Shift4 Payments, Inc.

Greetings and welcome to the SIF 54 Q3 2025 earnings call. On today's call, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. On today's call, we have Taylor Lauber, CEO, and Christopher N. Cruz, CFO. It is now my pleasure to introduce your host, Tom McCrowan, Head of Investor Relations. Thank you, Tom. You may begin.

Thank you, Operator. And good morning, everyone, and welcome to Shift4's third quarter 2025 earnings conference call. With me on the call today are Taylor Lauber, our CEO, and Chris Cruz, our chief financial officer. This call is being webcast on the investor relations section of our website, which can be found at investors.shift4.com. Today's call is also being simulcast on X Spaces, which can be accessed through our corporate X account at Shift4.com. Our quarterly shareholder letter, quarterly financial results, and other materials related to our quarterly results have all been posted to our IR website. Our call and earnings materials today include forward-looking statements. These statements are not guarantees of future performance and our actual results could differ materially as a result of certain risks, uncertainties, and many important factors. Additional information concerning those factors is available in our most recent reports on Forms 10-K and 10-Q, which you can find on the SEC's website and the Investors Relations section of our corporate website. For any non-GAAP financial information discussed on this call, the related GAAP measures and reconciliations are available in today's quarterly shareholder letter. With that, let me turn the call over to Taylor. Taylor?

Good morning, everyone. Thanks for joining the call. Starting with our quarterly performance, we delivered results in line with our Q3 guidance. gross revenue less network fees were $589 million, and adjusted EBITDA was $292 million. Each of these was up 61% and 56% respectively. When excluding the impact of Global Blue, gross revenue less network fees grew 19% year over year. You will find in our shareholder letter that we also highlight the organic growth of the business, that is to say, excluding the impact of recent M&A. Chris will go into more detail here, but that growth was 18% year-over-year. Volumes were in line with our expectations at roughly 55 billion. Each of these growth scenarios can be compared with the medium-term guidance we set forth in our investor day in February, and we've also done so in our shareholder letter. You will note that the high teens sit on our hands case compares favorably with 19% delivered in this quarter, while the inclusion of global blue obviously brings things notably higher. Furthermore, we continue to find attractive capital allocation opportunities, which supports our most likely case of 30% plus gross revenue, less network fee growth over the medium term. Chris will walk you through our adjusted free cash flow, but while early, we're also feeling ahead of pace for our $1 billion target. Some notable puts and takes in the quarter. Our blended spreads on payment volume were stable at 62 basis points, and we expect them to remain so through the end of the year. Tax-free shopping had some tough comparables, particularly in Asia, as a result of a particularly weak Japanese yen last summer. Sales in-store were negative 11% in Asia during Q3, but recovered throughout the quarter and were positive in October. Separately, in the U.S., the last two weeks of September and subsequent weeks of October presented more same-store sales volatility than we've seen in prior periods. While not consistent across verticals, same-store sales have generally skewed negative to our expectations. To put a finer point on it, we saw same-store sales, whether that be restaurants or hospitality, range from positive 1% to negative 4% with meaningful volatility week to week. While not immune from the broader economy, our deliberate and balanced transformation over the past several years does mean we are more diversified and scaled both geographically and by industry than at any point in our history. We also continue to add lots of high quality customers, as I mentioned above. And we continue to compliment our growth with massive payments cross-sell funnel, which becomes increasingly attractive during times of economic uncertainty. The competitive landscape has been a topic of serious debate among investors throughout the last few months. While I can imagine it's tricky to aggregate all of the various data, we would like to reiterate that the competitive landscape, from our perspective, has been unchanged for quite some time. We are the number one in hotels in the U.S. We are the number one in stadiums. We are the number two in restaurants, but with a large TAM and a clear differentiation in both our strategy and product focus. We are only just beginning to bring these products all over the world where there isn't a clear market leader for any of these verticals. GlobalBlue also puts us as an undisputed category leader in luxury retail globally. With regard to GlobalBlue, this is our first quarter since closing the transaction in early July. This business brings both an industry-leading product for luxury retail and also an extensive two-sided network consisting of the best luxury brands around the globe and the high-net-worth shoppers that frequent them. They are also deeply embedded in the commerce experience at the store, presenting natural synergies for payments. Sales in-store At GlobalBlue, we're 5% above the prior year, with Europe growing 13% and Asia being negative 11 for the reasons that I mentioned earlier. We're reasonably happy with these results considering the negative impact currency has played throughout the year. These results are also before any synergies from business combination. You will find the detailed summary of GlobalBlue's performance in our shareholder letter. And from an integration perspective, we are on track with previously discussed plans. Our three-in-one payment terminal for payments, currency conversion, and VAT refund eligibility detections is in beta. We also highlighted several Australian hotel payment wins in our shareholder letter distributed this morning. Of note, all the hotels mentioned are owned by Accor, the largest hotel operator in Australia and New Zealand, and also a very large hotel operator globally. The Australian hotel wins represent an early proof point to our strategy to take our industry-leading products into new geographies, and markets around the world is working. In restaurants, we're proud to welcome Nobu, but also sign thousands of other restaurants this quarter across Canada, the UK, Ireland, and Germany. And with our international production improving to over 1300 merchants signed each month. In hospitality, we won Hyatt Vacation Club and will power payments for their over 20 resort properties around the globe. In sports and entertainment, we signed the Cincinnati Bengals, Clemson University, North Carolina, State, Rutgers University, and Syracuse University. That one was for you, Jordan. Lastly, we'd like to point out the opportunities that can seem unique but are a function of the platform effect of constantly adding integrations relevant for our other customers. To that end, we signed Hertz, and we'll power payments across 60 of Hertz's rental car locations. Our presence in nonprofits continues to grow as well, evidenced by the dozens of nonprofits attracted to our platform each quarter, as well as the on and off-ramp services for many crypto and stablecoin platforms, such as Stellar and Plasma. As has been the case each quarter, these are just a few of what we've highlighted in our materials, and even a smaller fraction of what we've actually onboarded. We're delivering these impressive wins while relentlessly streamlining our operations. And in that regard, as many of you know, we take deleting the parts very seriously in our M&A and integration approach. We made multiple small divestitures, most notably a Carto, which is a couponing business owned by Vectron for $34 million. These sales removed non-core business lines and helped keep our laser focus on revenue synergy opportunities. We also closed SmartPay this week. As previously mentioned, this provides us with an existing and proven distribution channel to sign restaurants, hotels, and stadiums in Australia and New Zealand. By equipping a proven team with industry-leading products like we have, we can be highly confident in the success of their go-to-market. The combination of these two events are roughly neutral, meaning the divestitures and the acquisition of SmartPay and their contribution to the remainder of the year, but both were important operational milestones. Lastly, we agreed to acquire Bambora, otherwise known as Worldline North America. While I'm sure many of you would like to see us slow down, the opportunity presented by a $90 billion payment gateway was something we would not ignore. A core competency of our business and team is to constantly seek out interesting technologies, great customers, and excellent talent. Those of you who know our track record of executing on gateway conversions and other synergies can appreciate why this makes so much sense. We expect that transaction to close in Q1 of 26 and are encouraged by our pipeline of opportunities. I wouldn't be able to discuss capital allocation without the notable dislocation in our own valuation, despite the continued performance and numerous opportunities we see ahead. In short, our own equity is one of the more attractive opportunities we see, and with expanding cash flows and accelerated deleveraging, we simply can't ignore it. To that end, our board has authorized the new $1 billion stock repurchase program, which is the largest in our history. We'll be implementing a plan to purchase at what we view as highly attractive levels right away. And with that, I'll turn it over to Chris for his first earnings call. Welcome aboard.