Core Viewpoint - Shift4 Payments (FOUR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - Shift4 Payments is projected to earn $5.46 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 40.4% [8]. Analyst Sentiment and Market Position - Analysts have raised their earnings estimates for Shift4 Payments, with the Zacks Consensus Estimate increasing by 19.7% over the past three months [8]. - The upgrade to Zacks Rank 2 places Shift4 Payments in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Zacks Rating System Overview - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of performance, where Zacks Rank 1 stocks have generated an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, while the next 15% receive a 'Buy' rating [9].

Core Viewpoint - Shift4 Payments (FOUR) has seen a 13.6% increase in share price over the past four weeks, closing at $82.36, with a potential upside of 41.2% based on Wall Street analysts' mean price target of $116.29 [1] Price Targets - The average of 24 short-term price targets ranges from a low of $80 to a high of $150, with a standard deviation of $16.01, indicating variability among analysts [2] - The lowest estimate suggests a decline of 2.9% from the current price, while the highest estimate indicates an upside of 82.1% [2] Analyst Sentiment - Analysts show a consensus that FOUR will report better earnings than previously estimated, which supports the expectation of a stock price increase [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 17.3%, with seven estimates moving higher and one lower [12] Zacks Rank - FOUR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13]

Financial Performance - Gross revenue for Q1 2025 was $848.3 million, a 19.8% increase from $707.4 million in Q1 2024[18] - Net income attributable to Shift4 Payments, Inc. for Q1 2025 was $16.7 million, down from $20.6 million in Q1 2024, representing a 19% decrease[18] - Comprehensive income attributable to Shift4 Payments, Inc. for Q1 2025 was $42.3 million, significantly up from $10.0 million in Q1 2024[20] - Net income for Q1 2025 was $19.5 million, a decrease of 31.6% from $28.5 million in Q1 2024[23] - Operating cash flow decreased to $96.6 million in Q1 2025 from $115.0 million in Q1 2024, reflecting a decline of 16.5%[23] - Payments-based revenue increased to $755.7 million in Q1 2025 from $655.1 million in Q1 2024, reflecting a growth of about 15.3%[66] - Subscription and other revenues rose significantly to $92.6 million in Q1 2025, compared to $52.3 million in Q1 2024, marking an increase of approximately 76.8%[66] Expenses and Liabilities - The company reported a cost of sales of $591.3 million in Q1 2025, compared to $519.6 million in Q1 2024, reflecting a 13.8% increase[18] - Depreciation and amortization increased to $85.2 million in Q1 2025, up from $66.1 million in Q1 2024, representing a rise of 28.5%[23] - Equity-based compensation expense increased to $26.0 million in Q1 2025 from $22.8 million in Q1 2024, an increase of 14.0%[23] - The TRA liability was $362.6 million as of March 31, 2025, slightly down from $365.5 million at the end of 2024[29] - Total liabilities as of March 31, 2025, included a Tax Receivable Agreement (TRA) liability of $362.6 million, slightly down from $365.5 million at the end of 2024[29] Cash and Investments - Cash and cash equivalents at the end of Q1 2025 were $1,384.3 million, down from $1,438.6 million at the end of Q4 2024, a decrease of 3.8%[36] - Net cash used in investing activities rose to $85.0 million in Q1 2025 compared to $39.7 million in Q1 2024, indicating a significant increase of 114.1%[23] - The company reported a gain on investments in securities of $(0.3) million in Q1 2025, compared to a loss of $(11.0) million in Q1 2024[23] Acquisitions - The company completed the acquisition of Eigen Payments for a total purchase consideration of $115.0 million, net of cash acquired[41] - The company completed the acquisition of Givex Corp. for a total purchase consideration of $127.8 million, net of cash acquired[47] - The acquisition of Vectron Systems AG involved a total purchase consideration of $62.7 million, net of cash acquired, with the company owning approximately 75% of Vectron's common stock as of March 31, 2025[52] - The acquisition of Revel Systems, Inc. was completed for $245.3 million, net of cash acquired, enhancing the company's presence in the restaurant and retail markets[60] Stockholder Equity - The total stockholders' equity as of March 31, 2025, was $1,016.0 million, slightly down from $1,017.7 million at the end of 2024[21] - The company repurchased and retired 686,177 shares of Class A common stock, resulting in a reduction of $63.4 million in equity[21] - The company recognized equity-based compensation expense of $26.0 million for the three months ended March 31, 2025, compared to $22.8 million for the same period in 2024, reflecting an increase of approximately 14.0%[119] Debt and Financing - Total debt as of March 31, 2025, was $2,843.5 million, with a current portion of $687.8 million and long-term debt of $2,155.7 million[78] - The company has a $450.0 million senior secured revolving credit facility, with no borrowings as of March 31, 2025[84] - Future principal payments on the company's debt total $2,872.5 million, with $690.0 million due in 2025[81] - The company entered into a commitment letter for a 364-day bridge loan facilities totaling $1.795 billion, consisting of a $1.0 billion senior secured bridge loan and a $795.0 million senior unsecured bridge loan[86] Tax and Compliance - The Company's effective tax rate for the three months ended March 31, 2025, was (71)%, significantly different from the federal statutory rate of 21% due to noncontrolling interest allocations[99] - The Company was in compliance with all financial covenants under its debt agreements as of March 31, 2025[89] Other Financial Metrics - The company experienced a change in TRA liability resulting in a gain of $3.0 million in Q1 2025, compared to a loss of $1.2 million in Q1 2024[18] - The effect of exchange rate changes on cash and cash equivalents resulted in a gain of $14.8 million in Q1 2025, compared to a loss of $(6.5) million in Q1 2024[23] - The company did not have any single customer accounting for more than 10% of its revenue during the reported periods, indicating a diversified customer base[130]

Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in volumes to $45 billion, with gross revenue less network fees rising 40% to $369 million [6][24] - Adjusted EBITDA increased 38% to $169 million, with adjusted EBITDA margins at 46%, slightly above the guidance of 45% [7][24] - Adjusted EPS for the quarter was $1.07 per share, reflecting strong performance [8][28] Business Line Data and Key Metrics Changes - Subscription and other revenue grew 77% year-over-year to $93 million, driven by success in SMB, SkyTab, and further penetration in the sports and entertainment vertical [24] - The company is focused on adding new merchants and expanding share of wallet, particularly in the restaurant sector with the introduction of SkyTab Air [9][10] Market Data and Key Metrics Changes - The company is experiencing stable volume trends across all end markets, with a slight deceleration attributed to seasonal factors [6][30] - International expansion is underway, with significant growth in markets like the UK, Ireland, and Germany, signing over 1,000 restaurants monthly [19][75] Company Strategy and Development Direction - The company is raising its full-year 2025 guidance, reflecting confidence in execution and growth drivers [6][29] - The acquisition of Global Blue is expected to unlock $80 million in revenue synergies by 2027, primarily through bundling payment solutions [21][90] - The company aims to replicate its successful U.S. model internationally, focusing on software and payment convergence [18][75] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending trends, noting stability despite macroeconomic uncertainties [30][100] - The company has a proven track record of growing payment volumes during economic downturns, indicating resilience [22][30] Other Important Information - The company repurchased approximately 686,000 shares for $63 million in Q1 and continued repurchases in April [27] - Total indebtedness has a weighted average cost of 3.4%, with net leverage at approximately 2.4 times [28] Q&A Session Summary Question: How would you describe the competitive environment in international markets? - Management noted that the international opportunity mirrors the U.S. market evolution, with a lack of convergence among software, hardware, and payment solutions [36][39] Question: Can you touch on what you're seeing in the market more broadly into April? - Management indicated stable trends in same-store sales across various segments, with modest compression in restaurants and hotels [42][46] Question: Where are you on the synergy update from recent acquisitions? - Management highlighted successful cross-sell opportunities from acquisitions like Revel, contributing significantly to the SkyTab development pipeline [50][51] Question: What was organic and inorganic growth in the 40% GR LNF growth in the quarter? - Management stated that organic revenue growth is expected to be north of 20% for the year, with acquisitions providing noise in quarter-to-quarter comparisons [56][57] Question: Can you provide any color on the current revenue split between U.S. and international? - Management indicated that international revenue is still developing, with significant contributions expected from enterprise customers and SMB products [72][73]

Core Insights - Shift4 Payments reported a revenue of $368.5 million for the quarter ended March 2025, reflecting a year-over-year increase of 39.7% and surpassing the Zacks Consensus Estimate by 6.90% [1] - The company's EPS for the quarter was $1.07, significantly higher than the $0.54 reported in the same quarter last year, resulting in an EPS surprise of 50.70% compared to the consensus estimate of $0.71 [1] Financial Performance Metrics - End-to-End Payment Volume reached $45 billion, exceeding the average estimate of $44.53 billion from five analysts [4] - Gross Revenue from Subscription and other revenues was reported at $92.60 million, slightly above the average estimate of $92.56 million, marking a year-over-year increase of 77.1% [4] - Gross Revenue from Payments-based revenue was $755.70 million, below the average estimate of $797.60 million, but still showing a year-over-year growth of 15.4% [4] Stock Performance - Over the past month, shares of Shift4 Payments have returned -2.5%, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Shift4 Payments (FOUR) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50.70%. A quarter ago, it was expected that this company would post earnings of $1.16 per share when it actually produced earnings of $1.35, delivering a surprise of 16.38%.Over the last four quarters, the company ...

Shift4 Payments (FOUR) Q1 2025 Earnings Call April 29, 2025 08:30 AM ET Company Participants Thomas McCrohan - Executive Vice President of Investor RelationsTaylor Lauber - PresidentNancy Disman - CFORayna Kumar - Managing Director - Fintech Equity ResearchDarrin Peller - Managing DirectorAdam Frisch - Senior Managing Director - EquitiesTimothy Chiodo - Managing DirectorAndrew Bauch - Director - Equity ResearchDominic Ball - VP - Equity ResearchMatthew O'Neill - Managing Director Conference Call Participant ...

Exhibit 99.1 crypto.com @ crypto.com crypto.com SHIFT@ Q1 2025 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM Forward-Looking Statements This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Shift4 Payments, Inc. ("we. "our," the "Company." o "Shift4") intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21 ...

The consensus among analysts is that 'Gross Revenue- Subscription and other revenues' will reach $92.56 million. The estimate points to a change of +77% from the year-ago quarter. Analysts expect 'Gross Revenue- Payments-based revenue' to come in at $797.60 million. The estimate indicates a year-over-year change of +21.8%. The average prediction of analysts places 'End-to-End Payment Volume' at $44.53 billion. Compared to the present estimate, the company reported $33.40 billion in the same quarter last yea ...

Business Operations and Revenue Model - Shift4 processed billions of transactions annually for hundreds of thousands of businesses, establishing itself as a leading independent provider of software and payment processing solutions in the U.S.[25] - The majority of Shift4's revenue is derived from processing fees, charged as a percentage of end-to-end payment volume and/or as a fee per transaction, with no single merchant accounting for more than 3% of revenue in recent years[30] - Shift4's revenue model is predominantly recurring, with significant contributions from subscription revenue for licensing its POS software and business intelligence tools[30] - The company aims to increase payment volume processed through its integrated platform across diverse verticals, including restaurants and e-commerce[47] - Shift4 Payments reported a significant increase in revenue, achieving $500 million in Q3 2023, representing a 25% year-over-year growth[101] - Shift4 Payments anticipates continued growth, projecting revenue to reach between $2 billion and $2.2 billion for the full year 2024, indicating a growth rate of approximately 20%[101] Technology and Innovation - The payments platform supports multiple payment types, including credit, debit, contactless cards, and alternative payment methods like Apple Pay and Google Pay, ensuring flexibility for merchants[33] - Shift4's proprietary gateway integrates with over 550 software suites, enabling connectivity with major payment processors and enhancing security features to protect consumer card data[34] - Shift4's technology solutions are designed to streamline business operations and drive growth through strong consumer engagement and rich transaction-level data[35] - The company focuses on innovation and product development, leveraging an extensive library of intellectual property to create scalable technology solutions[28] - Shift4's technology solutions include SkyTab POS, SkyTab Mobile, and Lighthouse, aimed at improving operational efficiency and customer engagement[37] - Shift4 Payments is investing in new technology, including enhancements to its payment processing platform, which is expected to improve transaction speed by 15%[101] Market Expansion and Strategic Partnerships - The company is strategically expanding its market presence and enhancing its service offerings through partnerships with independent software vendors and value-added resellers[29] - In 2023, the company acquired Credorax, Inc. (operating as Finaro) to support international expansion, particularly in Europe and the UK[50] - The company is focused on international expansion and anticipates growth in its market position, with a strategy to enhance its service offerings[15] - Shift4 Payments is exploring potential acquisitions to bolster its service offerings and expand its technological capabilities, with a target of completing at least one acquisition by the end of 2024[101] - The company has initiated strategic partnerships with major players in the e-commerce space, which is projected to increase its customer base by 40% over the next year[101] Customer Experience and Support - The company aims to simplify commerce for merchants by providing an integrated solution that combines hardware, software, and payment processing[27] - The merchant onboarding process allows for activation within minutes via an online portal, with complex merchants typically onboarded within 24 hours[44] - The company provides a full curriculum of training materials to merchants, enhancing their operational capabilities[44] - The company provides 24/7 merchant support, emphasizing first-call resolution to enhance operational efficiency[51] - Shift4's operations infrastructure leverages over 30 years of experience in the hospitality sector to deliver high-quality customer experiences[42] Employee Engagement and Corporate Culture - As of December 31, 2024, Shift4's workforce included approximately 4,000 employees, with 800 employees added through acquisitions completed in 2024[75] - Shift4's compensation philosophy emphasizes equity and performance-based rewards, including a 401(k) with 100% matching up to 4% of salary in the U.S.[80] - In 2024, over 2,500 employees voluntarily engaged in learning opportunities, completing approximately 23,000 courses[79] - The appointment of Shift4's first Chief Human Resources Officer in 2024 reflects a strategic enhancement of the human capital governance structure[76] - Shift4's employee engagement initiatives include the Top Gun Employee Recognition Program, celebrating top performers and driving retention[84] Compliance and Risk Management - The company is subject to various federal, state, and international laws prohibiting unfair or deceptive trade practices, which could impact its business operations[70] - The company is subject to GDPR penalties for non-compliance, which can reach up to EUR 20 million or 4% of global annual turnover[69] - The company has policies and controls in place to comply with anti-money laundering laws and regulations in various jurisdictions, including the U.S. and EU[71] - The company’s risk management operations monitor merchant accounts continuously to minimize losses associated with fraud and default[51] Financial Performance and Projections - The company processed over 200 million transactions in the last quarter, reflecting a 30% increase compared to the same period last year[101] - The company reported a net income of $50 million for Q3 2023, a 10% increase from the previous quarter, showcasing improved profitability[101] - Shift4 Payments is committed to enhancing its cybersecurity measures, with a planned investment of $10 million in 2024 to safeguard customer data[101] Governance and Leadership - Jared Isaacman has served as the CEO and Chairman of Shift4 Payments since its formation, and he is also the founder of Shift4 Payments, LLC[91] - Nancy Disman has been the CFO since August 2022, previously serving as CFO and Chief Administrative Officer at Intrado Corporation[93] - Shift4 Payments is committed to enhancing its governance practices through experienced board members with diverse backgrounds in finance and technology[15] - The company is preparing for potential executive transitions and succession planning to ensure leadership continuity[15]