Fiserv, Inc.

Fiserv fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode until the question and answer session begins following the presentation. As a reminder, today's call is being recorded. At this time, I will turn the call over to Walter Pritchard, Senior Vice President and Head of Investor Relations at Fiserv.

Thank you and good morning. With me on the call today are Mike Lyons, our Chief Executive Officer, and Paul Todd, our Chief Financial Officer. Our earnings release and supplemental materials for the quarter are available on the investor relations section of Fiserv.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed on this call along with the reconciliation of those measures to the nearest applicable GAAP measures. Unless otherwise stated, performance references are year-over-year comparisons. Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. You should refer to our earnings release for a discussion of these risk factors. And now I will turn the call over to Mike.

Thank you, Walter, and welcome aboard. Good morning, everyone, and thank you for joining us. This quarter marked a decisive and positive step toward building the foundation to consistently deliver on the pillars that have long distinguished Fiserv. These include exceptional client service, world-class execution, value-added technology, and cutting-edge innovation. While there remains significant work ahead of us, we are clear on our strategy, laser-focused on our priorities, and are optimistic about our multi-quarter path towards delivering strong, sustainable operating performance and ultimately realizing Fiserv's full potential. While Paul will review our financial performance in detail, I would note that our Q4 results demonstrated stable, broad-based business activity trends, and there were no major surprises relative to the outlook that we provided in October, and that our 2026 guidance is in line with the preliminary view from Q3. As we told you in October, Our headline results are below our go-forward expectations, and they will remain that way for the first half of 2026 as we invest in the franchise and lap a higher mix of non-recurring revenue. Importantly, we continue to add senior talent, complementing the high-quality team that was in place when I came aboard. In addition to Paul, Walter, and Divya, we have added leaders in technology, Clover, and merchant product and sales, among other areas. Overall, I'm encouraged by the team's energy and pleased that our overall employee retention is up, with retention of our top talent reaching a multi-year high in 2025. With the team in place and focused, we were firmly in execution mode in Q4, taking decisive actions across the One-Fi Serve plan. One-Fi Serve is at the foundation of our strategy and firmly integrated into our 2026 plan. With this in mind, I want to provide a brief update on the progress we have made across each of the five strategic areas of the plan. Operating with a client-first mindset, building the preeminent small business operating platform through Clover, creating differentiated innovative platforms in finance and commerce, delivering operational excellence and efficiency enabled by AI, and finally employing disciplined capital allocation for the long term. Under our client-first pillar, we made targeted investments to better align around client needs, especially in our financial solutions business. Over time, we expect this shift to enhance client satisfaction and ultimately drive sustainable growth in average revenue per customer, which has been a hallmark of Fiserv. The actions we took this quarter included broadly increasing client-facing resources, revamping and improving our approach to working with consultants, including closing the Smith transaction, delivering against the first phase of product development-related commitments we made at our Pfizer Forum client event, leveraging innovation, including AI trained on our DNA core, to streamline product upgrades and implementations, and accelerating our investment to modernize our technology platforms, including additional multi-site resiliency measures across most of our consumer-facing payment platforms. We remain on track to complete this effort by mid-2026. We are encouraged by the early positive client response to these efforts and will be steadfast in our focus on delivering great service and value-added solutions to our clients. And to this point, Corporate sales were up solidly in Q4 versus last year and the prior quarter, with positive contributions from both the merchant and financial solution segments. Some of the more meaningful wins included new and expansion Commerce Hub agreements with a leading medical device company, a large specialty retail company, and AT&T, among others. An expansion of our relationship with California-based Mechanics Bank Corp. now with over $22 billion in assets, which selected Fiserv's core and added our XD digital platform following their merger with Home Street Bank. On Optus, we signed a multi-year extension with our client, Atlanticus, a leading issuer, which includes converting the accounts they recently added with their Mercury acquisition to Fiserv. A new core deal with Republic Bank and Trust Company Kentucky-based $7 billion bank moving to DNA, enabling the bank to give their clients faster access to deposited funds through real-time continuous processing and enabling real-time account alerts, and an expansion of our credit card relationship with Robinhood to add debit processing. Turning to our second pillar, Q4 saw continued momentum toward establishing Clover as the preeminent small business operating platform. In vertical markets, we remain on track to launch our practice pay healthcare initiative and our professional services offering this quarter. In restaurant, we continue to see market share gains as we consolidate a number of strong assets to expand our offering under the Clover Hospitality brand and achieve economies of scale. As part of this, we are rolling out new capabilities, including multi-location support, AI-generated menus, streamlined delivery enrollment, checklist dining, and new diner engagement tools. Horizontally, we are seeing strong early success in our workforce management partnership with Homebase, and we continued our build-out with ADP, a partnership that is already producing strong sales collaboration and that has significant potential over time. In December, we integrated Cash Flow Central, our transformative ARAP product directly into ADP's run platform, allowing small businesses to manage their cash flow more effectively. And finally, on the horizontal front, Clover Capital grew 30 percent in 2025 in North America, as we continue to see significant upside with this high-value client offering where we only have mid-single-digit penetration of our eligible client base today. Internationally, our launch in Brazil continues to be highly successful, with results tracking ahead of plan and reflecting the importance of partnering with market-leading financial institutions like Caixa. Canada grew strongly in 2025 and should further accelerate as we ramp up our new strategic relationship with TD. And we introduced our flagship partnership with SMCC to offer Clover to SMBs in Japan starting later this year. This is a focused market for us, given its size and low card penetration. Additionally, we are excited about the special support visas providing in this partnership. We grew and further diversified Clover distribution channels across the board in Q4, including adding 47 banks to the Clover referral ecosystem, refreshing our merchant relationship with Truist, which will now support businesses of all sizes across the bank's large footprint, including 1,900 branches, expanding our industry-leading ISO and agent platforms, continuing to add direct salespeople in North America, where we have over 600 today, launching a new digital tool for our bank partners, which integrates Clover merchant onboarding into the bank's digital banking experience, introducing AI prospecting tools to assist with the identification and conversion of high-value merchants, and finally, building on the takeaways from prior pilots, we began targeting select non-Clover S&B merchants in the U.S. with a Clover offering. While these efforts have been narrow in scope and it's still early, we have seen some promising results with benefits for our clients and higher revenue yield for us. Our efforts here will remain deliberate, ensuring we prioritize the right experience and fit for the client. To finish on Clover, we are driving a number of merchant experience improvements, including digital feature enrollment and setup, AI-driven end-to-end merchant lifecycle orchestration, a range of automated and high touch service capabilities, and simplification to pricing and billing statements. Next, on the innovation front, we have prioritized appropriately resourcing and completing a focused set of deliverables that are driven by strong demand from our customers. In the quarter, we made significant progress on these strategic priorities. Commerce Hub is progressing well towards a fully integrated cloud native global omni-channel gateway supporting a best-in-class enterprise value proposition. In Q4, we launched this capability across the Americas and are ramping a leading video streaming service provider client. The platform continues to scale in North America, processing over $200 billion in 2025, a greater than 200 percent increase year over year. In financial solutions, we continued to invest in modernizing our core banking and card issuer processing platforms. In banking, we are building cloud-based, real-time, secure, API-enabled and more open capabilities, a modernization effort that began in 2022. At our client forum in September, we made it clear that there will be no forced upgrades or conversions as part of this effort, reflecting feedback we received from our customers. With respect to our newest cores, we went live with our first clients on Core Advance, and Finzec continues to perform exceptionally well and gain broad recognition for innovation. The Finzec platform surpassed 30 million total accounts and positions, representing over 80 percent growth in 2025, and is becoming the ledger of choice for fintechs and digital banks. In card issuer processing, we continued to modernize Optus and Build Out Vision Next, our next-gen card issuing platform. On Optus, we signed a multi-year extension with PNC and a new mandate with Fidem Financial, a fast-growing credit card asset manager that has acquired over $15 billion in assets. Fiserv will power Fidem's new co-branded credit card programs. We are now live with five FI clients on Cashflow Central, with over 100,000 of their SMBs using our transformative all-in-one ARAP payments platform and seeing real value. With over 155 FIs signed since launch and a pipeline of over 400 prospects, we are excited about Cashflow Central's long-term potential. We advanced our efforts in stablecoin through the exploration of pilots with Huntington and several other banks including use cases in cross-border payments, digital escrow, and interbank money movement. With the closing of the Stonecastle acquisition, we introduced stablecoin custody capabilities, allowing us to recycle reserves back to financial institutions, a unique capability in the space. We're also excited about Stonecastle's ability to introduce next-gen cash management capabilities to our merchants, including Clover clients. Lastly on innovation, we continue to develop agentic commerce capabilities for our merchants and are particularly excited about our unique position with Clover to bring turnkey agentic capabilities to small businesses. We see agentic fundamentally changing the payments landscape and are working with Google, MasterCard, and Visa to bring agentic to mainstream commerce. we are exploring arrangements to enable agentic commerce across the landscape of conversational AI platforms. Fourth, we are in full swing with Project Elevate, which is a highly structured enterprise-wide evaluation of all of our activities. We are encouraged by the potential here, given we have identified ample room to simplify the business and execute faster and more efficiently, and we are attacking these opportunities with urgency. This includes a comprehensive review of how we can further deploy AI across Fiserv. We look forward to providing a more fulsome update on Elevate at our investor day. Rounding out our one Fiserv plan is our commitment to highly disciplined capital allocation. As we mentioned on our last call, we continue to evaluate businesses and assets to ensure that they are consistent with our go-forward strategy. This exercise is critical in focusing our time and resources on our most important assets and activities. In summary, we made good progress in Q4. We are focused and confident in our strategy and ability to execute. No other company has the assets, breadth, and scale to connect all parts of the financial ecosystem. Our unique position at the Center of Commerce and Finance, two massive TAMs, strengthens the market position of both our merchant and financial solutions businesses and creates opportunities in areas like embedded finance, stablecoins, networks, and merchant liquidity optimization, all expanding the boundaries of how our market is defined today. New technologies, especially AI, further accelerate our ability to capitalize on and scale these opportunities. We have scheduled an investor day for May 14th and look forward to sharing additional details on our strategy and financial outlook and introducing you to the leadership team responsible for executing on our plan. I'll finish by thanking our employees for their hard work and dedication and our clients for the continued trust they place in us. I will now pass it off to Paul to go into more detail on Q4 in 2026.