What guidance did Shift4 Payments's management provide for the next earnings period?

What does Shift4 Payments do and what are its main business segments?

What factors drove the changes in Shift4 Payments's revenue and profit?

What were the key takeaways from Shift4 Payments’s earnings call?

What is the revenue and EPS growth rate for Shift4 Payments year over year?

What is Shift4 Payments's gross profit margin?

What were the key takeaways from Shift4 Payments's earnings call?

What is Shift4 Payments's latest dividend and current dividend yield?

- **Record Growth**: Q3 gross revenue less network fees up 61% YoY to $589 million, driven by 18% organic growth and Bambora acquisition.
- **Free Cash Flow Acceleration**: $141 million in Q3, on track for $1 billion+ by 2027.
- **Strategic Acquisitions**: $90 billion Bambora gateway acquisition and $1 billion share buyback program announced.
- **Macro Resilience**: 18% organic growth despite U.S. same-store sales volatility, offset by cross-border luxury retail growth.
- **Share Buyback Signal**: Largest repurchase program in history reflects confidence in valuation (lowest multiple in 5 years).

**【CEO Summary Section】**
- **Q3 Financial Highlights**: Gross revenue less network fees of $589 million (+61% YoY), adjusted EBITDA of $292 million (+56% YoY), and $141 million adjusted free cash flow.
- **Organic Growth**: 18% year-over-year growth in gross revenue less network fees, excluding M&A impacts, aligning with medium-term guidance.
- **Market Dynamics**: U.S. same-store sales volatility (-1% to -4%), but recovery in October; Asia tax-free shopping negative 11% YoY due to currency headwinds.
- **Strategic Acquisitions**: $90 billion Bambora gateway acquisition and $1 billion share buyback program announced.
- **Global Blue Integration**: 5% YoY sales growth, with Europe up 13% and Europe/Australia wins (e.g., Accor hotels).

**【CFO Financial Commentary】**
- **Volume Growth**: $55 billion in payments volume (+26% YoY), with 26%+ full-year guidance.
- **Financial Metrics**: 62 basis point net spreads (stable), subscription revenue up 16% YoY, and 48% free cash flow conversion.
- **Guidance Update**: Narrowed ranges for 2025: $1.98-2.02 billion gross revenue, $970-985 million EBITDA, and $4.09-4.15 billion gross revenue.
- **Leverage & Capital Allocation**: 3.2x net leverage, $1 billion buyback program, and disciplined M&A pipeline.
- **Free Cash Flow**: On track for $1 billion+ by 2027, with Q3 at $141 million.

**【Q&A Highlights】**
- **Share Buyback**: Largest in company history, driven by attractive valuation (lowest multiple in 5 years) and strong free cash flow.
- **Bambora Synergies**: Leverage existing sales channels, ACH capabilities, and 20+ year customer stickiness.
- **Global Blue Integration**: SMB cross-sell success (e.g., 1,300+ monthly international merchant adds), with enterprise conversions taking longer.
- **Macroeconomic Volatility**: U.S. same-store sales week-to-week swings (-4% to +1%), offset by diversification into cross-border and luxury retail.
- **Jared Isaacman Transition**: No impact on operations; simplifies share structure to single class with retained majority ownership.

Shift4 Payments, Inc. (FOUR) Q3 2025 Earnings Call Transcript

Payments

Subscription and Other

FOUR

FOUR fundamentals

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