Financial Data and Key Metrics Changes - The company reported a strong 5% revenue growth in Q2 2025, up from 4% in Q1 2025, driven by momentum in the banking sector [8][18] - Adjusted EBITDA grew 5%, exceeding expectations, with margins improving by 200 basis points sequentially [8][18] - Adjusted EPS was $1.36, meeting expectations, while free cash flow was $292 million with a cash conversion rate of 52% [19][18] - The company returned $460 million to shareholders through share repurchases and dividends in Q2, remaining on track to meet the $1.2 billion target for the year [9][25] Business Line Data and Key Metrics Changes - Banking revenue grew 6% in Q2, exceeding the high end of the outlook range, driven by improved commercial excellence and strong client retention [25][26] - Capital Markets adjusted revenue growth was 5%, slightly below expectations, impacted by a temporary slowdown in lending activity due to macroeconomic uncertainty [27][28] - Recurring revenue growth in banking was 7%, while nonrecurring revenue increased by 5%, reflecting growth in license revenue [26][28] Market Data and Key Metrics Changes - The company secured a major consolidation win with two Northeast financial institutions, validating its position as a partner of choice for bank consolidation [10] - Digital solutions saw double-digit ACV growth, with significant new engagements across various sectors, including energy technology and European banks [12][10] Company Strategy and Development Direction - The company is focused on client centricity, operational simplification, and innovation, aiming to create greater value for shareholders and clients [7] - The strategic acquisition of Global Payments Issuer Business and the sale of the minority Worldpay stake align with the operational simplification strategy [8][9] - The company is expanding its capabilities in digital assets and AI, with plans to launch new solutions by year-end [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving increased full-year outlook due to strong first-half results and a robust implementation pipeline [9][34] - The company anticipates a return to margin expansion in the third quarter, with further improvements expected in the fourth quarter [26][33] - Management noted that while macroeconomic uncertainty impacted lending activity, a rebound was observed in July, providing confidence for the second half of the year [68][69] Other Important Information - The company reiterated its full-year cash conversion target of 82% to 85% and capital expenditures were in line with expectations at 8% of revenue [19][20] - The company is committed to its buy-build-partner strategy, with a robust pipeline of M&A opportunities expected shortly [15][17] Q&A Session Summary Question: Key drivers of banking segment growth and sustainability - Management highlighted net new sales and high retention rates as key drivers of growth in the banking segment, with a focus on selling higher-margin products [38][39] Question: Client decision-making changes due to macroeconomic factors - Management noted increased client interest in digital currencies and stablecoins, viewing it as an opportunity to provide capabilities to clients [48][49] Question: Organic growth in Worldpay and its drivers - Management indicated that Worldpay's growth was supported by seasonality and the onboarding of significant e-commerce clients, contributing to revenue expectations [53][54] Question: Margin expectations and bad debt impact - Management quantified the bad debt charge at approximately $8 million, impacting margins, but expressed confidence in margin recovery in the upcoming quarters [60][61] Question: Capital markets growth visibility and loan syndication activity - Management confirmed a rebound in loan syndication activity in July, providing confidence for capital markets growth in the second half of the year [68][69] Question: International strategy and recent acquisitions - Management emphasized that the Everlink acquisition aligns with the international strategy to enhance payment capabilities and expand the company's footprint [105][107]

Financial Data and Key Metrics Changes - The company reported a strong revenue growth of 5% in Q2 2025, up from 4% in Q1 2025, with total revenue reaching $2.6 billion [8][18] - Adjusted EBITDA also grew by 5%, exceeding expectations, with margins improving by 200 basis points sequentially [18][24] - Adjusted EPS was $1.36, meeting expectations, while free cash flow was $292 million with a cash conversion rate of 52% [19][20] Business Line Data and Key Metrics Changes - Banking revenue grew by 6% in Q2, driven by improved commercial excellence and strong client retention [24] - Capital Markets adjusted revenue growth was 5%, slightly below expectations, impacted by a temporary slowdown in lending activity due to macroeconomic uncertainty [26][68] - Recurring revenue growth was strong at 7%, while nonrecurring revenue increased by 5%, reflecting growth in license revenue [25] Market Data and Key Metrics Changes - The company secured a major consolidation win with two Northeast financial institutions, forming a $25 billion regional banking leader [10] - Digital solutions saw double-digit ACV growth, with significant new engagements from top U.S. banks [10][12] - The company expanded its relationship with a leading financial services technology company through a multiyear commitment [12] Company Strategy and Development Direction - The company is focused on client centricity, operational simplification, and innovation, aiming to create greater value for shareholders and clients [7] - The strategic acquisition of Global Payments Issuer Business and the sale of the minority Worldpay stake align with the operational simplification strategy [8][9] - The company is actively pursuing M&A opportunities to enhance its product offerings and expand its international footprint [15][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving increased full-year outlook due to strong first-half results and a robust implementation pipeline [9][34] - The company anticipates a return to margin expansion in the third quarter, with further improvements expected in the fourth quarter [25][33] - Management noted that client interest in digital currencies and AI is increasing, presenting opportunities for the company [49][50] Other Important Information - The company returned $460 million to shareholders in Q2 through share repurchases and dividends, reaffirming its $1.2 billion annual target for share repurchases [9][24] - Capital expenditures were $218 million in the quarter, representing 8% of revenue, in line with expectations [20] Q&A Session Summary Question: Key drivers of banking segment growth and sustainability - Management highlighted net new sales and high client retention as key drivers of recurring growth in banking, with a focus on selling higher-margin products [38][40] Question: Changes in client decision-making due to macroeconomic factors - Management noted increased client interest in digital currencies and AI, with financial institutions eager to enhance their offerings [49][50] Question: Organic growth in Worldpay and its drivers - Management indicated that Worldpay's growth was supported by new e-commerce clients and seasonal tax processing payments [54][55] Question: Margin expectations and bad debt impact - Management quantified the bad debt charge at approximately $8 million, impacting margins, but expressed confidence in margin recovery in Q4 [60][63] Question: Visibility on capital markets growth and loan syndication activity - Management reported a rebound in loan syndication activity in July, providing confidence for capital markets growth in the second half [68][69] Question: Revenue drivers in capital markets - Management clarified that revenue growth is primarily driven by net new sales and consistent net pricing, with minimal impact from AUM or transaction activity [110]