Shift4 Payments, Inc. Q1 FY26 Results

Despite this volatility, our business performed resiliently during the first quarter. We performed in- line with or exceeded our guidance for all metrics while absorbing a meaningful impact on global travel patterns. Gross revenue was $1.1 billion, which is up 32% year over year. Gross revenue less network fees was $549 million and gross profit was $370 million, up 49% and 54% year over year, respectively. When adjusting for acquisitions and divestitures, our organic growth was 11% year over year. This was in spite of a drag of ~400 basis points from intentionally deprecated legacy revenue streams. We believe this will expand over time as we continue to deliver our products into new markets around the world and expand share within our verticals. Net income was $12 million for the quarter. EBITDA was $183 million and Adjusted EBITDA was $234 million. Each was up 63% and 39% respectively. Lastly, net cash from operating activities was $134 million (up 40%) and Adjusted Free Cash Flow was $88 million (up 26%). I would characterize this performance as in-line with our guidance but also negatively impacted by unforeseeable events. It is for exactly this reason that we have been on a deliberate and measured journey to diversify our business, expand into new geographies and deliver more value through our products each and every day. This journey has expanded our right to win across the experience economy and we now find ourselves operating in over 75 countries that we were not in just a few years ago. Our revenue streams are well-diversified and the ability to drive sustainable, profitable growth has never been greater. All of these facts expand our capital allocation opportunities. In that regard, and despite the uncertainty ahead, I am quite optimistic about the road ahead. I don’t say this with an intended tilt towards unreasonable optimism; or pessimism for that matter. We have every reason to be cautious about the macro environment and vigilant in the operation of our business. As I’ve said before though, we do our best work during times of uncertainty… and today is no different. I will reiterate a phrase our shareholders have heard many times: We can grow substantially without finding a new customer and we can drive meaningful margin and free cash flow improvement by simply continuing to do what we do well, which is integrate our business and delete the parts. This is the result of a platform effect whereby we have best in class software, integrations, gift, loyalty and tax free shopping solutions and a substantial data asset from our significant presence in the experience economy. Our acquisition strategy also affords us a over $1 trillion funnel of merchants to deliver this platform to. Lastly, we have left our guidance for the full year unchanged but introduced guidance for the upcoming three quarters, to help give clarity on the seasonal trends of our business following the acquisition of Global Blue. These ranges are consistent with our previous full year guidance despite being further along in the year, however we believe these ranges are still appropriate given the current environment. As always, we appreciate your support and look forward to hearing from you.