Acquisitions and Investments - The company acquired Payfare, Inc. for $397 million, enhancing its embedded finance capabilities[142]. - The company expects to acquire StoneCastle for approximately $460 million, which will strengthen its position in institutional deposits[145]. - The company reported an initial cash payment of $453 million from the non-renewal of the Wells Fargo Merchant Services alliance[146]. - The company has expanded its Clover platform through multiple acquisitions, enhancing its merchant services capabilities across various regions[144]. - Acquisitions in the first nine months of 2025 totaled $397 million, including deferred payments, for companies such as Payfare and CCV[192]. - The company expects to acquire StoneCastle for approximately $460 million, with the transaction anticipated to close in the first quarter of 2026[193]. Financial Performance - Total revenue for Q3 2025 was $5,263 million, a 1% increase from $5,215 million in Q3 2024[163]. - Processing and services revenue was $4,273 million, representing 81.2% of total revenue, with a 1% increase from $4,237 million in Q3 2024[163]. - Product revenue increased by 1% to $990 million, accounting for 18.8% of total revenue[163]. - Operating income decreased by 10% to $1,436 million, down from $1,602 million in Q3 2024, resulting in an operating margin of 27.3%[163][165]. - Net income attributable to Fiserv, Inc. rose by 40% to $792 million, compared to $564 million in Q3 2024[163]. - Total revenue for the nine months ended September 30, 2025, was $15,909 million, a 5% increase from $15,205 million in the same period of 2024[164]. - Total revenue increased by $704 million, or 5%, in the first nine months of 2025 compared to 2024, with a 7% growth in the Merchant segment and a 3% growth in the Financial segment[167]. - Operating income increased by $316 million, or 8%, in the first nine months of 2025 compared to 2024, with an operating margin of 28.5%, an increase of 80 basis points[177]. - Revenue in the Merchant segment increased by $470 million, or 7%, in the first nine months of 2025, driven by a 5% contribution from Small Business and a 1% contribution from Enterprise[168]. - Revenue in the Financial segment increased by $226 million, or 3%, in the first nine months of 2025, primarily due to increased data and analytics sales[169]. - Net income attributable to Fiserv, Inc. per share-diluted was $4.83 in the first nine months of 2025, compared to $3.74 in the same period of 2024[186]. Expenses and Cash Flow - The company reported a 6% increase in total expenses to $3,827 million in Q3 2025, compared to $3,613 million in Q3 2024[163]. - Total expenses increased by $388 million, or 4%, in the first nine months of 2025, with total expenses as a percentage of total revenue decreasing by 80 basis points to 71.5%[171]. - Interest expense increased by 29% to $422 million in Q3 2025, up from $326 million in Q3 2024[163]. - Interest expense, net increased by $246 million, or 28%, in the first nine months of 2025 due to debt financing activities, including the issuance of $2.0 billion in senior notes[181]. - Operating cash flow for the first nine months of 2025 was $4.1 billion, a decrease of 7% from $4.4 billion in the same period of 2024[189]. - Selling, general and administrative expenses as a percentage of total revenue decreased to 32.4% in the first nine months of 2025 compared to 32.9% in the same period of 2024[175]. Debt and Liquidity - Total long-term debt increased to $28.876 billion as of September 30, 2025, up from $23.730 billion at the end of 2024[198]. - The company issued $2.0 billion in senior notes in August 2025, with proceeds used for general corporate purposes including share repurchases[198]. - Variable rate debt totaled $3.424 billion as of September 30, 2025, with a weighted-average interest rate of 11.800%[204]. - Cash and cash equivalents stood at $1.1 billion, with available capacity under the revolving credit facility of $3.4 billion as of September 30, 2025[188]. - Cash and cash equivalents totaled $1,068 million as of September 30, 2025, compared to $1,236 million as of December 31, 2024[213]. - The total available cash increased from $665 million in December 2024 to $884 million in September 2025[213]. Market Conditions and Risks - The company actively monitors macroeconomic conditions, including interest rates and inflation, which could adversely impact its financial results[158][159]. - The company actively monitors market risks, particularly from fluctuations in interest rates and foreign currency exchange rates, and utilizes derivative instruments to hedge against these risks[214]. - The major currencies impacting revenues include the Argentine Peso, Brazilian Real, British Pound, Euro, and Indian Rupee[215]. - The Argentine government announced economic policy changes in April 2025, leading to significant devaluation of the Argentine Peso, which affected the company's international operating results[215]. - There were no significant changes to the company's market risk analyses during the nine months ended September 30, 2025[216]. Strategic Initiatives - The company anticipates continued demand for integrated solutions from financial institutions, driven by the shift to digital banking[155]. - The company aims to deepen client relationships with a focus on digital solutions and value-added services[137]. - The company emphasizes the importance of integrating its products and services to provide a unified customer experience[154]. - The company has invested in operational excellence and innovation to drive growth and create value for clients[137]. - The One Fiserv action plan was launched in Q3 2025 to enhance client focus and drive long-term growth through five strategic pillars[160].
Fiserv(FISV) - 2025 Q3 - Quarterly Report