Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in charter) Georgia 58-2567903 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3550 Lenox R ...

833,075 Loss on business dispositions (199,094) 199,094 2,897,227 3.533.644 Year Ended December 31, 2021 Net Revenug Eamings Cansumer Supplemental GAAP Adjustments! Revenues: Merchant Solutions 5 5.665,557 (529,436) $ 5 5,136,121 5 5,136,121 Issuer Solutions 2,165,747 (259,505) 1,906,242 1,906,242 Consumer Solutions 783,625 (46) 783,579 (783,579) Intersegment Elimination (91,167) 3,186 64,394 (33,587) 8,523,762 (785,802) 7.737.960 (729,184) 7,008,777 Operating income (loss): Merchant Solutions 1,725,990 723 ...

Global Payments Inc. (NYSE:GPN) Q1 2023 Earnings Conference Call May 1, 2023 8:00 AM ET Company Participants Winnie Smith - Senior Vice President, Investor Relations Jeff Sloan - Chief Executive Officer Cameron Bready - President and Chief Operating Officer Josh Whipple - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Ashwin Shirvaikar - Citi Darrin Peller - Wolfe Research James Faucette - Morgan Stanley Jason Kupferberg - Bank of America Ramsey El-Assal - Barclays ...

Financial Performance - Consolidated revenues for the year ended December 31, 2022 increased to $8,975.5 million, up from $8,523.8 million in the prior year, driven by increased transaction volumes and digital payment solutions adoption [198]. - Consolidated revenues for the year ended December 31, 2022 increased by 5.3% to $8,975.5 million, compared to $8,523.8 million for the prior year [221]. - Merchant Solutions segment revenues increased by 9.5% to $6,204.9 million, driven by growth in transaction volumes and digital payment solutions [222]. - Issuer Solutions segment revenues increased by 3.7% to $2,245.6 million, supported by transaction volume growth and the acquisition of MineralTree [223]. - Consumer Solutions segment revenues decreased by 20.8% to $620.5 million, impacted by reduced consumer spending and the absence of prior stimulus payments [224]. - Net income attributable to Global Payments decreased to $111.5 million in 2022 from $965.5 million in 2021, reflecting significant changes in financial performance [237]. - Diluted earnings per share fell to $0.40 in 2022 compared to $3.29 in the previous year, driven by the decline in net income and changes in the weighted-average number of shares outstanding [238]. - Net income for 2022 decreased to $143.3 million from $987.9 million in 2021, representing a decline of approximately 85.5% [336]. - The company reported a comprehensive loss attributable to Global Payments of $60.3 million in 2022, compared to a comprehensive income of $933.5 million in 2021 [336]. Operating Income and Expenses - Consolidated operating income for 2022 included an $833.1 million goodwill impairment charge and a $127.2 million loss related to the sale of the Merchant Solutions business in Russia [198]. - Consolidated operating income for the year ended December 31, 2022 was $640.2 million, a decrease of 52.9% compared to $1,358.9 million for the prior year [229]. - Operating expenses increased by 16.3% to $8,335.4 million, with significant contributions from impairment of goodwill and losses on business dispositions [220]. - Selling, general and administrative expenses increased by 3.9% to $3,524.6 million, accounting for 39.3% of revenues, down from 39.8% [226]. - The company recognized an $833.1 million goodwill impairment charge related to its former Business and Consumer Solutions reporting unit [229]. - Corporate expenses decreased to $777.7 million from $836.0 million, primarily due to lower acquisition and integration expenses [228]. Cash Flow and Capital Allocation - Operating activities generated net cash of $2,244.0 million in 2022, down from $2,780.8 million in 2021, primarily due to fluctuations in operating assets and liabilities [245]. - Cash used in investing activities was $675.5 million in 2022, significantly lower than $2,293.8 million in 2021, with $68.8 million allocated for acquisitions and $615.7 million for capital expenditures [246]. - The company had cash and cash equivalents totaling $1,997.6 million as of December 31, 2022, with $713.0 million available for general purposes [242]. - Proceeds from long-term debt amounted to $9,812.3 million in 2022, an increase from $7,057.7 million in 2021, while repayments rose to $7,895.1 million from $4,826.8 million [248]. - The company repurchased common stock for $2,921.3 million in 2022, compared to $2,533.6 million in 2021, with $1,089.9 million remaining under the share repurchase program as of December 31, 2022 [250]. Debt and Financing - The company issued $1.5 billion in convertible notes and entered into a $5.75 billion revolving credit facility to support capital allocation priorities [204]. - The company entered into a $5.75 billion Revolving Credit Facility on August 19, 2022, with a maturity in August 2027 and an initial applicable margin of 1.375% [264][265]. - As of December 31, 2022, there were no borrowings outstanding under the Revolving Credit Facility, with total available commitments of $2.4 billion [266]. - The company recognized $17.3 million in expenses related to commitment fees for a $4.3 billion Bridge Facility during the year ended December 31, 2022 [268]. - As of December 31, 2022, the company was in compliance with all financial covenants under the Revolving Credit Agreement, requiring a leverage ratio of 3.75 to 1.00 and an interest coverage ratio of 3.00 to 1.00 [269]. Market and Strategic Developments - The company entered into a merger agreement to acquire EVO Payments, Inc. for approximately $4 billion, expected to close in Q1 2023 [198]. - The consumer portion of the Netspend business was sold for $1 billion, with $675 million in seller financing, also expected to close in Q1 2023 [198]. - The gaming business was sold for approximately $400 million, with the transaction expected to close in Q1 2023 [198]. - Future capital investments will focus on developing new technologies and expanding into new markets, particularly in sectors previously dominated by paper-based transactions [202]. - The payments technology industry is expected to continue growing, driven by increased merchant acceptance and the migration to digital payment solutions [201]. Goodwill and Impairment - The company recognized a goodwill impairment charge of $833.1 million for its former Business and Consumer Solutions reporting unit during the three months ended June 30, 2022 [283]. - Goodwill decreased to $23.32 billion in 2022 from $24.81 billion in 2021, a reduction of approximately 6.0% [339]. - The fair value of goodwill was $23,300,000,000 as of December 31, 2022, with $9,500,000,000 allocated to the Issuer Solutions reporting unit [319]. Accounting and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2022, according to the audit opinion [325]. - The audit identified critical matters related to revenue recognition and the evaluation of goodwill for impairment, requiring significant auditor judgment [313]. - The company adopted ASU 2021-08 during 2022, impacting how contract assets and liabilities are recognized in business combinations [354]. - The company’s internal control evaluation was based on the criteria established in the Internal Control - Integrated Framework (2013) issued by COSO [325]. Revenue Recognition and Business Segments - The company recognizes revenue for payment services based on a variable consideration model, directly ascribing fees to the distinct day of service [367]. - Issuer Solutions segment revenues are primarily derived from long-term contracts, with processing services representing a stand-ready obligation [372]. - Consumer Solutions revenues consist of fees collected from cardholders, with charges based on transaction activity or subscription plans [379]. - The company capitalizes implementation costs associated with cloud computing arrangements, amortizing them over the term of the applicable hosting arrangement [358]. - The company capitalizes certain costs to obtain contracts with customers, including employee sales commissions, which are amortized over a typical period of three to seven years [387][388].

Global Payments Inc. (NYSE:GPN) Q4 2022 Earnings Conference Call February 10, 2023 8:00 AM ET Company Participants Winnie Smith - Senior Vice President, Investor Relations Jeff Sloan - Chief Executive Officer Cameron Bready - President and Chief Operating Officer Josh Whipple - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Darrin Peller - Wolfe Research James Faucette - Morgan Stanley Jason Kupferberg - Bank of America Bryan Keane - Deutsche Bank Vasu Govil - KBW W ...

Outstanding performance 2020 2021 20221 Full Year 2022 Adjusted Net Revenue Adjusted Operating Margin Adjusted EPS 1 Adjusted net revenue growth on a constant currency basis excludes the estimated impact of foreign currency fluctuations and is calculated using average exchange rates during the same period in 2022. (unaudited) Adiustments' Note: Amounts may not sum due to rounding. (3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used ...

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.06 billion for Q3 2022, a 6% increase from the prior year on a constant currency basis [33] - Adjusted operating margin improved by 240 basis points to a record 45.2%, resulting in adjusted earnings per share of $2.48, an 18% increase from the prior year on a constant currency basis [34] - Adjusted net revenue for the full year is expected to be in the range of $7.8 billion to $7.9 billion, with adjusted earnings per share projected between $9.32 and $9.55 [49][50] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1.45 billion for Q3 2022, a 10% improvement on a constant currency basis [35] - The issuer solutions segment delivered $489 million in adjusted net revenue, a 6% improvement on a constant currency basis [39] - Transaction volumes grew double digits in Q3, led by commercial card transactions, which increased by 25% [18][40] Market Data and Key Metrics Changes - Outside the U.S., revenue improved in key faster-growth geographies, including Spain, Central Europe, and Southeast Asia, despite headwinds from foreign currency exchange rates and COVID-related restrictions [38] - The U.K. and Canada each represent about 5% of the merchant business, while Asia Pacific accounts for a smaller portion, approximately 1/3 of the size of the U.K. and Canada [82][83] Company Strategy and Development Direction - The company is focused on enhancing its B2B capabilities and has integrated NetSpend's B2B assets into its issuer business [19] - The acquisition of EVO Payments is expected to enhance growth and margin targets, with Merchant Solutions projected to represent approximately 75% of adjusted net revenue post-acquisition [55] - The company is expanding its e-commerce partnerships and technology solutions, including a recent agreement with Gucci and ongoing collaboration with Google [27][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, noting no significant evidence of softness in trends despite macroeconomic concerns [53] - The company anticipates continued solid performance into Q4 2022, with expectations for core business growth remaining unchanged [48] - Management highlighted the importance of maintaining financial flexibility and the ability to accelerate synergies from acquisitions [87] Other Important Information - The company completed a $2.5 billion senior unsecured notes offering and a $1.5 billion strategic investment with Silver Lake, enhancing its capital structure [44][46] - Adjusted free cash flow for the quarter was $640 million, with capital expenditures expected to be around $600 million for the full year [42] Q&A Session Summary Question: What is driving the strength in the merchant business? - Management noted stability and strength across most sectors, with volume growth achieved without significant exposure to travel and entertainment [60][62] Question: Can you clarify the guidance regarding FX impacts? - Management reiterated that the core business growth expectations remain at 10% to 11% on a constant currency basis, with FX headwinds expected to impact adjusted net revenue growth by approximately 300 basis points [68][69] Question: What is the outlook for the EVO acquisition and its impact? - Management indicated that the EVO acquisition is expected to offset the lost earnings from NetSpend consumer, with both transactions being roughly neutral from an accretion dilution perspective [71][73] Question: What are the underlying drivers of margin expansion? - The expansion of margins is attributed to better transactional performance and a focus on profitable growth, with expectations for continued trends into Q4 [76][78] Question: How is the company positioned in the BNPL ecosystem? - Management highlighted significant progress in BNPL technologies and services, with a strong implementation pipeline and partnerships with financial institutions [100][102]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-16111 GLOBAL PAYMENTS INC. (Exact name of registrant as specified in charter) | Georgia | 58-2567903 | | --- | --- | ...

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Global Payments, Inc. (EVOP) Q2 2022 Earnings Conference Call August 3, 2022 8:00 AM ET Company Participants Winnie Smith - SVP, IR Jeffrey Sloan - CEO & Director Cameron Bready - President & COO Joshua Whipple - CFO Conference Call Participants Darrin Peller - Wolfe Research Bryan Keane - Deutsche Bank David Koning - Robert W. Baird & Co. Robert Napoli - William Blair & Company Ramsey El-Assal - Barclays Bank James Friedman - Susquehanna Financial Group Operator Ladies and gentlemen, thank you for standing ...