Shift4 Payments Q2 Earnings Disappoint, FOUR Stock Down 15%

Shift4 Payments (FOUR) closed 15.43% lower at $86.43 after Q2 earnings revealed a 37.5% decline in net income to $24.5mln and a 16.8% increase in gross revenues to $966.2mln. The company expects $1.965bln to $2.035bln in revenues for FY25, with Q3 gross revenues targeting $590mln.

Shift4 Payments Inc. (FOUR) closed 15.43% lower at $86.43 on July 2, 2025, following the release of its Q2 earnings report. The company reported a 37.5% decline in net income to $24.5 million, while gross revenues surged by 16.8% to $966.2 million. Despite the mixed results, Shift4 Payments maintains a positive outlook for the remainder of 2025, forecasting gross revenues between $1.965 billion and $2.035 billion.

The earnings report revealed an earnings per share (EPS) of $1.10, which fell short of the forecasted $1.22. However, the company achieved a significant revenue surprise, reporting $966.2 million against a forecast of $409.79 million. In pre-market trading, Shift4's stock fell by 8.35% to $93.67, reflecting investor concern over the EPS miss. The stock's decline comes amid a broader market context, with Shift4's price moving away from its 52-week high of $127.50.

Shift4 Payments demonstrated robust growth in Q2 2025, with payment volumes reaching $50 billion, marking a 25% increase year-over-year. The company also reported $413 million in gross revenue less network fees, a 29% rise from the previous year. InvestingPro data shows impressive revenue growth of 27.39% over the last twelve months, with a strong financial health score of 2.98 (rated as "GOOD"). The company maintains a healthy current ratio of 1.36, indicating solid operational efficiency.

The company's financial highlights for the quarter include 25% year-over-year growth in payment volumes to $50,000,000,000, 29% year-over-year growth in gross revenue less network fees to $413,000,000, 26% year-over-year growth in adjusted EBITDA to $2.00 $5,000,000, and 49.6% adjusted EBITDA margins. Subscription and other revenues grew by 37% year-over-year to $97,700,000.

CEO Taylor Lauber emphasized the company's strategic expansion, stating, "We believe we are still very early in the convergence of payments and software." Lauber also highlighted the integration of Global Blue and SmartPay as pivotal moves, noting, "Global Blue gave us the conviction that that plus SmartPay was a hell of a good idea."

The company expects continued growth from its Global Blue acquisition, projecting $300 million in revenue contribution for the second half of the year. The company also expects to hit its goal of 45,000 SkyTab systems installed globally in 2025.

Investors should be aware of potential risks, including currency fluctuations affecting international spending, potential market saturation in key sectors, macroeconomic pressures impacting consumer spending, integration challenges with new acquisitions, and competitive pressures in the payments industry.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-shift4-payments-q2-2025-misses-eps-forecast-93CH-4170920