FOUR

Capital Allocation and Balance Sheet Updates

• All capital allocation decisions are rigorously evaluated based on return on invested capital (ROIC) and adjusted free cash flow per share, with no changes to the core capital allocation framework.
• In Q2, the company repurchased ~650,000 shares at an average price of ~$38, taking a deliberate conservative approach due to current leverage levels and seasonal cash consumption in the quarter. Cumulatively, $625 million has been deployed from the $1 billion share repurchase authorization announced three quarters prior, resulting in an 11% reduction in non-GAAP share count over that period.
• Pro forma net leverage for Q2 2026 was 3.7x; management does not intend to exceed 3.75x net leverage on a sustained basis, and expects year-end leverage to reach the long-term target range in the low 3x range.
• The company extended the maturity of its $550 million undrawn revolving credit facility and raised an additional $1 billion of Term Loan B, with proceeds primarily used to pre-fund the August 2027 convertible note maturity. This extended the overall capital structure maturity to 2031, improved liquidity, and received affirmed credit ratings with favorable market terms for its Double B rating.

Operational and Strategic Updates

• The company had flawless execution of operations supporting the World Cup, which served as a strong global brand showcase; the event's net revenue impact was in line with expectations, as stadium closures for preparation offset incremental surrounding commerce gains.
• The company's M&A strategy focuses on acquisitions that provide embedded customer bases for cross-selling full product suites, with gateway acquisitions (including recent Eigen and Bambora) following a well-established, proven internal playbook. Conversion of acquired customers is progressing as expected, with cross-sell initiatives already delivering early wins across verticals including restaurants, hotels, and luxury retail.
• Following the Global Blue acquisition, management is deliberately investing in building out local sales teams and infrastructure across new markets to enable cross-selling of Shift4's full product suite to Global Blue's existing enterprise and SMB customer base. 12 countries have been launched to date, with a target of 15+ by the end of the year; the bulk of economic contribution from this expansion is expected in 2027 after investment and build-out is complete in 2026.
• Q2 saw record levels of investment in product development, technology, and platform expansion. The company continues to evaluate small tuck-in M&A opportunities to accelerate strategic initiatives, and will occasionally pursue small divestitures of non-core assets from past acquisitions to improve efficiency and reduce margin drag.

• The prior FX-neutral GRLNF growth guidance range of 24% to 29% was adjusted, with the midpoint of the FX-neutral growth range reduced by only 100 basis points, with the majority of the overall downward change driven by FX headwinds rather than underlying business performance. • Management is forecasting a $25 million headwind to Q3 results from Middle East conflict-related travel disruption, using the same 60-day forward forecasting methodology applied in Q2, which performed accurately in the prior quarter. The company declines to forecast conflict impacts beyond the 60-day window, and notes that Q4 TFS seasonality is comparable to Q2 if impacts persist. • Organic growth for Q3 is expected to be in the low double-digit range, which includes the $25 million Middle East headwind; excluding this impact, underlying organic growth would be in the mid-teens. • Blended full-year spreads are expected to remain above 60 basis points, in line with prior guidance, and the expected trend of modest spread expansion as SMB growth outpaces enterprise growth is playing out as anticipated. • Full free cash flow conversion expansion is expected to come over time as 2026's one-time headwinds (capital structure refinement, travel disruption, FX volatility, Global Blue expansion investment) fade, with incremental operating leverage driving higher conversion in future years.

The call does not provide full absolute financial results or revenue contribution percentages for all product segments. The only segment-specific details shared are: 1) Tax-Free Shopping (TFS) segment makes up approximately 20% (one-fifth) of total company revenue, and delivered organic growth in the upper end of the mid-single digits range in the reported quarter, while being negatively impacted by Middle East travel disruption. 2) Organic growth for the overall company in the quarter was 11%, and overall company blended spread for the quarter was 65 basis points, which was within management's full-year expectations of full-year blended spread greater than 60%. No other product segments are discussed with specific absolute revenue or percentage contribution data in the provided transcript.

• Geopolitical risk from the ongoing Middle East conflict has created travel disruption for the GCC/Southeast Asia to Europe travel corridor, which negatively impacts the TFS segment. Forecasting this impact beyond a 60-day window is challenging due to the dynamic, unpredictable nature of the conflict, though the impact to date has been slightly better than forecast. • FX volatility creates downside pressure on reported growth results, with FX acting as a material headwind in the reported quarter. • Near-term earnings and free cash flow are burdened by deliberate investment spending for the Global Blue international expansion, which creates near-term cost drag before revenue contributions ramp up in 2027. • Current net leverage is near the company's 3.75x sustained upper limit, requiring near-term conservatism on share repurchases until deleveraging brings leverage back to the long-term target range in the low 3x by year end.

Q: Have capital allocation priorities changed, particularly for buybacks, acquisitions, and leverage? / A: Management says the core capital allocation framework remains unchanged, focused on ROIC. Q2 share repurchases were intentionally conservative due to current leverage near the 3.75x upper limit. The framework balances product and technology investment (which hit a record level in Q2), share repurchases, and small tuck-in M&A, with no changes to this balance.

Q: Why was the new Term Loan B raised, and what is the current state of the balance sheet? / A: The $1 billion Term Loan B, paired with an extended undrawn revolving credit facility, was primarily used to pre-fund the 2027 convertible note maturity, pushing all funded debt maturities out to 2031-2032. The offering was well-received, credit ratings were affirmed, and terms are among the best available for the company's Double B rating, leaving the balance sheet in a strong, improved liquidity position.

Q: What is the progress of gateway conversion for recent acquisitions Eigen and Bambora? / A: Gateway acquisitions follow a well-practiced internal playbook for cross-selling full Shift4 products to acquired embedded customer bases. Eigen has already delivered a proof point with a large global airport concessionaire conversion. Cross-sell initiatives are progressing across restaurant, hotel, and luxury retail verticals, and Bambora follows this same proven model.

Q: How should investors model the impact of the Middle East travel disruption beyond the 60-day forecast window? / A: Management uses a 60-day forecast tied to booked flight seat capacity data, which performed accurately in Q2 (the actual impact was modestly better than the $20 million forecasted headwind). The company declines to predict the duration of the geopolitical conflict, but notes that travel demand in the impacted corridor has been resilient when travelers perceive travel as safe, and impact would quickly fade if the conflict is resolved. Q4 TFS seasonality is comparable to Q2, providing a modeling reference if impacts persist.