Shift4 Payments, Inc. Q4 FY2025 earnings call

2025 was pivotal: record results, M&A, growth, diversification. Acquired GlobalBlue in July, entering luxury retail; integration on track for revenue synergies in 2026. Powered payments at Levi's Stadium, renewed with Choice Hotels. Added many new merchants, cross-selling payments. In Europe, over 80,000 Skytab POS merchants outside Americas. Entered Australia/New Zealand via SmartPay acquisition. 2026 priorities: launch all-in-one payment terminals in 15 European countries, rebrand Skytab to Ship4 Dine, focus on Asia/Middle East, AI roadmap including operational and product use, simplification of corporate structure (collapsed B/C shares into Class A common, Jared's tax receivable agreement transfer)

Full-year 2025: Total gross revenue less network fees nearly $2 billion (46% YoY growth, excluding Global Blue and SmartPay, ~23% YoY growth); adjusted EBITDA $970 million (49% margin); adjusted free cash flow $500 million. Q4 2025: Gross revenue increased 34% YoY to $1.189 billion; volumes grew 23% YoY to $59 billion; GRLNF grew 51% to $610 million; adjusted EBITDA grew 48% to $304 million (50% margin); adjusted free cash flow a record $171 million. 2026 guidance: Volume $240 billion to $260 billion (15%-24% YoY growth); GRLNF $2.5 billion to $2.6 billion; adjusted EBITDA $1.165 billion to $1.215 billion (20%-25% YoY growth, ~47% margin); non-GAAP EPS $5.50 to $5.70; adjusted free cash flow $490 million to $510 million. Q1 2026 guidance: GRLNF $548 million; adjusted EBITDA $233 million; adjusted free cash flow $70 million; gross revenue $1.05 billion

2026 volume $240-$260 billion (15%-24% YoY growth); stable spreads above 60 basis points; GRLNF $2.5-$2.6 billion (26%-31% YoY growth); adjusted EBITDA $1.165-$1.215 billion (20%-25% YoY growth, ~47% margin); non-GAAP EPS $5.50-$5.70; adjusted free cash flow $490-$510 million. Q1 2026: GRLNF $548 million; adjusted EBITDA $233 million; adjusted free cash flow $70 million; gross revenue $1.05 billion. Leverage guidance unchanged, not exceeding 3.75 net leverage sustained; focus on balanced capital allocation

Macro uncertainties including weakening USD relative to euro impact on tax-free shopping demand, cross-border travel tensions in Asia, weather events affecting SMBs in Americas, divergent views on USD-euro weakening among major banks, potential pressures on tax-free shopping business due to these factors, integration and investment costs related to GlobalBlue

Q: Question on guidance organic assumptions and cross-sell integration, A: Darren Peller from Wolf Research asked about guidance organic assumptions and cross-sell integration. Chris responded on GRLNF growth algorithm, macro impacts on SSS, FX, geopolitical tensions.

Q: Follow-up on free cash, A: Darren asked about free cash quantification, chip/memory costs. Chris explained components of free cash flow variance, annualization of interest expense, reduction in interest income, integration costs.

Q: Question on 2026 guide macro assumptions, A: Dan Dolev from Mizuho asked about macro assumptions in 2026 guide. Taylor and Chris discussed SSS, FX, geopolitical tensions impacts.

Q: Question on spread stability and DCC, A: Timothy Chiodo from UBS asked about spread stability and DCC. Taylor and Chris talked about Q4 spread anomaly, normalized spread, DCC deployment.

Q: Question on free cash flow integration spend and M&A capacity, A: Will Nance from Goldman Sachs asked about integration spend persistence and M&A capacity. Taylor and Chris discussed integration expenses, M&A strategy, capital allocation.

Q: Question on GlobalBlue integration and cross-sell, A: Dominique Ball from Rothschild & Co. Redburn asked about GlobalBlue integration. Taylor talked about GlobalBlue cross-sell progress, sales force build-out.

Q: Question on backlog and volume guide, A: Dan Perlin from RBC Capital Markets asked about backlog and volume guide. Taylor discussed backlog, SMB vs enterprise volume impacts on forecasting