Financial Data and Key Metrics Changes - For the full year 2025, adjusted net revenue was $9.32 billion, a 6% increase from the prior year on a constant currency basis, excluding dispositions [40] - Adjusted operating margin improved by 100 basis points to 44.2% for the full year [41] - Adjusted earnings per share (EPS) for the full year was $12.22, a 12% increase compared to 2024 [42] - In Q4, adjusted net revenue was $2.32 billion, reflecting a 6% increase year-over-year on a constant currency basis [42] - Adjusted operating margin for Q4 increased by 80 basis points to 44.7% [42] - Adjusted EPS for Q4 was $3.18, a 12% increase compared to the prior year [42] Business Line Data and Key Metrics Changes - Merchant Solutions segment achieved adjusted net revenue of $1.78 billion for Q4, reflecting growth of slightly over 6% [43] - POS and software business within Merchant Solutions achieved high single-digit growth in Q4 [43] - Genius's payments attach rate in the enterprise segment nearly doubled in Q4, enhancing customer lifetime value [44] - Integrated and embedded business grew in the high single digits in Q4 [44] - Core payments delivered mid-single-digit growth in Q4, benefiting from strong distribution channels [45] Market Data and Key Metrics Changes - Revenue in Central Europe grew in the mid-teens, with Greece experiencing one of the strongest quarters on record [45] - New sales in the U.S. during Q4 were 35% higher than the prior year, marking the strongest quarter in several years [45] Company Strategy and Development Direction - The acquisition of Worldpay is seen as a pivotal moment for the company, aimed at creating a better Global Payments with enhanced scale and capabilities [4][5] - The company plans to invest approximately $1 billion annually in commerce technology to expand omni-channel offerings and advance AI-enabled product roadmaps [12] - Four strategic pillars include pure-play focus, client-centric approach, enhanced capabilities through innovation, and global reach with local expertise [16] - In 2026, the company will focus on integrating Worldpay, accelerating go-to-market strategies, expanding Genius, and leveraging AI for new revenue streams [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $200 million in annualized revenue and $600 million in expense synergies over the next three years from the Worldpay integration [17] - The company expects constant currency adjusted net revenue growth of approximately 5% for 2026, with modest acceleration anticipated in the second half of the year [50][51] - Management highlighted the importance of a disciplined integration plan to support future growth and the need to unite as one global team [38][39] Other Important Information - The company generated strong free cash flow in 2025, with over 100% adjusted free cash flow conversion [7] - A $2.5 billion share repurchase authorization was approved, with an immediate repurchase of $550 million of shares [8] - The company plans to return more than $2 billion of capital to shareholders in 2026 through share repurchases and dividends [52] Q&A Session Summary Question: What is the split between enterprise and SMB growth? - Management indicated that the merchant business exited the year a little over 6% organically, with SMB approximately 50% of revenue composition and enterprise and platforms each representing about 25% [59][62] Question: What is the trajectory of the expected synergies? - The company expects to realize $600 million in cost synergies over three years, with $70 million-$80 million expected in 2026 [69][70] Question: How is the cross-sell into the SMB business at Worldpay progressing? - Management expressed optimism about cross-selling capabilities into the existing Worldpay base and leveraging distribution platforms to enhance market penetration [71][72]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted net revenue was $9.32 billion, a 6% increase from the prior year on a constant currency basis, excluding dispositions [41] - Adjusted operating margin improved by 100 basis points to 44.2% for the full year [41] - Adjusted earnings per share (EPS) for the full year was $12.22, a 12% increase compared to 2024 [42] - In Q4, adjusted net revenue was $2.32 billion, reflecting a 6% increase from the prior year on a constant currency basis [42] - Adjusted operating margin for Q4 increased by 80 basis points to 44.7% [42] Business Line Data and Key Metrics Changes - Merchant Solutions segment achieved adjusted net revenue of $1.78 billion in Q4, growing slightly over 6% on a constant currency basis [43] - POS and software business within Merchant Solutions achieved high single-digit growth in Q4 [43] - Genius's payments attach rate in the enterprise segment nearly doubled in Q4, enhancing customer lifetime value [44] - Integrated and embedded business grew in the high single digits in Q4 [44] Market Data and Key Metrics Changes - In the U.S., new sales in Q4 were 35% higher than in the prior year, marking the strongest quarter in several years [45] - Internationally, revenue in Central Europe grew in the mid-teens, with Greece experiencing one of its strongest quarters on record [45] Company Strategy and Development Direction - The acquisition of Worldpay is seen as a pivotal moment for the company, aimed at creating a better Global Payments with enhanced scale and capabilities [4][5] - The company plans to invest approximately $1 billion annually in commerce technology to expand omnichannel offerings and advance its AI-enabled product roadmap [12] - Four strategic pillars include pure-play focus, client-centric approach, enhanced capabilities through innovation, and global reach with local expertise [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $200 million in annualized revenue and $600 million in expense synergies over the next three years from the Worldpay integration [17] - The company expects constant currency adjusted net revenue growth of approximately 5% for 2026, with modest acceleration anticipated in the second half of the year [50][51] - Management emphasized a focus on delivering exceptional value and experiences for clients and partners, aiming for sustainable growth and long-term value creation [38][54] Other Important Information - The company generated strong free cash flow in 2025, with over 100% adjusted free cash flow conversion [7] - A $2.5 billion share repurchase authorization was approved, with plans to return more than $2 billion to shareholders in 2026 through share repurchases and dividends [52][54] - The company ended Q4 with a leverage ratio of 2.9 times and a healthy balance sheet post-Worldpay acquisition [48] Q&A Session Questions and Answers Question: What is the split between enterprise and SMB growth? - Management indicated that the merchant business exited the year a little over 6% organically, with SMB approximately 50% of revenue composition and the other 50% split between platforms and enterprise [60][62] Question: What is the trajectory of the synergies expected as the year progresses? - The company expects to realize $600 million in cost synergies over the next few years, with $70 million-$80 million expected in 2026 [69][70] Question: How is the cross-sell into the SMB business at Worldpay progressing? - Management expressed optimism about cross-selling capabilities into the existing Worldpay base and leveraging distribution platforms to enhance market penetration [71][72]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted net revenue was $9.32 billion, a 6% increase from the prior year on a constant currency basis, excluding dispositions [38] - Adjusted operating margin improved by 100 basis points to 44.2% for the full year [38] - Adjusted earnings per share (EPS) for the full year was $12.22, a 12% increase compared to 2024 [39] - In Q4, adjusted net revenue was $2.32 billion, reflecting a 6% increase from the prior year on a constant currency basis [39] - Adjusted operating margin for Q4 increased by 80 basis points to 44.7% [39] Business Line Data and Key Metrics Changes - Merchant Solutions segment achieved adjusted net revenue of $1.78 billion for Q4, with growth slightly over 6% on a constant currency basis [40] - Genius's payments attach rate in the enterprise segment nearly doubled in Q4, enhancing customer lifetime value [41] - New POS locations in Q4 were 25% higher than the previous year, with enterprise restaurant rooftop count over 50% higher than the end of 2024 [40] Market Data and Key Metrics Changes - In the U.S., new sales in Q4 were 35% higher than the prior year, marking the strongest quarter in several years [42] - Internationally, revenue in Central Europe grew in the mid-teens, with Greece experiencing one of its strongest quarters on record [42] Company Strategy and Development Direction - The acquisition of Worldpay is seen as a pivotal moment for the company, aimed at creating a better Global Payments with enhanced scale and capabilities [3][4] - The company plans to invest approximately $1 billion annually in commerce technology to drive innovation and expand omni-channel offerings [11] - Four strategic pillars include pure-play focus, client-centric approach, enhanced capabilities, and global reach [12][14] Management's Comments on Operating Environment and Future Outlook - The company expects constant currency adjusted net revenue growth of approximately 5% for 2026, with modest acceleration anticipated in the second half of the year [46][50] - Management remains optimistic about the integration of Worldpay and the potential for revenue synergies, particularly in the SMB channel [68][70] Other Important Information - The company generated strong free cash flow in 2025, with over 100% adjusted free cash flow conversion [5] - A $2.5 billion share repurchase authorization was approved, with an immediate repurchase of $550 million of shares [7] Q&A Session Summary Question: What is the split between enterprise and SMB growth? - Management indicated that the merchant business exited the year a little over 6% organically, with SMB approximately 50% of revenue composition and the other 50% split between platforms and enterprise [57][59] Question: What is the trajectory of expected synergies? - The company expects to realize $600 million in cost synergies over three years, with $70 million-$80 million expected in 2026 [66] Question: How is the cross-sell into the SMB business at Worldpay progressing? - Management expressed optimism about cross-selling capabilities into the existing Worldpay base and leveraging distribution platforms to enhance market penetration [68][70]

Group 1: Gator Capital Management Performance - Gator Capital Management's Gator Financial Partners, LLC returned 4.14%, Gator Offshore Partners, Ltd. returned 3.96%, and Gator Qualified Partners, LLC returned 6.10% in Q4 2025, outperforming the S&P 500 Total Return Index's 2.65% and the S&P 1500 Financials Index's 1.95% [1] - For the full year 2025, Gator Funds achieved returns of 31.94%, 30.90%, and 16.92%, significantly exceeding both the broader market and the Financials sector benchmark [1] Group 2: PayPal Holdings, Inc. Performance - PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $40.81 per share on February 17, 2026, with a one-month return of -26.98% and a twelve-month decline of 47.92% [2] - PayPal's revenue for FY 2025 grew by 4% on a spot and currency-neutral basis, reaching $33.2 billion [4] Group 3: Investment Sentiment on PayPal - Carillon Eagle Small Cap Growth Fund identified PayPal as a top detractor for FY 2025 and exited its position in Q4 due to ongoing business challenges highlighted by management during conferences [3] - PayPal Holdings, Inc. is not among the 30 Most Popular Stocks Among Hedge Funds, with 86 hedge fund portfolios holding the stock at the end of Q3 2025, down from 89 in the previous quarter [4]

Core Insights - Global Payments reported a rise in fourth-quarter profit and forecasted annual earnings above Wall Street estimates, leading to an over 8% increase in its shares [1] Financial Performance - The company expects adjusted earnings per share for fiscal year 2026 to be between $13.80 and $14, surpassing Wall Street's estimate of $13.64 [1] - Quarterly net profit attributable to Global Payments rose to $754.7 million, or $3.18 per share, on an adjusted basis, compared to $717.9 million, or $2.85 per share, a year earlier [1] - The merchant solutions segment, the largest for the company, saw a nearly 3% increase in adjusted operating income to $877.1 million in the fourth quarter year-over-year [1] - Adjusted operating income from the issuer solutions business increased to $267.8 million in the fourth quarter from $253.6 million the previous year [1] Market Dynamics - Consumer spending among higher-income shoppers remains strong, while middle and lower-income households are reducing expenditures due to macroeconomic pressures [1] - The diversified nature of Global Payments' merchant business across sectors and regions provides a buffer against economic downturns [1] Capital Management - CEO Cameron Bready stated the company expects to return $7.5 billion of capital to shareholders through the end of 2027 following the completion of major transactions [1]

February 18, 2026 2025 Results & 2026 Outlook Cameron Bready Chief Executive Officer Bob Cortopassi President and Chief Operating Officer Josh Whipple Chief Financial Officer © 2026 Global Payments Inc. All rights reserved. © 2026 Global Payments Inc. All rights reserved. DC2-Restricted Today's Speakers 2 Forward-looking statements This presentation may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These ...

Financial Performance - Fourth quarter 2025 GAAP revenue was $1.90 billion, with adjusted net revenue of $2.32 billion, reflecting a 6% increase in constant currency excluding dispositions[3] - Fourth quarter 2025 GAAP diluted earnings per share (EPS) were $0.92, while adjusted EPS increased to $3.18, marking an 11% growth in constant currency[3] - For the full year 2025, GAAP revenue totaled $7.71 billion, compared to $7.74 billion in 2024, with adjusted net revenues increasing 2% to $9.32 billion[7] - Revenues for Q4 2025 were $1,896,765, a slight decrease of 0.1% compared to $1,898,345 in Q4 2024[22] - Adjusted net revenue increased by 1.4% to $2,320,316 in Q4 2025 from $2,289,015 in Q4 2024[23] - For the year ended December 31, 2025, total revenues were $7,705,878, a decrease of 0.4% from $7,735,970 in 2024[27] - For the year ended December 31, 2025, Global Payments reported GAAP revenues of $7,705,878, with non-GAAP revenues reaching $9,315,056, reflecting a year-over-year increase in non-GAAP revenues of approximately 1.76% from $9,154,007 in 2024[39] Earnings and Income - Adjusted operating margin expanded by 80 basis points to 44.7% in the fourth quarter of 2025[7] - The company projects adjusted earnings per share for 2026 to be between $13.80 and $14.00, representing a growth of 13% to 15%[8] - Operating income for Q4 2025 was $215,330, down 70.1% from $720,359 in Q4 2024[22] - Adjusted operating income rose by 3.3% to $1,036,821 in Q4 2025 compared to $1,004,165 in Q4 2024[23] - Net income attributable to Global Payments decreased by 61.6% to $217,524 in Q4 2025 from $567,173 in Q4 2024[22] - Basic earnings per share for continued operations fell by 67.4% to $0.63 in Q4 2025 from $1.93 in Q4 2024[22] - Net income for the year ended December 31, 2025, was $1,456,047 thousand, a decrease of 11.5% compared to $1,644,153 thousand in 2024[32] - Net income attributable to Global Payments for 2025 was $1,400,107 under GAAP, with non-GAAP net income at $2,957,165, representing a 5.27% increase from $2,809,413 in 2024[39] Shareholder Returns - Global Payments announced a share repurchase authorization of $2.5 billion and an accelerated share repurchase plan of $550 million[10] - The company expects to return over $2 billion to shareholders through repurchases and dividends in 2026, including the accelerated share repurchase plan[10] - Global Payments aims to return $7.5 billion of capital to shareholders through the end of 2027, consistent with targets established at the 2024 investor conference[4] Assets and Liabilities - Total assets increased to $53,338,484 thousand as of December 31, 2025, up from $46,890,255 thousand in 2024, representing a growth of approximately 10.4%[31] - Total liabilities rose to $29,559,003 thousand in 2025, up from $23,873,688 thousand in 2024, indicating an increase of 23.8%[31] - Cash and cash equivalents increased significantly to $9,116,414 thousand at the end of 2025, compared to $2,735,975 thousand at the end of 2024, marking an increase of 232.5%[32] - The company’s long-term debt increased to $19,541,512 thousand in 2025 from $15,079,453 thousand in 2024, a rise of 29.8%[31] Business Operations - The company completed the acquisition of Worldpay and divestiture of Issuer Solutions, positioning itself as a leading pure-play merchant solutions provider[3] - The Merchant Solutions business exited 2025 with slightly more than 6% growth, supported by strong adjusted free cash flow generation[5] - The company recognized a goodwill impairment charge of $33.2 million related to the Issuer Solutions business, reflecting strategic asset management decisions[40] - Global Payments eliminated a loss on business dispositions of $160.4 million for discontinued operations in the fourth quarter of 2025, indicating improved asset management strategies[45] Future Outlook - The outlook for 2026 indicates GAAP revenue growth of approximately 75%, with constant currency adjusted net revenue growth expected at 5% excluding dispositions[58] - GAAP diluted EPS for 2026 is projected to decline by 30% to 32%, while constant currency adjusted EPS is expected to grow by 13% to 15%[58] - Adjusted net revenue for 2025 reflects total company performance, including discontinued operations, and is believed to provide a better comparison with industry peers[60] - Adjusted operating income for 2025 excludes acquisition-related amortization expense and other specific items, reflecting the company's core business performance[61] - The company emphasizes the importance of non-GAAP financial measures for evaluating performance and setting operational goals[59]

Core Insights - Global Payments Inc. (GPN) is scheduled to report its fourth-quarter 2025 results on February 18, 2026, with earnings estimated at $3.18 per share and revenues at $2.32 billion [1] Earnings Estimates - The fourth-quarter earnings estimate has seen one upward revision in the past 60 days, indicating a year-over-year increase of 7.8% [2] - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year growth of 1.4% [2] - For the full year 2025, the revenue estimate stands at $9.31 billion, reflecting a 1.8% year-over-year rise, while the EPS estimate is $12.22, indicating a 5.8% increase year-over-year [3] Recent Performance - GPN has beaten the consensus estimate in three of the last four quarters, with an average surprise of 1.9% [3] Earnings Whispers - The current model does not predict an earnings beat for GPN, with an Earnings ESP of -1.26% and a Zacks Rank of 2 (Buy) [4] Segment Performance - GPN's Merchant Solutions and Issuer Solutions segments are expected to show growth in Q4 [7] - Merchant Solutions' adjusted revenues are estimated to increase by 0.3% from the previous year's $1.76 billion, with adjusted operating income expected to grow by 3.4% from $852 million [8] - Issuer Solutions' adjusted revenues are projected to rise by 4.4% from $542.1 million, with adjusted operating income expected to increase by 5.8% from $254.4 million [9] Cost Expectations - Adjusted costs of service are anticipated to rise by 4% year-over-year, with total operating costs expected to be around $1.3 billion for the quarter [10] Regional Revenue Insights - Revenue from Europe is expected to decrease by 56.3% year-over-year, while revenues from the Americas are projected to fall by approximately 46% [11] - Conversely, revenues from the Asia Pacific region are expected to grow by 8.3% year-over-year [11]

Core Viewpoint - Global Payments (GPN) is expected to report quarterly earnings of $3.18 per share, a 7.8% increase year-over-year, with revenues projected at $2.32 billion, reflecting a 1.4% year-over-year increase [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 0.3%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts project 'Non-GAAP Revenues - Merchant Solutions' to reach $1.77 billion, indicating a year-over-year change of +0.3% [5]. - 'Non-GAAP Revenues - Issuer Solutions' is estimated to be $565.94 million, reflecting a +4.4% change from the previous year [5]. - 'Revenues - Merchant Solutions' are predicted to be $1.93 billion, suggesting a +2.1% year-over-year change [5]. Operating Income Estimates - 'Non-GAAP Operating Income - Merchant Solutions' is expected to be $880.59 million, compared to $852.03 million reported in the same quarter last year [6]. - 'Non-GAAP Operating Income - Issuer Solutions' is projected at $269.31 million, up from $254.44 million in the previous year [6]. - The consensus for 'Operating Income - Merchant Solutions' is $674.05 million, compared to $652.41 million reported in the same quarter last year [7]. Stock Performance - Shares of Global Payments have decreased by -6.8% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [7]. - With a Zacks Rank 2 (Buy), GPN is anticipated to outperform the overall market in the near future [7].

Core Insights - The article discusses the significant decline in PayPal's market capitalization, which has dropped from $363 billion in July 2021 to $38 billion, representing an 87% decrease from its peak [4] - The shift in market sentiment from optimism to pessimism is highlighted, with PayPal experiencing a slowdown in growth post-COVID-19, as evidenced by a mere 4% revenue increase in 2025 [5][6] Company Performance - PayPal's total payment volume, revenue, and net income surged by 76%, 43%, and 70% respectively between 2019 and 2021, indicating strong performance prior to the pandemic [5] - The company has faced challenges with a flatlining user base and declining transaction counts, leading to the hiring of its second CEO in less than three years [6] Competitive Landscape - The primary risk for PayPal is intense competition in the payments sector, with notable competitors including Stripe, Adyen, Shopify, Global Payments' Worldpay, and Block's Square [7][8] - Additionally, the rise of Apple Pay and Google Pay, which benefit from integration with popular smartphone operating systems, poses a significant threat to PayPal's market position [9]