement. - No directors or Section 16 officers adopted or terminated a Rule 10b5-1 Trading Plan or similar arrangement in Q1 2025[195](index=195&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including CEO and CFO certifications and Inline XBRL data files. - The exhibits filed with the report include CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and various Inline XBRL documents[198](index=198&type=chunk)

Group 1 - Fiserv, Inc. (NYSE: FI) has shown strong performance over the past year, driven by growth from its Clover offering [1] - Mixed Q1 results have led to a significant decline in the stock price [1]

Core Insights - Fiserv's shares dropped significantly after the first-quarter earnings report, indicating slowing growth in Clover point-of-sale operations and a decline in payments processing within the Merchant Solutions segment due to reduced consumer discretionary spending [1][2][3] Financial Performance - Clover revenues increased by 27%, a slowdown from 29% in the previous quarter, while annualized Gross Payment Volume (GPV) reached $296 billion, reflecting an 8% growth, down from 14% [3] - Adjusted revenues in the payments processing unit of Merchant Solutions fell by 9% year-on-year to $276 million [3] - Organic revenue growth in the Financial Solutions segment was reported at 6%, with banking continuing to see investments in core modernization [5][6] Growth Outlook - Executives expressed confidence in accelerating growth as the year progresses, driven by existing contracts, key initiatives, and acquisitions such as Payfare and CCV [2][4] - Merchant Solutions organic revenue is projected to grow between 12% and 15% for the year, while Financial Solutions organic revenue is expected to grow between 6% and 8% [8] Market Dynamics - The slowdown in Clover's volume growth was partly attributed to reduced spending in Canada, which is the largest international market for Clover [7] - The company anticipates that revenue growth will be more pronounced in the second half of the year, with several new products and markets expected to contribute [9] Strategic Initiatives - The acquisition of Money Money in Brazil aims to enhance capital offerings to merchants through improved risk scoring capabilities [5] - The company is focusing on expanding its embedded finance offerings and leveraging its extensive bank partnerships to drive growth [9][10]

Core Viewpoint - Fiserv, Inc. reported mixed first-quarter 2025 results with earnings exceeding estimates while revenues fell short of expectations [1] Financial Performance - Adjusted earnings per share were $2.14, beating the Zacks Consensus Estimate by 2.9% and increasing 13.8% year over year [1] - Adjusted revenues totaled $4.8 billion, missing the consensus estimate by 1.6% but growing 5.5% year over year [1] Segment Performance - Processing and services revenues were $4 billion, slightly declining year over year and missing the estimate of $4.3 billion [3] - Product segment revenues reached $1.1 billion, rising 22.9% from the previous year and exceeding expectations of $988.5 million [3] - Merchant Solutions revenues were $2.4 billion, increasing 5.3% year over year but missing the estimate of $2.5 billion [4] - Financial Solutions segment reported revenues of $2.4 billion, marking a 5.8% increase year over year and meeting projections [4] - Operating margin for Merchant Solutions was 34.2%, up 10 basis points year over year, while Financial Solutions' operating margin was 47.5%, increasing 340 basis points from the previous year [4] Balance Sheet & Cash Flow - Fiserv ended Q1 2025 with cash and cash equivalents of $1.2 billion, unchanged from Q4 2024 [5] - Long-term debt increased to $27 billion from $23.7 billion in the previous quarter [5] - Generated $648 million in net cash from operating activities and $371 million in free cash flow, with capital expenditures of $335 million [5] - The company repurchased 9.7 million shares for $2.2 billion during the quarter [5] Guidance - Fiserv expects adjusted earnings per share in the range of $10.1-$10.3, higher than the Zacks Consensus Estimate of $2.07 [6] - Anticipates year-over-year earnings growth of 15-17% and organic revenue growth of 10-12% [6]

Financial Data and Key Metrics Changes - Total company organic revenue growth was 7%, adjusted earnings per share increased by 14%, and adjusted operating margin rose by 200 basis points [15][49][67] - Free cash flow for the quarter was $371 million, with a trailing twelve months free cash flow of $5.2 billion, and an expectation of approximately $5.5 billion for 2025 [48][67] - Adjusted operating income growth was 11%, with total company adjusted operating margin at 37.8% [49][67] Business Line Data and Key Metrics Changes - Merchant Solutions segment posted 8% organic revenue growth and 5% adjusted revenue growth, with small business organic revenue growth at 10% and Clover revenue growth at 27% [19][50][53] - Financial Solutions segment achieved 6% organic and adjusted revenue growth, driven by digital payments and issuing, with digital payments growing by 8% [34][60] Market Data and Key Metrics Changes - The company expanded Clover into four new countries: Mexico, Brazil, Australia, and Singapore, increasing the total number of Clover countries to 13 [21][22] - The company added 33 new financial institution partners in the U.S. during Q1, marking an acceleration from the previous year [27][30] Company Strategy and Development Direction - The company is focused on executing growth initiatives, including strategic acquisitions and enhancing its product offerings, particularly in embedded finance and digital banking [11][12][16] - The management emphasized the importance of leveraging artificial intelligence and data to improve client services and operational efficiency [10][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and prospects, anticipating accelerated growth in the latter half of the year [15][70] - The company expects organic revenue growth of 10% to 12% and adjusted earnings per share in the range of $10.1 to $10.3 for 2025 [69][72] Other Important Information - The company completed several strategic acquisitions, including Payfair, CCV Group, and Pinch Payments, to enhance its capabilities in embedded finance and payment solutions [17][18] - The company repurchased nearly 10 million shares for $2.2 billion, demonstrating confidence in its business outlook [68] Q&A Session Summary Question: Trends in the merchant business and Clover growth expectations - Management highlighted strong Clover revenue growth of 27% and anticipated further volume growth as new products and international expansions roll out [76][78] Question: Thoughts on the Global Payments FIS asset swap - Management emphasized Fiserv's unique position with Clover and its extensive partnership model, which differentiates it from competitors [86][88] Question: Headwinds in Clover volumes, particularly in Canada - Management indicated that the headwinds were primarily discretionary spending related to travel and were specific to Canada, with overall business balance remaining strong [96][98] Question: Contribution of new acquisitions to revenue growth - Management clarified that the impact of new acquisitions would be minimal in the short term, with significant contributions expected in late 2025 and beyond [108][109] Question: Market dynamics driving new financial institution partnerships - Management noted increasing interest from banks in serving small businesses, driven by the profitability of cash flow transactions and the capabilities offered by Fiserv [111][113]

Fiserv (FI) Q1 2025 Earnings Call April 24, 2025 05:09 PM ET Company Participants Julie Chariell - Senior Vice President, Investor RelationsFrank Bisignano - Chairman & CEOMike Lyons - President and CEO-Elect of Fiserv, IncRobert Hau - Chief Financial OfficerDarrin Peller - Managing DirectorRamsey El-Assal - Managing DirectorTimothy Chiodo - Managing DirectorWill Nance - Vice PresidentJames Faucette - Managing Director Conference Call Participants Tien-tsin Huang - Senior AnalystJason Kupferberg - Senior Eq ...

Core Insights - Fiserv reported revenue of $4.79 billion for the quarter ended March 2025, reflecting a year-over-year increase of 5.4% [1] - The company's EPS was $2.14, up from $1.88 in the same quarter last year, surpassing the consensus estimate of $2.08 by 2.88% [1] - Revenue fell short of the Zacks Consensus Estimate of $4.86 billion, resulting in a surprise of -1.55% [1] Financial Performance Metrics - Adjusted Revenue from Merchant Solutions was $2.37 billion, below the average estimate of $2.47 billion [4] - Adjusted Revenue from Financial Solutions was $2.42 billion, slightly above the average estimate of $2.41 billion [4] - Revenue from Products reached $1.09 billion, exceeding the four-analyst average estimate of $960.12 million, marking a year-over-year increase of 22.9% [4] - Revenue from Corporate and Other was $341 million, slightly below the estimated $345.50 million [4] - Revenue from Processing and Services was $4.05 billion, below the average estimate of $4.27 billion, with a year-over-year change of 1.1% [4] - Operating income for Corporate and Other was -$563 million, worse than the average estimate of -$485.91 million [4] - Operating income for Financial Solutions was $1.15 billion, exceeding the estimate of $1.10 billion [4] - Operating income for Merchant Solutions was $810 million, slightly below the average estimate of $821.52 million [4] Stock Performance - Fiserv's shares returned -2.1% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Fiserv, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $4.79 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.55%. This compares to year-ago revenues of $4.54 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commenta ...