© 2025 Fiserv, Inc. or its affiliates 1 © 2025 Fiserv, Inc. or its affiliates. World's Most Admired Companie sTM 2025 Fortune ® Magazine 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 organic revenue growth, adjusted earnings per share, adjusted earnings per share growth, free cash flow, adjusted op ...

Financial Performance - GAAP revenue increased by 5% to $5.13 billion in Q1 2025, with Merchant Solutions segment growing by 5% and Financial Solutions segment by 6%[2] - GAAP EPS rose by 22% to $1.51 in Q1 2025, with an operating margin of 27.2%, up from 24.2% in Q1 2024[3] - Adjusted revenue increased by 5% to $4.79 billion, with organic revenue growth of 7%, driven by 8% growth in Merchant Solutions and 6% in Financial Solutions[8] - Adjusted EPS grew by 14% to $2.14, with an adjusted operating margin of 37.8%, an increase of 200 basis points year-over-year[8] - Total revenue for Q1 2025 was $5,130 million, an increase from $4,883 million in Q1 2024, representing a growth of 5.05%[27] - Adjusted revenue for Q1 2025 was $4,789 million, up from $4,543 million in Q1 2024, reflecting a growth of 5.43%[27] - Operating income for Q1 2025 was $1,395 million, compared to $1,181 million in Q1 2024, marking an increase of 18.14%[27] - Adjusted operating income for Q1 2025 was $1,808 million, up from $1,629 million in Q1 2024, indicating a growth of 10.98%[27] - Net income for Q1 2025 was $848 million, an increase from $752 million in Q1 2024, representing a growth of 12.79%[30] Cash Flow and Shareholder Returns - Free cash flow was $371 million in Q1 2025, down from $454 million in the prior year period[8] - The company repurchased 9.7 million shares for $2.2 billion in Q1 2025[8] Future Outlook - Fiserv expects organic revenue growth of 10% to 12% and adjusted EPS of $10.10 to $10.30 for 2025, representing growth of 15% to 17%[6] - The company maintains its guidance for 2025, anticipating acceleration in the second half of the year[7] - The company's organic revenue growth outlook for 2025 is projected to be between 10% and 12%[45] - Adjusted earnings per share for 2025 is estimated to be in the range of $10.10 to $10.30, reflecting a growth of 15% to 17% compared to 2024[49] Strategic Initiatives - Four strategic acquisitions were completed in Q1 2025, including Payfare Inc. and CCV Group B.V.[8] - A new 2,000-employee fintech hub is planned to open in Overland Park, Kansas[8] Assets and Liabilities - Total assets as of March 31, 2025, were $80,402 million, an increase from $77,176 million as of December 31, 2024[33] - Total liabilities increased to $53,881 million as of March 31, 2025, compared to $49,490 million as of December 31, 2024[33] Costs and Adjustments - The company incurred $52 million in incremental executive compensation related to the transition of the CEO in Q1 2025[27] - The company incurred merger and integration costs of $81 million and severance costs of $157 million in 2024[49] - The impact of postage reimbursements on revenue is expected to be a decrease of 0.5% for 2025[45] - Currency fluctuations are anticipated to positively impact adjusted revenue by 1.5% for 2025[45] - Acquisition adjustments are expected to reduce revenue growth by 1.0% in 2025[45] - The company estimates a 5% decrease in amortization expense related to acquired intangible assets for 2025 compared to 2024[49] - The tax impact of adjustments is calculated using a tax rate of 20%, reflecting the company's effective tax rate[51]

Group 1: Acquisition Overview - Fiserv plans to acquire Brazilian FinTech company Money Money Servicos Financeiros S.A. to enhance its Clover platform for Brazilian small- to medium-sized businesses (SMBs) [1] - The acquisition will integrate Money Money's financing engine with Clover's cloud-based point-of-sale and business management platform [1][2] - The deal is subject to regulatory approval and is expected to close in the second quarter [2] Group 2: Strategic Importance - The addition of Money Money's services aims to boost growth for Fiserv's acquiring clients by facilitating access to necessary resources for improvements and processes [3] - Fiserv's ongoing investment in the Brazilian market reflects its commitment to advancing clients' business objectives through expanded local capabilities [3] Group 3: Recent Acquisitions - On April 7, Fiserv acquired payment facilitator Pinch Payments, which serves 2,000 merchants in Australia and New Zealand, enhancing its payment orchestration platform [4] - In March, Fiserv acquired CCV, a payment solutions provider in the Netherlands, Belgium, and Germany, to expedite Clover platform deployment in Europe [5] - Also in March, Fiserv finalized the purchase of earned wage access provider Payfare, aimed at accelerating embedded finance solutions for its clients [6]

Core Insights - Fiserv, Inc. is a backend payment solutions company that has shown resilience during market turmoil, with its stock performing better than the Zacks Tech sector over the past 20 years [1][12] - The company is currently trading approximately 14% below its all-time highs, presenting a potential buying opportunity for investors seeking stability amid economic uncertainties [2][14] Company Overview - Fiserv operates in two main segments: Financial Solutions and Merchant Solutions, focusing on supporting the digital transformation of financial services [4] - The company has a diverse portfolio that includes digital banking solutions, payment processing, card issuer processing, and cloud-based point-of-sale systems [1][3] Growth and Performance - Fiserv has experienced significant growth, with its Clover POS platform driving a 29% revenue increase in Q4 [6] - The company has maintained a track record of double-digit organic revenue growth for four consecutive years and has achieved 39 consecutive years of double-digit adjusted earnings per share growth [6][11] - Fiserv's revenue growth averaged 8% over the past four years, with projections of 9% sales growth in 2025 and 2026, aiming to reach nearly $23 billion [11] Financial Stability - The company reported an operating cash flow of $6.63 billion in the previous year, marking a 29% year-over-year increase, which facilitated a $5.5 billion stock repurchase in 2024 [12] - Fiserv's recurring revenue model, supported by long-term contracts, provides predictable cash flows and reduces exposure to tariff risks [8][7] Market Position - Over the past 20 years, Fiserv's stock has increased by 1,800%, significantly outperforming the S&P 500 and the Tech sector [12][13] - In the last 12 months, Fiserv's stock has risen by 38%, while the Tech sector has only increased by 3% [13] - Despite recent market fluctuations, Fiserv's core digital payment business remains insulated from tariff impacts, making it a potential safe haven for investors [14]

Core Viewpoint - Fiserv, Inc. is expected to report its first-quarter 2025 results on April 24, with positive earnings surprise history and anticipated growth in various revenue segments [1][5]. Revenue Expectations - The Zacks Consensus Estimate for Fiserv's Q1 2025 revenue is $4.9 billion, reflecting a 7.2% increase from the same quarter last year [2]. - Financial Solutions revenues are projected to rise by 6.3% to $2.4 billion, driven by contributions from clients like Target, Verizon, and DoorDash [2]. - Merchant Solutions revenues are expected to reach $2.5 billion, indicating a 12.7% year-over-year growth, largely attributed to strong performance in Clover [3]. - Processing and Services revenues are estimated at $4.3 billion, representing a 7.7% growth compared to the previous year [4]. - The Product segment's revenues are forecasted to be $988.5 million, suggesting an 11.9% increase year-over-year [4]. Earnings Predictions - The model predicts an earnings beat for Fiserv, supported by a positive Earnings ESP of +0.64% and a Zacks Rank of 3 (Hold) [5].

Core Insights - Fiserv (FI) is expected to report quarterly earnings of $2.07 per share, a 10.1% increase year-over-year, with revenues projected at $4.87 billion, reflecting a 7.2% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.1% in the last 30 days, indicating analysts' reassessment of their initial projections [2] - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3] Revenue Projections - Analysts estimate 'Adjusted Revenue- Corporate and Other' to be $2.86 million, showing a year-over-year decline of 42.8% [5] - 'Revenue- Processing and services' is projected to reach $4.29 billion, indicating a year-over-year increase of 7.3% [5] - 'Revenue- Product' is expected to be $963.87 million, reflecting a 9.2% increase from the previous year [5] Stock Performance - Fiserv shares have decreased by 5.9% over the past month, compared to a 6.9% decline in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is likely to perform in line with the overall market in the near term [6]

Core Viewpoint - The market anticipates Fiserv (FI) will report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended March 2025 [1][3]. Earnings Expectations - Fiserv is expected to post quarterly earnings of $2.07 per share, reflecting a year-over-year increase of +10.1% [3]. - Revenues are projected to reach $4.88 billion, which is a 7.3% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.11% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - A positive Earnings ESP of +1.05% suggests that analysts have recently become more optimistic about Fiserv's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [7][8]. - Fiserv's current Zacks Rank is 3, which, combined with a positive Earnings ESP, suggests a strong likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Fiserv exceeded the expected earnings of $2.48 per share by delivering $2.51, resulting in a surprise of +1.21% [12]. - Over the past four quarters, Fiserv has consistently beaten consensus EPS estimates [13]. Conclusion - While an earnings beat is a positive indicator, other factors may also influence stock movement post-earnings release [14]. - Fiserv is considered a compelling candidate for an earnings beat, but investors should remain aware of additional influencing factors [16].

Industry Overview - Mobile payments are financial transactions conducted via smartphones, tablets, or wearable devices, eliminating the need for cash or physical cards [1] - The global mobile payments market was valued at $88.5 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 38% from 2025 to 2030, driven by smartphone penetration and e-commerce growth [4] Technological Advancements - Technologies such as blockchain and artificial intelligence are enhancing transaction transparency, automating processes, and improving fraud prevention in mobile payments [2] - Digital wallets and contactless technologies, including NFC, are facilitating seamless transactions and peer-to-peer transfers [1][2] Key Players - Affirm Holdings, Inc. is known for its "Buy Now, Pay Later" solutions, allowing consumers to split purchases into biweekly or monthly payments, with 21 million active consumers and 337,000 active merchants as of December 31, 2024 [6][7] - Fiserv, Inc. offers a comprehensive suite of mobile payment solutions, including Clover Go, which supports around 3.5 million POS devices globally and has been adopted by over 2,100 financial institutions [9][10] - MercadoLibre, Inc. operates Mercado Pago, which processed approximately 11.3 billion transactions last year and has over 56 million monthly active users, highlighting its significant growth potential in Latin America [13][14] - Paymentus Holdings, Inc. provides an all-in-one electronic bill presentment and payment platform, processing 166 million transactions in the fourth quarter of 2024, showcasing its operational scale [16][18] Market Trends - The COVID-19 pandemic has accelerated the demand for contactless and secure payment solutions, further driving the adoption of mobile payments [3] - Companies are leveraging strategic partnerships to enhance their service offerings and expand into new markets, such as Affirm's collaboration with Shopify for international expansion [8]

Group 1 - Fiserv, Inc. (NYSE: FI) is rated as a buy, particularly for long-term investors despite uncertainties from tariffs imposed by the Trump administration [1] - The success rate of copying Mario Silva's trades is 77%, with 76.92% of transactions generating a profit and an average return of 12.20% per rating [1] - The investment approach focuses on fundamental analysis and a "buy & hold" strategy, emphasizing long-term value investing [1] Group 2 - The analyst holds a beneficial long position in Fiserv shares through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and is not compensated for it, indicating independence in the analysis [2]

Company Performance - Broadridge Financial Solutions (BR) has returned approximately 2.7% year-to-date, outperforming the average return of -3.9% for the Business Services sector [4] - The Zacks Consensus Estimate for BR's full-year earnings has increased by 0.1% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] Industry Comparison - Broadridge is part of the Outsourcing industry, which consists of 10 companies and currently ranks 217 in the Zacks Industry Rank, with an average loss of 1.4% this year [6] - In contrast, Fiserv (FI), another stock in the Business Services sector, has a year-to-date return of 2.4% and belongs to the Financial Transaction Services industry, which ranks 88 and has declined by 1.5% this year [5][6] Zacks Rank - Broadridge Financial Solutions holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] - Fiserv also has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 0.3% over the past three months [5]