| Imagery Source: FIS Global |
| Information Source: FIS Global |
- First quarter GAAP Diluted EPS of $0.15
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- Adjusted EPS of $1.21 increased 11% over the prior-year period
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- Revenue increased 3% on a GAAP basis and 4% on an adjusted basis to $2.5 billion
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- Repurchased $450 million of shares in the first quarter; reiterates goal to repurchase $1.2 billion of shares in 2025
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- Reiterates full-year 2025 outlook for Revenue, Adjusted EBITDA and Adjusted EPS1
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- On April 17, 2025, the Company announced the sale of its remaining Worldpay stake and the strategic acquisition of Global Payments' Issuer Solutions business. Transactions are expected to close simultaneously in the first half of 2026, subject to regulatory approvals and other customary closing conditions
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| FIS (NYSE: FIS), a global leader in financial technology, today reported its first quarter 2025 results. |
| “We had a great start to the year, delivering another quarter of financial outperformance, giving us the confidence to reiterate our full-year outlook,” said FIS CEO and President Stephanie Ferris. “We are very excited about our recently announced strategic transactions that will allow us to fully monetise our Worldpay stake at an attractive valuation and strengthen our financial profile with the acquisition of the Issuer Solutions business. These strategic transactions will expand FIS’s payment product suite, enhancing our relationships with financial institutions and corporate clients.” |
| First Quarter 2025 Financial Results |
| On a GAAP basis, revenue increased 3% as compared to the prior-year period to approximately $2.5 billion. GAAP net earnings attributable to common stockholders from continuing operations were $77 million or $0.15 per diluted share. |
| On an adjusted basis, revenue increased 4% as compared to the prior-year period, reflecting recurring revenue growth of 4%. Adjusted EBITDA was approximately $1.0 billion, and Adjusted EBITDA margin contracted by 142 basis points (bps) over the prior-year period to 37.8%, reflecting high license and termination fee revenue in the prior-year period. Adjusted net earnings from continuing operations were $643 million, and Adjusted EPS increased by 11% as compared to the prior-year period to $1.21 per diluted share. |
| Segment Information |
- Banking Solutions:
First quarter revenue increased 2% on a GAAP basis and 2% on an adjusted basis as compared to the prior-year period to $1.7 billion, including recurring revenue growth of 3%. Adjusted EBITDA margin contracted by 379 basis points as compared to the prior-year period to 40.1%, reflecting high license and termination fee revenue in the prior-year period and the timing of expenses.
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- Capital Market Solutions:
First quarter revenue increased by 8% on a GAAP basis and 9% on an adjusted basis as compared to the prior-year period to $764 million, reflecting recurring revenue growth of 6% and non-recurring revenue growth of 47%. Adjusted EBITDA margin expanded by 90 basis points as compared to the prior-year period to 48.3%, reflecting an increase in higher-margin license revenue and operating leverage.
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- Corporate and Other:
First quarter revenue decreased by 36% as compared to the prior-year period to $50 million. Adjusted EBITDA loss was $99 million, including $116 million of corporate expenses.
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| Balance Sheet and Cash Flows |
| As of March 31, 2025, debt outstanding totalled $12.0 billion. First quarter net cash provided by operating activities was $457 million, and adjusted free cash flow was $368 million. In the first quarter, the Company returned $670 million of capital to shareholders through $450 million of share repurchases and $220 million of dividends paid. |
| Capital Allocation Update |
| The Company repurchased $450 million of shares in the first quarter and is reiterating its goal to repurchase approximately $1.2 billion of shares in 2025. Additionally, the Company will continue to pay quarterly dividends targeting dividend per share growth in line with Adjusted EPS growth. |
| Second Quarter and Full-Year 2025 Outlook |
| The Company is introducing its second quarter outlook and, for the full-year, is reiterating its outlook inclusive of accelerated revenue growth of 4.6 to 5.2% and Adjusted EPS growth of 9 to 11%. |
| Update on Pending Strategic Transactions |
| On April 17, 2025, FIS entered into definitive agreements to (i) buy the Issuer Solutions business from Global Payments Inc. (“Global Payments”) for an enterprise value of $13.5 billion, inclusive of $1.5 billion of anticipated net present value of tax assets, or a net purchase price of $12.0 billion, subject to customary adjustments (the “Issuer Solutions Acquisition”) and (ii) sell its remaining equity interest in Worldpay to Global Payments for a pre-tax value of $6.6 billion net of transaction fees and other costs (the “Worldpay Minority Interest Sale”). |
| FIS expects to fund the Issuer Solutions Acquisition through a combination of approximately $8 billion of new debt and the after-tax proceeds from the Worldpay Minority Interest Sale. Following the closing of the transactions, the Company expects pro forma gross leverage to be approximately 3.4x, with deleveraging to its target gross leverage of 2.8x within 18 months. |
| The transactions are expected to close simultaneously in the first half of 2026, subject to regulatory approvals and other customary closing conditions. |
| Financial Reporting Considerations for Completed 2024 Worldpay Sale |
| On January 31, 2024, FIS sold a 55% stake in its Worldpay Merchant Solutions business to private equity funds managed by GTCR (the "2024 Worldpay Sale"). |
| Unless otherwise noted, all results are presented on a continuing operations basis and exclude the results of the Worldpay Merchant Solutions business that was classified as discontinued operations as of the third quarter of 2023. |
| Following the close of the 2024 Worldpay Sale, FIS retained a non-controlling 45% equity interest in a new standalone joint venture, Worldpay Holdco, LLC ("Worldpay"), and records its proportionate share of Worldpay's earnings (loss) in the "Equity method investment earnings (loss), net of tax" ("EMI") line of the income statement. |
| For the full document, click the link below |
| FIS Global |
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