Shift4 Payments, Inc.

Hello and welcome, everyone, joining today's Shift 4 Q2 2026 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. We are standing by should you need any assistance. It is now my pleasure to turn the meeting over to Tom McCronin, Head of Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone, and welcome to Shift Forward's second quarter 2026 earnings conference call. With me on the call today are Taylor Lauber, our CEO, and Christopher Cruz, our Chief Financial Officer. This call is being webcast on the Investor Relations section of our website, which can be found at investors.shiftforward.com. Today's call is also being simulcast on X Spaces, which can be accessed through a corporate X account at Shift Forward. 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 that 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 investor relations section of our corporate website. For any non-GAAP financial information discussed on this call today, 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? Thanks, Tom.

Good morning, everyone, and thank you for joining us today. I'd like to acknowledge the entire Shift4 team for delivering strong quarterly results, including powering payments flawlessly at many of the World Cup matches. This tournament was a great unifying event and an unparalleled showcase for Shift4's ability to help merchants deliver the moments that matter on one of the sports world's greatest stages. Shift4 technology can be found at every match in both the U.S. and Canada and, of course, across the broader experience economy of restaurants and hotels. It was especially rewarding to have the finals in our backyard and hosted by a great Chippewa customer, MetLife Stadium. Kudos to our team for demonstrating once again our ability to operate in demanding, high-stakes environments such as the World Cup Final. Believe it or not, this was not even our busiest quarter for sports and entertainment despite the well-attended matches across so many of our customer locations. While there were clear signs of increased spending across restaurants, hotels, and other locations in host cities, our stadium customers are quite accustomed to hosting large crowds, whether it be NFL, MLB, concerts, or even events like Formula One. We are with them for all these events, and I think the World Cup was another healthy demonstration of that. I'm proud of our results this quarter. They demonstrated resiliency despite ongoing travel disruptions and validated our deliberate diversification across the experience economy. With that said, the three themes will guide how we talk through our second quarter results. First, the durability of our diversified business continued to show through, delivering resilient growth even as the operating environment stayed challenging. Second, our international expansion continues to scale and compound, and I'll share why we're increasingly confident in its trajectory shortly. I want to spend some time on what I call the heart of our story. Our position across the experience economy isn't by accident. Many have asked about our competitive positioning in one vertical or another, but missed the big picture. We are exceptionally well positioned to handle in-person payment experiences from SMB to the largest enterprises. What we've learned from decades in restaurants is brought to hotels and then to sports and entertainment, and most recently, luxury retail. We choose these growth paths not because they're different, but to the contrary, they all demand a high touch in-person experience that we are uniquely positioned to provide. And of course, we challenge ourselves to build new capabilities in areas like unified commerce, but with a capital discipline that demands results before risk. Diving into Q2 results, we delivered Q2 results above our previously provided guidance, including plus 34% year-over-year growth in gross revenue, plus 51% year-over-year growth in gross revenue less network fees, plus 39% growth in adjusted EBITDA, and $21 million of adjusted free cash flow versus our $10 million guidance. Adjusted for acquisitions, our organic gross revenue less network fees grew 11%, which is consistent with last quarter. We believe there is further room for expansion as we continue delivering our market-leading products to new geographies around the world. The performance we delivered this quarter in our payments-based revenue streams is a testimony to our durable growth. Total payments-based revenue less network fees grew 27% in Q2. with the Americas-based revenue less network fees growing 19 and worldwide payments-based revenue less network fees growing at 53%. I'll repeat that. Our most mature Americas market grew in the high teens and our growth markets grew over 50%. As can be the case, this quarter was not without some challenges. The Middle East conflict remained a headwind and weighed on inbound travel to Europe and across several Gulf Coast countries. However, The overall impact on our Q2 results was slightly better than we had forecast. Said differently, we were able to absorb some of the travel disruption impact from strong U.S. to Europe travel, strong performance in Asia, and overall better than expected trends in same-store sales for both restaurants and lodging. Chris will provide more details when he reviews our guidance, but we do anticipate continued travel disruption in the upcoming quarter, and our guidance now reflects that. Regardless, our Q2 results coming in above our guided KPIs speaks to the resilience of our diversified portfolio and our ability to operate through factors beyond our control. I also want to address same-store sales directly since that's been a recurring topic on these calls. As a reminder, we experienced softer trends in recent quarters among restaurants and SMBs in the Americas. This quarter, as Chris will highlight, same-store sales trends in restaurants and lodging were slightly better than our expectations, consistent with what we saw in Q1, and a further sign that the trend is encouraging. That said, our full-year outlook continues to assume a neutral impact on same-store sales and we are not forecasting any material recovery in the back half of the year. We think that that's the right posture given what we deem to be arguably stable trends in consumer spending despite higher gas prices. The bottom line regarding Q2, we delivered better than expected results relative to our guidance in a quarter that provided some modest benefits from the halo effect of the World Cup offset by ongoing travel disruptions in the Middle East. Chris will provide more details on our full year 2026 guidance in a bit, But the bottom line is that we are tracking to deliver 24% to 27% FX neutral year-over-year growth in gross revenue less network fees this year. Moving on to international, we delivered another quarter of over 50% growth in worldwide payments-based revenue less network fees as we continue to scale our business internationally. Some highlights in the quarter included We introduced our restaurant POS products, which is Shipboard Dine in Spain and Australia, and we are rapidly attracting restaurants to our platform. We continue to globalize all of our products for international markets and expect to introduce Shipboard Dine in many more international markets in the months and years ahead. Ship41 continues to resonate with retailers in Europe, and we are now live in 12 countries, well on track to surpassing our annual goal of being live in 15 countries by the end of 2026. As a reminder, our Ship41 product combines payments, dynamic currency conversion, and tax-free shopping into a single device. This quarter, we added numerous retail, cosmetic, and jewelry merchants across Spain, Italy, and the Czech Republic. You can find them in our materials we provided this morning. Merchants understand the value immediately, and I expect that we'll be adding thousands of merchants per month in the near future. In hotels, we continue to win excellent resorts and hospitality customers. This quarter, we added Massa Newton Resort, the Nora Hotel West Palm Beach, Wayford Bridge Inn Hotel, Radisson Hotel Winnipeg, just to name a few. Again, there's more in our materials. and our sports and entertainment capabilities remain unmatched. This quarter, we signed the Buffalo Bills and Texas A&M, along with new venues, including Tom Benson Hall of Fame Stadium and Splashway Waterpark. You'll continue to see us processing ticket sales for L.A. 2028 as well. Finally, in luxury retail, we signed several brands to our tax-free shopping solution, including Ralph Lauren, Burberry, Patagonia and Givenchy in Japan. In an increasingly digital world, consumers are demanding more meaningful in-person experiences. As I mentioned earlier, we are uniquely positioned to address all aspects of this experience economy. We are beginning to see a meaningful amount of capital being invested in this concept of sporting events driving commerce in the surrounding neighborhood, with some interesting new concepts beginning to break ground, such as Miami Freedom Park and its surrounding retail and restaurant shops. We expect the same halo effect we benefited from this quarter at the World Cup to repeat itself with several other upcoming sporting events such as the 2028 LA Olympics. The second way we benefit from our position in the experience economy is the daily chain of relationships that leads to net new business. For example, our existing relationship with major casino resorts contributed to us winning many restaurants across the country. The ownership groups of these hotels often own restaurants and other entertainment venues and as such want to deliver the same experience to their guests. We are increasingly aligning ourselves with the operators who share our vision of connecting consumers with experiences, and having a shared vision goes a long way towards creating differentiated products and capabilities supporting the growth and vision of our customers. Our competitive differentiation across hospitality and sports and entertainment is unique, and it continues to widen the gap between us and peers who either narrowly focus on a single vertical or only offer a point solution. We are the connective tissue behind the entire consumer experience. The same fan might grab dinner, catch a game, buy a jersey, check into a hotel in one night, and we're the point of sale they're interacting with. In the US, we still have meaningful market share to capture and incremental services to offer. And our DCC offering is live and has been well received by our first few customers. Before closing, I want to talk a little bit about the technical investments we've made recently. Our story as a public company has often been about the proof points. The customers won, the verticals conquered, the geographies opened, but none of this would have happened without meaningful investment and innovation. To that end, this was a record quarter for technology investment and product development. We released the next generation payment terminal application and terminal management software, which includes dynamic currency conversion, as well as multi-location enhancements and a totally new quick service feature set within shipboard time. I mentioned Shipware One being live in 12 countries, which, as you can imagine, requires meaningful language and local feature customization. And we have integrated AI-powered propensity models across our TFS platform, which will continue to enhance the customer journey and allow for more refunds process. Despite this, the disciplined approach we have towards managing expenses hasn't changed. We continue to maintain a relentless focus on driving incremental operational improvements and preserving our advantages in regards to minimizing customer acquisition costs relative to others in our industry. I am of the view that there is always room for improvement, and while we already deliver margins that are commendable relative to peers, I do see a path to 50% margins as we scale our international operations and continue to better leverage the resources that we have across the global organization. Let me close on a theme I keep coming back to with this group because the data keeps backing it up. We can grow meaningfully without adding a single new customer, and we can drive real margin and free cash flow expansion just by continuing to do what we do well. Integrating our business and deleting the parts we no longer keep. This quarter was another proof point. Volume of $61 billion, up 22% year over year. Gross revenue less network fees of $624 million, which was up 51%. 11% of that was organic. Adjusted EBITDA of $284 million, which is up 39%, and at a 46% margin. and our updated full year 26 guidance calls for plus 25 to plus 28 gross revenue and less network fee growth or plus 24 to 27% growth on an FX neutral basis. The macro environment remains dynamic and I'm not going to pretend otherwise, but the diversification of our business, durability of our growth and caliber of the team we've built continue to give me genuine confidence on the road ahead. Our long-term numbers are the clearest evidence of why this model works. To remind you, gross revenue less network fees have compounded over 35% annually and adjusted EBITDA of over 40% annually since 2019. All achieved with cumulative equity dilution of roughly 15% during that timeframe. Said much more simply, we've 8X the business with only 15% dilution in seven years. I'd encourage everyone to dig into the prepared materials for the additional detail. And with that, let me turn it over to Chris.