Fiserv (NYSE:FI) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsAndrew Schmidt - Managing Director and Head of FinTech ResearchBrian Friedman - Managing DirectorBrian Keane - Managing Director and Head of North America Payments, Processors, and IT Services ResearchMike Lyons - CEOPaul Todd - CFOWalter Pritchard - SVP and Head of Investor RelationsConference Call ParticipantsAndrew Jeffrey - Partner and Senior Research AnalystDan Dolev - Managing Director and Senior Equity Research A ...

Fiserv (NYSE:FI) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsAndrew Schmidt - Managing Director and Head of FinTech ResearchBryan Keane - Managing Director and Head of North America Payments, Processors, and IT Services ResearchMike Lyons - CEOPaul Todd - CFOWalter Pritchard - SVP and Head of Investor RelationsConference Call ParticipantsAndrew Jeffrey - Partner and Senior Research AnalystDan Dolev - Managing Director and Senior Equity Research AnalystDarrin Peller - Managing Dir ...

Financial Data and Key Metrics Changes - Total company Q4 adjusted revenue was $4.9 billion, flat year-over-year, with adjusted operating income of $1.7 billion, resulting in an adjusted operating margin of 34.9% [20] - Full year total company adjusted revenue reached $19.8 billion, up 4%, with adjusted operating income of $7.4 billion, resulting in an adjusted operating margin of 37.4%, a decrease of 200 basis points [20] - Total company organic revenue was roughly flat, down approximately 40 basis points in Q4, resulting in annual organic revenue growth of 3.8% [20] Business Line Data and Key Metrics Changes - Merchant Solutions grew 6% organically for the year, while Financial Solutions grew 2% [21] - Q4 Merchant Solutions organic revenue growth was 1%, while adjusted revenue grew 2% [22] - Clover revenue grew 12% in Q4, with Clover volume growth of 6% on a reported basis and 9% excluding gateway conversion [23] - Financial Solutions saw both organic and adjusted revenue decline by 2% in Q4 [26] Market Data and Key Metrics Changes - Clover Capital grew 30% in 2025 in North America, with significant upside potential [10] - Internationally, the launch in Brazil was highly successful, with results tracking ahead of plan [10] - Canada experienced strong growth in 2025, expected to accelerate with a new strategic relationship with TD [10] Company Strategy and Development Direction - The company is focused on a client-first mindset, building a preeminent small business operating platform through Clover, and delivering operational excellence enabled by AI [5] - The One Fiserv plan is central to the company's strategy, integrating various business lines and enhancing client service [4] - The company is committed to disciplined capital allocation and evaluating businesses to align with its go-forward strategy [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the multi-quarter path towards delivering strong, sustainable operating performance [3] - The company anticipates that headline results will remain below expectations for the first half of 2026 due to investments and a higher mix of non-recurring revenue [4] - Management is confident in the strategy and ability to execute, emphasizing the unique position in the financial ecosystem [18] Other Important Information - The company repurchased 3 million shares during the quarter for approximately $200 million and paid down over $1 billion in debt [28] - Project Elevate incurred $73 million of expenses related to the program in Q4, with ongoing one-time costs expected in 2026 [28] Q&A Session Summary Question: Confidence in business review and future numbers - Management feels confident about the progress made and believes the conclusions from the analysis are fully reflected in the Q4 results and 2026 guidance [35] Question: Digital payments pricing actions - Management noted no new developments in Q4 related to pricing actions, but expressed satisfaction with the sequential improvement in digital payments and network volumes [41] Question: Expenses related to One Fiserv - Management indicated that expenses related to One Fiserv are largely baked in, with no material ramp-up expected, and highlighted the focus on process efficiencies moving forward [46] Question: SMB performance expectations - Management expects slight growth in non-Clover SMB for next year, with Argentina no longer a growth factor [52] Question: Clover yield outlook - Management is optimistic about yield growth driven by value-added services and vertical expansions, with expectations for long-term revenue growth [56]

© 2026 Fiserv, Inc. or its affiliates Fourth Quarter 2025 Financial Results February 10, 2026 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 adjusted and organic revenue growth, adjusted earnings per share, capital expenditures, free cash flow, free cash flow conversion, adjusted operating margin, a ...

Core Insights - Fiserv, Inc. reported a GAAP revenue growth of 1% in Q4 2025, totaling $5.28 billion, and a full-year revenue increase of 4% to $21.19 billion [2] - The company experienced an 8% decrease in GAAP EPS for Q4 2025, with a full-year increase of 18% [2] - Organic revenue remained flat in Q4 2025 but increased by 4% for the full year [4] - Adjusted EPS decreased by 21% in Q4 2025, while it decreased by 2% for the full year [4] - Fiserv anticipates organic revenue growth of 1% to 3% and adjusted EPS of $8.00 to $8.30 for 2026 [5] Financial Performance - GAAP operating margin was 24.4% in Q4 2025 and 27.5% for the full year, down from 31.8% and 28.7% in the previous year [3] - The Merchant Solutions segment saw a 2% revenue growth in Q4 2025, while the Financial Solutions segment experienced a 2% decline [2] - Adjusted operating margin was 34.9% in Q4 2025 and 37.4% for the full year, compared to 42.9% and 39.4% in the previous year [4] Cash Flow and Share Repurchase - Net cash provided by operating activities was $6.06 billion for the full year 2025, down from $6.63 billion in 2024 [3] - The company repurchased 3.1 million shares for $200 million in Q4 2025 and 32.2 million shares for $5.6 billion throughout the year [4] Strategic Developments - Fiserv completed the acquisition of StoneCastle Cash Management in December 2025, enhancing its deposit funding capabilities [4] - The company executed the "One Fiserv" plan during Q4 2025, achieving several milestones and client wins [4] Segment Performance - Merchant Solutions revenue was $2.54 billion in Q4 2025, with an operating margin of 32.1%, while Financial Solutions revenue was $2.36 billion with an operating margin of 42.2% [24] - For the full year, Merchant Solutions revenue reached $10.14 billion, and Financial Solutions revenue was $9.66 billion [24]

Core Thesis - Fiserv, Inc. is undergoing a significant reevaluation following its Q3 2025 report, which revealed that previous growth figures were misleading, leading to a stock price drop of approximately 50% [3] Business Segments - Fiserv operates in three segments: Merchant Solutions, Financial Solutions, and Corporate and Other. Merchant Solutions saw only an 8% growth in GPV, trailing competitors due to market saturation and increased competition [4] - Financial Solutions reported a 3% organic revenue decline and margin compression as banks postponed license renewals and new fintech entrants gained market share [4] - The Corporate and Other segment is negatively impacting profitability, primarily due to First Data amortization, and is now targeted for divestiture to free up capital [4] Leadership Changes - Former CEO Frank Bisignano focused on short-term EPS growth through leveraged buybacks and deferred investments, which created operational gaps. The new CEO, Michael Lyons, is implementing a reset by prioritizing investment and improving corporate culture [5] - Lyons has refreshed the board with experienced banking and fintech professionals to guide the company through its transformation [5] Strategic Plan - The "One Fiserv" strategic plan focuses on five key areas: client-first mindset, scaling Clover as a comprehensive SMB platform, developing embedded finance and stablecoin platforms, achieving operational excellence through AI, and disciplined capital allocation [6] - Despite resetting short-term guidance, Fiserv's cash generation capabilities, high-margin segments, and comprehensive transformation plan present a potential opportunity for value recovery, making it a complex risk/reward proposition for investors [6]

Core Insights - Fiserv's Small Business Index for January 2026 indicates a decline in small business sales due to seasonal shifts and harsh winter storms, with the index dropping 1 point to 143 [1] - Year-over-year sales increased by 0.7%, while month-over-month sales decreased by 0.5% [1] Consumer Behavior - Consumer foot traffic experienced a significant year-over-year decline of 2.0%, the sharpest since mid-2022, and a month-over-month drop of 0.8% [2] - Discretionary spending softened, with discretionary sales falling 0.4% year-over-year and 0.7% month-over-month, influenced by a 2.4% year-over-year decline in foot traffic [3] Sector Performance - Essential sales remained stable year-over-year, growing by 2.2%, but were flat month-over-month [3] - Professional and Administrative Services showed growth, with Administrative and Support Services increasing by 1.1% month-over-month, and Tax Preparation Services growing by 9.3% year-over-year and 5.6% month-over-month [4] - Small business retail sales were flat year-over-year and month-over-month, with core retail categories (grocery, clothing, furniture) growing by 1.5% year-over-year, while non-core retail categories declined by 2.7% [5] Restaurant and Service Sector Trends - Restaurant sales fell by 1.8% year-over-year, primarily due to a 3.6% decline in foot traffic, with limited-service restaurants experiencing the largest sales drop of 3.4% year-over-year [6] - Average ticket sizes in restaurants increased by 1.6% year-over-year, providing only a partial offset to the decline in sales [6] Impact of Winter Storms - The report highlights the impact of Winter Storm Fern on various regions and business types across the U.S., affecting consumer behavior and sales trends [7]

Core Insights - Fiserv has experienced significant stock decline following a disappointing earnings report, losing nearly half its value in one day last October and currently trading at a low P/E ratio of 10 [1][6] Company Overview - Fiserv is a leading global payment processing company with over $21 billion in trailing-12-month revenue, typically showing healthy growth [2] - The company has faced recent challenges, including a third-quarter report that fell below expectations and a reduction in full-year guidance [2] Financial Performance - In the latest earnings report, Fiserv's earnings per share (EPS) were $2.04, which was $0.60 lower than Wall Street expectations, and sales declined 1% to $4.92 billion, missing the expected $5.36 billion [3] - Management has revised full-year EPS guidance to $8.55, down from a previous range of $10.15 to $10.30, and revenue growth is now forecasted at 3.5% to 4%, significantly lower than the prior guidance of 10% [3] Legal Issues - Fiserv is currently facing a lawsuit from shareholders alleging misleading claims regarding its Clover payment platform, claiming the company inflated comparable sales growth by switching clients from other platforms [4] Market Position - Despite the challenges, Fiserv remains a leader in the payment processing industry with a strong software-as-a-service (SaaS) model that relies on recurring revenue, serving thousands of clients and millions of merchants [6] - The company is highly profitable, which may indicate that the current low stock price could represent a buying opportunity rather than a value trap [6] Strategic Initiatives - CEO Mike Lyons has initiated the One Fiserv Action Plan, focusing on long-term client service and operational excellence, and plans to enhance the use of artificial intelligence (AI) in its platform [7] - An enhanced partnership with ServiceNow has been announced as part of this strategic plan [7] Investor Outlook - It may take time for Fiserv to regain investor trust and for the stock to recover to previous highs, but the current price may warrant a second look from investors [8]

Core Insights - Fiserv has announced an exclusive collaboration with Affirm to integrate pay-over-time capabilities into debit card programs for financial institutions, allowing them to meet consumer demand for flexible payment options without developing new lending products [1][2] Group 1: Collaboration Details - The partnership builds on a previous integration in 2022, enhancing Fiserv's commitment to innovative debit solutions for financial institutions [2] - The collaboration aims to provide community and regional banks and credit unions with a scalable way to offer payment flexibility through existing debit products, enhancing customer relationships and engagement [2] Group 2: Benefits of the Integration - The integration will manage all technical aspects, allowing banks and credit unions to offer Affirm's flexible payment options seamlessly without operational lift [5] - Debit cardholders will have the option to split eligible purchases into fixed payments with a clear repayment schedule and no hidden fees, directly from their bank's mobile app [5] - Consumers will have access to Affirm's network of nearly 420,000 merchants, enabling them to apply for flexible payment options and expand their purchasing power [5]

Core Viewpoint - Julie & Holleman LLP is investigating potential claims against Fiserv, Inc. insiders related to stockholder losses due to alleged concealment of business performance issues and growth prospects [1][2][3] Group 1: Allegations Against Fiserv - Fiserv is accused of engaging in a significant cover-up by hiding facts about its business performance and growth prospects [2] - The company allegedly failed to disclose issues with its older Payeezy platform, which contributed to a temporary boost in revenues through forced migrations to the Clover platform [2] - Following the forced migration, many former Payeezy customers reportedly switched to competitors, causing significant harm to Fiserv's business [2] Group 2: Legal Actions and Investigations - Julie & Holleman LLP is investigating legal claims against Fiserv, its executives, and potentially the board of directors in connection with the alleged fraud [3] - The firm has a history of helping recover hundreds of millions of dollars for shareholders in previous cases [3][4]