[Overview of Second Quarter 2025 Performance](index=1&type=section&id=Overview%20of%20Second%20Quarter%202025%20Performance) Global Payments' Q2 2025 performance exceeded expectations, driven by strategic initiatives and a positive full-year outlook [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported Q2 2025 results modestly ahead of expectations, highlighting business resilience and successful transformation program execution - Q2 results were modestly ahead of expectations, demonstrating business model resilience and strong execution on key initiatives[2](index=2&type=chunk) - The successful launch of the **'Genius' platform** is noted as a critical milestone in the company's transformation program[2](index=2&type=chunk) - Significant progress has been made on the Worldpay acquisition and Issuer Solutions divestiture, with U.S. antitrust review cleared, reinforcing confidence in synergy opportunities[4](index=4&type=chunk) - The company is more confident than ever that the combined business with Worldpay will meaningfully enhance its financial profile and deliver sustainable performance[4](index=4&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Global Payments reported Q2 2025 GAAP diluted EPS of $0.99, adjusted EPS of $3.10, and adjusted net revenue growth of 5% constant currency Q2 2025 Key Financial Metrics | Metric | Value | Change (Constant Currency) | | :--- | :--- | :--- | | GAAP Diluted EPS | $0.99 | - | | Adjusted Diluted EPS | $3.10 | +11% | | GAAP Revenue | $1.96 billion | Approx. flat | | Adjusted Net Revenue (ex-dispositions) | $2.36 billion | +5% | | Adjusted Operating Margin | 44.6% | +130 bps | [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) The company reaffirmed its full-year 2025 adjusted net revenue growth outlook and raised its adjusted EPS and operating margin expansion forecasts - Reaffirms full-year 2025 constant currency adjusted net revenue growth outlook of **5% to 6%**, excluding dispositions[3](index=3&type=chunk)[6](index=6&type=chunk) - Now expects adjusted earnings per share growth to be at the **high end of the 10% to 11% range**[3](index=3&type=chunk)[6](index=6&type=chunk) - Expects annual adjusted operating margin expansion to be **slightly more than 50 basis points**, excluding dispositions[6](index=6&type=chunk) [Strategic Initiatives and Corporate Actions](index=1&type=section&id=Strategic%20Initiatives%20and%20Corporate%20Actions) Key strategic milestones include HSR clearance for Worldpay acquisition and Issuer Solutions divestiture, increased transformation benefits, and new capital allocation plans - Received Hart-Scott-Rodino (HSR) clearances for the acquisition of Worldpay and divestiture of Issuer Solutions, with transactions expected to close in **H1 2026**[3](index=3&type=chunk)[4](index=4&type=chunk) - The expected annual run-rate operating income benefit from the operational transformation of the Merchant business has been increased to **$650 million**[3](index=3&type=chunk) - The company is entering into a **$500 million accelerated share repurchase plan**[3](index=3&type=chunk)[9](index=9&type=chunk) - The Board of Directors approved a quarterly dividend of **$0.25 per share**[9](index=9&type=chunk) [Financial Statements and Schedules](index=7&type=section&id=Financial%20Statements%20and%20Schedules) This section presents Global Payments' GAAP income statements, balance sheets, cash flows, and non-GAAP reconciliations for Q2 2025 [Consolidated Statements of Income (GAAP)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20%28GAAP%29) Q2 2025 GAAP revenues decreased 0.7% to $1.96 billion, with net income attributable to Global Payments declining 35.5% to $241.6 million Q2 2025 GAAP Income Statement Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,956,747 | $1,971,025 | (0.7)% | | Operating Income | $427,206 | $475,388 | (10.1)% | | Net Income Attributable to Global Payments | $241,640 | $374,760 | (35.5)% | | Diluted EPS | $0.99 | $1.47 | (32.7)% | [Segment Performance](index=9&type=section&id=Segment%20Performance) Merchant Solutions reported non-GAAP revenue of $1.83 billion, while Issuer Solutions (discontinued) showed strong non-GAAP revenue growth of 4.0% Q2 2025 Non-GAAP Segment Performance (in thousands) | Segment | Non-GAAP Revenue | % Change | Non-GAAP Operating Income | % Change | | :--- | :--- | :--- | :--- | :--- | | Merchant Solutions | $1,831,727 | 1.1% | $917,261 | 3.7% | | Issuer Solutions | $547,368 | 4.0% | $266,354 | 8.0% | [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets were $48.5 billion, with $14.2 billion in long-term debt and $22.6 billion in shareholders' equity Key Balance Sheet Items as of June 30, 2025 (in thousands) | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $2,611,662 | | Goodwill | $16,742,403 | | Total assets | $48,518,510 | | Long-term debt | $14,150,983 | | Total liabilities | $25,096,921 | | Total Global Payments shareholders' equity | $22,593,075 | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was $1.37 billion, with significant cash used in investing and financing activities Cash Flow Summary for Six Months Ended June 30, 2025 (in thousands) | Cash Flow Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,372,649 | | Net cash used in investing activities | $(476,822) | | Net cash used in financing activities | $(522,267) | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Global Payments uses non-GAAP metrics, including adjusted net revenue of $2.36 billion and adjusted diluted EPS of $3.10 for Q2 2025 - The company uses non-GAAP measures to evaluate performance, adjusting for items like acquisition-related amortization, integration expenses, and disposition gains/losses[11](index=11&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) Q2 2025 Key Non-GAAP Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Adjusted net revenue | $2,361,234 | $2,324,121 | 1.6% | | Adjusted operating income | $1,052,749 | $1,007,084 | 4.5% | | Adjusted net income | $754,189 | $713,840 | 5.7% | | Adjusted diluted EPS | $3.10 | $2.80 | 10.7% | - The Issuer Solutions business is accounted for as discontinued operations under GAAP, but its performance is included in the company's non-GAAP financial measures[8](index=8&type=chunk)

Core Insights - Global Payments Inc. (GPN) is expected to report second-quarter 2025 results on August 6, 2025, with earnings estimated at $3.03 per share and revenues at $2.35 billion, reflecting a year-over-year increase of 3.4% and 1.3% respectively [1][6] - For the full year 2025, the revenue estimate stands at $9.3 billion, indicating a 1.6% year-over-year rise, while the EPS estimate is $12.11, suggesting a 4.9% increase year-over-year [2] Earnings Estimates - The second-quarter earnings estimate has increased by 1 cent over the past 60 days [1] - GPN has an Earnings ESP of -0.02% and a Zacks Rank of 3, indicating uncertainty regarding an earnings beat this quarter [3] Revenue Breakdown - Adjusted revenues from Issuer Solutions are projected to rise nearly 3% year-over-year, driven by higher accounts and transactions [6] - Merchant Solutions revenues are expected to grow by 0.4%, with operating income anticipated to increase by around 2% year-over-year [6][7] - The consensus estimate for adjusted revenues from Merchant Solutions indicates a 0.4% increase from the previous year's $1.8 billion, while adjusted operating income is expected to grow by 2% from $884.8 million [7] - Adjusted revenues from Issuer Solutions are expected to show an almost 3% increase from last year's $541.5 million, with adjusted operating income projected to rise by 3.7% from $246.6 million [8] Regional Performance - The consensus estimate for Europe operations indicates a 2.1% year-over-year increase, while revenues from Americas operations are expected to rise by 0.9% and Asia Pacific by 1.5% [9] Cost Considerations - Profit growth may be partially offset by increased costs, with an anticipated 1.4% rise in adjusted cost of service year-over-year due to ongoing investments in digital capabilities [10]

According to the collective judgment of analysts, 'Non-Gaap Revenues- Issuer Solutions' should come in at $541.47 million. The estimate suggests a change of +2.9% year over year. Analysts expect 'Revenues- Issuer Solutions' to come in at $632.97 million. The estimate points to a change of +3.2% from the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 0.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a w ...

Core Insights - Global Payments Inc. (GPN) has expanded its collaboration with Banco Nacional de México, processing nearly 900 million transactions annually through its EVO Payments division [1][8] - The multi-year renewal of the partnership aims to serve a wide range of merchants, from small and mid-sized businesses to large enterprises, integrating GPN's payment solutions with Banamex's banking services [2][8] - The alliance is expected to enhance commerce and payment solutions in Mexico, particularly benefiting SMEs that account for 52% of the country's revenues [3] Company Strategy - Global Payments is focusing on upgrading its payments infrastructure and enhancing digital capabilities to boost its presence in Mexico and increase revenue through higher utilization of its solutions [4][5] - The company is actively pursuing divestitures to streamline operations and free up capital for investments in core areas, reinforcing its position as a commerce-focused solutions provider [5][6] Market Performance - Shares of Global Payments have increased by 23.1% over the past three months, outperforming the industry growth of 7.8% [7]

Group 1 - Truist Securities raised the target price for Global Payments Inc. from $79 to $83 [1]

Core Insights - Global Payments Inc (NYSE:GPN) stock has increased by 4.3%, reaching $80.92, following reports of activist investor Elliott Management acquiring a "sizeable" stake in the company [1] - Despite today's gains, the stock is still down 27.9% year-to-date, indicating significant volatility and potential challenges ahead [1] Analyst Sentiment - There is potential for positive outlooks if the current bearish sentiment among analysts shifts; out of 32 analysts, 22 have a "hold" or worse recommendation for Global Payments stock [2] - Short interest in Global Payments has decreased by 25.5% over the last two reporting periods, suggesting a retreat from short sellers; however, short interest still represents 3.7% of the stock's total float, equating to just over two days of buying power [2]

Investment & Shareholding - Elliott Investment Management has built a significant stake in Global Payments [1] Company Focus - Global Payments is a payments services company [1]

Group 1 - Elliott Management has acquired a significant position in Global Payments, leading to an increase in the company's stock price during extended trading sessions [1][3] - Global Payments is working to regain investor confidence after its $24.2 billion acquisition of Worldpay, which caused its shares to hit a decade-low [2] - Elliott Management, managing $72.7 billion in assets, is known for taking high-profile activist positions in various companies, including BP and Hewlett Packard Enterprise [3] Group 2 - Following the news of Elliott's stake, Global Payments shares rose by 5.66%, reaching $82 in extended trading [3]

Core Insights - Global Payments Inc. (GPN) has launched OroPay, a payment solution designed to streamline B2B transactions on the OroCommerce platform, integrating invoicing, ERP, payments, and commerce into a unified system [1][10] - OroPay provides real-time visibility from order to reconciliation, simplifies collections, and reduces manual financial processes, while also handling Level 2 and Level 3 transaction data to lower interchange fees for high-ticket B2B transactions [2][10] - This initiative reflects GPN's strategic shift towards embedded finance, positioning the company to support B2B platforms with scalable payment systems as digital B2B transactions grow [3][4] Strategic Partnerships - GPN's collaboration with Oro targets specialized sectors such as manufacturing, distribution, and wholesale, enhancing customer loyalty and increasing transaction yields [4] - The partnership is expected to contribute to GPN's long-term growth by laying the groundwork for future innovations in intelligent financial services [5] Market Performance - Year-to-date, GPN shares have decreased by 27.5%, contrasting with the industry growth of 5.1% [7] - GPN currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [8]

Core Insights - Oro Inc. has launched OroPay, a fully integrated payment platform designed for manufacturers and distributors using OroCommerce, aiming to streamline invoicing, payments, ERP connectivity, and commerce into a unified ecosystem [1][5] - OroPay is backed by a strategic partnership with Global Payments, making it available for OroCommerce users across North America and beyond [2] Centralizing Commerce and Finance - Many B2B businesses currently manage invoicing and payments through separate tools, leading to inefficiencies; OroPay addresses this by integrating payments directly into OroCommerce [3] - Sellers can manage invoicing, payments, and account data in one system, while buyers benefit from a self-service payment option using various digital methods [4] Features and Benefits - OroPay supports Level 2 and Level 3 credit card processing, significantly reducing fees for high-value B2B transactions, and offers advanced fraud protection and compliance features [6] - The platform is designed for flexibility and scalability, accommodating various complexities in B2B commerce, such as partial payments and multi-brand operations [7] Launch and Availability - OroPay is included by default with all OroCommerce deployments starting from version 5.1 LTS, with customers having the option to activate or opt out without penalty [7] - Onboarding is facilitated in collaboration with Global Payments, which provides dedicated implementation, training, and ongoing support [7] Company Background - Oro Inc. was founded in 2012 and is known for OroCommerce, the only open-source digital commerce platform specifically designed for B2B companies, serving global businesses in manufacturing, distribution, and wholesale [8] - Oro was recognized as a Visionary in Gartner's 2024 Magic Quadrant for Digital Commerce [8] Operational Efficiency - The unified ecosystem of OroPay aims to reduce manual reconciliation and administrative time, while also accelerating collections with always-on digital payment options [9] - OroPay offers competitive pricing with transparent transaction fees that meet or beat market standards [9]