Financial Performance - Gross revenue for Q1 2025 was $848.3 million, a 19.8% increase from $707.4 million in Q1 2024[18] - Net income attributable to Shift4 Payments, Inc. for Q1 2025 was $16.7 million, down from $20.6 million in Q1 2024, representing a 19% decrease[18] - Comprehensive income attributable to Shift4 Payments, Inc. for Q1 2025 was $42.3 million, significantly up from $10.0 million in Q1 2024[20] - Net income for Q1 2025 was $19.5 million, a decrease of 31.6% from $28.5 million in Q1 2024[23] - Operating cash flow decreased to $96.6 million in Q1 2025 from $115.0 million in Q1 2024, reflecting a decline of 16.5%[23] - Payments-based revenue increased to $755.7 million in Q1 2025 from $655.1 million in Q1 2024, reflecting a growth of about 15.3%[66] - Subscription and other revenues rose significantly to $92.6 million in Q1 2025, compared to $52.3 million in Q1 2024, marking an increase of approximately 76.8%[66] Expenses and Liabilities - The company reported a cost of sales of $591.3 million in Q1 2025, compared to $519.6 million in Q1 2024, reflecting a 13.8% increase[18] - Depreciation and amortization increased to $85.2 million in Q1 2025, up from $66.1 million in Q1 2024, representing a rise of 28.5%[23] - Equity-based compensation expense increased to $26.0 million in Q1 2025 from $22.8 million in Q1 2024, an increase of 14.0%[23] - The TRA liability was $362.6 million as of March 31, 2025, slightly down from $365.5 million at the end of 2024[29] - Total liabilities as of March 31, 2025, included a Tax Receivable Agreement (TRA) liability of $362.6 million, slightly down from $365.5 million at the end of 2024[29] Cash and Investments - Cash and cash equivalents at the end of Q1 2025 were $1,384.3 million, down from $1,438.6 million at the end of Q4 2024, a decrease of 3.8%[36] - Net cash used in investing activities rose to $85.0 million in Q1 2025 compared to $39.7 million in Q1 2024, indicating a significant increase of 114.1%[23] - The company reported a gain on investments in securities of $(0.3) million in Q1 2025, compared to a loss of $(11.0) million in Q1 2024[23] Acquisitions - The company completed the acquisition of Eigen Payments for a total purchase consideration of $115.0 million, net of cash acquired[41] - The company completed the acquisition of Givex Corp. for a total purchase consideration of $127.8 million, net of cash acquired[47] - The acquisition of Vectron Systems AG involved a total purchase consideration of $62.7 million, net of cash acquired, with the company owning approximately 75% of Vectron's common stock as of March 31, 2025[52] - The acquisition of Revel Systems, Inc. was completed for $245.3 million, net of cash acquired, enhancing the company's presence in the restaurant and retail markets[60] Stockholder Equity - The total stockholders' equity as of March 31, 2025, was $1,016.0 million, slightly down from $1,017.7 million at the end of 2024[21] - The company repurchased and retired 686,177 shares of Class A common stock, resulting in a reduction of $63.4 million in equity[21] - The company recognized equity-based compensation expense of $26.0 million for the three months ended March 31, 2025, compared to $22.8 million for the same period in 2024, reflecting an increase of approximately 14.0%[119] Debt and Financing - Total debt as of March 31, 2025, was $2,843.5 million, with a current portion of $687.8 million and long-term debt of $2,155.7 million[78] - The company has a $450.0 million senior secured revolving credit facility, with no borrowings as of March 31, 2025[84] - Future principal payments on the company's debt total $2,872.5 million, with $690.0 million due in 2025[81] - The company entered into a commitment letter for a 364-day bridge loan facilities totaling $1.795 billion, consisting of a $1.0 billion senior secured bridge loan and a $795.0 million senior unsecured bridge loan[86] Tax and Compliance - The Company's effective tax rate for the three months ended March 31, 2025, was (71)%, significantly different from the federal statutory rate of 21% due to noncontrolling interest allocations[99] - The Company was in compliance with all financial covenants under its debt agreements as of March 31, 2025[89] Other Financial Metrics - The company experienced a change in TRA liability resulting in a gain of $3.0 million in Q1 2025, compared to a loss of $1.2 million in Q1 2024[18] - The effect of exchange rate changes on cash and cash equivalents resulted in a gain of $14.8 million in Q1 2025, compared to a loss of $(6.5) million in Q1 2024[23] - The company did not have any single customer accounting for more than 10% of its revenue during the reported periods, indicating a diversified customer base[130]

Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in volumes to $45 billion, with gross revenue less network fees rising 40% to $369 million [6][24] - Adjusted EBITDA increased 38% to $169 million, with adjusted EBITDA margins at 46%, slightly above the guidance of 45% [7][24] - Adjusted EPS for the quarter was $1.07 per share, reflecting strong performance [8][28] Business Line Data and Key Metrics Changes - Subscription and other revenue grew 77% year-over-year to $93 million, driven by success in SMB, SkyTab, and further penetration in the sports and entertainment vertical [24] - The company is focused on adding new merchants and expanding share of wallet, particularly in the restaurant sector with the introduction of SkyTab Air [9][10] Market Data and Key Metrics Changes - The company is experiencing stable volume trends across all end markets, with a slight deceleration attributed to seasonal factors [6][30] - International expansion is underway, with significant growth in markets like the UK, Ireland, and Germany, signing over 1,000 restaurants monthly [19][75] Company Strategy and Development Direction - The company is raising its full-year 2025 guidance, reflecting confidence in execution and growth drivers [6][29] - The acquisition of Global Blue is expected to unlock $80 million in revenue synergies by 2027, primarily through bundling payment solutions [21][90] - The company aims to replicate its successful U.S. model internationally, focusing on software and payment convergence [18][75] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending trends, noting stability despite macroeconomic uncertainties [30][100] - The company has a proven track record of growing payment volumes during economic downturns, indicating resilience [22][30] Other Important Information - The company repurchased approximately 686,000 shares for $63 million in Q1 and continued repurchases in April [27] - Total indebtedness has a weighted average cost of 3.4%, with net leverage at approximately 2.4 times [28] Q&A Session Summary Question: How would you describe the competitive environment in international markets? - Management noted that the international opportunity mirrors the U.S. market evolution, with a lack of convergence among software, hardware, and payment solutions [36][39] Question: Can you touch on what you're seeing in the market more broadly into April? - Management indicated stable trends in same-store sales across various segments, with modest compression in restaurants and hotels [42][46] Question: Where are you on the synergy update from recent acquisitions? - Management highlighted successful cross-sell opportunities from acquisitions like Revel, contributing significantly to the SkyTab development pipeline [50][51] Question: What was organic and inorganic growth in the 40% GR LNF growth in the quarter? - Management stated that organic revenue growth is expected to be north of 20% for the year, with acquisitions providing noise in quarter-to-quarter comparisons [56][57] Question: Can you provide any color on the current revenue split between U.S. and international? - Management indicated that international revenue is still developing, with significant contributions expected from enterprise customers and SMB products [72][73]

Core Insights - Shift4 Payments reported a revenue of $368.5 million for the quarter ended March 2025, reflecting a year-over-year increase of 39.7% and surpassing the Zacks Consensus Estimate by 6.90% [1] - The company's EPS for the quarter was $1.07, significantly higher than the $0.54 reported in the same quarter last year, resulting in an EPS surprise of 50.70% compared to the consensus estimate of $0.71 [1] Financial Performance Metrics - End-to-End Payment Volume reached $45 billion, exceeding the average estimate of $44.53 billion from five analysts [4] - Gross Revenue from Subscription and other revenues was reported at $92.60 million, slightly above the average estimate of $92.56 million, marking a year-over-year increase of 77.1% [4] - Gross Revenue from Payments-based revenue was $755.70 million, below the average estimate of $797.60 million, but still showing a year-over-year growth of 15.4% [4] Stock Performance - Over the past month, shares of Shift4 Payments have returned -2.5%, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Shift4 Payments reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing an increase from $0.54 per share a year ago, representing an earnings surprise of 50.70% [1][2] Financial Performance - The company posted revenues of $368.5 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.90%, compared to revenues of $263.7 million in the same quarter last year [2] - Over the last four quarters, Shift4 Payments has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Shift4 Payments shares have declined approximately 23.2% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $406.49 million, and for the current fiscal year, it is $4.70 on revenues of $1.71 billion [7] Industry Context - The Financial Transaction Services industry, to which Shift4 Payments belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in volumes to $45 billion [8] - Gross revenue less network fees increased by 40% to $369 million, driven by stable spreads and subscription revenue [8][23] - Adjusted EBITDA rose by 38% to $169 million, with adjusted EBITDA margins at 46%, slightly above guidance [9][23] - Adjusted EPS was reported at $1.07 per share, reflecting strong performance [9][27] - The company raised its full-year 2025 guidance for gross revenue less network fees to between $1.66 billion and $1.73 billion, representing 23% to 28% growth [28] Business Line Data and Key Metrics Changes - Subscription and other revenue grew by 77% year-over-year to $93 million, driven by success in SMB and sports and entertainment verticals [24] - The company continues to focus on adding new merchants and expanding share of wallet, particularly in the restaurant sector with new offerings like SkyTab Air [10][11] Market Data and Key Metrics Changes - The company is experiencing stable volume trends across all end markets, with a slight deceleration attributed to seasonal factors [8][29] - International expansion is underway, with significant growth in markets like the UK, Ireland, and Germany, signing over 1,000 restaurants monthly [18][73] Company Strategy and Development Direction - The company is focused on unlocking synergies from recent acquisitions, achieving over $20 million in EBITDA synergies in Q1 alone [13] - The strategy includes bundling unique capabilities with payment processing expertise to enhance competitiveness [14] - The company is expanding its footprint globally, now operating in six continents, and is optimistic about signing marquee clients in Latin America [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, noting a proven track record of growing payment volumes during challenging times [21][30] - The outlook remains cautiously optimistic, with guidance not relying on improvements in market conditions [29] Other Important Information - The company has a strong cash position with $1.2 billion in cash and equivalents, well-positioned to manage its $690 million convertible debt maturing in December [27] - The CEO transition is anticipated, with the current CEO expected to step down pending Senate approval for a new position [30] Q&A Session Summary Question: How would you describe the competitive environment in international markets? - Management noted that the international opportunity mirrors the U.S. market evolution, with a lack of convergence among software, hardware, and banking solutions [33][34] Question: Can you touch on what you're seeing in the market more broadly into April? - Management indicated stable consumer spending trends, with modest same-store sales compression across various sectors [40][41] Question: Where are you on the synergy updates from recent acquisitions? - Management highlighted strong cross-sell opportunities, particularly with Revel and Eigen, contributing positively to the overall strategy [46][48] Question: What was organic and inorganic growth for the 40% GR LNF growth in the quarter? - Management stated that organic revenue growth is expected to be over 20% for the year, aligning with their full-year metric [53][54] Question: Can you provide any color on the current revenue split between U.S. and international? - Management indicated that international revenue is still developing, with significant potential for growth in various markets [70][72] Question: Is there any material difference in take rate versus U.S. merchants? - Management confirmed that while there are differences, the path to achieving the 60 bps net take rate target remains consistent across markets [100]

Exhibit 99.1 crypto.com @ crypto.com crypto.com SHIFT@ Q1 2025 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM Forward-Looking Statements This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Shift4 Payments, Inc. ("we. "our," the "Company." o "Shift4") intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21 ...

Group 1 - Shift4 Payments (FOUR) is expected to report quarterly earnings of $0.71 per share, reflecting a 31.5% increase year-over-year [1] - Analysts forecast revenues of $347.81 million, indicating a year-over-year increase of 31.9% [1] - The consensus EPS estimate has been revised 5% lower over the last 30 days, showing a reevaluation of initial estimates by analysts [1][2] Group 2 - Analysts estimate 'Gross Revenue- Subscription and other revenues' to reach $92.56 million, representing a 77% increase from the previous year [4] - 'Gross Revenue- Payments-based revenue' is expected to be $797.60 million, indicating a year-over-year change of 21.8% [4] - The average prediction for 'End-to-End Payment Volume' is $44.53 billion, up from $33.40 billion reported in the same quarter last year [5] Group 3 - Shift4 Payments shares have decreased by 5.1% in the past month, compared to a 4.3% decline in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Core Viewpoint - The current stock market correction presents a unique opportunity to invest in undervalued companies, with several stocks identified as particularly attractive buys during this period [1][19]. Group 1: Lyft - Lyft's stock has decreased over 40% from its 52-week highs, primarily due to competitive concerns in the ride-sharing market [3]. - The company reported record metrics with 24.7 million active riders and nearly 219 million rides in 2024, reflecting a 15% year-over-year increase [3]. - Lyft achieved positive free cash flow of $766 million for 2024, resulting in a low valuation of 6 times its free cash flow [4]. - Expectations for 2025 include further revenue growth and improved margins, particularly from its advertising business [5]. Group 2: Shift4 Payments - Shift4's stock has declined 15% following leadership changes and a $1.5 billion acquisition, raising investor concerns [6]. - The company reported nearly $48 billion in payment volume for Q4 2024, a sevenfold increase from Q4 2020 [7]. - Shift4 anticipates over 20% top-line growth for 2025 and has a net income of nearly $300 million for 2024, trading at a P/E ratio of 28, its lowest ever [8]. Group 3: Comfort Systems USA - Comfort Systems' stock has increased nearly 1,700% over the past decade but is currently down nearly 40% from its all-time high [9]. - The company is well-positioned for growth due to its services in data centers and semiconductor manufacturing, with a backlog of $6 billion, up 16% year-over-year [11]. - The global AI data center market is projected to grow at nearly 26% annually through 2032, benefiting Comfort Systems [11]. Group 4: Crocs - Crocs stock is trading at just 6 times its earnings, significantly lower than the S&P 500's 29 times [12]. - The company reported a modest revenue growth of 3.5% in 2024, with management expecting about 2% growth in 2025 [13]. - Crocs has authorized a $1.3 billion stock buyback, representing over 20% of outstanding shares, and has repaid over $300 million in debt [14]. Group 5: Airbnb - Airbnb's stock is over 40% below its all-time high from 2021, despite strong business fundamentals [15]. - The company achieved record revenue of $11.1 billion in 2024, a 12% increase year-over-year, and generated free cash flow of $4.5 billion with a 40% margin [16][17]. - Management plans to invest $200 million to $250 million in new business ideas, indicating potential for future growth [17][18].

Financial Data and Key Metrics Changes - End-to-end payment volumes increased by 49% year-over-year to $47.9 billion [6] - Gross revenue less network fees rose by 50% to $405 million [6] - Adjusted EBITDA increased by 51% to $205.9 million [6] - Adjusted free cash flow surged by 78% to $134 million [6] - Full year adjusted free cash flow reached $399 million, up 46% compared to the previous year [30] Business Line Data and Key Metrics Changes - Subscription and other revenue in Q4 was $115 million, up 100% year-over-year [29] - Adjusted EBITDA margins for Q4 were 51.5%, with full year margins at 53% [29] - Unified commerce platform saw Q4 year-over-year volumes up 660% and calendar year volumes up 319% [17] Market Data and Key Metrics Changes - The company is expanding its international presence, processing payments across Latin America and planning to launch in four to six additional countries [21] - The company is now processing payments for various international restaurants and hospitality venues, indicating strong market penetration [9][11] Company Strategy and Development Direction - The acquisition of Global Blue for approximately $2.5 billion aims to enhance the company's payment capabilities and expand its market reach [24] - The company is focused on building a unified commerce platform that integrates various payment solutions for merchants [16] - The strategy includes leveraging existing relationships with major fintech companies like Ant International and Tencent to enhance e-commerce opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing midterm guidance despite economic challenges such as inflation and rising interest rates [7] - The company anticipates strong growth in 2025, with guidance excluding the Global Blue impact indicating significant year-over-year growth across key metrics [33] - Management emphasized the importance of maintaining operational efficiency to generate exceptional cash flow without sacrificing growth [30] Other Important Information - The company repurchased over 1 million shares for $110 million, leaving approximately $350 million of capacity available under its current program [31] - The company plans to integrate crypto payment capabilities across its products, positioning itself as a leader in this emerging market [19] Q&A Session Summary - No questions were entertained during the call as the focus was on the Investor Day event [5]