Shift4 Payments(FOUR) - 2025 Q3 - Quarterly Results

Financial Performance - Gross profit increased by 62% and gross revenues less network fees grew by 61% compared to Q3 2024, with adjusted EBITDA margins at 50%[12] - Non-GAAP net income per share for the quarter was $1.47, and gross revenue less network fees grew by 19% when excluding the impact of Global Blue[12] - Global Blue contributed $173.1 million in revenue with a margin of 43%, despite challenges in consumer spending in Japan and Europe[25] - Gross revenue for Q3 2025 reached $1,176.9 million, a 29.5% increase from $909.2 million in Q3 2024[135] - Net income attributable to Shift4 Payments, Inc. for Q3 2025 was $28.1 million, compared to $53.8 million in Q3 2024, reflecting a decrease of 47.9%[135] - Payments-based revenue for Q3 2025 reached $1,058.0 million, a 31% increase from $806.8 million in Q3 2024[139] - Gross revenue for Q3 2025 was $1,176.9 million, up 29% from $909.2 million in Q3 2024[139] - Gross profit for Q3 2025 was $409.6 million, representing a 62% increase compared to $253.2 million in Q3 2024[139] - Adjusted EBITDA for Q3 2025 was $292.1 million, a significant increase from $187.4 million in Q3 2024, reflecting a margin of 50%[141] - Net income for Q3 2025 was $33.4 million, down from $72.2 million in Q3 2024[141] - Non-GAAP net income for Q3 2025 was $148.4 million, compared to $126.4 million in Q3 2024[142] Strategic Initiatives - A new $1 billion stock repurchase program has been authorized, marking the largest in the company's history[19] - Adjusted Free Cash Flow is being prioritized for strategic investments and capital allocation decisions[6] - The company continues to expand its market presence and product offerings in new geographies, with encouraging results from early endeavors[13] - Shift4 continues to expand its market share in the hospitality vertical, partnering with Hyatt Vacation Club and Carpe Viam Destinations[49][51] - The company is now powering payments for over 60 rental car locations through a partnership with Hertz[116] - The company has closed on SmartPay and announced the acquisition of Bambora, which represents $90 billion of gateway volume[121][129] Future Outlook - The company is on track to achieve a compound annual growth rate of over 30% in the medium term[17] - The company has a backlog of over $35 billion, indicating strong future revenue potential[32] - Shift4 processed $6 billion of installed and activated volume during the quarter, signing an equivalent amount[32] - The company is reaffirming its FY 2025 guidance, projecting volume of $207 billion to $210 billion, representing a year-over-year growth of 26% to 27%[130] - Gross revenue less network fees for FY 2025 is expected to be between $1.980 billion and $2.020 billion, reflecting a year-over-year increase of 46% to 49%[130] - Adjusted EBITDA for FY 2025 is projected to be between $970 million and $985 million, showing a year-over-year growth of 43% to 45%[130] Cash Flow and Capital Management - Cash and cash equivalents increased to $1,511.5 million from $1,211.9 million, marking a 24.7% rise[134] - Operating activities generated net cash of $171.8 million in Q3 2025, compared to $142.5 million in Q3 2024, an increase of 20.6%[137] - Net cash used in investing activities was $2,648.5 million in Q3 2025, compared to $53.7 million in Q3 2024, reflecting a significant increase in investment outflows[137] - The company reported a net cash provided by financing activities of $965.1 million in Q3 2025, down from $1,091.0 million in Q3 2024, a decrease of 11.5%[137] - Free cash flow for Q3 2025 was $98.1 million, compared to $94.1 million in Q3 2024, indicating a year-over-year increase of 4.2%[144] - Adjusted free cash flow for Q3 2025 reached $141.0 million, up from $110.6 million in Q3 2024, reflecting a significant increase of 27.5%[144] Balance Sheet and Liabilities - Total assets as of September 30, 2025, amounted to $8,989.8 million, up from $5,041.4 million at the end of 2024, representing a 78.5% increase[134] - Long-term debt rose to $4,019.8 million as of September 30, 2025, compared to $2,154.1 million at the end of 2024, indicating an increase of 86.7%[134] - Total liabilities increased to $6,757.8 million as of September 30, 2025, from $4,023.7 million at the end of 2024, a rise of 67.9%[134] Shareholder Information - The company reported a basic net income per share of $0.19 for both Class A and Class C shares in Q3 2025, down from $0.78 in Q3 2024[135] - The company reported a weighted average share count of 90.7 million for Q3 2025, up from 91.0 million in Q3 2024[142] - Total common shares outstanding at the end of Q3 2025 were 88,506,578, a slight decrease from 88,619,387 in Q2 2025[146] - Class A common shares repurchased and retired during Q3 2025 totaled 1,148,718 shares, while no shares were repurchased in Q3 2025[146] - The weighted average share count for GAAP diluted EPS in Q3 2025 was 90.7 million, compared to 91.0 million in Q3 2024[147]