FIS Reports Strong Third Quarter 2025 Results and Raises Full-Year Outlook

Third quarter GAAP Diluted EPS of $0.50 Adjusted EPS of $1.51 increased 8% over the prior-year period Revenue increased 6% on a GAAP basis and 6% on an adjusted basis to $2.7 billion Net cash provided by operating activities was $1.0 billion; Free cash flow increased 101% and Adjusted free cash flow increased 75% over the prior-year period Raises full-year 2025 outlook for Revenue, Adjusted EBITDA and Adjusted free cash flow conversion1 Issuer Solutions acquisition now expected to close in 1Q 2026 JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE:FIS), a global leader in financial technology, today reported its third quarter 2025 results. “We delivered strong results this quarter with disciplined execution driving outperformance against all of our financial commitments,” said FIS CEO and President Stephanie Ferris. “Our differentiated positioning within a favorable market environment is translating into strong sales performance across all segments of our business. We continue to enhance our product suite through our build, buy, partner strategy with the recent acquisition of Amount, and are delivering greater value to our clients through our operational excellence initiatives.” Third Quarter 2025 Financial Results On a GAAP basis, revenue increased 6% as compared to the prior-year period to approximately $2.7 billion. GAAP net earnings attributable to common stockholders from continuing operations were $264 million or $0.50 per diluted share. On an adjusted basis, revenue increased 6% as compared to the prior-year period reflecting recurring revenue growth of 6%. Adjusted EBITDA increased 7% to approximately $1.1 billion, and Adjusted EBITDA margin expanded by 53 basis points (bps) over the prior-year period to 41.8%, reflecting strong EBITDA growth across both Banking and Capital Markets segments. Adjusted net earnings from continuing operations were $789 million, and Adjusted EPS increased by 8% as compared to the prior-year period to $1.51 per diluted share. ($ millions, except per share data, unaudited) Three Months Ended September 30, % Adjusted Continuing Operations 2025 2024 Change Growth Banking Solutions Revenue 1,894 1,779 6% 6% Capital Market Solutions Revenue 783 730 7% 6% Operating Segment Total Revenue $ 2,677 $ 2,509 7% 6% Corporate and Other Revenue 40 61 (34)% Consolidated FIS Revenue $ 2,717 $ 2,570 6% Adjusted EBITDA $ 1,135 $ 1,060 7% Adjusted EBITDA Margin 41.8 % 41.3 % 53 bps Net Earnings (Loss) (GAAP) $ 264 $ 246 7% Diluted Earnings (Loss) Per Common Share (GAAP) $ 0.50 $ 0.45 11% Adjusted Net Earnings $ 789 $ 765 3% Adjusted EPS $ 1.51 $ 1.40 8% Segment Information Banking Solutions: Third quarter revenue increased 6% on a GAAP basis and 6% on an adjusted basis as compared to the prior-year period to $1.9 billion, including recurring revenue growth of 6%. Adjusted EBITDA increased 8% to $868 million and Adjusted EBITDA margin expanded by 68 basis points as compared to the prior-year period to 45.8%, reflecting continued cost discipline. Capital Market Solutions: Third quarter revenue increased by 7% on a GAAP basis and 6% on an adjusted basis as compared to the prior-year period to $783 million, reflecting recurring revenue growth of 8%. Adjusted EBITDA increased 9% to $396 million and Adjusted EBITDA margin expanded by 60 basis points as compared to the prior-year period to 50.5%, reflecting cost management and favorable revenue mix. Corporate and Other: Third quarter revenue decreased by 34% as compared to the prior-year period to $40 million. Adjusted EBITDA loss was $129 million, including $143 million of corporate expenses. Balance Sheet and Cash Flows As of September 30, 2025, debt outstanding totaled $13.0 billion. Third quarter net cash provided by operating activities was $1.0 billion. Free cash flow was $798 million, up 101%, and adjusted free cash flow was $929 million, an increase of 75% as compared to the prior-year period. In the third quarter, the Company returned $509 million of capital to shareholders through $301 million of share repurchases and $208 million of dividends paid. Year to date, free cash flow was $1.2 billion, up 55%, and adjusted free cash flow was $1.6 billion, an increase of 41% as compared to the prior-year period. Capital Allocation The Company repurchased $301 million of shares in the third quarter and raised its goal to repurchase approximately $1.3 billion of shares in 2025. Additionally, the Company will continue to pay quarterly dividends targeting dividend per share growth in line with Adjusted EPS growth. Full-Year 2025 Outlook For the full-year, the Company is raising its outlook for revenue growth to 5.4% to 5.7% and is reiterating its outlook for Adjusted EPS growth of 10% to 11%. Additionally, the Company is increasing its target for Adjusted free cash flow conversion from 82% to 85%, to greater than 85%. ($ millions, except share data) FY 2025 Revenue $10,595 - $10,625 Adjusted EBITDA (Non-GAAP)1 $4,330 - $4,345 Adjusted EPS (Non-GAAP)1 $5.74 - $5.78 1The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. 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”). As noted in our July 21, 2025 8-K, the completion of the transaction is conditioned upon (among other things) the expiration or termination of the waiting period applicable to the Transactions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The HSR waiting period expired as of July 18, 2025. 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, deleveraging to its target gross leverage of 2.8x within 18 months. The transactions are now expected to close simultaneously in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions. Webcast FIS will host a live webcast of its earnings conference call with the investment community beginning at 8:30 a.m. (EST) on Wednesday, November 5, 2025. To access the webcast, go to the Investor Relations section of FIS’ homepage, www.fisglobal.com. A replay will be available after the conclusion of the live webcast. About FIS FIS is a financial technology company providing solutions to financial institutions, businesses and developers. We unlock financial technology to the world across the money lifecycle underpinning the world's financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X. FIS Use of Non-GAAP Financial Information Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures. These non-GAAP measures include constant currency revenue, Adjusted revenue growth, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures may be used in this release and/or in the attached supplemental financial information. We believe these non-GAAP measures help investors better understand the underlying fundamentals of our business. As further described below, the non-GAAP revenue and earnings measures presented eliminate items management believes are not indicative of FIS’ operating performance. The constant currency revenue and Adjusted revenue growth measures adjust for the effects of exchange rate fluctuations and exclude discontinued operations, while Adjusted revenue growth also excludes revenue from Corporate and Other, giving investors further insight into our performance. Finally, Free cash flow and Adjusted free cash flow provide further information about the ability of our business to generate cash. For these reasons, management also uses these non-GAAP measures in its assessment and management of FIS’ performance. Constant currency revenue represents reported segment revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period. Adjusted revenue growth reflects the percentage change in constant currency revenue for the current period as compared to the prior period. Constant currency revenue is calculated by applying prior-year period foreign currency exchange rates to current-period revenue. When referring to Adjusted revenue growth, revenue from our Corporate and Other segment is excluded. Adjusted EBITDA reflects net earnings (loss) before interest, other income (expense), taxes, equity method investment earnings (loss), and depreciation and amortization, and excludes certain costs that do not constitute normal, recurring, cash operating expenses necessary to operate our business. These excluded costs generally include purchase price amortization of acquired intangible assets, as well as acquisition, integration and certain other costs and asset impairments. These excluded costs are recorded in the Corporate and Other segment. Adjusted EBITDA for the respective segments excludes the foregoing items. This measure is reported to the chief operating decision maker, the Company's Chief Executive Officer and President, who utilizes the measure for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to our segments, is presented in conformity with FASB ASC Topic 280, Segment Reporting. Adjusted EBITDA margin reflects Adjusted EBITDA, as defined above, divided by revenue. Adjusted net earnings excludes the effect of purchase price amortization, as well as certain costs that do not constitute normal, recurring, cash operating expenses necessary to operate our business. For purposes of calculating Adjusted net earnings, our equity method investment earnings (loss) ("EMI") from Worldpay is also adjusted to exclude certain costs and other transactions in a similar manner. Adjusted EPS reflects Adjusted net earnings, as defined above, divided by weighted average diluted shares outstanding. Free cash flow reflects net cash provided by operating activities from continuing operations, less capital expenditures (additions to property and equipment and additions to software from the statement of cash flows). Adjusted free cash flow reflects Free cash flow, adjusted for the net change in settlement assets and obligations, and excludes cash payments for certain transactions that do not constitute normal, recurring operating expenses necessary to operate our business and are not indicative of future operating cash flows. Neither Free cash flow nor Adjusted free cash flow represents our residual cash flow available for discretionary expenditures since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure. Free cash flow and Adjusted free cash flow as presented in this earnings release exclude cash flow from discontinued operations, which our management cannot freely access following the Worldpay separation. Adjusted free cash flow conversion reflects Adjusted free cash flow, as defined above, divided by Adjusted net earnings, excluding the contribution from our equity method investment earnings (loss) ("EMI") from Worldpay. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures, including footnotes describing the adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS website, www.fisglobal.com. Forward-Looking StatementsRead the full story here

FIS Reports Strong Third Quarter 2025 Results and Raises Full-Year Outlook

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