In This Article:
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Adjusted Net Revenue: $2.2 billion, reflecting 5% constant currency growth, excluding dispositions.
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Adjusted Operating Margin: Increased by 70 basis points.
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Adjusted Earnings Per Share (EPS): $2.69, an increase of 11% on a constant currency basis.
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Merchant Solutions Revenue: $1.69 billion, 6% growth on a constant currency basis, excluding dispositions.
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Issuer Solutions Revenue: $529 million, 3% growth on a constant currency basis.
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Adjusted Free Cash Flow: Approximately $512 million, with a 77% conversion rate of adjusted net income.
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Capital Expenditures: $128 million for the quarter.
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Net Leverage Position: Under 3.2x at the end of the first quarter.
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Share Repurchases: Approximately $450 million executed in the quarter.
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Available Liquidity: Approximately $3.8 billion at the end of the period.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Global Payments Inc (NYSE:GPN) reported over 5% constant currency adjusted net revenue growth, excluding dispositions, and an 11% constant currency adjusted earnings per share growth compared to the same period in 2024.
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The company is aggressively executing its transformation agenda, including simplifying its organizational structure and increasing its benefit target by 20% to $600 million.
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The acquisition of Worldpay is expected to enhance GPN's global scale and position it as a leading pure-play commerce solutions provider for merchants worldwide.
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GPN expects to achieve at least $600 million in cost synergies and $200 million in revenue synergies from the Worldpay acquisition.
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The company plans to return roughly $7 billion in capital to shareholders from 2025 to 2027, maintaining a strong focus on shareholder returns.
Negative Points
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The divestiture of the Issuer Solutions business and acquisition of Worldpay may present integration challenges, especially given past unsuccessful integrations.
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There is potential risk associated with the timing and execution of the Worldpay transaction and its alignment with GPN's transformation agenda.
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The company faces macroeconomic uncertainties, including ongoing tariff negotiations, which could impact global economic conditions and consumer spending.
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GPN's adjusted net revenue growth is impacted by dispositions and unfavorable foreign currency exchange rates, which were headwinds in the first quarter.
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The company has yet to complete its target of $500 million to $600 million in revenue dispositions, indicating ongoing restructuring efforts.