Core Insights - The London Company reported a 6.0% gross (5.8% net) appreciation in its portfolio for Q3 2025, outperforming the Russell 1000 Value Index which increased by 5.3% [1] - The positive stock selection contributed to the portfolio's outperformance, although sector exposure presented some headwinds [1] Company Analysis: Fidelity National Information Services, Inc. (NYSE:FIS) - Fidelity National Information Services, Inc. experienced a one-month return of -7.31% and a 52-week loss of 26.94%, closing at $63.15 per share with a market capitalization of $32.988 billion on November 4, 2025 [2] - The London Company highlighted that FIS underperformed in Q3 2025 due to inconsistent execution and a weaker outlook, leading to a decision to sell the position to invest in higher conviction ideas [3] - Despite its strong market position and recurring revenue base, FIS faces additional execution risks, prompting a reevaluation of its investment potential [3] Hedge Fund Interest - Fidelity National Information Services, Inc. was held by 49 hedge fund portfolios at the end of Q2 2025, a decrease from 56 in the previous quarter [4] - While FIS is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with certain AI stocks being viewed as offering greater upside potential and less downside risk [4]

Core Insights - MarketAxess Holdings Inc. is launching Opening and Closing Auctions, a standardized market-wide auction protocol aimed at enhancing price discovery and providing unique liquidity for trading U.S. credit [1] Company Developments - The new auction protocol is designed to improve the trading environment for fixed income securities [1] - MarketAxess consulted a diverse group of buy-side and sell-side participants during the development of the Opening & Closing Auctions [1]

Core Insights - Payoneer reported record quarterly revenue for Q3 2025, demonstrating resilience and strength in its diverse business model, with a 15% year-over-year growth in revenue excluding interest income [3][8][10] - The company has raised its 2025 guidance for total revenue, reflecting consistent expectations for revenue growth and increased interest income due to strong year-over-year growth in customer funds [10][11] Financial Performance - Q3 2025 revenue excluding interest income reached $211.4 million, a 15% increase from Q3 2024, driven by 9% volume growth and significant take rate expansion with SMB customers [8][19] - Total revenue for Q3 2025 was $270.9 million, up 9% year-over-year [19] - Net income for Q3 2025 was $14.1 million, a decrease of 66% compared to $41.6 million in Q3 2024 [19][27] - Adjusted EBITDA for Q3 2025 was $71.3 million, reflecting a 3% increase year-over-year [19][25] Business Highlights - The company achieved a record $1.6 billion in spend on Payoneer cards, a 19% increase year-over-year, indicating higher usage per customer [14] - SMB customer revenue grew to $192 million, a 17% increase year-over-year, with marketplace sales contributing $121 million, up 11% [8][14] - The average revenue per user (ARPU) excluding interest income grew by 22% year-over-year, marking the fifth consecutive quarter of over 20% growth [8][10] 2025 Guidance - Payoneer has increased its 2025 revenue guidance to a range of $1,050 million to $1,070 million, with adjusted EBITDA expected between $270 million and $275 million [11][10] - The company anticipates transaction costs to be approximately 16.0% of revenue [11] Operational Metrics - Active Ideal Customer Profiles (ICPs) decreased by 2% year-over-year to 548,000 [8] - The volume of transactions processed was $22.3 billion, a 9% increase year-over-year [8]

Core Insights - Upstart Holdings, Inc. reported a revenue of $277.11 million for the quarter ended September 2025, marking a year-over-year increase of 70.9% and an EPS of $0.52 compared to -$0.06 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $281.02 million by 1.39%, while the EPS exceeded the consensus estimate of $0.42 by 23.81% [1] Financial Performance Metrics - Transaction Volume was reported at $2.85 million, below the average estimate of $3.2 million based on three analysts [4] - Revenue from fees, net was $258.54 million, compared to the average estimate of $275.62 million based on four analysts, reflecting a year-over-year change of +76.2% [4] - Revenue from servicing and other fees, net was $41.66 million, versus the estimated $46.11 million, showing a +24.8% change year-over-year [4] - Revenue from platform and referral fees, net was $216.88 million, compared to the estimated $230.22 million, representing a +61.6% change year-over-year [4] Stock Performance - Upstart's shares have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core IPO Market Trends - Post-pandemic IPO activity has fluctuated due to economic uncertainty, rising interest rates, and inflation impacting investor sentiment [1] - Recent notable IPOs, including CoreWeave (CRWV) and Circle Internet Group (CRCL), indicate a positive shift in the IPO market and renewed investor confidence [1][8] CoreWeave (CRWV) - CoreWeave is backed by NVIDIA (NVDA), which holds a $900 million stake, making it one of NVIDIA's largest investments [3] - The company supplies high-performance GPUs for CoreWeave's AI infrastructure, leading to significant sales growth [3] - CoreWeave's quarterly results showed a remarkable 206% year-over-year sales increase, with shares up 120% since its debut [4] Circle Internet Group (CRCL) - Circle is a global fintech firm that issues USDC, the second-largest dollar-pegged stablecoin, facilitating digital currency transactions [5] - Since its debut, CRCL shares have increased by 33%, although much of the initial IPO gains have diminished [5][8] - The company represents a strategic play on the evolving stablecoin regulatory landscape as digital currencies gain traction [7]

Core Insights - Toast (TOST) reported $1.63 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 25.1% and an EPS of $0.25 compared to $0.07 a year ago, exceeding Zacks Consensus Estimates [1] - The reported revenue surpassed the Zacks Consensus Estimate of $1.59 billion by 2.6%, while the EPS exceeded the consensus estimate of $0.24 by 4.17% [1] Financial Performance Metrics - Gross Payment Volume (GPV) reached $51.50 billion, exceeding the average estimate of $50.62 billion from three analysts [4] - Subscription Annualized Recurring Run-Rate was $1 billion, slightly below the average estimate of $1.01 billion from three analysts [4] - Total Annualized Recurring Run-Rate (ARR) was $2.02 billion, surpassing the two-analyst average estimate of $2 billion [4] Revenue Breakdown - Revenue from Financial Technology Solutions was $1.35 billion, exceeding the average estimate of $1.31 billion from four analysts, representing a year-over-year increase of 26.1% [4] - Revenue from Subscription Services was $244 million, above the average estimate of $237.92 million from four analysts, reflecting a year-over-year increase of 29.1% [4] - Revenue from Hardware and Professional Services was $44 million, below the average estimate of $46.77 million from four analysts, indicating a year-over-year decline of 10.2% [4] Stock Performance - Shares of Toast have returned -3.3% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Financial Performance - Jack Henry reported revenue of $644.74 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.3% [1] - The earnings per share (EPS) for the same period was $1.97, compared to $1.63 a year ago, indicating a significant increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $636.69 million by 1.26% [1] - The EPS surprise was notable at +20.12% against the consensus estimate of $1.64 [1] Segment Performance - Core revenue was reported at $195.29 million, slightly below the average estimate of $204.8 million, representing a year-over-year decline of 0.2% [4] - Corporate & Other revenue reached $24.33 million, surpassing the estimated $22.41 million, with a year-over-year increase of 12% [4] - Complementary revenue was $194.22 million, exceeding the average estimate of $186.67 million, marking a year-over-year growth of 13.1% [4] - Payments revenue was reported at $230.89 million, above the average estimate of $224.78 million, with a year-over-year increase of 9% [4] Segment Income Analysis - Segment income for Core was $122.16 million, slightly above the average estimate of $120.69 million [4] - Segment income for Corporate & Other was reported at -$60.18 million, better than the estimated -$64.01 million [4] - Segment income for Complementary was $121.96 million, exceeding the average estimate of $113.63 million [4] - Payments segment income was $112.23 million, compared to the average estimate of $101.49 million [4] Stock Performance - Jack Henry's shares have returned +2% over the past month, closely aligning with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Core Viewpoint - A securities fraud class action has been filed against Fiserv, Inc. following a 47% drop in its share price due to disappointing Q3 2025 financial results and significantly lowered guidance [1][2] Financial Performance - Fiserv's Q3 2025 results were described as "abysmal" with a significant earnings miss and a drastic cut in guidance that analysts found difficult to comprehend [2] - The company revised its 2025 organic revenue guidance to 10%, which was the low end of its previous range, and adjusted its EPS guidance upward to $10.15 on July 23, 2025 [5] - On October 29, 2025, Fiserv reported a sequential decline in adjusted revenue, slashing organic revenue growth expectations to 3.5%-4% and EPS outlook to $8.50-$8.60 [7] Management Changes - Following the poor performance, Fiserv announced the departure of its chief financial officer and a shake-up of its board of directors, including the replacement of the head of the audit committee effective January 1, 2026 [7] Investor Reaction - The market reacted negatively, causing Fiserv's share price to drop over $59 in intraday trading, resulting in a loss of $32 billion in shareholder value in one day [9] Legal Proceedings - The class action lawsuit seeks to represent investors who acquired Fiserv securities between July 23, 2025, and October 29, 2025, focusing on allegations that Fiserv misled investors regarding its financial performance [2][4] - Hagens Berman is investigating claims that Fiserv's assurances about its expected financial performance were misleading and based on unrealistic assumptions [3][6]

Financial Performance - SuRo Capital's Net Asset Value (NAV) per share as of September 30, 2025, is $9.23, with net assets of approximately $231.8 million at quarter-end[7], an increase from the dividend-adjusted $8.93 per share as of June 30, 2025[7] - A cash dividend of $0.25 per share was declared on November 3, 2025, payable on December 5 to shareholders of record as of November 21[7] - Net investment loss for the third quarter ended September 30, 2025, was $3.5 million, or $0.14 per share[29] - Net realized gain on investments for the third quarter was $5.2 million, or $0.21 per share[29] - Net change in unrealized appreciation of investments was $5.7 million, or $0.23 per share[29] Investment Activities - A $0.3 million follow-on convertible debt investment was made in Supplying Demand, Inc (d/b/a Liquid Death)[9, 23] - A $5.0 million preferred shares investment was made in HL Digital Assets Inc[9, 23] - Total distributions from CW Opportunity 2 LP to date were $14.2 million, resulting in $10.0 million realized gains[7] - Net proceeds from GrabAGun Digital Holdings, Inc warrants were $0.7 million, resulting in $0.5 million realized gains[7] Portfolio Composition - The top 5 positions account for approximately 52% of the investment portfolio at fair value as of September 30, 2025[25] - Artificial Intelligence Infrastructure & Applications represents 30.5% of the portfolio fair value, totaling $76.9 million[27]

Core Insights - Jack Henry & Associates, Inc. reported strong first-quarter financial results for fiscal 2026, with non-GAAP revenue growth exceeding previous outlooks [4][7][12] - The company completed the acquisition of Victor Technologies, enhancing its capabilities in the financial technology sector [4] - Fiscal year 2026 guidance includes projected revenue of $2,491 million to $2,514 million, with an operating margin of 23.9% to 24.1% [1][22] Financial Performance - For the fiscal three months ended September 30, 2025, GAAP revenue increased by 7.3% to $644.7 million compared to $601.0 million in the prior year [5][35] - Non-GAAP adjusted revenue rose by 8.7%, reaching $636.1 million, driven by growth in services and support as well as processing revenue [7][8] - Operating income increased by 21.7% to $184.1 million, resulting in an operating margin of 28.5% [9][35] Segment Performance - Core segment revenue increased by 0.5%, while payments segment revenue grew by 9.0% and complementary segment revenue rose by 10.2% [6] - Corporate and other segment revenue saw a significant increase of 31.6% [6] - Non-GAAP adjusted operating income increased by 18.6% to $173.2 million, with a non-GAAP adjusted operating margin of 27.2% [13][15] Cash Flow and Balance Sheet - Cash and cash equivalents were reported at $36.2 million as of September 30, 2025, down from $43.2 million a year earlier [24][28] - The company utilized part of its cash flow for $100 million in share repurchases during the first quarter and October [12] - Total debt outstanding decreased significantly from $140 million in September 2024 to $20 million in September 2025 [7][28] Guidance and Outlook - The full fiscal year guidance assumes no additional acquisitions or dispositions will occur during fiscal year 2026 [2][22] - Projected GAAP revenue growth for fiscal year 2026 is estimated at 4.9% to 5.9% [23] - Non-GAAP adjusted revenue growth is expected to be between 6.0% and 7.0% [23]