According to their latest 13F filings, institutional investors made a series of notable moves in Fiserv Inc. (FI), reflecting ongoing interest in the financial technology leader. Known for its payment processing, digital banking solutions, and broad fintech footprint, FI continues to attract a diverse range of hedge funds and asset managers positioning for long-term growth.Let’s examine some of the most notable changes:Baupost Group LLC/MA (Seth Klarman)Shares: 895,000Change: New PositionValue: $0.15BSeth K ...

Core Insights - Fiserv is focusing on empowering small businesses to accept digital currencies, recognizing their critical role in the global economy [1][2] - The company aims to bridge the gap between small businesses and the evolving digital payment landscape, emphasizing the need for these businesses to adapt to new payment forms [3][4] Company Initiatives - Fiserv is launching a new digital asset platform that includes its own stablecoin, FIUSD, to facilitate transactions for small businesses [5][6] - The stablecoin market has reached a market cap of $286.28 billion, with Tether (USDT) holding a dominant 58.99% market share [6] Technology and Support - The Clover point-of-sale system will support small businesses in adapting to new payment methods, ensuring they can meet consumer demands [4] - Fiserv is committed to ensuring the reliability of its digital currency offerings through compliant and secure technology [7]

Group 1: Consumer Expectations and Trends - Consumers are increasingly expecting rewards and personalized offers in both online and offline commerce [1] - The use of restaurant loyalty programs has risen to 51% from 45% year-over-year, with participation in quick-service at 49% and full-service at 34% [3] - Immediate and tangible loyalty mechanics are resonating well with restaurant customers [3] Group 2: Loyalty in Hospitality and Travel - Guests value rewards but prioritize immediacy and clear dollar-equivalent benefits when booking travel, with about half factoring rewards into their online travel bookings [6] - Loyalty is critical for guest retention and spending in the hotel industry, with opportunities to embed loyalty offers into guest interactions [9] Group 3: Fiserv's Acquisition of CardFree - Fiserv's acquisition of CardFree introduces a suite of loyalty and payment options tailored for restaurants, allowing seamless integration of reward programs into ordering flows [7] - CardFree's technology enables automatic rewards at checkout across various ordering methods, enhancing customer engagement [8] - The integration of CardFree can also extend loyalty capabilities to hotels, making guest interactions more rewarding [9][10] Group 4: Clover's Enhanced Capabilities - Fiserv's Clover platform gains enhanced loyalty capabilities through the CardFree acquisition, supporting mobile pay-and-earn flows and kiosk-based redemption [11] - The company is focused on expanding Clover's functionalities beyond a point of sale device, with plans to incorporate more AI [12]

Core Banking Platform Selection - Thread Bank has selected Fiserv's Finxact as its core banking platform to enhance its deposit and payments infrastructure [1][2] - The decision is driven by the need for a modern, real-time core that supports scalability and compliance [2][3] Partnership and Technology Integration - Thread is collaborating with Infinant to utilize its Interlace Platform, which will provide an embedded banking layer for Finxact's API core [2] - This integration will enable Thread and its customers to access and manage both embedded and core banking capabilities, including payment processing [2] Industry Challenges and Opportunities - Community banks, like Thread, face significant challenges from digital-first demands and competition from fintech platforms and larger financial institutions [3][4] - The modernization of banking technology is complicated by outdated core systems that limit data portability and integration capabilities [5]

Core Insights - The article discusses the expertise of Vladimir Dimitrov, CFA, who has a background in brand and intangible assets valuation, particularly in the technology, telecom, and banking sectors [1] Group 1: Professional Background - Vladimir Dimitrov has experience as a strategy consultant and has worked with major global brands [1] - He graduated from the London School of Economics, indicating a strong academic foundation [1] - His focus is on identifying reasonably priced businesses with sustainable long-term competitive advantages [1]

Core Viewpoint - The complaint against Fiserv alleges violations of federal securities laws due to misleading statements regarding the performance and growth of its Clover platform, particularly following the forced migration of Payeezy merchants [2]. Group 1: Allegations Against Fiserv - Fiserv allegedly forced Payeezy merchants to migrate to its Clover platform due to issues with the older Payeezy platform [2]. - The revenue growth and gross payment volume (GPV) of Clover were temporarily inflated by these forced conversions, masking a slowdown in new merchant business [2]. - A significant number of former Payeezy merchants reportedly switched to competitors due to Clover's high pricing and compatibility issues, leading to a slowdown in Clover's GPV growth [2]. Group 2: Market Reaction and Stock Performance - On April 24, 2025, Fiserv reported Clover GPV growth of only 8% for Q1 2025, a decline from 14-17% in 2024, resulting in an 18.5% drop in stock price to $176.90 [3]. - On May 15, 2025, Fiserv disclosed that GPV growth deceleration would persist throughout 2025, causing a further 16.2% decline in stock price to $159.13 [3]. - On July 23, 2025, Fiserv lowered its full-year organic growth guidance and reported a deceleration in quarterly organic revenue growth to 9% year-over-year, leading to a 13.9% drop in stock price to $143.00 [3].

Core Viewpoint - Fiserv is at a critical juncture, with conflicting signals from its weekly and monthly charts regarding future performance [1][12]. Weekly Chart Outlook - Fiserv has entered Phase 18, the final phase of the 18-Phase Adhishthana Cycle, which began in July 2013 and will conclude on December 20, 2026 [4]. - Phases 14 to 16, known as the Guna Triads, are essential for determining if Fiserv can achieve Nirvana in Phase 18, requiring a bullish trend (Satoguna) [4][5]. Monthly Chart Outlook - Currently, Fiserv is in Phase 11 on the monthly chart, which presents a different narrative [8]. - The stock experienced a significant rally of approximately 96% in Phase 9 and another 113% in Phase 10, but Phase 10 ended without forming a peak [9][10]. - Following a peak around $238, Fiserv has corrected by 40-45%, indicating a potential peak formation and descent in its Himalayan formation [10][11]. Investor Outlook - The weekly chart suggests a potential Nirvana move, while the monthly chart indicates a possible peak has already been established, creating a mixed signal for investors [12]. - A recent investigation into potential federal securities law violations adds to the uncertainty surrounding the stock [12]. - The $125.05 level is critical; if it holds or breaks decisively, it could confirm whether the current movement is a correction or the start of a larger trend [13].

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20%28Unaudited%29) This section presents Fiserv, Inc.'s unaudited consolidated financial statements, including income, comprehensive income, balance sheets, and cash flows, along with detailed notes [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Fiserv, Inc. shows strong financial performance with significant year-over-year growth in total revenue, operating income, and net income Three Months Ended June 30: | Metric | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Total Revenue | $5,516 | $5,107 | $409 | 8% | | Operating Income | $1,696 | $1,428 | $268 | 19% | | Net Income Attributable to Fiserv, Inc. | $1,026 | $894 | $132 | 15% | | Diluted EPS | $1.86 | $1.53 | $0.33 | 22% | Six Months Ended June 30: | Metric | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Total Revenue | $10,646 | $9,990 | $656 | 7% | | Operating Income | $3,091 | $2,609 | $482 | 18% | | Net Income Attributable to Fiserv, Inc. | $1,877 | $1,629 | $248 | 15% | | Diluted EPS | $3.36 | $2.76 | $0.60 | 22% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased substantially for both periods, primarily driven by positive foreign currency translation offsetting prior year losses Comprehensive Income (Three Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Net Income | $1,030 | $909 | $121 | 13% | | Total Other Comprehensive Income (Loss) | $362 | $(208) | $570 | N/A | | Comprehensive Income Attributable to Fiserv, Inc. | $1,312 | $691 | $621 | 90% | Comprehensive Income (Six Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Net Income | $1,878 | $1,661 | $217 | 13% | | Total Other Comprehensive Income (Loss) | $605 | $(432) | $1,037 | N/A | | Comprehensive Income Attributable to Fiserv, Inc. | $2,389 | $1,215 | $1,174 | 97% | - Foreign currency translation significantly contributed to other comprehensive income, showing a **gain of $260 million** (3 months) and **$457 million** (6 months) in 2025, compared to losses in 2024[12](index=12&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities increased, driven by settlement assets, prepaid expenses, goodwill, and long-term debt, while total equity decreased Balance Sheet Highlights (June 30, 2025 vs. December 31, 2024): | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :----------------------- | :----------------------- | :---------- | :--------- | | Total Assets | $81,531 | $77,176 | $4,355 | 6% | | Total Liabilities | $55,768 | $49,490 | $6,278 | 13% | | Total Equity | $25,763 | $27,686 | $(1,923) | -7% | - Significant increases in assets include **settlement assets ($17,554 million** from $15,429 million), **prepaid expenses and other current assets ($3,805 million** from $3,087 million), and **goodwill ($37,465 million** from $36,584 million)[15](index=15&type=chunk) - Long-term debt increased by **$4,329 million** to **$28,059 million**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased, but higher cash usage in investing and financing, particularly for acquisitions and merchant cash advances, led to a net decrease in cash Cash Flow Summary (Six Months Ended June 30): | Activity | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Net Cash Provided by Operating Activities | $2,313 | $2,172 | $141 | 6% | | Net Cash Used in Investing Activities | $(1,263) | $(1,207) | $(56) | 5% | | Net Cash Used in Financing Activities | $(1,166) | $(1,114) | $(52) | 5% | | Net Change in Cash and Cash Equivalents | $(24) | $(161) | $137 | -85% | - Operating cash flow increased primarily due to **increased profitability**, partially offset by higher working capital use[176](index=176&type=chunk) - Investing activities included significant payments for **acquisition of businesses ($337 million** in 2025 vs $0 in 2024) and **merchant cash advances ($539 million** vs $451 million)[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures supporting the consolidated financial statements, covering policies, pronouncements, revenue, acquisitions, assets, investments, derivatives, fair value, liabilities, debt, equity, and segment information [Note 1. Basis of Presentation and Summary of Significant Accounting Policies](index=8&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the unaudited nature of interim financial statements, consolidation principles, key accounting policies, and updates on pension plan termination - Interim financial statements are unaudited and include normal recurring adjustments, not necessarily indicative of full-year results[20](index=20&type=chunk) - Foreign currency exchange losses from highly inflationary economies (e.g., Argentina) were **$46 million** for Q2 2025 and **$64 million** for YTD 2025, included in other expense, net[37](index=37&type=chunk) - Defined benefit pension plans were terminated in 2023 (U.S.) and 2024 (U.K. settlement), with a **$43 million refund** of residual surplus received in Q2 2025 for the U.K. plan[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 2. Recent Accounting Pronouncements](index=11&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) Fiserv adopted ASU 2023-07 (Segment Reporting) retrospectively and is assessing the impact of ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation Disclosures) - ASU 2023-07 (Segment Reporting) was adopted effective for the year ended December 31, 2024, with retrospective application, enhancing segment information disclosures[43](index=43&type=chunk)[44](index=44&type=chunk) - ASU 2023-09 (Income Tax Disclosures), effective for fiscal years beginning after December 15, 2024, requires greater disaggregation of income tax reconciliation information; impact is currently being assessed[45](index=45&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures), effective for annual periods beginning after December 15, 2026, requires disaggregation of certain expense categories in footnotes; impact is currently being assessed[46](index=46&type=chunk) [Note 3. Revenue Recognition](index=13&type=section&id=Note%203.%20Revenue%20Recognition) This note details Fiserv's revenue recognition policies, disaggregating revenue by business line and reportable segment, showing overall growth with positive contributions from both Merchant and Financial segments Total Revenue by Segment (Three Months Ended June 30): | Segment | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Merchant Solutions | $2,644 | $2,410 | $234 | 10% | | Financial Solutions | $2,552 | $2,379 | $173 | 7% | | Corporate and Other | $320 | $318 | $2 | 1% | | **Total Revenue** | **$5,516** | **$5,107** | **$409** | **8%** | Total Revenue by Segment (Six Months Ended June 30): | Segment | 2025 (Millions) | 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :---------- | :--------- | | Merchant Solutions | $5,016 | $4,663 | $353 | 8% | | Financial Solutions | $4,969 | $4,664 | $305 | 7% | | Corporate and Other | $661 | $663 | $(2) | 0% | | **Total Revenue** | **$10,646** | **$9,990** | **$656** | **7%** | - International revenue (EMEA, LATAM, APAC) comprised approximately **16% of total revenue** for Q2 2025 and **15%** for YTD 2025[48](index=48&type=chunk) [Note 4. Acquisitions](index=15&type=section&id=Note%204.%20Acquisitions) Fiserv completed several strategic acquisitions in the first half of 2025, including Payfare, CCV, Pinch Payments, and Money Money, for an aggregate purchase price of **$365 million** (net of acquired cash), expanding its embedded finance, POS solutions, and risk analysis capabilities - Acquired Payfare (embedded finance, Financial segment) for **$95 million** (net of cash) on March 2, 2025, recognizing **$55 million in goodwill**[53](index=53&type=chunk)[54](index=54&type=chunk) - Acquired CCV (POS payment solutions, Merchant segment) for **$229 million** (net of cash) on March 18, 2025, recognizing **$121 million in goodwill**[55](index=55&type=chunk)[56](index=56&type=chunk) - Acquired Pinch Payments (payment facilitator, Merchant segment) and Money Money (risk analysis, Merchant segment) for an aggregate of **$41 million**, recognizing **$25 million in goodwill**[57](index=57&type=chunk) [Note 5. Intangible Assets](index=16&type=section&id=Note%205.%20Intangible%20Assets) The net book value of identifiable intangible assets increased to **$10,418 million** at June 30, 2025, from **$9,940 million** at December 31, 2024, primarily due to capitalized software and other intangibles, partially offset by amortization Identifiable Intangible Assets (Net Book Value): | Asset Type | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :----------------------- | | Customer relationships | $5,538 | $5,868 | | Acquired software and technology | $738 | $776 | | Trade names | $199 | $225 | | Purchased software | $1,016 | $502 | | Capitalized software and other intangibles | $2,927 | $2,569 | | **Total** | **$10,418** | **$9,940** | - Amortization expense for identifiable intangible assets was **$1.1 billion** for the six months ended June 30, 2025, a decrease from **$1.2 billion** in the prior year period[59](index=59&type=chunk) [Note 6. Investments in Unconsolidated Affiliates](index=16&type=section&id=Note%206.%20Investments%20in%20Unconsolidated%20Affiliates) Fiserv's investments in unconsolidated affiliates decreased significantly due to the non-renewal of the Wells Fargo Merchant Services (WFMS) alliance, resulting in a **$453 million cash payment** and an additional impairment charge - Investment in merchant alliances decreased to **$777 million** at June 30, 2025, from **$1.2 billion** at December 31, 2024[61](index=61&type=chunk) - The Wells Fargo Merchant Services (WFMS) alliance expired on April 1, 2025, resulting in a **$453 million cash payment** to Fiserv[62](index=62&type=chunk) - An additional pre-tax impairment charge of **$8 million** was recorded in Q2 2025 in connection with the WFMS contractual valuation and separation process[63](index=63&type=chunk) [Note 7. Derivatives and Hedging Instruments](index=17&type=section&id=Note%207.%20Derivatives%20and%20Hedging%20Instruments) Fiserv uses various derivative instruments, including forward exchange contracts and fixed-to-fixed cross-currency rate swap contracts, to hedge against interest rate and foreign currency fluctuations, designating them as cash flow, net investment, or fair value hedges - Uses forward exchange contracts as cash flow hedges for Indian Rupee exposure, with a notional amount of **$413 million** at June 30, 2025[66](index=66&type=chunk) - Employs fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as net investment hedges for Euro, Singapore Dollar, and Canadian Dollar subsidiaries[68](index=68&type=chunk)[69](index=69&type=chunk) - Foreign currency transaction losses, net of tax, related to net investment hedges were **$(72) million** (cross-currency swaps) and **$(226) million** (foreign currency debt) for Q2 2025[71](index=71&type=chunk) [Note 8. Fair Value Measurements](index=18&type=section&id=Note%208.%20Fair%20Value%20Measurements) This note details fair value measurements for Fiserv's assets and liabilities, with most recurring measurements categorized as Level 2, while contingent consideration and debt guarantees use Level 3 inputs - Derivative instruments are measured at fair value on a recurring basis using **Level 2 inputs**[73](index=73&type=chunk)[74](index=74&type=chunk) - Contingent consideration related to acquisitions and the obligation to purchase redeemable noncontrolling interest are measured using **Level 3 inputs**[73](index=73&type=chunk)[74](index=74&type=chunk) - The estimated fair value of total debt (excluding finance leases) was **$27.5 billion** at June 30, 2025, compared to a carrying value of **$27.8 billion**[75](index=75&type=chunk) [Note 9. Accounts Payable and Other Current Liabilities](index=20&type=section&id=Note%209.%20Accounts%20Payable%20and%20Other%20Current%20Liabilities) Total accounts payable and other current liabilities decreased to **$4,351 million** at June 30, 2025, from **$4,799 million** at December 31, 2024, primarily due to the absence of transferable federal tax credits Accounts Payable and Other Current Liabilities: | Category | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :----------------------- | | Trade accounts payable | $768 | $511 | | Client deposits | $988 | $985 | | Transferable federal tax credits | $0 | $866 | | Accrued compensation and benefits | $254 | $296 | | Accrued taxes | $284 | $261 | | Accrued interest | $339 | $335 | | Accrued payment network fees | $320 | $253 | | Operating lease liabilities | $119 | $116 | | Accrued professional fees | $100 | $102 | | Obligation to purchase redeemable noncontrolling interest | $95 | $95 | | Other accrued expenses | $1,084 | $979 | | **Total** | **$4,351** | **$4,799** | - The significant decrease in total current liabilities is mainly due to the **absence of transferable federal tax credits**, which were **$866 million** at December 31, 2024[81](index=81&type=chunk) [Note 10. Debt](index=21&type=section&id=Note%2010.%20Debt) Fiserv's total long-term debt increased significantly to **$28,059 million** at June 30, 2025, driven by new senior note issuances and increased commercial paper borrowings, while remaining in compliance with all financial debt covenants Total Debt (June 30, 2025 vs. December 31, 2024): | Category | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :----------------------- | :----------------------- | :---------- | :--------- | | Short-term and current maturities of long-term debt | $1,528 | $1,110 | $418 | 38% | | Long-term debt | $28,059 | $23,730 | $4,329 | 18% | | **Total Debt** | **$29,587** | **$24,840** | **$4,747** | **19%** | - New senior note issuances include **€2.175 billion** in May 2025, **$1.75 billion** in August 2024, and **$2.0 billion** in March 2024, used for general corporate purposes and debt/share repurchases[83](index=83&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - U.S. dollar commercial paper notes increased to **$1.9 billion** (from $221 million) and Euro commercial paper notes increased to **$1.3 billion** (from $1.2 billion) at June 30, 2025[89](index=89&type=chunk) [Note 11. Redeemable Noncontrolling Interest](index=23&type=section&id=Note%2011.%20Redeemable%20Noncontrolling%20Interest) The termination of a merchant alliance joint venture agreement led to the reclassification of redeemable noncontrolling interest as a current liability of **$95 million**, with an anticipated pre-tax gain of approximately **$90 million** upon settlement in Q3 2025 - Merchant alliance joint venture agreement terminated effective June 2024[93](index=93&type=chunk) - Redeemable noncontrolling interest was reclassified as a current liability of **$95 million** at June 30, 2025[93](index=93&type=chunk)[81](index=81&type=chunk) - Settlement in Q3 2025 through distribution of merchant contracts is expected to result in a pre-tax gain of approximately **$90 million**[93](index=93&type=chunk) [Note 12. Equity](index=24&type=section&id=Note%2012.%20Equity) Fiserv, Inc.'s total shareholders' equity decreased to **$25,215 million** at June 30, 2025, primarily due to significant treasury stock purchases, partially offset by net income and foreign currency translation gains Total Fiserv, Inc. Shareholders' Equity: | Period | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :----------------------- | :----------------------- | :---------- | :--------- | | Total Fiserv, Inc. Shareholders' Equity | $25,215 | $27,068 | $(1,853) | -7% | - Purchases of treasury stock were **$2,196 million** for Q2 2025 and **$4,360 million** for YTD 2025[96](index=96&type=chunk)[97](index=97&type=chunk) - Accumulated other comprehensive loss improved from **$(1,413) million** at Dec 31, 2024, to **$(901) million** at June 30, 2025, primarily due to foreign currency translation gains[97](index=97&type=chunk)[98](index=98&type=chunk) [Note 13. Accumulated Other Comprehensive Loss](index=26&type=section&id=Note%2013.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss improved significantly from **$(1,413) million** to **$(901) million**, primarily driven by **$502 million** in foreign currency translation gains Accumulated Other Comprehensive Loss: | Component | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :----------------------- | | Derivatives | $(69) | $(79) | | Foreign Currency Translation | $(825) | $(1,327) | | Pension Plans | $(7) | $(7) | | **Total** | **$(901)** | **$(1,413)** | - Net current-period other comprehensive income was **$512 million** for the six months ended June 30, 2025, largely due to **$502 million** from foreign currency translation[98](index=98&type=chunk) [Note 14. Share-Based Compensation](index=26&type=section&id=Note%2014.%20Share-Based%20Compensation) Share-based compensation expense for the six months ended June 30, 2025, was **$215 million**, with **$486 million** in unrecognized cost expected to be recognized over 2.0 years - Share-based compensation expense was **$91 million** for Q2 2025 (vs $99 million in Q2 2024) and **$215 million** for YTD 2025 (vs $185 million in YTD 2024)[99](index=99&type=chunk) - Total remaining unrecognized compensation cost for restricted stock units, awards, and performance share units is **$486 million**, expected to be recognized over a weighted-average period of **2.0 years**[99](index=99&type=chunk) - Stock options outstanding at June 30, 2025, totaled **900 thousand shares** with a weighted-average exercise price of **$87.52**[100](index=100&type=chunk) [Note 15. Income Taxes](index=27&type=section&id=Note%2015.%20Income%20Taxes) Fiserv's effective income tax rate was **19.0%** for Q2 2025 and **18.6%** for YTD 2025, both lower than the statutory rate due to discrete tax benefits from equity compensation and purchased federal tax credits Income Tax Provision and Effective Rate: | Period | Income Tax Provision (Millions) | Effective Income Tax Rate | | :-------------------------------- | :-------------------------- | :------------------------ | | Three Months Ended June 30, 2025 | $246 | 19.0% | | Three Months Ended June 30, 2024 | $221 | 19.4% | | Six Months Ended June 30, 2025 | $436 | 18.6% | | Six Months Ended June 30, 2024 | $374 | 18.2% | - Effective tax rates were **lower than the statutory rate** due to discrete tax benefits from equity compensation[101](index=101&type=chunk) - The company purchased transferable federal tax credits at negotiated discounts, resulting in an **income tax benefit**[102](index=102&type=chunk) [Note 16. Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc.](index=28&type=section&id=Note%2016.%20Shares%20Used%20in%20Computing%20Net%20Income%20Per%20Share%20Attributable%20to%20Fiserv%2C%20Inc.) Weighted-average common shares outstanding for diluted EPS decreased by **6%** in Q2 2025 and **5%** in YTD 2025 due to the share repurchase program, contributing to increased diluted EPS Weighted-Average Common Shares Outstanding (Millions): | Period | Basic (2025) | Basic (2024) | Diluted (2025) | Diluted (2024) | | :-------------------------------- | :----------- | :----------- | :------------- | :------------- | | Three Months Ended June 30 | 550.8 | 582.7 | 552.7 | 585.4 | | Six Months Ended June 30 | 556.1 | 586.8 | 558.7 | 590.1 | - Diluted weighted-average outstanding shares were reduced by **6%** (Q2 2025) and **5%** (YTD 2025) compared to prior year due to the share repurchase program[174](index=174&type=chunk) [Note 17. Cash Flow Information](index=28&type=section&id=Note%2017.%20Cash%20Flow%20Information) This note provides supplemental cash flow details, including **$709 million** in interest paid and **$1,245 million** in net income taxes paid for the six months ended June 30, 2025, along with significant non-cash investing and financing activities Supplemental Cash Flow Information (Six Months Ended June 30): | Item | 2025 (Millions) | 2024 (Millions) | | :-------------------------------- | :-------------- | :-------------- | | Interest paid | $709 | $502 | | Net income taxes paid | $1,245 | $1,277 | | Software obtained under financing arrangements | $554 | $96 | | Hardware obtained under financing arrangements | $193 | $0 | [Note 18. Commitments and Contingencies](index=28&type=section&id=Note%2018.%20Commitments%20and%20Contingencies) Fiserv maintains a **$33 million accrual** for legal proceedings, with an estimated possible exposure range of **$0 million to $120 million**, and manages **$1.1 billion** in subscriber funds for electronic payments off-balance sheet - Accrual for legal proceedings: **$33 million** at June 30, 2025[107](index=107&type=chunk) - Estimated possible range of exposure for legal proceedings in excess of accruals: **$0 million to $120 million**[107](index=107&type=chunk) - Subscriber funds for electronic payments: **$1.1 billion** at June 30, 2025, not included in consolidated balance sheets[108](index=108&type=chunk) [Note 19. Related Party Transactions](index=29&type=section&id=Note%2019.%20Related%20Party%20Transactions) Fiserv conducts business through merchant alliances, with processing and services revenue from equity method alliances totaling **$19 million** for Q2 2025 and **$51 million** for YTD 2025, showing a decrease from the prior year - Processing and other service fees charged to equity method merchant alliances: **$19 million** for Q2 2025 (vs $37 million in Q2 2024) and **$51 million** for YTD 2025 (vs $77 million in YTD 2024)[112](index=112&type=chunk) - Amounts due from unconsolidated merchant alliances: **$14 million** at June 30, 2025[112](index=112&type=chunk) [Note 20. Business Segment Information](index=29&type=section&id=Note%2020.%20Business%20Segment%20Information) Fiserv operates through Merchant Solutions and Financial Solutions segments, both showing revenue growth, with the Financial segment demonstrating strong operating income and margin growth, while the Merchant segment's margin contracted due to increased investments - Merchant Solutions segment provides commerce-enabling products and services, including Clover POS, to small businesses, enterprises, and financial institutions[113](index=113&type=chunk)[115](index=115&type=chunk) - Financial Solutions segment provides products and services to financial institutions, corporate, and public sector clients, including digital payments, issuing, and banking solutions[114](index=114&type=chunk)[115](index=115&type=chunk) Segment Revenue and Operating Income (Three Months Ended June 30): | Segment | Revenue 2025 ($M) | Revenue 2024 ($M) | Op. Income 2025 ($M) | Op. Income 2024 ($M) | Op. Margin 2025 (%) | Op. Margin 2024 (%) | | :-------------------------------- | :---------------- | :---------------- | :------------------- | :------------------- | :------------------ | :------------------ | | Merchant | $2,644 | $2,410 | $914 | $882 | 34.6% | 36.6% | | Financial | $2,552 | $2,379 | $1,244 | $1,093 | 48.7% | 45.9% | | Corporate and Other | $320 | $318 | $(462) | $(547) | N/A | N/A | | **Total Company** | **$5,516** | **$5,107** | **$1,696** | **$1,428** | **30.7%** | **28.0%** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=35&type=section&id=ITEM%202.%2E%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on Fiserv's financial condition and operational results, covering an overview, acquisitions, industry trends, accounting policies, and detailed analysis of revenue, expenses, operating income, and liquidity [Forward-Looking Statements](index=35&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, emphasizing that actual results could differ materially due to significant risks and uncertainties - Forward-looking statements are subject to significant risks and uncertainties, including competition, technology changes, security breaches, economic conditions (inflation, interest rates, recession), and regulatory actions[124](index=124&type=chunk) - Readers are cautioned not to place undue reliance on these statements, which speak only as of the report date[124](index=124&type=chunk) [Overview](index=35&type=section&id=Overview) Fiserv is a leading global provider of payments and financial services technology solutions, focusing on innovation, operational excellence, and disciplined capital allocation to drive growth and value - Fiserv is a leading global provider of payments and financial services technology solutions, with non-discretionary products and services[125](index=125&type=chunk)[127](index=127&type=chunk) - Strategic focus areas include driving growth, creating value through a high-performing team, integrating solutions, operational excellence, disciplined capital allocation (share repurchase, M&A), and organic growth through innovation[127](index=127&type=chunk) - The Merchant Segment provides commerce-enabling products and services, including merchant acquiring, digital commerce, mobile payments, and the Clover POS platform[128](index=128&type=chunk)[133](index=133&type=chunk) - The Financial Segment provides products and services to financial institutions, corporate, and public sector clients, including account processing, digital payments, and card transactions[130](index=130&type=chunk)[133](index=133&type=chunk) [Company Background](index=35&type=section&id=Company%20Background) Fiserv is a global leader in payments and financial services technology, offering essential solutions to merchants, banks, and other financial institutions worldwide, focused on delivering superior value through innovation and strategic capital allocation - Fiserv is a leading global provider of payments and financial services technology solutions, with non-discretionary products and services[125](index=125&type=chunk)[127](index=127&type=chunk) - Strategic focus areas include driving growth, creating value through a high-performing team, integrating solutions, operational excellence, disciplined capital allocation (share repurchase, M&A), and organic growth through innovation[127](index=127&type=chunk) [Acquisitions, Dispositions and Other Transactions](index=36&type=section&id=Acquisitions%2C%20Dispositions%20and%20Other%20Transactions) Fiserv completed several strategic acquisitions in H1 2025, including Payfare, CCV, Pinch Payments, and Money Money, for an aggregate of **$365 million** (net of cash), and received a **$453 million cash payment** from the non-renewal of the Wells Fargo Merchant Services alliance - Acquired Payfare (embedded finance), CCV (POS solutions), Pinch Payments (payment facilitator), and Money Money (risk analysis) in H1 2025 for an aggregate of **$365 million** (net of cash)[132](index=132&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - Received a **$453 million cash payment** upon the expiration of the Wells Fargo Merchant Services (WFMS) joint venture on April 1, 2025[137](index=137&type=chunk) - Acquired the remaining **19% ownership** in ICICI Merchant Services for **$22 million** in April 2025 and entered an agreement to acquire the remaining **49.9% ownership** in AIB Merchant Services, expected to close in Q3 2025[138](index=138&type=chunk) [Industry Trends](index=37&type=section&id=Industry%20Trends) The global payments landscape is rapidly evolving with advancing technologies, digital payments, e-commerce, and real-time payment infrastructure, intensifying competition and driving demand for integrated, flexible solutions from merchants and financial institutions - The global payments landscape is characterized by rapid technological advancements, growth in digital payments, e-commerce, and real-time payments, leading to increased competition[139](index=139&type=chunk) - Merchants require simpler, integrated, and flexible systems for payment acceptance, cash flow management, and business operations, with a growing direct, digital-only acquisition channel[140](index=140&type=chunk) - Financial institutions need tailored, integrated solutions to win and retain customers, generate revenue, comply with regulations, and enhance operating efficiency, focusing on a unified customer experience across mobile and online channels[143](index=143&type=chunk)[144](index=144&type=chunk) [Recent Market Conditions](index=38&type=section&id=Recent%20Market%20Conditions) Global macroeconomic conditions, including changing interest rates, inflation, supply chain disruptions, and international hostilities, pose potential adverse effects on Fiserv's business, with foreign currency exchange losses from highly inflationary economies significantly impacting results - Global macroeconomic conditions (interest rates, inflation, supply chain, geopolitical events) could materially impact business[148](index=148&type=chunk) - Fluctuations in foreign currency exchange rates (Euro, British Pound, Indian Rupee, Brazilian Real, Argentine Peso) can adversely impact operating results[149](index=149&type=chunk) - Devaluation of local currencies in highly inflationary economies (e.g., Argentina) resulted in foreign currency exchange losses of **$46 million** (Q2 2025) and **$64 million** (YTD 2025)[198](index=198&type=chunk) [Changes in Critical Accounting Policies and Estimates](index=38&type=section&id=Changes%20in%20Critical%20Accounting%20Policies%20and%20Estimates) Fiserv reported no material changes to its critical accounting policies and estimates since the Annual Report on Form 10-K for December 31, 2024, continuing to rely on judgment and estimates for fair value measurements and goodwill impairment assessments - No material changes to critical accounting policies and estimates since the December 31, 2024, Annual Report on Form 10-K[151](index=151&type=chunk) - Estimates and assumptions are crucial for financial statements, especially for fair values in acquisitions and goodwill impairment[151](index=151&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Fiserv's results of operations for the three and six months ended June 30, 2025, show robust growth in total revenue and operating income, with improved operating margins, influenced by acquisitions, non-cash impairment charges, and foreign currency fluctuations - Consolidated financial results were affected by acquisitions, non-cash impairment charges, and foreign currency fluctuations[152](index=152&type=chunk) - Total revenue increased by **8%** (Q2 2025) and **7%** (YTD 2025), driven by higher processing revenue and data/analytics sales[156](index=156&type=chunk) - Operating income increased by **19%** (Q2 2025) and **18%** (YTD 2025), with operating margin improving by **270 bps** and **290 bps**, respectively[164](index=164&type=chunk) [Total Revenue](index=41&type=section&id=Total%20Revenue) Total revenue increased by **8%** in Q2 2025 and **7%** in YTD 2025, driven by higher processing revenue and data and analytics sales, with both Merchant and Financial segments contributing positively - Total revenue increased **$409 million (8%)** in Q2 2025 and **$656 million (7%)** in YTD 2025[156](index=156&type=chunk) - Merchant segment revenue grew **10%** (Q2) and **8%** (YTD), including **$55 million** from the CCV acquisition in Q2; Small Business (Clover POS) contributed **7%** (Q2) and **6%** (YTD)[157](index=157&type=chunk) - Financial segment revenue grew **7%** (Q2 & YTD); Digital Payments contributed **3%** (Q2 & YTD) due to license/data sales and Zelle transaction growth, while Issuing contributed **5%** (Q2) and **3%** (YTD) from data/analytics sales and active accounts[158](index=158&type=chunk) [Total Expenses](index=41&type=section&id=Total%20Expenses) Total expenses increased by **4%** in Q2 2025 and **2%** in YTD 2025, but decreased as a percentage of total revenue due to scalable revenue growth, a favorable revenue mix, and reductions in amortization and acquisition/integration expenses - Total expenses increased **$141 million (4%)** in Q2 2025 and **$174 million (2%)** in YTD 2025[159](index=159&type=chunk) - Total expenses as a percentage of total revenue decreased by **270 basis points** (Q2) and **290 basis points** (YTD)[159](index=159&type=chunk) - Cost of product as a percentage of product revenue decreased to **57.3%** (Q2 2025) from 66.1% (Q2 2024) and to **60.0%** (YTD 2025) from 69.7% (YTD 2024), driven by high-margin license and data/analytics sales[162](index=162&type=chunk) [Operating Income and Operating Margin](index=42&type=section&id=Operating%20Income%20and%20Operating%20Margin) Total operating income increased by **19%** in Q2 2025 and **18%** in YTD 2025, with operating margin improving by **270 basis points** (Q2) and **290 basis points** (YTD), driven by strong Financial segment performance and expense management - Total operating income increased **$268 million (19%)** in Q2 2025 and **$482 million (18%)** in YTD 2025[164](index=164&type=chunk) - Total operating margin increased to **30.7%** (Q2 2025) and **29.0%** (YTD 2025)[164](index=164&type=chunk) - Merchant segment operating margin decreased by **200 bps** (Q2) and **100 bps** (YTD) due to increased investments in marketing, sales, distribution, and new software/hardware, and the CCV acquisition[165](index=165&type=chunk) - Financial segment operating income and margin grew due to an increase in high-margin license and data/analytics sales, as well as expense management initiatives[166](index=166&type=chunk) [Interest Expense, Net](index=42&type=section&id=Interest%20Expense%2C%20Net) Interest expense, net increased by **28%** in Q2 2025 and **27%** in YTD 2025, primarily due to new senior note issuances and higher outstanding borrowings under commercial paper programs and foreign lines of credit - Interest expense, net increased **$80 million (28%)** in Q2 2025 and **$150 million (27%)** in YTD 2025[168](index=168&type=chunk) - The increase was driven by new senior note issuances and higher outstanding borrowings under commercial paper programs and foreign lines of credit[168](index=168&type=chunk) [Other Expense, Net](index=42&type=section&id=Other%20Expense%2C%20Net) Other expense, net increased significantly in Q2 and YTD 2025, primarily due to foreign currency exchange losses from the remeasurement of monetary assets and liabilities in highly inflationary economies, particularly Argentina - Other expense, net increased **$34 million** in Q2 2025 and **$45 million** in YTD 2025[169](index=169&type=chunk) - Foreign currency exchange losses from highly inflationary economies (e.g., Argentina) were **$46 million** for Q2 2025 and **$64 million** for YTD 2025[169](index=169&type=chunk) [Income Tax Provision](index=43&type=section&id=Income%20Tax%20Provision) The effective income tax rate for Q2 2025 was **19.0%** and for YTD 2025 was **18.6%**, both lower than the statutory rate due to discrete tax benefits from equity compensation - Effective income tax rate: **19.0%** for Q2 2025 and **18.6%** for YTD 2025[171](index=171&type=chunk) - Rates were lower than the statutory rate due to discrete tax benefits from equity compensation[171](index=171&type=chunk) [Loss from Investments in Unconsolidated Affiliates](index=43&type=section&id=Loss%20from%20Investments%20in%20Unconsolidated%20Affiliates) Loss from investments in unconsolidated affiliates increased to **$16 million** in Q2 2025 and **$24 million** in YTD 2025, including non-cash impairment charges and acquired intangible asset amortization - Loss from investments in unconsolidated affiliates: **$16 million** for Q2 2025 (vs $8 million in Q2 2024) and **$24 million** for YTD 2025 (vs $16 million in YTD 2024)[172](index=172&type=chunk) - Includes non-cash impairment charges and acquired intangible asset amortization[172](index=172&type=chunk) [Net Income Attributable to Noncontrolling Interests](index=43&type=section&id=Net%20Income%20Attributable%20to%20Noncontrolling%20Interests) Net income attributable to noncontrolling interests decreased significantly to **$4 million** in Q2 2025 and **$1 million** in YTD 2025, primarily due to the termination of a merchant alliance joint venture agreement - Net income attributable to noncontrolling interests: **$4 million** for Q2 2025 (vs $15 million in Q2 2024) and **$1 million** for YTD 2025 (vs $32 million in YTD 2024)[173](index=173&type=chunk) - The decrease is primarily due to the termination of a merchant alliance joint venture agreement in June 2024[173](index=173&type=chunk) [Net Income Per Share – Diluted](index=43&type=section&id=Net%20Income%20Per%20Share%20%E2%80%93%20Diluted) Diluted EPS increased to **$1.86** in Q2 2025 and **$3.36** in YTD 2025, driven by increased net income attributable to Fiserv, Inc. and a reduction in diluted weighted average outstanding shares due to the share repurchase program - Diluted EPS: **$1.86** for Q2 2025 (vs $1.53 in Q2 2024) and **$3.36** for YTD 2025 (vs $2.76 in YTD 2024)[174](index=174&type=chunk) - Diluted weighted average outstanding shares were reduced by **6%** (Q2 2025) and **5%** (YTD 2025) due to the share repurchase program[174](index=174&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Fiserv's liquidity strategy relies on operating cash flow, cash and equivalents, commercial paper, and its revolving credit facility to fund operations, debt, capital expenditures, share repurchases, and acquisitions, while actively managing its debt and maintaining compliance with covenants [General](index=43&type=section&id=General) Fiserv's primary liquidity needs are funded by operating cash flow, cash and cash equivalents (**$999 million** at June 30, 2025), commercial paper, and its **$2.0 billion** available revolving credit facility, with operating cash flow increasing by **6%** in YTD 2025 due to increased profitability - Primary liquidity needs: operating expenses, debt service, capital expenditures, operating lease payments[175](index=175&type=chunk) - Funding sources: operating cash flow, cash and cash equivalents (**$999 million** at June 30, 2025), commercial paper, and **$2.0 billion** available capacity under revolving credit facility[175](index=175&type=chunk) - Operating cash flow was **$2.3 billion** in YTD 2025, a **6% increase** from YTD 2024, driven by increased profitability[176](index=176&type=chunk) [Share Repurchases](index=44&type=section&id=Share%20Repurchases) Fiserv repurchased **21.9 million shares** of common stock for **$4.4 billion** during the first six months of 2025, with approximately **56.1 million shares** remaining under existing authorizations - Repurchased **21.9 million shares** for **$4.4 billion** in YTD 2025 (vs 20.2 million shares for $3.0 billion in YTD 2024)[178](index=178&type=chunk) - Approximately **56.1 million shares** remained under repurchase authorizations as of June 30, 2025[178](index=178&type=chunk) [Acquisitions](index=44&type=section&id=Acquisitions) Fiserv completed several acquisitions in H1 2025 for an aggregate of **$365 million** (net of cash), funded by available cash and commercial paper, and received **$453 million** from the non-renewal of the WFMS joint venture - Acquired Payfare, CCV, Pinch Payments, and Money Money in H1 2025 for an aggregate purchase price of **$365 million** (net of cash), funded by available cash and commercial paper[179](index=179&type=chunk) - Received **$453 million cash payment** from the expiration of the Wells Fargo Merchant Services (WFMS) joint venture[180](index=180&type=chunk) - Acquired remaining **19% ownership** in ICICI Merchant Services for **$22 million**[181](index=181&type=chunk) [Indebtedness](index=45&type=section&id=Indebtedness) Fiserv's total long-term debt increased to **$28,059 million** at June 30, 2025, primarily due to new senior note issuances, with certain senior notes and commercial paper programs classified as long-term due to refinancing intent - Total long-term debt: **$28,059 million** at June 30, 2025 (vs $23,730 million at Dec 31, 2024)[182](index=182&type=chunk) - New senior note issuances include **€2.175 billion** in May 2025, **$1.75 billion** in August 2024, and **$2.0 billion** in March 2024[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) - Debt classified as long-term includes certain senior notes due in July 2025 and commercial paper programs, as the company has the ability and intent to refinance them[186](index=186&type=chunk) [Variable Rate Debt](index=46&type=section&id=Variable%20Rate%20Debt) Fiserv's variable rate debt totaled **$4,378 million** at June 30, 2025, with a weighted-average interest rate of **9.887%**, including foreign lines of credit (primarily in Latin America with high interest rates), U.S. dollar and Euro commercial paper notes, and revolving credit facility borrowings Variable Rate Debt (June 30, 2025): | Category | Maturity | Weighted-Average Interest Rate | Outstanding Borrowings (Millions) | | :-------------------------------- | :------- | :----------------------------- | :-------------------------------- | | Foreign lines of credit | various | 28.425% | $1,100 | | U.S. dollar commercial paper notes | various | 4.604% | $1,908 | | Euro commercial paper notes | various | 2.214% | $1,309 | | Revolving credit facility | June 2027 | 5.430% | $61 | | **Total variable rate debt** | | **9.887%** | **$4,378** | - Foreign lines of credit, primarily for Latin America operations, have a weighted-average interest rate of **28.425%**, with Argentina at **34.437%** and Brazil at **15.840%**[187](index=187&type=chunk) [Revolving Credit Facility](index=47&type=section&id=Revolving%20Credit%20Facility) Fiserv maintains a **$6.0 billion** senior unsecured multicurrency revolving credit facility, maturing in June 2027, with outstanding borrowings of **$61 million** at June 30, 2025, bearing an interest rate of **5.430%** - Fiserv maintains a **$6.0 billion** senior unsecured multicurrency revolving credit facility, maturing in June 2027[189](index=189&type=chunk) - Outstanding borrowings under the revolving credit facility were **$61 million** at June 30, 2025, with a corresponding interest rate of **5.430%**[189](index=189&type=chunk) [Debt Covenants and Compliance](index=47&type=section&id=Debt%20Covenants%20and%20Compliance) Fiserv was in compliance with all financial debt covenants during the first six months of 2025, which limit consolidated indebtedness to no more than **3.75 times** consolidated net income before certain adjustments - Fiserv was in compliance with all financial debt covenants during the first six months of 2025[192](index=192&type=chunk) - Covenants limit consolidated indebtedness to no more than **3.75 times** consolidated net income before interest, taxes, depreciation, amortization, non-cash charges, and certain other adjustments[191](index=191&type=chunk) [Debt Guarantees](index=47&type=section&id=Debt%20Guarantees) Fiserv guarantees **$493 million** of debt for its Lending Joint Ventures, maintaining a contingent liability of **$10 million** for expected credit losses, with no anticipated defaults - Guarantees **$493 million** of debt for Lending Joint Ventures[193](index=193&type=chunk) - Maintains a contingent liability of **$10 million** for current expected credit losses at June 30, 2025[193](index=193&type=chunk) - No payments have been made under the guarantees, and no defaults are anticipated[193](index=193&type=chunk) [Supplemental Guarantor Information](index=47&type=section&id=Supplemental%20Guarantor%20Information) Fiserv, Inc. fully, unconditionally, and solely guarantees certain senior notes issued by its indirect wholly-owned subsidiary, Fiserv Funding Unlimited Company, which are unsecured senior obligations ranking equally with its other unsecured senior indebtedness - Fiserv, Inc. fully, unconditionally, and solely guarantees the 2028, 2032, and 2036 senior notes issued by Fiserv Funding Unlimited Company[194](index=194&type=chunk) - These guarantees are unsecured senior obligations of Fiserv, Inc. and rank equally with other unsecured senior indebtedness[194](index=194&type=chunk) [Cash and Cash Equivalents](index=47&type=section&id=Cash%20and%20Cash%20Equivalents) Total cash and cash equivalents were **$999 million** at June 30, 2025, a decrease from **$1,236 million** at December 31, 2024, with **$467 million** classified as unavailable due to joint venture holdings or foreign exchange controls Cash and Cash Equivalents: | Category | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :----------------------- | | Available | $532 | $665 | | Unavailable | $467 | $571 | | **Total** | **$999** | **$1,236** | - Unavailable cash is held by joint ventures or subject to foreign exchange controls/regulatory capital requirements[196](index=196&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=48&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Fiserv is exposed to market risks primarily from fluctuations in interest rates and foreign currency exchange rates, which it manages using derivative instruments, with foreign currency exchange losses from highly inflationary economies significantly impacting results - Primary market risks: fluctuations in interest rates and foreign currency exchange rates[197](index=197&type=chunk) - Uses forward exchange contracts, cross-currency rate swap contracts, and other non-derivative hedging instruments to manage risk[197](index=197&type=chunk) - Foreign currency exchange losses from highly inflationary economies (e.g., Argentina) were **$46 million** for Q2 2025 and **$64 million** for YTD 2025[198](index=198&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=48&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that Fiserv's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the three months ended June 30, 2025 - Disclosure controls and procedures were **effective** as of June 30, 2025[200](index=200&type=chunk) - No material changes in internal control over financial reporting occurred during Q2 2025[201](index=201&type=chunk) [PART II – OTHER INFORMATION](index=48&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=48&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Fiserv is involved in various lawsuits in the normal course of business, with management believing that any resulting liabilities are not expected to have a material adverse effect on the consolidated financial statements - Fiserv is involved in lawsuits in the normal course of business[202](index=202&type=chunk) - Liabilities from legal proceedings are not expected to have a **material adverse effect** on the consolidated financial statements[202](index=202&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=49&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, Fiserv repurchased **12.2 million shares** of common stock for an average price of **$180.31 per share**, with approximately **56.1 million shares** remaining under existing repurchase authorizations Common Stock Repurchases (Three Months Ended June 30, 2025): | Period | Shares Purchased | Average Price Paid per Share | | :---------------- | :--------------- | :--------------------------- | | April 1-30, 2025 | 3,856,661 | $199.99 | | May 1-31, 2025 | 4,575,000 | $169.44 | | June 1-30, 2025 | 3,774,764 | $166.50 | | **Total** | **12,206,425** | **$180.31 (approx)** | - Approximately **56.1 million shares** remained under repurchase authorizations as of June 30, 2025[203](index=203&type=chunk) [ITEM 5. OTHER INFORMATION](index=49&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the three months ended June 30, 2025, none of Fiserv'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 Rule 10b5-1 Trading Plans or non-Rule 10b5-1 trading arrangements during Q2 2025[204](index=204&type=chunk) [ITEM 6. EXHIBITS](index=49&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including various indentures related to senior notes, subsidiary issuers of guaranteed securities, certifications from the Chief Executive Officer and Chief Financial Officer, and Inline XBRL documents - The exhibits include indentures for senior notes, certifications from the CEO and CFO, and Inline XBRL documents[207](index=207&type=chunk) [SIGNATURES](index=51&type=section&id=SIGNATURES) The Quarterly Report on Form 10-Q is duly signed on behalf of Fiserv, Inc. by Robert W. Hau, Chief Financial Officer, and Kenneth F. Best, Chief Accounting Officer, on July 24, 2025 - The report was signed by Robert W. Hau (Chief Financial Officer) and Kenneth F. Best (Chief Accounting Officer) on July 24, 2025[212](index=212&type=chunk)

Core Insights - Fiserv's Clover is projected to achieve $3.5 billion in annual sales this year, despite some initiatives taking longer than planned [1][4] - The company has trimmed its 2025 organic revenue growth guidance to a low end of 10%, down from a previous target of 10% to 12% [3] - Clover volumes grew by 8% in the second quarter, maintaining a flat growth rate compared to the first quarter [2] Financial Performance - In the Merchant Solutions segment, adjusted revenue growth was reported at 10%, with Clover revenue increasing by 30% in Q2 [5] - Digital payments revenues in the Financial Solutions segment rose by 6%, while issuing-related revenues grew by 14% [8] - Year-to-date, processing organic and adjusted revenue are both down 1%, aligning with the company's guidance for roughly flat organic revenue over the medium term [10] Strategic Initiatives - The company is focusing on ramping Clover merchants in new international markets, including Brazil, Mexico, Australia, Singapore, and various European countries [6] - A partnership with TD Bank Canada was announced, positioning Fiserv as the merchant processing provider, which is expected to drive further revenue [7] - The company is exploring significant potential in verticals such as restaurants and healthcare [7][12] Future Outlook - The company anticipates an acceleration in Clover volumes to 10% in the latter half of the year to meet its sales targets [3] - Management expects organic revenue growth to accelerate in the second half of the year, particularly in the Merchant Solutions segment [11] - The company remains confident in capturing the full strategic and financial benefits of its initiatives, although the timing has been extended [5][12]

Core Insights - TD Bank Group's TD Merchant Solutions has entered into a multi-year strategic managed services program agreement with Fiserv, which will utilize Fiserv's payment and financial technology, including the Clover point-of-sale system, for its merchant business in Canada [1][2]. Group 1: Partnership Details - Fiserv will acquire a portion of TD's merchant processing business in Canada, which includes migrating 3,400 TD merchant relationships across 30,000 merchant locations to Fiserv's processing system and Clover [3]. - The transaction is expected to close later this year, pending customary closing conditions [3]. Group 2: Strategic Benefits - The partnership aims to expand Clover's reach in Canada, enhancing the value delivered to clients through the integration of Clover's innovative merchant product offerings with TD's business banking solutions [4][5]. - This collaboration is designed to help small businesses address challenges such as rising costs and labor shortages, while also improving customer retention [6]. Group 3: Company Background - TD Bank Group is recognized as the sixth largest bank in North America by assets [5]. - Fiserv has been actively enhancing its merchant services, including a recent acquisition aimed at strengthening its footprint in Ireland and Europe [7][8].