Fidelity National 2025 Q2 Earnings Misses Targets with Net Loss Surges 309.3%

Fidelity National (FIS) reported its fiscal 2025 Q2 earnings on August 5, 2025. The results fell short of expectations, with a net loss of $0.90 per share, representing a 309.3% decline from the prior year. The company also raised its full-year revenue and Adjusted EPS guidance, despite the earnings miss.

Revenue
Fidelity National reported total revenue of $2.62 billion in Q2 2025, a 5.1% increase from $2.49 billion in the same period last year. The Banking Solutions segment remained the largest contributor, generating $1.81 billion in revenue, while the Capital Market Solutions segment contributed $765 million. Additionally, the Corporate and Other segment added $43 million, rounding out the total revenue for the quarter.

Earnings/Net Income
Fidelity National swung to a loss of $0.90 per share in Q2 2025, a significant downturn from a profit of $0.43 per share in the prior-year period. The company also reported a net loss of $469 million, reflecting a 296.2% deterioration from the net income of $239 million in Q2 2024. Despite the GAAP loss, the company reported adjusted EPS growth of 1% to $1.36.

Price Action
The stock price of Fidelity National has experienced a downward trend in recent weeks, dropping 3.45% during the latest trading day, 11.52% over the most recent full trading week, and 11.68% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Fidelity National shares following the earnings report and holding for 30 days performed poorly. The approach yielded a negative CAGR of -0.35% and an excess return of -49.60%, significantly underperforming the benchmark return of 48.58%. The strategy also faced a maximum drawdown of 31.19%, underscoring its high risk and poor returns.

CEO Commentary
FIS CEO and President Stephanie Ferris highlighted strong business momentum driven by the Banking segment, with commercial excellence initiatives resonating in the market. She emphasized the company’s unique position as the only fintech provider addressing the full money lifecycle and noted that $246 million was repurchased through share buybacks in Q2.

Guidance
FIS raised its full-year 2025 outlook, guiding to revenue growth of 4.8 to 5.3%, Adjusted EPS growth of 10 to 11% ($5.72–$5.80), and Adjusted EBITDA of $4.315–$4.335 billion. For Q3 2025, the company expects revenue between $2.65 and $2.665 billion and Adjusted EBITDA between $1.105 and $1.12 billion. FIS reiterated its $1.2 billion share repurchase goal for 2025 and plans to continue paying dividends in line with Adjusted EPS growth.

Additional News
Recent developments include FIS’s strategic acquisition of a global payments issuer business and the sale of a minority stake in Worldpay, both expected to enhance its financial profile and free cash flow. The company also returned $460 million to shareholders through share repurchases and dividends during the second quarter. FIS is advancing AI innovation with its upcoming Banker Assist platform for commercial banking and has multiple AI pilots underway. However, the company faced challenges including a 23-point headwind in cash conversion due to higher tax payments and a contraction in Banking EBITDA margins by 70 basis points. The company is targeting a long-term leverage ratio of 2.8 times and expects to see margin improvements in Q4.