Financial Data and Key Metrics Changes - Adjusted revenue increased by 21% year-over-year, while adjusted EBITDA declined by 17%, which was better than internal projections [4][17][27] - Non-GAAP revenue is expected to be between $2 billion and $2.1 billion, with adjusted EBITDA guidance raised to $165 million-$175 million [27][28] Business Line Data and Key Metrics Changes - B2B segment revenue grew over 30%, driven by a significant BAS partner and overall growth in the BAS portfolio [18] - Money Movement segment revenue grew year-over-year, with margins improving due to better-than-expected loss rates in the tax processing business [21][22] - Consumer Services Segment revenue is projected to decline in the low double digits, but declines in active accounts have moderated compared to previous years [24][29] Market Data and Key Metrics Changes - The embedded finance market is experiencing robust growth, with 94% of surveyed companies planning to increase spending on embedded finance solutions [15] - The partnership with Stripe is expected to open up significant opportunities in the SMB market, which is a new area of focus for the company [12][58] Company Strategy and Development Direction - The company is focused on strengthening its revenue engine by signing new partners and investing in infrastructure for sustainable long-term growth [5][34] - The exit from Shanghai operations is part of a strategy to optimize platforms and reduce operational risks [5][26] - The company aims to improve profitability by managing costs and streamlining operations while pursuing growth opportunities in the B2B and money movement segments [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the B2B segment and the embedded finance market, despite ongoing challenges in the consumer segment [36][37] - The company is optimistic about the upcoming product launches and partnerships, which are expected to drive future growth [32][34] Other Important Information - The company has launched several new products and partnerships, including with Crypto.com and Workday, which are expected to enhance its service offerings [6][11][58] - The company is actively working on reducing implementation times for new partners through an internal initiative called Project 30 [48][49] Q&A Session Summary Question: What is driving the strong demand for embedded finance? - Management indicated that companies are increasingly viewing embedded finance as a strategic imperative to deepen customer relationships and monetize them [40][42] Question: What is the timeline to revenue from new signings and onboardings? - The timeline for new partners to go live is generally six to eight months, with efforts underway to reduce this to around 30 days for technical implementation [43][45][48] Question: How is the company focusing its efforts on embedded finance? - The company is targeting large brands with significant customer bases and is also looking to expand into mid-market customers as onboarding processes improve [52][56] Question: What impacts are expected from partnerships with Workday and Stripe? - The integration with Workday is expected to provide access to a larger number of employers, while the partnership with Stripe is anticipated to significantly enhance cash deposit services for SMB customers [57][58]

Financial Data and Key Metrics Changes - Adjusted revenue increased by 21% year-over-year, while adjusted EBITDA declined by 17%, although the decline was less than anticipated due to high-margin revenue growth and expense management [4][17][29] - Non-GAAP revenue is expected to be between $2 billion and $2.1 billion, with adjusted EBITDA projected at $165 million to $175 million, an increase from previous guidance [29][30] Business Line Data and Key Metrics Changes - The B2B segment, particularly the BAS channel powered by the ARK platform, saw revenue growth of over 30%, driven by significant partners and increased active accounts [17][18] - The rapid employer services channel faced challenges with revenue declines due to fewer active accounts, but there is optimism regarding earned wage access (EWA) due to its larger potential market [19][20] - The Money Movement segment experienced revenue growth in tax processing, while cash transfer volumes declined due to lower transactions in the consumer segment [22][23] Market Data and Key Metrics Changes - The consumer segment continues to face challenges, with revenue projected to decline in the low double digits, although declines in active accounts have moderated compared to previous years [25][30] - The financial service center (FSC) channel is viewed as an attractive opportunity, with new partnerships expected to drive account growth [9][10] Company Strategy and Development Direction - The company is focused on strengthening its revenue engine by signing new partners and investing in infrastructure to support sustainable long-term growth [5][6] - The exit from Shanghai operations is part of a strategy to optimize platforms and reduce operational risks [5][28] - The company is prioritizing embedded finance as a key growth driver, with a strong pipeline of new partnerships and product launches [15][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the B2B segment and the embedded finance market, highlighting a backlog of partners to launch [32][38] - There is an expectation of continued challenges in the consumer segment, but new partnerships and product launches are anticipated to moderate declines [34][37] Other Important Information - The company has initiated an internal project called Project 30 to reduce implementation times for new partners, aiming for a 30-day timeline for technical implementation [45][48] - A new restructuring line item in the GAAP P&L reflects costs associated with exiting the Shanghai operation [28] Q&A Session Summary Question: What is driving the strong demand for embedded finance? - Management noted that companies are increasingly interested in integrating embedded finance solutions to deepen customer relationships and monetize them, which is generating demand [40][41] Question: What is the timeline to revenue from new signings and onboardings? - The timeline varies, generally ranging from six to twelve months for revenue ramp-up, with efforts to shorten onboarding times through Project 30 [42][43][45] Question: How is the company focusing its efforts in the embedded finance market? - The focus is on targeting large brands with significant customer bases and reducing onboarding times to pursue mid-market customers in the future [47][48] Question: What impacts are expected from partnerships with Workday and Stripe? - The integration with Workday is expected to facilitate access to a larger number of employers, while the partnership with Stripe aims to enhance cash deposit services for SMB customers [49][50]

Industry Overview - Fintech is transforming the global financial landscape by embedding financial services into everyday experiences, enabling programmable money, and leveraging AI for personalized interactions and risk management [1] - The rise of embedded finance integrates payments, lending, insurance, and investments into non-financial platforms, reducing distribution costs and enhancing customer loyalty [2] - Open banking and open finance empower customers with control over their data, fostering faster onboarding and customized products [2] - Programmable money powered by stablecoins and real-time payment rails is revolutionizing treasury, payroll, and cross-border transfers through instant settlement [2] - AI is becoming the new operating system for the financial industry, driving decision-making in underwriting, cybersecurity, and compliance [3] Future Trends - The future financial system will be open, data-permissioned, AI-native, and instant in settlement, with long-term winners being fintechs and incumbents that master interoperability and trusted customer relationships [4] - Stocks like Upstart Holdings, Affirm Holdings, and Nu Holdings are gaining investor attention as they adapt to these trends [4] Company Insights: Upstart Holdings, Inc. (UPST) - Upstart is an AI-driven fintech that uses machine learning to evaluate non-traditional data points for lending, allowing broader loan approvals while maintaining strong credit performance [6][7] - The company acts as an intermediary, earning revenues through referral fees, loan servicing fees, and income from loan sales and securitization [7] - Upstart's direct-to-consumer platform enables individuals to apply for loans directly, leveraging automation and data analytics to disrupt traditional lending [8] - The Zacks Consensus Estimate for UPST's 2025 sales and EPS implies year-over-year growth of 51.4% and 930%, respectively [9] Company Insights: Affirm Holdings, Inc. (AFRM) - Affirm operates in the Buy Now, Pay Later (BNPL) and embedded finance space, allowing consumers to split purchases into installments at the point of sale [10] - The company uses data-driven underwriting and real-time credit assessment to manage risk dynamically [11] - Affirm differentiates itself by focusing on larger-ticket purchases and flexible repayment options, supported by a robust capital model [12] - The Zacks Consensus Estimate for AFRM's fiscal 2026 sales and EPS implies year-over-year growth of 23.9% and 473.3%, respectively [14] Company Insights: Nu Holdings Ltd. (NU) - Nu Holdings targets underserved and digitally native consumers in Latin America with a suite of app-based services across lending, banking, and investing, amassing 123 million customers as of June 30, 2025 [15][16] - The company has reduced operational costs while boosting efficiency and accessibility, promoting financial inclusion in underserved markets [16] - Nu's diversified revenue streams from lending, interchange fees, and marketplace services offer resilience and scalability [17] - The Zacks Consensus Estimate for NU's 2025 sales and EPS implies year-over-year growth of 32.2% and 24.4%, respectively [19]

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over three points from Q2 2025 [4][15]. - Net revenue for Q3 was $163 million, growing 28% year-over-year, while gross profit was $115 million, a 27% increase year-over-year [5][18]. - Adjusted EBITDA was $30 million, achieving a margin of 19%, marking another all-time high for adjusted EBITDA dollars [6][22]. Business Line Data and Key Metrics Changes - Lending use cases, including buy now, pay later (BNPL), saw TPV growth accelerate by 10 points versus Q2, with year-over-year growth rates about double that of the overall company [17]. - Expense management growth continued to outpace overall company growth, driven by customer acquisition of new end users [16]. - On-demand delivery growth accelerated into double digits, primarily fueled by merchant category expansion and geographic growth [16]. Market Data and Key Metrics Changes - Europe continued to deliver strong results, with TPV growth remaining over 100% year-over-year, although this rate may not be sustainable as the base grows [11][63]. - Non-Block TPV is now growing two and a half times faster than Block TPV, with significant contributions from Europe [16]. - The international business, particularly in Europe, now represents a high teens percentage of total TPV, up five percentage points from the previous year [63]. Company Strategy and Development Direction - The company aims to deepen customer relationships by enabling innovative programs and expanding geographically, while increasing bank supply [7][10]. - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][66]. - The company is focused on diversifying its business beyond debit and expanding its presence outside the U.S. to drive future growth [14][66]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's trajectory, noting that TPV growth has accelerated for two consecutive quarters, indicating strong underlying business performance [54]. - The company anticipates challenges in Q4 due to the timing of contract renewals and potential diversification of new issuance by Cash App [56][57]. - Management expects to finish the year strong, raising expectations for Q4 and the full year based on Q3 results [25][28]. Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [24]. - The GAAP net loss for Q3 was $3.6 million, influenced by interest income and a non-recurring litigation-related expense [23]. - The company ended the quarter with over $830 million in cash and short-term investments, driven by strong operating cash flows [23]. Q&A Session Summary Question: What does the pipeline for new business look like? - Management indicated that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [33]. Question: How significant is the TransactPay acquisition for European market expansion? - The acquisition facilitates easier transitions for customers between North America and Europe, allowing for a more seamless offering and access to larger enterprise customers [36]. Question: What is the sustainability of the 100% growth rate in Europe? - While the 100% growth rate may not be sustainable, TPV growth in Europe is expected to continue at a materially faster rate than the overall company due to the addition of TransactPay [66]. Question: What are the implications of the renewal cadence for large customers? - Management expects two significant renewals to be completed before current contracts expire, with one expected in Q4 and the other in early 2026 [75]. Question: How does the company plan to leverage its partnerships for market expansion? - The company is focusing on multinational customers who can benefit from its modern platform, which allows for easy market transitions [82].

Financial Data and Key Metrics Changes - Total adjusted revenue for Q3 2025 grew 1% to $4.9 billion, while adjusted operating income decreased 7% to $1.8 billion, resulting in an adjusted operating margin of 37%, a decrease of 320 basis points [36] - Year-to-date adjusted revenue grew 5% to $14.9 billion, and adjusted operating income grew 5% to $5.7 billion, maintaining an adjusted operating margin of 38.2% [36] - Adjusted EPS for Q3 was $2.04, down 11% from $2.30 in the prior year [36] Business Line Data and Key Metrics Changes - Merchant Solutions segment organic revenue growth was 5% for the quarter and 7% year-to-date, with adjusted revenue growth also at 5% [38] - Financial Solutions segment organic revenue declined 3% in the quarter but grew 3% year-to-date, negatively impacted by lower periodic license revenue [42] - Clover revenue grew 26% in Q3, with GPV growth of 8% reported, and 11% excluding the 2023-2024 gateway conversion [39][40] Market Data and Key Metrics Changes - Argentina contributed over 5 percentage points to the company's 12% organic growth rate in 2023 and roughly 10 percentage points to the 16% organic growth in 2024 [9] - Excluding Argentina, the overall organic revenue growth rate was in the mid-single digits for both 2023 and 2024 [9] Company Strategy and Development Direction - The company is shifting its strategic focus to prioritize sustainable, client-focused opportunities, which may negatively impact near-term results but is expected to position the company for predictable growth [4] - The "One Fiserv" action plan includes investments in client-first operations, enhancing Clover as a small business operating platform, and leveraging AI for operational excellence [22][24] - The company aims to return to consistent mid-single-digit revenue growth beyond 2026, with potential for acceleration over time [6][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent performance issues were largely self-inflicted and are being addressed through investment and operational focus [14] - The company is confident in its ability to generate double-digit adjusted EPS growth starting in 2027, supported by disciplined capital allocation and strong free cash flow generation [33][54] Other Important Information - The company announced several leadership changes, including new Co-Presidents and a new CFO, to enhance execution and collaboration across business units [27][28] - Three acquisitions were announced during the quarter, focusing on client service and stablecoin growth opportunities [46] Q&A Session Summary Question: How long was Fiserv over earning with deferred investments and short-term initiatives? - Management indicated that the analysis revealed a need for recalibration and that the company is focused on addressing self-inflicted issues to return to double-digit EPS growth [48][50] Question: What changed in the Financial Solutions segment's growth trajectory? - Management noted that while the segment faced challenges, it remains fundamentally strong, with actions taken to ensure competitive positioning [57][68] Question: Is Clover's expected revenue growth a proxy for next year? - Management expressed confidence in Clover's growth trajectory and competitive positioning, indicating that adjustments have been made to align with long-term business needs [73]

Financial Data and Key Metrics Changes - Total adjusted revenue for Q3 2025 grew 1% to $4.9 billion, while adjusted operating income decreased 7% to $1.8 billion, resulting in an adjusted operating margin of 37%, a decrease of 320 basis points [36][37] - Year-to-date adjusted revenue grew 5% to $14.9 billion, and adjusted operating income grew 5% to $5.7 billion, maintaining an adjusted operating margin of 38.2% [36][37] - Adjusted EPS for Q3 was $2.04, down 11% from $2.30 in the prior year [37] Business Line Data and Key Metrics Changes - Merchant Solutions segment organic revenue growth was 5% for the quarter and 7% year-to-date, with adjusted revenue growth also at 5% [39] - Financial Solutions segment organic revenue declined 3% in Q3 but grew 3% year-to-date, negatively impacted by lower periodic license revenue [43][44] - Clover revenue grew 26% in Q3, with GPV growth of 8% reported, and 11% excluding the 2023-2024 gateway conversion [40][18] Market Data and Key Metrics Changes - Argentina contributed significantly to organic growth, with a 257% growth in 2023 and 329% in 2024, impacting overall organic growth rates [9][10] - Excluding Argentina, the company's overall organic revenue growth rate was in the mid-single digits for both 2023 and 2024 [10][12] Company Strategy and Development Direction - The company is shifting its strategic focus to prioritize sustainable, client-focused opportunities, which may negatively impact near-term results but is expected to position the company for predictable growth [4][6] - The "One Fiserv" action plan includes investments in client-first operations, Clover platform enhancements, and operational excellence through AI [22][24] - The company aims to return to consistent mid-single-digit revenue growth and double-digit adjusted EPS growth starting in 2027 [33][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need to reset growth and margin targets due to various factors, including slowing growth in Argentina and the impacts of deferred investments [9][12] - The company remains confident in its assets and growth opportunities, emphasizing that challenges are largely self-inflicted and addressable [14][15] - Future guidance for 2026 is expected to reflect a critical investment and transition year, with organic revenue growth anticipated in the low single digits [21][22] Other Important Information - The company announced several leadership changes, including new Co-Presidents and a new CFO, to drive the strategic initiatives forward [26][30] - Three acquisitions were made during the quarter to enhance client service and expand capabilities in stablecoin and digital currency [46][47] Q&A Session Summary Question: How long was Fiserv over earning with deferred investments and short-term initiatives? - Management indicated that a rigorous analysis was conducted over the past six months, revealing that the company has a solid foundation and growth opportunities, with a clear path to mid-single-digit growth [50][54] Question: What changed in the Financial Solutions segment's growth trajectory? - Management noted that while the segment faced challenges, it remains fundamentally strong, with ongoing investments aimed at improving execution and customer service [68][75] Question: Is Clover's 10% revenue growth for Q4 a decent proxy for next year? - Management expressed confidence in Clover's competitive positioning and highlighted ongoing investments in vertical and horizontal expansion, indicating strong growth potential [79][78]

Third Quarter 2025 Financial Results October 29, 2025 © 2025 Fiserv, Inc. or its affiliates Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated organic revenue growth, adjusted earnings per share, adjusted earnings per share growth, free cash flow, adjusted operating margin expansion, and other statement ...

Core Insights - Edenred has partnered with Visa to enhance its payment solutions, allowing the issuance of Visa credentials for various activities including benefits, mobility, and B2B payments [2][3][4] - The collaboration combines Visa's extensive network and innovation capabilities with Edenred's market expertise and proprietary technology, facilitating access to commercial and B2B payment solutions [3][4] - The partnership aims to improve commercial payments and provide more solutions for businesses and employees, showcasing Edenred's technology leadership [4][5] Company Developments - The partnership will enable the introduction of Visa-enabled Edenred virtual payment solutions starting next year, with plans for additional programs across Europe [5] - Edenred and Visa have previously collaborated in Latin America and the United States, indicating a strong foundation for future growth [5] Industry Trends - The shift towards embedded finance is becoming a strategic imperative for companies, with nearly all major firms integrating financial services into their platforms to enhance customer engagement and loyalty [6][7] - A significant majority (93%) of firms believe that the benefits of embedded finance outweigh the challenges, highlighting the urgency for companies to upgrade their systems [7]

Core Insights - U.S. Bancorp's third-quarter earnings showed growth in deposits, improved credit metrics, and advancements in embedded payments as key drivers of performance [1][3] Group 1: Financial Performance - Consumer deposits now account for over 52% of total average deposits, reflecting a year-over-year increase of more than 2% [3] - Overall average deposits reached $511.8 billion in the latest quarter, compared to $508.8 billion a year ago [4] - Fee income is expected to grow in the mid-single digits, supported by interconnected product offerings [4] Group 2: Credit Quality - Key credit quality metrics, including nonperforming assets and net charge-offs, improved both sequentially and year-over-year [4] - The company reported strong spending trends and favorable credit conditions, with loss rates significantly decreasing this quarter [5] Group 3: Business Segments - The merchant business experienced a strong quarter, driven by success in key verticals and tech-led strategies [5] - $45 billion of the loan book is tied to non-deposit financial institutions, representing about 12% of the total loan book [5] Group 4: Future Initiatives - The company is exploring stablecoins in two areas: capital markets and as a payment rail, with pilot programs planned for the near term [2][6][8] - Efforts include onboarding stablecoins into the banking system and providing stablecoin services as a payment vehicle [8]

Core Insights - U.S. Bancorp's third-quarter earnings showed growth in deposits, improved credit metrics, and advancements in embedded payments as key drivers of performance [1][3] Financial Performance - Consumer deposits accounted for over 52% of total average deposits, reflecting a year-over-year increase of more than 2% [3] - Overall average deposits reached $511.8 billion in the latest quarter, up from $508.8 billion a year ago [4] - Fee income is expected to grow in the mid-single digits, supported by interconnected product offerings [4] Credit Quality - Key credit quality metrics, including nonperforming assets and net charge-offs, improved both sequentially and year-over-year [4] - The company reported strong spending trends and favorable credit conditions, with loss rates significantly decreasing this quarter [5] Merchant Business - The merchant business experienced a strong quarter, driven by success in key verticals and tech-led strategies [5] Stablecoin Initiatives - The company is exploring stablecoins in two areas: capital markets and as a payment rail, with pilot programs planned for the near term [6][8] - Efforts include providing custody and safekeeping for stablecoin collateral and cryptocurrency assets, as well as preparing to onboard stablecoins into the banking system [7][8] Market Reaction - U.S. Bancorp shares increased by 1.7% in early trading following the earnings release [9]