Fidelity National Information Services, Inc.

Good day and thank you for standing by. Welcome to the Fidelity National Information Services third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, George Mihalos, Head of Investor Relations. Please go ahead.

Good morning, everyone. Thank you for joining us today for the FIS Third Quarter 2025 Earnings Conference Call. This call is being webcasted. Today's news release, corresponding presentation and webcast are all available on our website, at FISGlobal.com. Joining me on the call this morning are Stephanie Farris, our CEO and President, and James Keough, our CFO. Stephanie will lead the call with a strategic and operational update, followed by James, who will review our financial results. Turning to slide three, today's remarks will contain forward-looking statements. These statements are subject to risks and uncertainties as described in the press release and other filings with the SEC. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Please refer to the Safe Harbor language. Also, throughout this conference call, we will be presenting non-GAAP information, including adjusted EBITDA, adjusted net earnings, adjusted net earnings per share, and adjusted free cash flow. These are important financial performance measures for the company, but are not financial measures as defined by GAAP. Reconciliation of our non-GAAP information to the GAAP financial information is presented in our earnings release. And with that, I'll turn the call over to Stephanie.

Thank you, George, and good morning, everyone. I'm very pleased to report we delivered strong third quarter results that exceeded expectations across our key operating metrics. Our performance demonstrates real momentum across the business with adjusted revenue growth of 6.3%, adjusted EBITDA margins of 41.8%, and adjusted EPS of $1.51, up 8% year over year. These are great proof points that our future forward strategy is working. by leveraging our strong foundation, executing to deliver profitable growth, and allocating capital with discipline. Let me walk you through what's driving our strong performance. This quarter's 6.4% recurring growth demonstrates the success of our commercial excellence initiatives. We achieved sequential margin improvement of approximately 200 basis points, driven by strong segment profitability across both banking and capital markets. Adjusted free cash flow conversion was 142%, enabling us to increase our share repurchase target to $1.3 billion for the year. These results demonstrate the strength of our execution and validate the strategic investments we've been making to position FIS as a technology company at the forefront of financial services innovation. During the quarter, we returned $509 million to shareholders across share repurchases and dividends. Most importantly, we're entering the fourth quarter well positioned to achieve our full year 2025 financial goals and move into 2026 with real momentum. Based on our performance and visibility, we're raising our full year outlook for revenue, EBITDA, and cash conversion. Turning to slide six. Now let me talk about what we're seeing in the marketplace. Bank technology spending remains strong. And our clients are prioritizing spend across our high-growth verticals, digital solutions, payments innovation, and lending modernization. We anticipated that AI would transform financial services, but the pace and depth of adoption have exceeded our expectations. In fact, industry surveys indicate that more than three out of four banks have actively launched or are piloting GenAI and agentic solutions, a marked increase from just a year ago. our clients are leaning in and asking us to help shape their AI journeys, viewing us as a strategic partner. Data powers the algorithms that underpin AI, and for this reason, FIS holds a foundational advantage with over 200 petabytes of data, powering on average 20-plus products per client across the money lifecycle. This advantage will grow significantly post-acquisition of the credit issuer solutions business, adding almost a billion additional accounts to our platform. As the operating environment for banks continues to improve, they are investing with confidence. Consumer spending patterns support this optimism. Debit and credit card spending remains resilient year to date, and we're seeing strong account growth across our bank clients. Year to date, FIS core accounts are up mid-single digits as our clients continue to grow. We are also seeing an acceleration in bank M&A across the market. The third quarter had the highest level of quarterly bank consolidation in four years, driven by a more favorable regulatory backdrop. We expect industry consolidation to continue to be a long-term tailwind for FIS. We're the vendor of choice for financial institutions, positioning us to benefit as the industry consolidates and acquirers seek scalable, enterprise-grade technology partners. The acquisition of credit issuer solutions, which we now expect to close in the first quarter of 2026, will further strengthen our offerings, providing us with scaled credit processing capabilities. Finally, let me address pricing directly. The pricing environment remains stable. Net pricing has been a tailwind for us year-to-date across both banking and capital markets, supported by a continuous product, feature, and functionality enhancements that strengthen our value proposition with clients. We operate in a rational market, and we're confident in our ability to continue to price for value. Let's turn to slide seven. Our strong execution and laser focus on helping our bank clients is translating into high quality sales performance across our business. Our sales pipeline annual contract value, or ACV, has expanded 13% annually since 2023. And we're deploying AI early in the marketing to sales cycle for lead generation, making our go-to-market motion smarter and more efficient. Renewal retention has also shown steady improvement of approximately 3% in 2024 and 2025. This is a key driver of the accelerating banking growth we are delivering. Net pricing has contributed 60 basis points of growth on average over the last two years as we continue to price for value. And in 2025, both segments will have a positive pricing contribution for the year. Recurring ACV, the fuel for future revenue growth, has compounded annually at 11%, with particular strength in verticals such as payments, where our network solutions and money movement hub are driving outsized sales growth. Our strategic investments are paying off. Taken together, all these improvements across our sales engine are fueling the durable recurring revenue growth acceleration we're seeing across our business. Now turning to slide eight. We are translating this market momentum into sustained growth in our banking segment, which remains the cornerstone of our business. At Investor Day, we outlined three strategic priorities to drive sustainable, accelerating growth. Operational excellence, core and digital, and payments. On operational excellence, we're maintaining our relentless focus on client experience and sales execution. Happy clients renew, expand, and advocate. and the numbers I just shared on retention prove we're getting this right. We're achieving this through our investments in AI, which are fundamentally transforming how we operate and improve everything from client support to risk management to product development, modernizing our solutions to help our clients run, grow, and protect their businesses more effectively. We're helping clients run their business through intelligent automation, predictive insights, and operational efficiencies of the back office that reduce costs and improve service delivery. We're helping them grow through AI-powered personalization and intelligent decisioning that drives revenue and deepens customer relationships. And we're helping clients protect their business through advanced fraud detection, real-time risk scoring, and behavioral analytics that stop threats before they impact customers. Let me next update you on the progress we're making in two of our key high growth vectors, digital and payments. Beginning with digital on slide nine, our digital business is performing very well with growing traction across both our retail and commercial offerings. The US TAM for digital solutions is $10 billion, growing at approximately 12% annually through 2028. Banks are spending aggressively on digital capabilities and open banking adoption is accelerating. We're capitalizing on this by embedding AI-powered capabilities such as predictive insights and hyper-personalized recommendations into our Digital One platform to deliver a more seamless, intelligent digital banking experience. Clients are also prioritizing solutions with seamless integration and robust API connectivity, which are core strengths of our platforms. We've seen over 30% growth in users across our digital platforms, and we see this as a growth engine for our banking segment for years to come. We also had significant competitive takeaways this quarter. SMBC, Manu Bank, a U.S. subsidiary of Sumitomo Mitsui Bank Corporation, selected our commercial online banking offering, Dragonfly, to help the bank better service enterprise customers. This win displaces a monoline digital competitor and underscores the rationale behind our targeted M&A strategy. As year-to-date, our sales in commercial digital solutions have nearly tripled, with our win rates improving by 13 points with Dragonfly. During the quarter, we completed the acquisition of Amount, an AI-powered platform providing seamless, unified digital account opening capabilities. This acquisition is a perfect example of how we are using AI to help clients grow their business. Amounts Platform fundamentally changes how banks acquire and onboard customers while helping to grow revenue and reduce friction and risk. And we've hit the ground running, signing seven new deals since closing the acquisition and expanding our relationship with a top 10 U.S. bank. Now let's turn to slide 10. Payments is the other major growth driver, and the momentum here is equally compelling. We're operating in a $53 billion U.S. TAM, that is growing 5% annually. Card-issuing debit transactions remain robust at 6%, providing a steady foundation. But the real market acceleration is in instant payments and digital currencies, which represent the future of money movement in areas where FIS is strategically invested. The complexity of this growing market is creating new opportunities for FIS, as banks increasingly rely on us to help them navigate the changing landscape. And we're seeing this in our sales performance. Our payment sales have been outstanding. 50% recurring sales growth year-to-date and a 5% improvement in win rates. In addition to traditional debit and credit offerings, we are leading the way in alternative payments with modernized cloud-native solutions like our Money Movement Hub, which is our core agnostic real-time payment gateway for our clients. Launched just a quarter ago, we're already seeing strong traction with over 40 new clients signed. Additionally, the NICE network has been a particularly bright spot, with sales more than doubling and a pipeline growth of three times versus last year. Here again, AI is a critical differentiator. Broad is one of the biggest threats facing financial institutions today. We're using machine learning and behavioral analytics to detect and prevent fraud in real time across billions of payment transactions daily. We also continue to expand our capabilities and geographic presence. We recently acquired Everlink to strengthen our payments offering in Canada. And the credit issuer acquisition will add scale in both U.S. and international credit processing and significantly higher cash flow when we close that deal in the first quarter. In closing, let me bring this all together. FIS delivered a very strong quarter that exceeded expectations. We're seeing favorable market conditions, and we're executing on our strategy as a technology company at the forefront of financial services innovation. This isn't a one-quarter story. We're building sustainable, profitable growth on a foundation of operational excellence, product leadership, and client partnership. We're confident in our trajectory, and are raising our full-year outlook. With that, I'll turn it over to James to walk through the financial details.