In This Article:
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Volume Growth: Increased 35% year-over-year to $45 billion.
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Gross Revenue Less Network Fees: Grew 40% to $369 million.
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Adjusted EBITDA: Increased 38% to $169 million.
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Adjusted EBITDA Margins: Achieved 46%, slightly above the guidance of 45%.
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Adjusted EPS: Delivered $1.07 per share.
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Subscription and Other Revenue: Reached $93 million, up 77% year-over-year.
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Adjusted Free Cash Flow: $71 million, representing 42% adjusted free cash flow conversion.
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GAAP Net Income: $20 million.
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GAAP Diluted EPS: $0.20 per share.
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Net Leverage: Approximately 2.4 times.
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Cash and Cash Equivalents: $1.2 billion as of March 31.
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Full Year 2025 Guidance: Gross revenue less network fees between $1.66 billion and $1.73 billion; Adjusted EBITDA between $840 million and $865 million.
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Q2 2025 Guidance: Gross revenue less network fees between $405 million and $415 million with adjusted EBITDA margins of approximately 50%.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Shift4 Payments Inc (NYSE:FOUR) reported a 35% year-over-year increase in volumes to $45 billion for Q1 2025.
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Gross revenue less network fees grew by 40% to $369 million, indicating strong financial performance.
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Adjusted EBITDA increased by 38% to $169 million, with margins slightly above guidance at 46%.
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The company raised its full-year 2025 guidance, reflecting confidence in its ability to execute and deliver growth.
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Shift4 Payments Inc (NYSE:FOUR) is expanding internationally, now operating in over 50 countries, which is expected to drive future growth.
Negative Points
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The timing of leap year and Easter holiday modestly impacted year-over-year growth in Q1 volumes.
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There is ongoing depreciation of legacy revenue from recent acquisitions, affecting subscription and other revenue.
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The company faces challenges in integrating and unlocking synergies from recent acquisitions, which can take longer than expected.
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Economic uncertainty and potential macroeconomic challenges could impact consumer spending and business performance.
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The international expansion requires significant market education and adaptation to local payment methods, which can be complex and time-consuming.
Q & A Highlights
Q: How would you describe the competitive environment in international markets that you're targeting? What gives Shift4 an edge here? A: Taylor Lauber, President and Chief Strategy Officer, explained that the international market resembles the US market from 15-20 years ago, with software, hardware, and payment solutions evolving separately. Shift4's strategy of bundling these solutions gives them an edge, as merchants are looking for integrated solutions. Currently, about one in four new merchants are from outside the US.