Global Payments Inc. Q2 FY2025 earnings call

• Launched Genius platform and completed rollout of revamped sales compensation plan. - Announced sale of payroll business for $1.1 billion, allowing $500 million shareholder returns via accelerated share repurchase. - Planning ahead for Worldpay transaction close in 2026, with integration planning underway. - Genius platform launched for restaurants and retail, seeing early momentum. - Education business signed key wins, real estate vertical had multiyear extension. - Integrated embedded business had strong software partner signings, especially internationally. - Core payments business formed deeper relationships with partners globally.

Merchant Solutions: Achieved adjusted net revenue of $1.83 billion for the second quarter, reflecting growth of approximately 5.5%, excluding dispositions. Both POS and software and integrated embedded businesses grew in the high single digits. Core payments delivered low single-digit growth with international bright spots. Adjusted operating margin was 50.1%, an increase of 130 basis points. Issuer Solutions: Produced adjusted net revenue of $547 million for the second quarter, reflecting growth of approximately 3.5% on a constant currency basis. Added 15 million traditional accounts on file year-to-date. Adjusted operating margin was 48.7%, a 190 basis point improvement from the prior year.

• Expect constant currency adjusted net revenue growth of 5% to 6% for 2025, excluding dispositions. - Anticipate adjusted operating margin to expand slightly more than 50 basis points for 2025, excluding dispositions. - Expect adjusted earnings per share growth at the high end of the 10% to 11% range on a constant currency basis for full year. - Entering into a $500 million accelerated share repurchase program. - Expect to return $7.5 billion in capital to shareholders between 2025 and 2027. - Raise annual run rate operating income benefit for go-forward business to $650 million.

• Macro environment fluidity and muted consumer sentiment could impact spending. - Regulatory approvals for acquisitions and divestitures may pose challenges. - Integration of Worldpay could face challenges.

Q: Dave Koning with Baird asked about sequential growth and payroll divestiture impact.

A: Josh Whipple responded on expected growth acceleration in back half and payroll divestiture revenue impact.

Q: Dan Perlin with RBC Capital Markets inquired about additional divestitures.

A: Cameron Bready said they're reevaluating portfolio composition in light of Worldpay acquisition.

Q: Dan Dolev with RBC Capital Markets asked about Genius brand consolidation.

A: Cameron Bready and Bob Cortopassi discussed positive reception and momentum of Genius.

Q: Darrin Peller with Wolfe Research asked about sales force realignment and Genius portfolio.

A: Bob Cortopassi and Cameron Bready talked about sales force transformation progress and Genius market opportunity.

Q: Tien-Tsin Huang with JPMorgan asked about Genius momentum and issuer behavior.

A: Cameron Bready and Bob Cortopassi addressed Genius net new focus and issuer implementation status