Global Payments’ planned acquisition of Worldpay was OK’d Monday (Oct. 20) by the United Kingdom’s Competition and Markets Authority.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 article and enjoy unlimited free access to all PYMNTS content — no additional logins required.“The CMA has cleared the anticipa ...

Investment Performance Summary - The Large Cap Composite (Gross) achieved a quarterly return of 4.7% and a year-to-date return of 10.0% [3][10] - The Small Cap Composite (Gross) reported a quarterly return of 4.3% and a year-to-date return of 6.6% [16] - The Focus Composite (Gross) had a quarterly return of 3.8% and a year-to-date return of 7.3% [20] - The All Cap Composite (Gross) recorded a quarterly return of 5.7% and a year-to-date return of 9.9% [29] Company Contributions and Detractors - Medpace Holdings Inc. was a significant contributor to performance, with revenue growing at a mid-teens rate and operating earnings up 20% year-over-year [13][33] - Alphabet Inc. also contributed positively, benefiting from a favorable remedies decision in an antitrust case [14][34] - CarMax Inc. was identified as a material detractor, experiencing a 5% decline in retail volumes due to market volatility [15][19] Strategic Actions - Fiserv Inc. was purchased during the quarter, expected to generate over $5 billion in free cash flow, which will be used for share repurchases [11][31] - CBRE Group Inc. was sold to reallocate capital to more discounted businesses, despite its strong market position [12][32] - No new positions were added in the Small Cap and Focus strategies during the quarter [17][21] Market Conditions and Outlook - Stock price volatility was noted earlier in the year due to tariff-related concerns, leading to capital allocation towards stable value companies [8] - The overall market is perceived as not cheap, but the portfolios maintain a margin of safety with attractive price-to-value ratios [9][10] - The used car market remains volatile, but CarMax is expected to leverage its competitive advantages for long-term growth [15][19]

Financial Performance - Q2 2025 - Revenue reached $428 million[5], a 3% decrease year-over-year[21, 45] - Organic revenue grew by 5% year-over-year[21, 45] - Adjusted EBITDA was $105 million[5], a 12% decrease year-over-year[21] - Unlevered Free Cash Flow (uFCF) was $53.869 million[54] - Adjusted net income was $0.46 million[5] Segment Performance - Merchant Solutions revenue was $232.2 million[39] - Digital Wallets revenue was $201.2 million[39] - Merchant Solutions organic revenue growth was 6%[25, 47] - Digital Wallets volume increased by 15%[26] Financial Position - The company has a net leverage ratio of 5.4x[5] - Total debt is $2.551 billion[27] - Net debt is $2.285 billion[27] - Available liquidity is $414 million[27]

Investment Rating - The report rates the company as "Outperform" with an expected relative return exceeding 10% over the next 12-18 months [19]. Core Insights - The company reported a total revenue of $2.7 billion for Q2 2025, reflecting a year-on-year growth of 31%, surpassing market expectations of 25% to 28% [1][2][8]. - The Gross Merchandise Volume (GMV) for the second quarter reached $88 billion, also up 31% year-on-year, with Europe showing a remarkable growth of 49% [2][8]. - The operating profit margin improved to 11%, an increase of 200 basis points year-on-year, while free cash flow stood at $422 million, representing 16% of revenue [1][2][8]. - The company has established a comprehensive layout of "online + offline + overseas + high-end + B2B" to drive revenue and GMV growth [3][9]. Summary by Sections Financial Performance - Total revenue for Q2 2025 was $2.7 billion, a 31% increase year-on-year, exceeding market expectations [1][2]. - GMV reached $88 billion, also up 31% year-on-year, with significant growth in Europe [2][8]. - Gross margin was reported at 48.6%, down 250 basis points from the previous year, but still above the industry average [2][8]. - Operating profit margin improved to 11%, with free cash flow of $422 million, marking the eleventh consecutive quarter of positive inflow [1][2][8]. Business Segments - Merchant Solutions revenue grew by 37% year-on-year, driven by increased payment penetration and partnerships with PayPal and Klarna [3][9]. - Subscription Solutions revenue increased by 17%, supported by the expansion of enterprise-level customers and the Plus package [3][9]. - Offline POS and B2B businesses saw explosive growth, with Shop Pay's GMV reaching $27 billion, a 65% increase year-on-year [3][9]. Innovations and Future Guidance - The introduction of AI-driven products like Catalog and Universal Cart has enhanced the shopping experience [4][10]. - The company expects full-year revenue growth to remain between 25% and 30%, with Q3 2025 revenue anticipated to grow by mid-to-high 20% year-on-year [4][11]. - The focus will be on enhancing international capabilities, deepening AI integration, and strengthening B2B market penetration [4][11].

Core Insights - Global Payments Inc (GPN) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.10, exceeding the Zacks Consensus Estimate of $3.03, with an 11% year-over-year increase [1][8] - Adjusted net revenues rose 2% year over year to $2.4 billion, slightly surpassing the consensus mark by 0.2% [1] - The strong performance was driven by growth in Merchant Solutions and Issuer Solutions, although elevated expenses partially offset the gains [1] GPN's Operating Performance - Adjusted operating income for the quarter was $1.1 billion, reflecting a 4.5% year-over-year increase [2] - Adjusted operating margin expanded by 130 basis points to 44.6% [2] - Total operating expenses increased by 2.3% year over year to $1.5 billion, primarily due to higher selling, general, and administrative expenses [2] Segmental Performances - **Merchant Solutions**: Adjusted revenues reached $1.8 billion, up 1.1% year over year, exceeding the Zacks Consensus Estimate by 0.7% [3] - Adjusted operating income for this segment increased by 3.7% year over year to $917.3 million, beating the consensus estimate of $902.5 million [3] - **Issuer Solutions**: Adjusted revenues were $547.4 million, growing 4% year over year and surpassing the Zacks Consensus Estimate by 1.1% [4] - Adjusted operating income improved by 8% year over year to $266.4 million, exceeding the consensus estimate of $255.7 million [4] GPN's Financial Position (As of June 30, 2025) - Cash and cash equivalents increased to $2.6 billion from $2.4 billion at the end of 2024 [5] - Total assets rose to $48.5 billion from $46.9 billion at the end of 2024 [5] - Long-term debt decreased to $14.2 billion from $15.1 billion at the end of 2024, with the current portion totaling $1.9 billion [5] - Total equity increased to $23.2 billion from $22.9 billion at the end of 2024 [5] Cash Flow and Capital Deployment - GPN generated operating cash flows of $818 million in the second quarter, up from $736.9 million a year ago [6] - The company repurchased shares worth $691.1 million in the first half of 2025 [9] - A quarterly dividend of 25 cents per share was declared, payable on September 26, 2025 [9] 2025 Outlook - GPN reaffirmed its 2025 guidance, expecting adjusted net revenue growth of 5% to 6% on a constant currency basis [10] - Adjusted EPS growth is anticipated to be between 10% and 11% in 2025 [10] - The company expects to convert nearly 90% of adjusted net income into adjusted free cash flow [10] - An increase of more than 50 basis points in the annual adjusted operating margin is also expected [10]

Core Insights - Global Payments (GPN) reported revenue of $2.36 billion for the quarter ended June 2025, marking a year-over-year increase of 1.6% and an EPS of $3.10 compared to $2.93 a year ago, with revenue meeting Zacks Consensus Estimate and an EPS surprise of +2.31% [1] Financial Performance - Non-GAAP Revenues for Merchant Solutions were $1.83 billion, slightly above the average estimate of $1.82 billion, reflecting a year-over-year change of +1.1% [4] - Non-GAAP Revenues for Issuer Solutions reached $547.37 million, exceeding the average estimate of $541.47 million, with a year-over-year increase of +4% [4] - Non-GAAP Revenues for Intersegment Elimination reported at $-17.86 million, compared to the average estimate of $-15.55 million, showing a year-over-year change of +19.2% [4] - Revenues for Merchant Solutions were $1.96 billion, slightly below the estimated $1.97 billion, representing a year-over-year decrease of -0.7% [4] Operating Income - Non-GAAP Operating Income for Corporate was reported at $-130.87 million, compared to the average estimate of $-127.02 million [4] - Non-GAAP Operating Income for Merchant Solutions was $917.26 million, exceeding the average estimate of $902.47 million [4] - Non-GAAP Operating Income for Issuer Solutions was $266.35 million, surpassing the average estimate of $255.74 million [4] - Operating Income for Merchant Solutions was $716.93 million, compared to the average estimate of $687.89 million [4] - Operating Income for Corporate was $-289.99 million, compared to the average estimate of $-205.89 million [4] Stock Performance - Shares of Global Payments have returned -2.8% over the past month, while the Zacks S&P 500 composite has changed by +0.5% [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 Insights - Fiserv, Inc. reported mixed second-quarter 2025 results with earnings exceeding estimates while revenues fell short [1][10] - Adjusted earnings per share were $2.47, beating the consensus by 2.5% and reflecting a 16% year-over-year increase [1][10] - Adjusted revenues reached $5.2 billion, slightly missing estimates but showing a 1.7% year-over-year growth [1][10] Financial Performance - Processing and services revenues were $4.3 billion, a 4% year-over-year increase but below the estimated $4.5 billion [3] - Product segment revenues were $1.2 billion, up 25.3% year-over-year, surpassing the anticipated $1.1 billion [3] - Merchant Solutions revenues totaled $2.6 billion, a 9.7% increase year-over-year, but missed the estimate of $2.8 billion [4] - Financial Solutions segment reported revenues of $2.6 billion, a 7.2% increase year-over-year, exceeding the estimate of $2.5 billion [4] - Operating margin for Merchant Solutions was 34.6%, down 200 basis points year-over-year, while Financial Solutions' margin increased to 48.7%, up 280 basis points [5] Balance Sheet & Cash Flow - Fiserv ended Q2 with cash and cash equivalents of $999 million, down from $1.2 billion in Q1 2025 [6] - Long-term debt increased to $28.1 billion from $27 billion in Q1 2025 [6] - The company generated $1.7 billion in net cash from operating activities and reported free cash flow of $1.2 billion [6] - Capital expenditure was $479 million, and the company repurchased 12.2 million shares for $2.2 billion during the quarter [6] Guidance - Fiserv updated its adjusted earnings per share guidance to a range of $10.15-$10.3, with the midpoint of $10.23 aligning with the Zacks Consensus Estimate [7] - The company anticipates year-over-year earnings growth of 15-17% and revised organic revenue growth outlook to approximately 10% from the previous 10-12% [7] Stock Performance - Fiserv's stock has gained 3% over the past year, underperforming the industry and the Zacks S&P 500 composite, which rose 29.3% and 16.5%, respectively [2]

Core Insights - Fiserv reported $5.2 billion in revenue for Q2 2025, an 8.4% year-over-year increase, with an EPS of $2.47 compared to $2.13 a year ago, indicating positive growth in earnings [1] - The revenue was slightly below the Zacks Consensus Estimate by -0.03%, while the EPS exceeded the consensus estimate by +2.49% [1] Revenue Breakdown - Merchant Solutions generated $2.64 billion, slightly below the average estimate of $2.69 billion [4] - Financial Solutions revenue was $2.55 billion, surpassing the average estimate of $2.52 billion [4] - Product revenue reached $1.21 billion, exceeding the estimated $1.06 billion, reflecting a significant year-over-year increase of +25.3% [4] - Corporate and Other revenue was $320 million, below the average estimate of $336 million [4] - Processing and services revenue totaled $4.3 billion, compared to the average estimate of $4.45 billion, marking a +4% year-over-year change [4] Operating Income Analysis - Corporate and Other operating income was reported at -$462 million, better than the average estimate of -$512.86 million [4] - Financial Solutions operating income was $1.24 billion, slightly below the average estimate of $1.27 billion [4] - Merchant Solutions operating income was $914 million, compared to the average estimate of $991.11 million [4] Stock Performance - Fiserv's shares have returned -3.9% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% 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 Insights - Fiserv, Inc. is set to release its second-quarter 2025 results on July 23, with a history of positive earnings surprises averaging 2.1% [2][7] Revenue Expectations - The Zacks Consensus Estimate anticipates revenues to increase by 8.5% year-over-year to $5.2 billion [3][10] - Merchant Solutions is expected to generate $2.8 billion in revenues, reflecting a 6.2% year-over-year growth, driven by Clover's growth and new partnerships [4][10] - Financial Solutions revenues are projected at $2.5 billion, indicating a 14.6% increase from the previous year, supported by product adoption and cross-platform advancements [5][10] - Processing and Services revenues are estimated at $4.5 billion, suggesting a 9.1% rise year-over-year, while Product segment revenues are expected to reach $1 billion, implying a 12.7% improvement [6][10] Earnings Predictions - The model predicts an earnings beat for Fiserv, with an Earnings ESP of +0.73% and a Zacks Rank of 2 (Buy) [7]

Core Insights - Global Payments reported revenue of $2.2 billion for the quarter ended March 2025, reflecting a 1% increase year-over-year and matching the Zacks Consensus Estimate, with an EPS of $2.82, up from $2.59 in the previous year [1] - The company achieved an EPS surprise of +4.83%, exceeding the consensus estimate of $2.69 [1] Revenue Performance - Non-GAAP Revenues from Merchant Solutions reached $1.69 billion, slightly above the $1.68 billion estimate, marking a +0.5% year-over-year change [4] - Non-GAAP Revenues from Issuer Solutions were reported at $528.82 million, surpassing the $528.21 million estimate, with a +2.6% change compared to the previous year [4] - Revenues from Issuer Solutions totaled $620.73 million, exceeding the $607.50 million estimate, representing a +3% year-over-year increase [4] - Revenues from Merchant Solutions were $1.81 billion, slightly below the $1.82 billion estimate, indicating a -1.4% year-over-year change [4] Operating Income Analysis - Non-GAAP Operating Income for Merchant Solutions was $808.95 million, above the $802.11 million estimate [4] - Non-GAAP Operating Income for Issuer Solutions was $244.94 million, slightly below the $246.04 million estimate [4] - Operating Income for Merchant Solutions was reported at $614.10 million, exceeding the $599.26 million estimate [4] - Operating Income for Corporate was -$256.53 million, worse than the -$215.98 million estimate [4]