Summary of Global Payments Conference Call Company Overview - **Company**: Global Payments (NYSE:GPN) - **Event**: 2025 Conference held on December 02, 2025 - **Key Speaker**: Cameron Bready, CEO Key Topics Discussed 1. Worldpay Transaction - The Worldpay transaction is expected to close in early 2026, with progress on regulatory milestones being made weekly [6][8] - Global Payments aims to integrate the two businesses effectively, focusing on a unified operating model rather than a holding company structure [9][10] - The integration strategy emphasizes growth rather than just expense synergies, aiming for sustainable long-term growth [11][12] - The combined business will leverage strengths from both companies, with a focus on creating a strong leadership team [12][13] 2. Genius Transformation - Global Payments is consolidating its point-of-sale (POS) brands under the Genius platform to reduce fragmentation [14][15] - Genius is a new platform built from the ground up, designed to enhance capabilities across various markets, including SMBs and enterprise [16][17] - Significant investments will be made to continue developing Genius, with a focus on feature functionality and global market expansion [18][21] 3. Sales Hiring and Strategy - Global Payments plans to hire 500 additional salespeople in North America to enhance its sales force, which currently consists of approximately 3,800 to 4,000 professionals [22][23] - The company is shifting to a base pay plus commission structure to improve sales effectiveness and attract better talent [29][30] - Investments in marketing technology and CRM systems are being made to streamline lead management and improve sales productivity [30][31] 4. Industry Dynamics - The competitive landscape remains challenging, with a focus on maintaining price competitiveness while leading with product capability and service [36][38] - The back book management involves optimizing yield and managing attrition, with varying strategies among competitors [37][38] 5. Integrated and Embedded Payments - Global Payments has added 60 new Independent Software Vendors (ISVs) in Q3, with half located outside North America [39][41] - The Payrix platform from Worldpay will enhance Global Payments' integrated business by providing a managed payment facilitation solution [46][47] 6. Financial Outlook - Revenue growth for 2026 and 2027 is projected to be in the mid to high single digits for the standalone and combined businesses [52][56] - Margin expansion is expected to be between 100-200 basis points annually due to expense synergies [58] - The company plans to invest over $1 billion annually back into the business and return $7.5 billion to shareholders from 2025 to 2027 [59][60][61] Additional Insights - The integration of Global Payments and Worldpay is anticipated to create a powerful combined entity with enhanced capabilities in the payments space [12][46] - The focus on a hybrid solution for ISVs reflects a strategic shift to meet the evolving needs of software partners [45][46] - The company is well-positioned to leverage its scale and competitive advantages post-transaction, with strong cash flow characteristics expected [61]

Core Insights - Global Payments Inc. is recognized as a highly profitable large-cap stock, particularly following the launch of its first modular countertop POS device, which enhances flexibility, durability, and speed in retail and restaurant settings [1][3]. Product Development - The newly introduced POS device is designed based on direct input from merchants and partners, ensuring scalability for businesses of all sizes [2]. - The device features three main configurations: - A dual-screen premium checkout option with separate screens for merchants and customers, optimized for various environments [3]. - A single-screen model that integrates a PC for space-constrained areas, focusing on speed and reliability [3]. - A low-profile configuration with an integrated card reader, designed for tight spaces [3]. Company Overview - Global Payments Inc. provides payment technology and software solutions across card, check, and digital payments in the Americas, Europe, and Asia-Pacific [4]. - The company operates through two segments: Merchant Solutions and Issuer Solutions [4].

Core Insights - Global Payments has launched the industry's first modular countertop point-of-sale device, enhancing flexibility, durability, and speed for retail and restaurant environments [1][18] - The new device is designed to scale with businesses of all sizes, from small retailers to multi-location enterprises, based on direct input from merchants and partners [2][3] Product Features - The device includes a dual screen premium checkout option, providing a superior experience with both merchant and customer screens, and is optimized for various environments [6][7] - It features enterprise-grade modularity with configurations such as a countertop stand, customer-facing display, and wall mount, along with Power over Ethernet (PoE) capabilities [7] - The device is designed for speed, utilizing a best-in-class processor for frictionless transactions, and has a minimalist design with a 15.6-inch merchant display [7] - It is built to withstand various conditions, offering IP43 ingress protection against spills, humidity, and dust [7] Market Rollout - The commercial rollout in the U.S. will begin in December for enterprise customers, followed by small businesses in the first quarter of 2026 [8]

Global Payments’ new point-of-sale software, Genius, has been resonating with merchants since the launch of its configurations for restaurants and retail in the second quarter, executives said Tuesday (Nov. 4) during the company’s third quarter earnings call.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this a ...

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.43 billion for Q3 2025, reflecting a 6% increase from the prior year on a constant currency basis, excluding dispositions [31] - Adjusted operating margins expanded by 110 basis points to 45%, or 80 basis points excluding dispositions, due to strong execution and benefits from the transformation [32] - Adjusted earnings per share (EPS) increased by 12% on a reported basis and 11% on a constant currency basis, reaching $3.26 [33] - Adjusted free cash flow for the quarter was approximately $784 million, representing a conversion rate of adjusted net income to adjusted free cash flow of about 100% [38] Business Line Data and Key Metrics Changes - Merchant solutions generated adjusted net revenue of $1.88 billion for the quarter, reflecting approximately 6% growth on a constant currency basis, excluding dispositions [33] - The POS and software business achieved high single-digit growth, excluding dispositions, with a notable increase in new Genius locations sold, seeing a 37% monthly increase since launch [34] - Issuer Solutions generated adjusted net revenue of $562 million for the third quarter, reflecting over 5% growth on a constant currency basis, marking an acceleration from the first half of the year [36] Market Data and Key Metrics Changes - International markets showed relative strength with high single-digit constant currency revenue growth across Central Europe and Asia-Pacific, benefiting from strong secular payment trends [35] - The macroeconomic backdrop remains stable, supporting the view that consumer spending is resilient [33] Company Strategy and Development Direction - The company is focused on transforming into a pure-play merchant solutions provider, with the anticipated closing of the Worldpay acquisition and divestiture of Issuer Solutions expected in Q1 2026 [4][26] - A significant investment of approximately $1 billion annually is dedicated to merchant and commerce enablement solutions, aimed at accelerating the product roadmap and delivering differentiated value [45] - The integration strategy emphasizes growth, competitiveness, and innovation while unifying under a single brand [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, expecting adjusted earnings per share growth at the high end of the 10%-11% range on a constant currency basis for the full year [43] - The company anticipates returning $7.5 billion to shareholders between 2025 and 2027 while simultaneously deleveraging to three times within 18-24 months of closing the Worldpay transaction [46] - Management highlighted the importance of leveraging increased scale and realizing meaningful synergies to generate significantly more leverage-free cash flow [46] Other Important Information - The company has appointed two new independent directors to its board, enhancing leadership skills and financial technology expertise [29] - A new ad hoc integration committee has been established to oversee the integration of Worldpay following the acquisition [29] Q&A Session Summary Question: Thoughts on capital returns given the massive amount of free cash flow - Management expects to return close to $9 billion from dispositions and cash flow generation between 2025 and 2027, prioritizing capital returns to shareholders while also investing in business growth [50] Question: Insights on Genius and competitive landscape - The company is winning in various markets, with 90% of new sales to new customers and a 37% increase in new locations sold since the launch of Genius [56] - Management noted that the pricing environment remains constructive, focusing on value-based pricing rather than being the low-cost provider [63] Question: Organic growth components and Salesforce expansion - Organic growth is driven by new sales productivity and stable same-store sales trends, with efforts to harmonize pricing structures across portfolios [70] - The company is sourcing sales talent broadly, targeting software salespeople with consultative sales experience [73]

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.43 billion for Q3 2025, a 6% increase from the prior year on a constant currency basis, excluding dispositions [31] - Adjusted operating margins expanded by 110 basis points to 45%, or 80 basis points excluding dispositions [32] - Adjusted earnings per share (EPS) was $3.26, reflecting a 12% increase on a reported basis and 11% on a constant currency basis [33] - Adjusted free cash flow for the quarter was approximately $784 million, representing a conversion rate of adjusted net income to adjusted free cash flow of approximately 100% [38] - The company reduced its net leverage position to 2.9 times at the end of Q3, down from 3.15 times at the end of Q2 [40] Business Line Data and Key Metrics Changes - Merchant solutions generated adjusted net revenue of $1.88 billion for the quarter, reflecting approximately 6% growth on a constant currency basis, excluding dispositions [33] - The POS and software business achieved high single-digit growth, excluding dispositions, for Q3 [33] - Issuer Solutions generated adjusted net revenue of $562 million for Q3, reflecting over 5% growth on a constant currency basis, marking an acceleration from the first half of the year [36] Market Data and Key Metrics Changes - The international markets demonstrated relative strength with high single-digit constant currency revenue growth across Central Europe and Asia-Pacific [35] - The company added nearly 60 new partners globally during the quarter, with about half of these new ISV partners located outside North America [35] Company Strategy and Development Direction - The company is focused on transforming into a pure-play merchant solutions provider, with the anticipated closing of the WorldPay acquisition and divestiture of Issuer Solutions in early 2026 [44][46] - A significant annual capital investment of approximately $1 billion is dedicated exclusively to merchant and commerce enablement solutions [45] - The integration of AI is enhancing the product development lifecycle, enabling faster innovation and improved velocity across the technology portfolio [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, expecting adjusted earnings per share growth to be at the high end of the 10%-11% range on a constant currency basis for the year [43] - The company anticipates continued strong free cash flow generation, with expectations to return $7.5 billion to shareholders between 2025 and 2027 [46] - Management noted that the macroeconomic backdrop remains stable, supporting the view that consumer spending is resilient [33] Other Important Information - The company closed the divestiture of its payroll business in September, allowing for an incremental $500 million of capital to be returned to shareholders through an accelerated share repurchase program [6] - The company partnered with Google to enable agentic commerce using the Agent Payments Protocol, enhancing secure and reliable commerce for customers [6] Q&A Session Summary Question: Thoughts on capital returns given the massive amount of free cash flow - Management expects to return close to $9 billion from dispositions and cash flow generation between 2025 and 2027, prioritizing capital returns to shareholders while also investing in business growth [50] Question: Insights on Genius wins and competitive landscape - Management indicated that initial wins with Genius are coming from both competitive takeaways and new customers, with a notable increase in new annual recurring revenue (ARR) since its launch [55][56] Question: Pricing environment and backbook sales - Management stated that the pricing environment remains constructive, focusing on value-based pricing rather than being the low-cost provider, while also harmonizing pricing structures across portfolios [62]

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.43 billion for Q3 2025, a 6% increase from the prior year on a constant currency basis, excluding dispositions [32] - Adjusted operating margins expanded by 110 basis points to 45%, or 80 basis points excluding dispositions, due to strong execution and transformation benefits [32] - Adjusted earnings per share (EPS) reached $3.26, reflecting a 12% increase on a reported basis and 11% on a constant currency basis [33] - Adjusted free cash flow for the quarter was approximately $784 million, representing a conversion rate of adjusted net income to adjusted free cash flow of nearly 100% [39] Business Line Data and Key Metrics Changes - Merchant solutions generated adjusted net revenue of $1.88 billion for the quarter, reflecting approximately 6% growth on a constant currency basis, excluding dispositions [33] - The POS and software business achieved high single-digit growth, excluding dispositions, with a notable increase in new Genius locations sold, seeing a 37% monthly increase since launch [34] - Issuer Solutions generated adjusted net revenue of $562 million for the third quarter, reflecting over 5% growth on a constant currency basis, marking an acceleration from the first half of the year [37] Market Data and Key Metrics Changes - International markets showed relative strength with high single-digit constant currency revenue growth across Central Europe and Asia-Pacific, benefiting from strong secular payment trends [36] - The macroeconomic backdrop remains stable, supporting the view that consumer spending is resilient [33] Company Strategy and Development Direction - The company is focused on transforming into a pure-play merchant solutions provider, with plans to close the WorldPay acquisition and divestiture of Issuer Solutions in Q1 2026 [4][5] - A partnership with Google was announced to enable agentic commerce, enhancing the company's capabilities in emerging commerce channels [5] - The company is investing approximately $1 billion annually in capital investment dedicated to merchant and commerce enablement solutions, aiming to accelerate product development and innovation [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, expecting adjusted earnings per share growth at the high end of the 10%-11% range on a constant currency basis for the full year [44] - The anticipated closing of the WorldPay acquisition is seen as a pivotal moment for the company's evolution, enhancing operational efficiency and maximizing cash flow [45] - Management highlighted the importance of leveraging increased scale and realizing meaningful synergies to generate significantly more leverage-free cash flow [46] Other Important Information - The company repurchased $500 million in shares during the third quarter, bringing total share repurchases to approximately $1.2 billion year-to-date [39] - The net leverage position was reported at 2.9 times at the end of Q3, down from 3.15 times at the end of Q2, indicating faster-than-anticipated deleveraging [40] Q&A Session Summary Question: Thoughts on capital returns given the free cash flow generation - Management reiterated the commitment to return capital to shareholders, expecting to return close to $9 billion from cash flow generated in the business between 2025 and 2027 [48] Question: Insights on Genius and competitive landscape - Management noted that the company is winning in various markets, with 90% of new sales to new customers and a significant increase in new annual recurring revenue since launching Genius [52][53] Question: Pricing environment and competitive actions - Management stated that the pricing environment remains constructive, focusing on delivering value rather than being the low-cost provider, while remaining price competitive [58][59] Question: Organic growth components and pricing increases - Management highlighted that organic growth is driven by new sales productivity and stable same-store sales trends, with ongoing efforts to harmonize pricing structures across portfolios [60][62]

3Q 2025 earnings 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 forward-looking statements, which are based on current expectations, estimates and projections about the industry and geographies in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and assumptions that could significantly affect the fi ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Global Payments is leaning into its rollout of the Genius brand worldwide to increase its payments volume and revenue, CEO Cameron Bready said Wednesday in discussing the company’s third-quarter earnings results with analysts. The Atlanta-based payments processor’s third-quarter revenue climbed a half percent to $2 billion, according to a Wednesday ...

Core Insights - Global Payments Inc. (GPN) is a global payments technology company that has seen its shares decline by 24.8% year-to-date, contrasting with the industry's growth of 1.8% [1][2] Company Overview - GPN is headquartered in Atlanta, GA, with a market capitalization of $20.8 billion, and is positioned for growth due to rising transactions, strategic acquisitions, and strong financials [2] - The company operates through two segments: Merchant Solutions and Issuer Solutions, with a forward 12-month P/E ratio of 6.34X, significantly lower than the industry average of 21.42X [2][10] Financial Estimates - The Zacks Consensus Estimate for GPN's 2025 earnings is $12.19 per share, with two upward revisions in the past 30 days, and revenue estimates for 2025 are pegged at $9.3 billion, indicating a 1.8% year-over-year growth [3] - GPN has beaten earnings estimates in two of the past four quarters and missed twice [3] Growth Drivers - The Merchant Solutions division benefits from an innovative payment facilitation model, with adjusted revenues growing 8.7% year-over-year in 2024 and 1.1% in Q2 2025 [4][10] - The Issuer Solutions segment reported adjusted revenue growth of 4% year-over-year in Q2 2025 [4] Strategic Initiatives - GPN is preparing to acquire Worldpay to expand its global footprint and product range while divesting non-core assets, including its payroll business to Acrisure [6] - The company is also entering a $500 million accelerated share repurchase plan related to the payroll divestiture [6] Product Development - The launch of Genius aims to simplify GPN's solutions by integrating global point-of-sale payment products into a user-friendly platform [7] Cash Flow and Financial Health - GPN demonstrated strong cash flow generation, with operating cash flow increasing from $2.2 billion in 2023 to $3.5 billion in 2024, and generating $818 million in Q2 2025 [8] Operational Efficiency - Despite cost control measures, GPN's operating expenses increased by 5.4% and 8.2% year-over-year in 2023 and 2024, respectively, with a 2.3% rise in Q2 2025 [11] - GPN's return on equity (ROE) stands at 12.9%, significantly below the industry's average of 50.7%, indicating potential inefficiencies in utilizing shareholder funds [11]