Fiserv(US:FI)2026-02-19 21:18Shareholder Information - As of December 31, 2025, the company's common stock was held by 1,406 shareholders of record, with no dividends paid or anticipated in the foreseeable future [154]. - The company repurchased 32.2 million shares for $5.6 billion during 2025, with approximately 45.9 million shares remaining under the existing repurchase authorization [233]. - The company’s stock performance over five years shows a cumulative total shareholder return compared to the S&P 500 and NASDAQ indices, with no cash dividends declared [157]. Acquisitions and Business Strategy - The company acquired StoneCastle Cash Management, LLC and other businesses for an aggregate purchase price of $856 million, enhancing its deposit funding solutions and expanding the Clover platform [171][168]. - The company expects to divest businesses not aligned with its market or financial strategies, while pursuing acquisitions that meet strategic needs [167]. - The company acquired several businesses in 2025 for a total purchase price of $856 million, funded through available cash and commercial paper [234]. Financial Performance - Total revenue increased by $737 million, or 4%, in 2025 compared to 2024, with Merchant segment growth of 5% and Financial segment growth of 2% [210]. - Total expenses increased by $798 million, or 5%, with total expenses as a percentage of total revenue rising to 72.5% in 2025, an increase of 120 basis points [213]. - Operating income decreased by $61 million, or 1%, with total operating margin decreasing by 120 basis points to 27.5% in 2025 compared to 2024 [218]. - Net income attributable to Fiserv, Inc. per share-diluted increased to $6.34 in 2025 from $5.38 in 2024, supported by a 6% reduction in diluted weighted average outstanding shares [227]. - Income from investments in unconsolidated affiliates was $37 million in 2025, a significant recovery from a loss of $(685) million in 2024, which included a $595 million non-cash impairment [225]. Revenue Composition - Processing and services revenue comprised 80% of total revenue in 2025, generating $16,879 million, while product revenue comprised 20%, generating $4,314 million [204][205]. - Revenue in the Merchant segment rose by $509 million, or 5%, driven by small business volume growth and enterprise transaction growth [211]. - Revenue in the Financial segment increased by $187 million, or 2%, driven by growth in Digital Payments and Issuing [212]. Expenses and Costs - Interest expense, net increased by $298 million, or 25%, in 2025 due to debt financing activities, including the issuance of $2.0 billion in senior notes [222]. - Cost of processing and services as a percentage of processing and services revenue increased to 34.4% in 2025 from 32.2% in 2024 [214]. - Cost of product as a percentage of product revenue decreased to 65.1% in 2025 from 69.4% in 2024, positively impacted by high margin data and analytics sales [215]. Cash Flow and Capital Expenditures - Operating cash flow was $6.1 billion in 2025, a decrease of 9% from $6.6 billion in 2024, primarily due to lower profitability [230]. - Capital expenditures were approximately 8% of total revenue in both 2025 and 2024, totaling $1.763 billion in 2025, an increase of 12% from $1.569 billion in 2024 [229]. - Future cash requirements under contractual obligations total $42.220 billion as of December 31, 2025, with $4.092 billion due within one year [232]. Debt and Financing - Total long-term debt increased to $27.758 billion in 2025 from $23.730 billion in 2024, with significant new issuances including $2.0 billion of senior notes in August 2025 [239]. - The company maintained variable rate debt totaling $2.115 billion with a weighted average interest rate of 11.870% as of December 31, 2025 [245]. - The company has guaranteed $399 million in senior unsecured debt for its Lending Joint Ventures as of December 31, 2025 [252]. Economic and Market Conditions - The global payments landscape is evolving with increasing digital payments and e-commerce, driving competition and necessitating modernization of technology [175]. - Financial institutions are increasingly focusing on innovative payment solutions, with a growing demand for faster and more convenient options across mobile channels, online applications, and digital currencies [181]. - The company actively monitors global macroeconomic conditions, including interest rates and inflation, which could materially affect business operations and financial results [182]. Goodwill and Intangible Assets - As of December 31, 2025, the company's goodwill of $37.7 billion was not impaired, with fair values exceeding carrying values for each reporting unit [188]. - The company performed an additional evaluation of intangible assets and determined no impairment as of December 31, 2025 [189]. - The company has no accumulated goodwill impairment through December 31, 2025, indicating stable asset valuation [188]. Compliance and Credit Ratings - The company was in compliance with all financial debt covenants during the year ended December 31, 2025, and expects to remain compliant [251]. - Fiserv's corporate credit rating was Baa2 with a stable outlook from Moody's and BBB with a negative outlook from S&P as of December 31, 2025 [254].