Q2 2025 Fidelity National Information Services Inc Earnings Call

After the speaker presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question Press Star. One again, please be advised that today's conference is being recorded I would now like to hand.

The conference over to your Speaker, Mr. George Milos head of Investor Relations. Please go ahead.

Thank you Sharon good morning, everyone. Thank you for joining us today for the second quarter of 2025 earnings Conference call.

The call is being webcast at today's news release corresponding presentation and webcast are all available on our website identify as global Dot com.

Joining me on the call. This morning are Stephanie Ferris.

Georgios Mihalos: This time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star one-one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Georgios Mihalos, head of investor relations. Please go ahead.

Operator: This time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Georgios Mihalos, Head of Investor Relations. Please go ahead.

Operator: This time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Georgios Mihalos, Head of Investor Relations. Please go ahead.

Oh, and President and James Kehoe 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.

Georgios Mihalos: Thank you, Shereen. Good morning, everyone. Thank you for joining us today for the FIS second quarter 2025 earnings conference call. The 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 Ferris, our CEO and President, and James Kehoe, 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.

George Mihalos: Thank you, Shereen. Good morning, everyone. Thank you for joining us today for the FIS second quarter 2025 earnings conference call. The 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 Ferris, our CEO and President, and James Kehoe, 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.

Shereen: Thank you, Shereen. Good morning, everyone. Thank you for joining us today for the FIS Second Quarter 2025 earnings conference call. The 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 Ferris, our CEO and President, and James Kehoe, 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 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 they are not financial measures as defined by GAAP.

A reconciliation of our non-GAAP information to the GAAP financial information presented in our earnings release.

2.

And with that I'll turn the call over to Stephanie.

Good day and welcome to the FIS second quarter 2025 earnings conference call.

Thank you George and good morning, everyone.

At this time, all participants are in a listen-only mode.

I'm excited to share our second quarter result.

After the speaker presentation, there will be a question and answer session.

Which highlight the benefits of transforming <unk> into a stronger and highly focused company.

Let me start with the headlines.

We delivered a strong quarter led by momentum in our banking business.

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. So withdraw your question press star 1 1 again.

Shereen: Also, throughout this 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 they 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.

Georgios Mihalos: Also, throughout this 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 they 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.

Also, throughout this 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 they 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.

We are executing on our future part strategy centered around client centricity operational simplification and innovation, creating greater value for both our shareholders and our clients.

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. George mihos head of investor relations. Please go ahead.

The numbers tell the story.

We delivered strong 5% revenue growth accelerating from 4% in the first quarter fueled by our increasing momentum in banking.

Thank you Shireen good morning, everyone. Thank you for joining us today for the FIS second quarter 2025 earnings conference call.

Second quarter, adjusted EBITDA exceeded our outlook with margins, improving 200 basis points sequentially.

The call is being webcast, today's news, release corresponding presentation and webcast or all available on our website at fisglobal.com.

Stephanie Ferris: Thank you, George, and good morning, everyone. I'm excited to share our second quarter results, which highlight the benefits of transforming FIS into a stronger and highly focused company. Let me start with the headline. We delivered a strong quarter led by momentum in our banking business. We are executing on our future forward strategy centered around client centricity, operational simplification, and innovation, creating greater value for both our shareholders and our clients. The numbers tell the story. We delivered strong 5% revenue growth, accelerating from 4% in the first quarter, fueled by our increasing momentum in banking. Second quarter adjusted EBITDA exceeded our outlook with margins improving 200 basis points sequentially. An adjusted EPS of $1.36 met our expectations.

Stephanie Ferris: Thank you, George, and good morning, everyone. I'm excited to share our second quarter results, which highlight the benefits of transforming FIS into a stronger and highly focused company. Let me start with the headline. We delivered a strong quarter led by momentum in our banking business. We are executing on our future forward strategy centered around client centricity, operational simplification, and innovation, creating greater value for both our shareholders and our clients. The numbers tell the story. We delivered strong 5% revenue growth, accelerating from 4% in the first quarter, fueled by our increasing momentum in banking. Second quarter adjusted EBITDA exceeded our outlook with margins improving 200 basis points sequentially. An adjusted EPS of $1.36 met our expectations.

Stephanie Ferris: Thank you, George, and good morning, everyone. I'm excited to share our second quarter results, which highlight the benefits of transforming FIS into a stronger and highly focused company. Let me start with the headline. We delivered a strong quarter led by momentum in our banking business. We are executing on our future forward strategy centered around client centricity, operational simplification, and innovation, creating greater value for both our shareholders and our clients. The numbers tell the story. We delivered strong 5% revenue growth, accelerating from 4% in the first quarter, fueled by our increasing momentum in banking. Second quarter adjusted EBITDA exceeded our outlook with margins, improving 200 basis points sequentially. An adjusted EPS of $1.36 met our expectation. In April, we announced the strategic acquisition of Global Payments Issuer business and the sale of our minority whirlpool stake.

And adjusted EPS of $1 36 met our expectation.

Joining me on the call this morning are Stephanie Ferris our CEO and president and James KO CFO.

In April we announced the strategic acquisition of global payments issuer business and the sale of our minority world pay stake.

Stephanie will lead the call with a strategic and operational update.

Followed by James who will review our financial results.

Turning to slide 3.

Transactions that align with our operational simplification strategy, while strengthening our financial profile and significantly improving our free cash flow generation.

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.

We returned $460 million to shareholders through share repurchases and dividends in the second quarter.

And we remain on track to meet our $1 2 billion dollar target for the year.

The company undertakes, no, obligation to update, any forward-looking statements. Whether it was a result of new information, future events or otherwise, except as required, by law.

Our strong first half results and implementation pipeline leave us increasingly confident in achieving our increased full year outlook.

Please refer to the safe. Harbor language.

Now, let's turn to slide six for a discussion on the momentum we are seeing in the market.

Also, throughout this call, we will be presenting non-gaap information, including adjusted ibitta adjusted net, earnings, adjusted net, earnings per share and adjusted free cash flow.

Our strategic execution is translating into marketplace success across the complete money lifecycle with several prestigious new engagements, including competitive takeaway.

Stephanie Ferris: In April, we announced the strategic acquisition of Global Payments' issuer business and the sale of our minority Worldpay stake, transactions that align with our operational simplification strategy while strengthening our financial profile and significantly improving our free cash flow generation. We returned $460 million to shareholders through share repurchases and dividends in the second quarter, and we remain on track to meet our $1.2 billion target for the year. Our strong first half results and implementation pipeline leave us increasingly confident in achieving our increased full year outlook. Now let's turn to slide six for a discussion on the momentum we are seeing in the market. Our strategic execution is translating into marketplace success across the complete money lifecycle, with several prestigious new engagements, including competitive takeaways.

In April, we announced the strategic acquisition of Global Payments' issuer business and the sale of our minority Worldpay stake, transactions that align with our operational simplification strategy while strengthening our financial profile and significantly improving our free cash flow generation. We returned $460 million to shareholders through share repurchases and dividends in the second quarter, and we remain on track to meet our $1.2 billion target for the year. Our strong first half results and implementation pipeline leave us increasingly confident in achieving our increased full year outlook. Now let's turn to slide six for a discussion on the momentum we are seeing in the market. Our strategic execution is translating into marketplace success across the complete money lifecycle, with several prestigious new engagements, including competitive takeaways.

These are important financial performance measures for the company but they are not Financial measures as defined by Gap.

Stephanie Ferris: Transactions that align with our operational simplification strategy, while strengthening our financial profile and significantly improving our free cash flow generation. We returned $460 million to shareholders through share repurchases and dividends in the second quarter, and we remain on track to meet our $1.2 billion target for the year. Our strong first half results and implementation pipeline leave us increasingly confident in achieving our increased full-year outlook. Now let's turn to slide six for a discussion on the momentum we are seeing in the market. Our strategic execution is translating into marketplace success across the complete money lifecycle, with several prestigious new engagements including competitive takeaways. Beginning with money at rest, we secured a major consolidation win with two premier Northeast financial institutions coming together to form a $25 billion regional banking leader.

Reconciliation of our non-gaap information to the Gap. Financial information presented in our earnings release,

Getting with money at raft, we secured a major consolidation win with two premier northeast financial institutions coming together to form a $25 billion regional banking leader.

And with that, I'll turn the call over to Stephanie.

Thank you, George and good morning, everyone.

I'm excited to share our second quarter results.

They selected us as their core provider after a highly competitive evaluation further validating our position as the partner of choice for bank consolidation.

Which highlights the benefits of transforming FIS into a stronger and highly focused company.

Let me start with the headline.

Our digital solutions continued their strong sales momentum with double digit ATV growth in the quarter.

We delivered a strong quarter, led by momentum and our banking business.

A top 20 U S bank selected our digital one offering to assist in streamlining and enhancing its operation.

We are executing on our future. Ford strategy centered around client centricity operational simplification and Innovation creating greater value for both our shareholders and our clients.

And our digital one commercial offering was selected by the U S subsidiary of a large Asian bank.

Moving the money in motion.

Our office of the CFO capabilities are resonating across a diverse range of clients.

The numbers tell the story. We delivered strong, 5% Revenue growth accelerating from 4% in the first quarter fueled by our increasing momentum, in banking.

Stephanie Ferris: Beginning with money at rest, we secured a major consolidation win with two premier Northeast financial institutions coming together to form a $25 billion regional banking leader. They selected us as their core provider after highly competitive evaluation, further validating our position as the partner of choice for bank consolidation. Our digital solutions continued their strong sales momentum with double-digit ACV growth in the quarter. A top 20 US bank selected our Digital One offering to assist in streamlining and enhancing its operations, and our Digital One Commercial offering was selected by the US subsidiary of a large Asian bank. Moving to money in motion, our Office of the CFO capabilities are resonating across a diverse range of clients. In the second quarter, one of the world's leading energy technology companies selected our award-winning Treasury solution for global cash and risk management needs.

Beginning with money at rest, we secured a major consolidation win with two premier Northeast financial institutions coming together to form a $25 billion regional banking leader. They selected us as their core provider after highly competitive evaluation, further validating our position as the partner of choice for bank consolidation. Our digital solutions continued their strong sales momentum with double-digit ACV growth in the quarter. A top 20 US bank selected our Digital One offering to assist in streamlining and enhancing its operations, and our Digital One Commercial offering was selected by the US subsidiary of a large Asian bank. Moving to money in motion, our Office of the CFO capabilities are resonating across a diverse range of clients. In the second quarter, one of the world's leading energy technology companies selected our award-winning Treasury solution for global cash and risk management needs.

In the second quarter, one of the world's leading energy technology companies selected our award winning Treasury solution for global cash and risk management needs.

Second quarter adjusted ibida, exceeded our Outlook with margins improving, 200 basis points sequentially.

An adjusted EPS of a136 met our expectation.

Additionally.

Stephanie Ferris: They selected us as their core provider after highly competitive evaluation, further validating our position as the partner of choice for bank consolidation. Our digital solutions continued their strong sales momentum with double-digit ACV growth in the quarter. A top 20 US bank selected our Digital One offering to assist in streamlining and enhancing its operations, and our Digital One commercial offering was selected by the US subsidiary of a large Asian bank. Moving to money in motion, our Office of the CFO capabilities are resonating across a diverse range of clients. In the second quarter, one of the world's leading energy technology companies selected our award-winning Treasury solution for global cash and risk management needs. Additionally, multiple European banks chose our risk and reporting solutions, including Balance Sheet Manager, for regulatory and compliance needs. Our payments capabilities are also in demand globally.

Multiple European banks chose our risk and reporting solutions, including balance sheet manager for regulatory and compliance needs.

In April, we announced the Strategic acquisition of Global Payments, issuer business, and the sale of our minority World pay stake.

Our payments capabilities are also in demand globally for.

For example, a leading south Asia based bank selected us for its long term debit processing needs.

Transactions that align with our operational simplification strategy, while strengthening our financial profile and significantly, improving our free cash flow generation.

And lastly, and money at work.

We expanded our relationship with a leading financial services technology company through a multi year commitment on our private equity platform.

We returned 460 million to shareholders through share repurchases and dividends in the second quarter.

And we remain on track to meet our 1.2 billion Target for the year.

Our capability in this that's domain continue to gain momentum across the trading an asset industry, where we are taking our SaaS go to market strategy and taking share.

Our strong first half results, and implementation pipeline. Leave us increasingly confident in our increased full year outlook.

Now, let's turn to slide seven for an update on the product innovation, we are driving across Sapphire.

Momentum, we are seeing in the market.

Accelerating the product why we buy wheel through our build by partner strategy is strengthening our competitive position.

Stephanie Ferris: Additionally, multiple European banks chose our risk and reporting solutions, including Balance Sheet Manager, for regulatory and compliance needs. Our payments capabilities are also in demand globally. For example, a leading South Asia-based bank selected us for its long-term debit processing needs. And lastly, in money at work, we expanded our relationship with a leading financial services technology company through a multi-year commitment on our private equity platform. Our capability in this domain continued to gain momentum across the trading and asset industry, where we are taking our SaaS go-to-market strategy and taking share. Now let's turn to slide seven for an update on the product innovation we are driving across FIS. Accelerating the product flywheel through our build-buy partner strategy is strengthening our competitive position. We build what differentiates us and buy and partner what accelerates us. And our buy strategy is delivering.

Additionally, multiple European banks chose our risk and reporting solutions, including Balance Sheet Manager, for regulatory and compliance needs. Our payments capabilities are also in demand globally. For example, a leading South Asia-based bank selected us for its long-term debit processing needs. And lastly, in money at work, we expanded our relationship with a leading financial services technology company through a multi-year commitment on our private equity platform. Our capability in this domain continued to gain momentum across the trading and asset industry, where we are taking our SaaS go-to-market strategy and taking share. Now let's turn to slide seven for an update on the product innovation we are driving across FIS. Accelerating the product flywheel through our build-buy partner strategy is strengthening our competitive position. We build what differentiates us and buy and partner what accelerates us. And our buy strategy is delivering.

Our strategic execution is translating into Marketplace success across the complete money life cycle.

We build what differentiates us and buy and partner would accelerate that.

With several prestigious new engagements, including competitive takeaways.

Beginning with money at rest.

And our buy strategy is delivering.

Stephanie Ferris: For example, a leading South Asia-based bank selected us for its long-term debit processing needs. And lastly, in money at work, we expanded our relationship with a leading financial services technology company through a multi-year commitment on our private equity platform. Our capability in this domain continued to gain momentum across the trading and asset industry, where we are taking our SaaS go-to-market strategy and taking share. Now let's turn to slide seven for an update on the product innovation we are driving across FIS. Accelerating the product flywheel through our build-buy-partner strategy is strengthening our competitive position. We build what differentiates us and buy and partner what accelerates us. And our buy strategy is delivering. The issuer acquisition and whirlpool sale received US regulatory clearance, eliminating any prospect of a lengthy secondary request. We continue to work with international regulators, and the acquisition close remains on schedule.

The issuer acquisition and World pace. They all received U S regulatory clearance, eliminating any prospect of a lengthy secondary request.

We secured a major consolidation win with 2 premiere, Northeast financial institutions coming together to form a 25 billion dollar, Regional banking leader.

We continue to work with the international regulators and the acquisition close remains on schedule.

They selected us at their core provider after highly competitive evaluation further validating our position as the partner of choice for Bank consolidation.

This transaction adds best in class credit issuing solutions to our end to end banking offerings, creating immediate cross sell opportunity.

Our digital Solutions continued their strong sales momentum with double-digit ACV growth in the quarter.

And complements our broad suite of best in class solutions strengthening our position as the partner of choice with unmatched capabilities across both banking and payments.

A top 20 US Bank selected, our digital 1 offering to assist in streamlining and enhancing its operations.

Additionally, we recently acquired Everling, a leading provider of integrated payment solutions to Canadian financial institution further executing on our international expansion strategy.

And our digital. 1 commercial offering was selected by the US subsidiary of a large Asian Bank.

Moving the money in motion.

Our office of the CFO capabilities are resonating across a diverse range of clients.

We have a robust pipeline of M&A option opportunities across our key growth vectors with additional acquisitions expected shortly.

Stephanie Ferris: The issuer acquisition and Worldpay sale received US regulatory clearance, eliminating any prospect of a lengthy secondary request. We continue to work with international regulators, and the acquisition close remains on schedule. This transaction adds best-in-class credit-issuing solutions to our end-to-end banking offerings, creating immediate cross-sell opportunities and complements our broad suite of best-in-class solutions, strengthening our position as the partner of choice with unmatched capabilities across both banking and payments. Additionally, we recently acquired Everlink, a leading provider of integrated payment solutions to Canadian financial institutions, further executing on our international expansion strategy. We have a robust pipeline of M&A opportunities across our key growth vectors, with additional acquisitions expected shortly. Our build-and-partner strategy is accelerating innovation.

The issuer acquisition and Worldpay sale received US regulatory clearance, eliminating any prospect of a lengthy secondary request. We continue to work with international regulators, and the acquisition close remains on schedule. This transaction adds best-in-class credit-issuing solutions to our end-to-end banking offerings, creating immediate cross-sell opportunities and complements our broad suite of best-in-class solutions, strengthening our position as the partner of choice with unmatched capabilities across both banking and payments. Additionally, we recently acquired Everlink, a leading provider of integrated payment solutions to Canadian financial institutions, further executing on our international expansion strategy. We have a robust pipeline of M&A opportunities across our key growth vectors, with additional acquisitions expected shortly. Our build-and-partner strategy is accelerating innovation.

In the second quarter 1, of the world's leading energy technology companies, selected our award-winning treasury solution for Global cache and risk management needs.

Additionally.

Our building partner strategy is accelerating innovation.

In May we launched our money movement hub, our solution that simplifies payment acceptance and management for banks of all sizes through Universal API.

Multiple European Banks chose our risk and Reporting Solutions including balance sheet manager for Regulatory and compliance needs.

Stephanie Ferris: This transaction adds best-in-class credit issuing solutions to our end-to-end banking offerings, creating immediate cross-sell opportunity. And complements our broad suite of best-in-class solutions, strengthening our position as the partner of choice with unmatched capabilities across both banking and payments. Additionally, we recently acquired Everlink, a leading provider of integrated payment solutions to Canadian financial institutions, further executing on our international expansion strategy. We have a robust pipeline of M&A opportunities across our key growth sectors, with additional acquisitions expected shortly. Our build and partner strategy is accelerating innovation. In May, we launched our Money Movement Hub, our solution that simplifies payment acceptance and management for banks of all sizes through a universal API, allowing banks to seamlessly integrate with payment networks and manage multiple payment types.

Our payments capabilities are also in demand globally.

Allowing banks to seamlessly integrate with payment network and manage multiple payment types.

For example, a leading South Asia, Base bank selected us for its long-term debit processing needs.

Last week, we announced we're expanding money movement hub capabilities to include digital assets through our partnership with circle Internet group, enabling banks to transact in U S. D C for both domestic and cross border payments.

And lastly, and money at work.

We expanded our relationship with the leading financial services technology company through a multi-year commitment on our private equity platform.

This perfectly illustrates how our build and partner strategies aligned to enhance the entire money lifecycle and position us to expand into digital currency.

Our capability. In this, this domain continue to gain momentum across the trading and asset industry.

where we are taking our SAS, go to market strategy, to in taking share,

We are driving AI innovation throughout the enterprise.

Building on the success of Treasury G. P. T. We are on track to launch our banker assist solution by year end, the igen take AI platform for commercial banking that Embeds intelligent voice powered assistant directly into client interactions.

now, let's turn to slide 7 for an update on the product Innovation, we are driving across FIS

Stephanie Ferris: In May, we launched our Money Movement Hub, our solution that simplifies payment acceptance and management for banks of all sizes through a universal API, allowing banks to seamlessly integrate with payment networks and manage multiple payment types. Last week, we announced we're expanding Money Movement Hub capabilities to include digital assets through our partnership with Circle Internet Group, enabling banks to transact in USDC for both domestic and cross-border payments. This perfectly illustrates how our build-and-partner strategies align to enhance the entire money lifecycle and position us to expand into digital currency. We are driving AI innovation throughout the enterprise. Building on the success of Treasury GPT, we are on track to launch our Banker Assist solution by year-end, the agentic AI platform for commercial banking that embeds intelligent voice-powered assistants directly into client interaction.

In May, we launched our Money Movement Hub, our solution that simplifies payment acceptance and management for banks of all sizes through a universal API, allowing banks to seamlessly integrate with payment networks and manage multiple payment types. Last week, we announced we're expanding Money Movement Hub capabilities to include digital assets through our partnership with Circle Internet Group, enabling banks to transact in USDC for both domestic and cross-border payments. This perfectly illustrates how our build-and-partner strategies align to enhance the entire money lifecycle and position us to expand into digital currency. We are driving AI innovation throughout the enterprise. Building on the success of Treasury GPT, we are on track to launch our Banker Assist solution by year-end, the agentic AI platform for commercial banking that embeds intelligent voice-powered assistants directly into client interaction.

Accelerating the product flywheel flywheel through our build by partner strategy is strengthening our competitive position.

The response on our MRO conference was tremendous with.

We build what differentiates us and buy and partner, what accelerates us?

With significant customer interest in pipeline validating this AI investment in.

And our buy strategy is delivering.

Stephanie Ferris: Last week, we announced we're expanding Money Movement Hub capabilities to include digital assets through our partnership with Circle Internet Group, enabling banks to transact in USDC for both domestic and cross-border payments. This perfectly illustrates how our build and partner strategies align to enhance the entire money lifecycle and position us to expand into digital currency. We are driving AI innovation throughout the enterprise. Building on the success of Treasury GPT, we are on track to launch our Banker Assist solution by year-end, the agentic AI platform for commercial banking that embeds intelligent voice-powered assistance directly into client interaction. The response at our Emerald Conference was tremendous, with significant customer interest and pipeline validating this AI investment. In July, we upgraded our Treasury GPT offering with enhanced risk reporting and liquidity management tools.

In July we upgraded our Treasury G P T offering with enhanced risk reporting and liquidity management tools.

The issuer acquisition and World pay sale received us regulatory clearance eliminating any Prospect of a lengthy. Secondary request.

We now have multiple AI pilots across banking and capital markets with additional product announcements coming throughout the year.

We continue to work with International regulators and the acquisition closed remains on schedule.

Our build by partner strategy is accelerating innovation strengthening our market position and expanding our capabilities across the complete money lifecycle.

This transaction adds best-in-class credit issuing solutions to our end-to-end banking offerings, creating immediate cross-sell opportunities.

In summary, our strategy is working and our clients are responding.

We're confident in our ability to deliver sustained growth enhanced profitability and increasing shareholder return.

and complements our broad Suite of best-in-class solutions, strengthening our position as the partner of choice with unmatched capabilities, across both Banking and payments.

<unk> will now take you through our financials and increased outlook James.

Thank you Stephanie and good morning.

Stephanie Ferris: The response at our Emerald Conference was tremendous, with significant customer interest and pipeline validating this AI investment. In July, we upgraded our Treasury GPT offering with enhanced risk reporting and liquidity management tools. We now have multiple AI pilots across banking and capital markets, with additional product announcements coming throughout the year. Our build-buy partner strategy is accelerating innovation, strengthening our market position, and expanding our capabilities across the complete money lifecycle. In summary, our strategy is working, and our clients are responding. We're confident in our ability to deliver sustained growth, enhanced profitability, and increasing shareholder returns. James will now take you through our financials and increased outlook. James.

The response at our Emerald Conference was tremendous, with significant customer interest and pipeline validating this AI investment. In July, we upgraded our Treasury GPT offering with enhanced risk reporting and liquidity management tools. We now have multiple AI pilots across banking and capital markets, with additional product announcements coming throughout the year. Our build-buy partner strategy is accelerating innovation, strengthening our market position, and expanding our capabilities across the complete money lifecycle. In summary, our strategy is working, and our clients are responding. We're confident in our ability to deliver sustained growth, enhanced profitability, and increasing shareholder returns. James will now take you through our financials and increased outlook. James.

additionally, we recently acquired everlink a leading provider of integrated Payment Solutions to Canadian financial institutions further executing on our International expansion strategy,

I'll begin on slide nine with an overview of our second quarter results.

Revenue grew 5% to $2 $6 billion.

We have a robust pipeline of m&a opportunities across our key growth vectors with additional Acquisitions expected shortly.

Exceeding our outlook, thanks to outperformance from our banking business.

Our build and partner strategy is accelerating innovation.

Stephanie Ferris: We now have multiple AI pilots across banking and capital markets, with additional product announcements coming throughout the year. Our build-buy-partner strategy is accelerating innovation, strengthening our market position, and expanding our capabilities across the complete money lifecycle. In summary, our strategy is working, and our clients are responding. We're confident in our ability to deliver sustained growth, enhanced profitability, and increasing shareholder returns. James will now take you through our financials and increased outlook. James.

Adjusted EBITDA also grew 5% and exceeded the top end of our outlook range.

In may, we launched our money movement Hub, our solution, that simplifies payment, acceptance and management for banks of all sizes through a universal API.

EBITDA margin was flat year over year, but improved sequentially by approximately 200 basis points.

Allowing Banks to seamlessly integrate with payment networks and manage multiple payment types.

Adjusted EPS of $1.36 came in at the midpoint of our range as operational strength was partly offset by higher D&A.

Last week, we announced our plans to expand money movement hub capabilities to include digital assets. Through our partnership with Circle Internet Group, we are enabling banks to transact in USDC for both domestic and cross-border payments.

Free cash flow was $292 million with a cash conversion rate of 52%.

James Kehoe: Thank you, Stephanie, and good morning. I'll begin on slide nine with an overview of our second quarter results. Revenue grew 5% to $2.6 billion, exceeding our outlook thanks to outperformance from our banking business. Adjusted EBITDA also grew 5% and exceeded the top end of our outlook range. EBITDA margin was flat year-over-year but improved sequentially by approximately 200 basis points. Adjusted EPS of $1.36 came in at the midpoint of our range as operational strength was partly offset by higher D&A. Free cash flow was $292 million, with a cash conversion rate of 52%. Cash tax payments were much higher this year, resulting in a 23-point headwind. On a year-to-date basis, cash conversion is 61% compared to 53% in the prior year period, as our working capital improvement programs are starting to drive benefits.

James Kehoe: Thank you, Stephanie, and good morning. I'll begin on slide nine with an overview of our second quarter results. Revenue grew 5% to $2.6 billion, exceeding our outlook thanks to outperformance from our banking business. Adjusted EBITDA also grew 5% and exceeded the top end of our outlook range. EBITDA margin was flat year-over-year but improved sequentially by approximately 200 basis points. Adjusted EPS of $1.36 came in at the midpoint of our range as operational strength was partly offset by higher D&A. Free cash flow was $292 million, with a cash conversion rate of 52%. Cash tax payments were much higher this year, resulting in a 23-point headwind. On a year-to-date basis, cash conversion is 61% compared to 53% in the prior year period, as our working capital improvement programs are starting to drive benefits.

James Kehoe: Thank you, Stephanie, and good morning. I'll begin on slide nine with an overview of our second quarter results. Revenue grew 5% to $2.6 billion, exceeding our outlook thanks to outperformance from our banking business. Adjusted EBITDA also grew 5% and exceeded the top end of our outlook range. EBITDA margin was flat year over year, but improved sequentially by approximately 200 basis points. Adjusted EPS of $1.36 came in at the midpoint of our range, as operational strength was partly offset by higher D&A. Free cash flow was $292 million, with a cash conversion rate of 52%. Cash tax payments were much higher this year, resulting in a 23-point headwind. On a year-to-date basis, cash conversion is 61% compared to 53% in the prior year period, as our working capital improvement programs are starting to drive benefits.

This perfectly illustrates how our build and partner, strategies aligned to enhance the entire money life cycle and position us to expand into digital currency.

Cash tax payments were much higher this year, resulting in a 23 point headwind.

We are driving AI Innovation throughout the Enterprise.

On a year to date basis cash conversion was 61% compared to 53% in the prior year period.

Building on the success of Treasury GPT.

As our working capital improvement programs are starting to drive benefits.

We are on track to launch our Banker assist Solution. By year, end, the agentic AI platform for Commercial Banking, that embeds intelligence voice, powered assistance directly into client interaction.

As a reminder.

The response of our Emerald conference was tremendous.

Cash flow is seasonally stronger in the second half of the year as first half cash flow includes outflows for bonus on higher tax payments.

With significant customer interest in pipeline validating, this AI investment.

<unk>, we are reiterating our full year cash conversion target of 82% to 85%.

In July, we upgraded our treasury GPT offering with enhanced risk, reporting, and liquidity management tools.

Capital expenditures were $218 million in the quarter, 8% of revenue and in line with our expectations.

We now have multiple AI Pilots across Banking and capital markets with additional product announcements coming throughout the year.

Yeah.

Leverage increased modestly quarter over quarter to three times.

Guys can you re donaldson.

In summary, our strategy is working, and our clients are responding.

We can hear you again.

Oh, okay.

We're confident in our ability to deliver sustained growth, enhance profitability, increasing shareholder returns.

Perfect.

Hi, again apologies for the technical issues.

James will now take you through our financials and increased Outlook, James.

I think your last heard me finish on the leverage.

Thank you, Stephanie and good morning.

James Kehoe: As a reminder, cash flow is seasonally stronger in the second half of the year, as first-half cash flow includes outflows for bonus and higher tax payments. Importantly, we are reiterating our full-year cash conversion target of 82% to 85%. Capital expenditures were $218 million in the quarter, 8% of revenue, and in line with our expectations. Leverage increased modestly quarter over quarter to 3x.

As a reminder, cash flow is seasonally stronger in the second half of the year, as first-half cash flow includes outflows for bonus and higher tax payments. Importantly, we are reiterating our full-year cash conversion target of 82% to 85%. Capital expenditures were $218 million in the quarter, 8% of revenue, and in line with our expectations. Leverage increased modestly quarter over quarter to 3x.

James Kehoe: As a reminder, cash flow is seasonally stronger in the second half of the year, as first half cash flow includes outflows for bonus and higher tax payments. Importantly, we are reiterating our full-year cash conversion target of 82% to 85%. Capital expenditures were $218 million in the quarter, 8% of revenue and in line with our expectations. Leverage increased modestly quarter over quarter to three times.

So I'll just start there so leverage increased modestly quarter over quarter.

I'll begin on slide 9 with an overview of our second quarter results.

For three times, excluding the impact of currency fluctuations the leverage ratio was two nine times and we continue to target long term ratio of two eight times lastly, we returned $460 million to shareholders, including $246 million of share repurchases.

Revenue grew 5% to 2.6 billion dollars exceeding our Outlook. Thanks to outperformance from our banking business.

Adjusted ebita also grew 5% and exceeded the top end of our Outlook range.

And we are reaffirming our $1 2 billion annual target for share repurchases.

Evita margin was flat year-over-year, but improved sequentially by approximately 200 basis points.

Turning now to the segment results on slide 10.

Georgios Mihalos: Guys, can you read the hours in?

George Mihalos: Guys, can you read the hours in?

Shereen: Guys, can you read the Alice in?

Stephanie Ferris: We can hear you again, sir.

Operator: We can hear you again, sir.

Georgios Mihalos: We can hear you again, sir.

Adjusted revenue growth of 5% was driven by recurring revenue growth of 6% with recurring revenue up 81% of total revenue.

Shereen: Oh, OK. Perfect.

Georgios Mihalos: Oh, okay. Perfect. Okay, let me try again.

George Mihalos: Oh, okay. Perfect.

Adjusted EPS of $1.36 came in at the midpoint of our range as operational strength was partly offset by higher DNA.

George Mihalos: Okay, let me try again.

James Kehoe: OK, let me try again. Apologies for the technical issues. I think you last heard me finish on leverage. So I'll just start there. So leverage increased modestly quarter over quarter to three times. Excluding the impact of currency fluctuations, the leverage ratio was 2.9 times, and we continue to target a long-term ratio of 2.8 times. Lastly, we returned $460 million to shareholders, including $246 million of share repurchases, and we're reaffirming our $1.2 billion annual target for share repurchases. Turning now to the segment results on slide 10, adjusted revenue growth of 5% was driven by recurring revenue growth of 6%, with recurring revenue at 81% of total revenue. Banking grew 6% in the quarter, coming in above the high end of our outlook range.

James Kehoe: Sorry about that. Apologies for the technical issues. I think you last heard me finish on leverage. So I'll just start there. So leverage increased modestly quarter over quarter to 3x. Excluding the impact of currency fluctuations, the leverage ratio was 2.9x, and we continue to target a long-term ratio of 2.8x. Lastly, we returned $460 million to shareholders, including $246 million of share repurchases, and we're reaffirming our $1.2 billion annual target for share repurchases. Turning now to the segment results on slide 10, adjusted revenue growth of 5% was driven by recurring revenue growth of 6%, with recurring revenue at 81% of total revenue. Banking grew 6% in the quarter, coming in above the high end of our outlook range. The accelerated growth is primarily driven by an improvement in commercial excellence, including the implementation of previously signed deals and continued strong client retention.

Sorry about that. Apologies for the technical issues. I think you last heard me finish on leverage. So I'll just start there. So leverage increased modestly quarter over quarter to 3x. Excluding the impact of currency fluctuations, the leverage ratio was 2.9x, and we continue to target a long-term ratio of 2.8x. Lastly, we returned $460 million to shareholders, including $246 million of share repurchases, and we're reaffirming our $1.2 billion annual target for share repurchases. Turning now to the segment results on slide 10, adjusted revenue growth of 5% was driven by recurring revenue growth of 6%, with recurring revenue at 81% of total revenue. Banking grew 6% in the quarter, coming in above the high end of our outlook range. The accelerated growth is primarily driven by an improvement in commercial excellence, including the implementation of previously signed deals and continued strong client retention.

Banking grew 6% in the quarter coming in above the high end of our outlook range.

Free cash flow was 292 million with a cash conversion rate of 52%.

The accelerated growth is primarily driven by an improvement in commercial excellence.

Cash tax payments were much higher this year resulting in a 23-point headwind.

Including the implementation of previously signed deals and continued strong client retention.

On a year-to-date basis. Cash conversion is 61% compared to 53% in the prior year period.

The result also includes a one percentage point benefit from the shift of some EBT revenue from the third quarter to the second.

As our working capital Improvement, programs are starting to drive benefits.

Recurring revenue growth continued to outpace adjusted revenue posting a strong growth of 7%.

As a reminder, cash flow is seasonally stronger in the second half of the year as first half cash flow, includes outflows for bonus and higher tax payments.

Nonrecurring revenue increased 5% reflecting growth in license revenue.

Importantly, we are reiterating our full year cash conversion Target of 82 to 85%.

Banking EBITDA margin contracted by 70 basis points climb.

Capital expenditures were, 218 million in the quarter 8% of Revenue and in line with our expectations

Primarily due to a bad debt charge in the quarter.

We anticipate a return to emerge and expansion in the third quarter with further improvement in the fourth quarter, reflecting an easier comparison.

Leveraging increased modestly quarter over quarter to 3 times.

James Kehoe: The accelerated growth is primarily driven by an improvement in commercial excellence, including the implementation of previously signed deals and continued strong client retention. The result also includes a 1 percentage point benefit from the shift of some EBT revenue from the third quarter to the second. Recurring revenue growth continued to outpace adjusted revenue, posting a strong growth of 7%. And non-recurring revenue increased 5%, reflecting growth in license revenue. Banking EBITDA margin contracted by 70 basis points, primarily due to a bad debt charge in the quarter. We anticipate a return to margin expansion in the third quarter, with further improvement in the fourth quarter, reflecting an easier comparison. Turning now to capital markets, adjusted revenue growth came in at 5%, slightly below our expectations, with recurring revenue growth of 5%.

Turning now to capital markets adjust.

Adjusted revenue growth came in at 5% slightly below our expectations with recurring revenue growth of 5%.

James Kehoe: The result also includes a 1 percentage point benefit from the shift of some EBT revenue from the third quarter to the second. Recurring revenue growth continued to outpace adjusted revenue, posting a strong growth of 7%. Non-recurring revenue increased 5%, reflecting growth in license revenue. Banking EBITDA margin contracted by 70 basis points, primarily due to a bad debt charge in the quarter. We anticipate a return to margin expansion in the third quarter, with further improvement in the fourth quarter, reflecting an easier comparison. Turning now to capital markets, adjusted revenue growth came in at 5%, slightly below our expectations, with recurring revenue growth of 5%. Recurring revenue was negatively impacted by a temporary slowdown in our lending business as we faced lower loan syndication activity as a result of macroeconomic uncertainty.

The result also includes a 1 percentage point benefit from the shift of some EBT revenue from the third quarter to the second. Recurring revenue growth continued to outpace adjusted revenue, posting a strong growth of 7%. Non-recurring revenue increased 5%, reflecting growth in license revenue. Banking EBITDA margin contracted by 70 basis points, primarily due to a bad debt charge in the quarter. We anticipate a return to margin expansion in the third quarter, with further improvement in the fourth quarter, reflecting an easier comparison. Turning now to capital markets, adjusted revenue growth came in at 5%, slightly below our expectations, with recurring revenue growth of 5%. Recurring revenue was negatively impacted by a temporary slowdown in our lending business as we faced lower loan syndication activity as a result of macroeconomic uncertainty.

Recurring revenue was negatively impacted by a temporary slowdown in our lending business as we face lower loan syndication activity as a result of macroeconomic uncertainty.

Ladies and Gentlemen, please stand by your conference will begin momentarily.

The good news is that we have seen a rebound in July with lending activity returning more in line with the strong pace, we experienced in the first quarter.

Capital markets adjusted EBITDA margin contracted 50 basis points, primarily reflecting temporary margin margin dilution from a prior year acquisition.

We are projecting a return to margin expansion in the third quarter.

Moving now to our year to date results on slide 11.

We are pleased with our first half financial results year to date, we have delivered steady and consistent results with both adjusted revenue and recurring revenue growing 5%.

Once again, ladies and Gentlemen, please remain on the line, your conference will resume momentarily.

James Kehoe: Recurring revenue was negatively impacted by a temporary slowdown in our lending business, as we faced lower loan syndication activity as a result of macroeconomic uncertainty. The good news is that we have seen a rebound in July, with lending activity returning more in line with the strong pace we experienced in the first quarter. Capital markets adjusted EBITDA margin contracted 50 basis points, primarily reflecting temporary margin dilution from a prior year acquisition. We are projecting a return to margin expansion in the third quarter. Moving now to our year-to-date results on slide 11. We are pleased with our first half financial results. Year to date, we have delivered steady and consistent results, with both adjusted revenue and recurring revenue growing 5%. Banking growth of 4% is in line with our full-year expectation, and we are confident in delivering accelerating revenue growth over the second half of the year.

Banking growth of 4% is in line with our full year expectation and we are confident in delivering accelerating revenue growth over the second half of the year.

James Kehoe: The good news is that we have seen a rebound in July, with lending activity returning more in line with the strong pace we experienced in the first quarter. Capital markets Adjusted EBITDA margin contracted 50 basis points, primarily reflecting temporary margin dilution from a prior year acquisition. We are projecting a return to margin expansion in the third quarter. Moving now to our year-to-date results on slide 11, we are pleased with our first half financial results. Year-to-date, we have delivered steady and consistent results, with both adjusted revenue and recurring revenue growing 5%. Banking growth of 4% is in line with our full-year expectation, and we are confident in delivering accelerating revenue growth over the second half of the year. In capital markets, we are pleased with the strong first-half growth of 7% and anticipate a step-up in recurring revenue growth to underpin the second-half performance.

The good news is that we have seen a rebound in July, with lending activity returning more in line with the strong pace we experienced in the first quarter. Capital markets Adjusted EBITDA margin contracted 50 basis points, primarily reflecting temporary margin dilution from a prior year acquisition. We are projecting a return to margin expansion in the third quarter. Moving now to our year-to-date results on slide 11, we are pleased with our first half financial results. Year-to-date, we have delivered steady and consistent results, with both adjusted revenue and recurring revenue growing 5%. Banking growth of 4% is in line with our full-year expectation, and we are confident in delivering accelerating revenue growth over the second half of the year. In capital markets, we are pleased with the strong first-half growth of 7% and anticipate a step-up in recurring revenue growth to underpin the second-half performance.

In capital markets. We are pleased with the strong first half growth of 7% and anticipate a step up in recurring revenue growth to underpin the second half performance.

Turning now to our full year outlook on slide 12.

Yeah.

We are raising our full year outgrowth outlook ranges for revenue adjusted EBITDA and adjusted EPS to reflect our strong second quarter, our recently closed acquisition and the favorable impact of currencies.

Once again, ladies and gentlemen.

Please remain on the line, your conference will resume momentarily.

We are raising our revenue target by $75 million to $85 million, resulting in adjusted revenue growth of 4.8 to five 3%.

We now anticipate banking revenue growth of 4% to 4.5% an increase from 3.7 before forward previously.

James Kehoe: In capital markets, we are pleased with the strong first half growth of 7% and anticipate a step up in recurring revenue growth to underpin the second half performance. Turning now to our full-year outlook on slide 12. We are raising our full-year outlook ranges for revenue, adjusted EBITDA, and adjusted EPS to reflect a strong second quarter, a recently closed acquisition, and the favorable impact of currencies. We are raising our revenue target by $75 to $85 million, resulting in adjusted revenue growth of 4.8% to 5.3%. We now anticipate banking revenue growth of 4% to 4.5%, an increase from 3.7% to 4.4% previously. For capital markets, we are reaffirming our outlook of 6.5% to 7%, consistent with the performance we have seen in the first half of the year.

For capital markets, we are reaffirming our outlook of six 5% to 7% consistent with the performance we have seen in the first half of the year.

James Kehoe: Turning now to our full-year outlook on slide 12, we are raising our full-year outlook ranges for revenue, adjusted EBITDA, and adjusted EPS to reflect a strong second quarter, a recently closed acquisition, and the favorable impact of currencies. We are raising our revenue target by $75 to 85 million, resulting in adjusted revenue growth of 4.8 to 5.3%. We now anticipate banking revenue growth of 4 to 4.5%, an increase from 3.7% to 4.4% previously. For capital markets, we are reaffirming our outlook of 6.5 to 7%, consistent with the performance we have seen in the first half of the year. Moving on to adjusted EBITDA, we are raising the low end of our full-year EBITDA outlook by $10 million to reflect the second quarter beat. We now expect full-year margin expansion of approximately 20 basis points, reflecting the margin dilutive impact of updated currency assumptions.

Turning now to our full-year outlook on slide 12, we are raising our full-year outlook ranges for revenue, adjusted EBITDA, and adjusted EPS to reflect a strong second quarter, a recently closed acquisition, and the favorable impact of currencies. We are raising our revenue target by $75 to 85 million, resulting in adjusted revenue growth of 4.8 to 5.3%. We now anticipate banking revenue growth of 4 to 4.5%, an increase from 3.7% to 4.4% previously. For capital markets, we are reaffirming our outlook of 6.5 to 7%, consistent with the performance we have seen in the first half of the year. Moving on to adjusted EBITDA, we are raising the low end of our full-year EBITDA outlook by $10 million to reflect the second quarter beat. We now expect full-year margin expansion of approximately 20 basis points, reflecting the margin dilutive impact of updated currency assumptions.

Well, ladies and Gentlemen, please remain on the line your conference will begin momentarily.

Moving on to adjusted EBITDA.

We are raising the low end of our full year EBITDA outlook by $10 billion to reflect the second quarter Beach.

We now expect full year margin expansion of approximately 20 basis points.

Reflecting the margin dilutive impact of updated currency assumptions.

While the currencies had a favorable impact on revenue of about $60 million the EBITDA impact was neutral.

This creates a margin headwind of 25 basis points.

As such.

On a constant currency basis, we are tracking in line with our prior margin expansion goal of 40 to 45 basis points, while also absorbing some dilution from closed Emily.

James Kehoe: Moving on to adjusted EBITDA, we are raising the low end of our full-year EBITDA outlook by $10 million to reflect the second quarter beat. We now expect full-year margin expansion of approximately 20 basis points, reflecting the margin dilutive impact of updated currency assumptions. While currencies had a favorable impact on revenue of about $60 million, the EBITDA impact was neutral, and this creates a margin headwind of 25 basis points. As such, on a constant currency basis, we are tracking in line with our prior margin expansion goal of 40 to 45 basis points, while also absorbing some dilution from closed M&A. We are increasing the low end of our EPS range by $0.02, and this leads to double-digit EPS growth of 10% to 11%. Consistent with prior quarters, we have provided updated modeling assumptions in the appendix.

Ladies and Gentlemen, please stand by your conference will resume momentarily.

We are increasing the low end of our EPS range by <unk> <unk>.

And this leads to double digit EPS growth of 10% to 11%.

Consistent with prior quarters, we have provided updated modeling assumptions in the appendix.

One item of note is that we have updated our estimate for non-GAAP cash expenses.

James Kehoe: While currencies had a favorable impact on revenue of about $60 million, the EBITDA impact was neutral, and this creates a margin headwind of 25 basis points. As such, on a constant currency basis, we are tracking in line with our prior margin expansion goal of 40 to 45 basis points, while also absorbing some dilution from closed M&A. We are increasing the low end of our EPS range by $0.02, and this leads to double-digit EPS growth of 10% to 11%. Consistent with prior quarters, we have provided updated modeling assumptions in the appendix. One item of note is that we have updated our estimate for non-GAAP cash expenses. The increased outlook reflects $75 million of expense related to the issuer acquisition, as well as an additional $45 million of severance expense as we advance rightsizing initiatives in anticipation of the deal close.

While currencies had a favorable impact on revenue of about $60 million, the EBITDA impact was neutral, and this creates a margin headwind of 25 basis points. As such, on a constant currency basis, we are tracking in line with our prior margin expansion goal of 40 to 45 basis points, while also absorbing some dilution from closed M&A. We are increasing the low end of our EPS range by $0.02, and this leads to double-digit EPS growth of 10% to 11%. Consistent with prior quarters, we have provided updated modeling assumptions in the appendix. One item of note is that we have updated our estimate for non-GAAP cash expenses. The increased outlook reflects $75 million of expense related to the issuer acquisition, as well as an additional $45 million of severance expense as we advance rightsizing initiatives in anticipation of the deal close.

Okay.

Guys, can you read dial this in?

The increased outlook reflects $75 million of expense related to the issuer acquisition.

Uh, you re we can hear you again sir.

Oh, okay.

Perfect.

As well as an additional $45 million of severance expense as we advance right sizing initiatives in anticipation of the deal close.

Okay, let me try again. Apologies for the technical issues. Um, I think you last heard me finish on uh, Leverage.

Importantly.

The higher non-GAAP cash expense will have no impact on our previously communicated capital return targets.

Let's now discuss our third quarter expectations on slide 13.

For the third quarter, we anticipate revenue growth of three eight to four 4% with banking three to three 5% on capital markets at five and a half to six 5%.

So I'll I'll just start there. So leveraging increase modestly quarter over quarter to 3 times, excluding the impact of currency fluctuations. The leverage ratio is 2.99, and we continue to Target a long term ratio of 2.8 times. Lastly, we returned 460 million to shareholders, including 246 million of share repurchases.

And we're reaffirming our 1.2 billion annual Target for share repurchases.

James Kehoe: One item of note is that we have updated our estimate for non-GAAP cash expenses. The increased outlook reflects $75 million of expense related to the issuer acquisition, as well as an additional $45 million of severance expense as we advance rightsizing initiatives in anticipation of the deal close. Importantly, a higher non-GAAP cash expense will have no impact on our previously communicated capital return targets. Let's now discuss our third quarter expectations on slide 13. For the third quarter, we anticipate revenue growth of 3.8% to 4.4%, with banking at 3% to 3.5% and capital markets at 5.5% to 6.5%. For banking, we are projecting moderating growth entirely due to the 100 basis point shift in revenue from the third quarter into the second.

Turning now to the segment results on slide 10.

For banking, we're projecting moderating growth entirely due to the 100 basis points shift in revenue from the third quarter into the second.

Adjusted Revenue. Growth of 5%, was driven by recurring Revenue growth of 6% with recurring Revenue at 81% of total revenue.

This implies a sequential acceleration in fourth quarter revenue growth.

banking grew 6% in the quarter, coming in above the high end of our Outlook range,

But you will recall that we're lapping 200 basis points of negative onetime items and our commercial excellence initiatives continue to drive improved outcomes.

James Kehoe: Importantly, the higher non-GAAP cash expense will have no impact on our previously communicated capital return targets. Let's now discuss our third-quarter expectations on slide 13. For the third quarter, we anticipate revenue growth of 3.8 to 4.4%, with banking at 3 to 3.5% and capital markets at 5.5 to 6.5%. For banking, we are projecting moderating growth entirely due to the 100 basis points shift in revenue from the third quarter into the second. This implies a sequential acceleration in fourth-quarter revenue growth, but you will recall that we are lapping 200 basis points of negative one-time items, and our commercial excellence initiatives continue to drive improved outcomes. For capital markets, we are projecting third-quarter growth of 5.5 to 6.5%, with the high end reflecting current lending volumes and the lower end conservatively assuming a return to second-quarter levels.

Importantly, the higher non-GAAP cash expense will have no impact on our previously communicated capital return targets. Let's now discuss our third-quarter expectations on slide 13. For the third quarter, we anticipate revenue growth of 3.8 to 4.4%, with banking at 3 to 3.5% and capital markets at 5.5 to 6.5%. For banking, we are projecting moderating growth entirely due to the 100 basis points shift in revenue from the third quarter into the second. This implies a sequential acceleration in fourth-quarter revenue growth, but you will recall that we are lapping 200 basis points of negative one-time items, and our commercial excellence initiatives continue to drive improved outcomes. For capital markets, we are projecting third-quarter growth of 5.5 to 6.5%, with the high end reflecting current lending volumes and the lower end conservatively assuming a return to second-quarter levels.

The accelerated growth is primarily driven by an improvement in commercial excellence.

For our capital markets, we are projecting third quarter growth of five and a half to six 5%.

Including the implementation of previously signed deals and continued strong client retention.

With the high end, reflecting current lending volumes and the lower end conservatively, assuming a return second quarter levels.

The result also includes a 1 percentage Point benefit from the shift of some EBT revenue from the third quarter to the second.

We are projecting adjusted EBITA margin expansion of 45 to <unk> 80.

Recurring Revenue growth continued to outpace adjusted Revenue. Posting a strong growth of 7%.

80 basis points.

And non-recurring revenue, increased 5% reflecting growth in license Revenue.

This is fully underpinned by cost actions, which have already been executed.

Banking ebita margin contracted by 70 basis points.

James Kehoe: This implies a sequential acceleration in fourth quarter revenue growth, but you will recall that we are lapping 200 basis points of negative one-time items, and our commercial excellence initiatives continue to drive improved outcomes. For capital markets, we are projecting third quarter growth of 5.5% to 6.5%, with the high end reflecting current lending volumes and the lower end conservatively assuming a return to second quarter levels. We are projecting adjusted EBITDA margin expansion of 45% to 80 basis points, and this is fully underpinned by cost actions, which have already been executed, and this gives us a high level of confidence. Lastly, we anticipate adjusted EPS of $1.46 to $1.50, representing growth of 4% to 7%, driven entirely by EBITDA growth. I'll conclude on slide 14. In summary, our second quarter results were ahead of expectations, thanks to a strong operational performance from banking.

This gives us a high level of confidence.

Primarily due to a bad debt charged in the quarter.

Lastly.

We anticipate adjusted EPS of $1 46 to $1 50.

Representing growth of 4% to 7%.

We anticipate a return to margin expansion in the third quarter, which further Improvement in the fourth quarter, reflecting an easier comparison.

Even entirely by EBITDA growth.

Turning now to Capital markets.

I'll conclude on slide 14.

In summary, our second quarter results were ahead of expectations. Thanks to our strong operational performance from banking.

Adjusted Revenue growth came in at 5% slightly below our expectations with recurring Revenue growth of 5%.

Looking forward, we are confident in our second half projections for revenue growth and margin expansion.

James Kehoe: We are projecting adjusted EBITDA margin expansion of 45 to 80 basis points, and this is fully underpinned by cost actions, which have already been executed, and this gives us a high level of confidence. Lastly, we anticipate adjusted EPS of $1.46 to 1.50, representing growth of 4% to 7%, driven entirely by EBITDA growth. I'll conclude on slide 14. In summary, our second quarter results were ahead of expectations thanks to a strong operational performance from banking. Looking forward, we are confident in our second-half projections for revenue growth and margin expansion, and we have increased our total shareholder return goal to 12% to 13%. Capital returns were $460 million in the quarter, and we are on track to achieve our $2 billion annual target. Lastly, the acquisition of the issuer solutions business remains on track. With that, operator, could you please open the line for questions?

We are projecting adjusted EBITDA margin expansion of 45 to 80 basis points, and this is fully underpinned by cost actions, which have already been executed, and this gives us a high level of confidence. Lastly, we anticipate adjusted EPS of $1.46 to 1.50, representing growth of 4% to 7%, driven entirely by EBITDA growth. I'll conclude on slide 14. In summary, our second quarter results were ahead of expectations thanks to a strong operational performance from banking. Looking forward, we are confident in our second-half projections for revenue growth and margin expansion, and we have increased our total shareholder return goal to 12% to 13%. Capital returns were $460 million in the quarter, and we are on track to achieve our $2 billion annual target. Lastly, the acquisition of the issuer solutions business remains on track. With that, operator, could you please open the line for questions?

Recurring Revenue was negatively impacted by a temporary slowdown in our lending business. As we faced lower loan, syndication activity as a result of macroeconomic uncertainty,

And we have increased our total shareholder return goal to 12% to 13%.

Capital returns were $460 million in the quarter.

The good news is that we have seen a rebound in July with lending activity returning, more in line, with the strong Pace, we experienced in the first quarter.

We are on track to achieve our $2 billion annual target.

Capital, markets adjusted. Ebita margin. Contracted 50 basis points.

Lastly, the acquisition of the issuer solutions business remains on track.

Primarily reflecting temporary margin. Margin dilution from a prior year acquisition.

With the operator could you. Please open the line for questions.

We are projecting a return to margin expansion in the third quarter.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question Press Star one again due to time restraints. We ask that you. Please limit yourself to one question and one follow up question. Please standby, while we compile the Q&A roster.

Moving now to our year-to-date results on slide 11.

James Kehoe: Looking forward, we are confident in our second half projections for revenue growth and margin expansion, and we have increased our total shareholder return goal to 12% to 13%. Capital returns were $460 million in the quarter, and we are on track to achieve our $2 billion annual target. And lastly, the acquisition of the issuer solutions business remains on track. With that, operator, could you please open the line for questions?

We are pleased with our first half Financial results year to date. We have delivered steady and consistent results with both adjusted revenue and recurring Revenue growing 5%.

And our first question will come from the line of Darrin Peller with Wolfe Research. Your line is open.

Hey, Thanks, guys nice results look putting aside just the slight.

Banking growth of 4% is in line with our full year expectation and we are confident in delivering accelerating Revenue growth over the second half of the year.

A slight pull forward dynamic banking trends on the recurring side continue to look pretty strong. So maybe help us understand number one what the key drivers are and if you really if you feel good about the core platforms right now showing sustainability.

Anticipate a step up in recurring, Revenue growth to underpin the second half performance.

What's driving the growth and what's driving the what's going to be an acceleration exiting the year beyond just comps.

Turning now to our full year, outlook on, slide 12.

Stephanie Ferris: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, press star 11 again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. Our first question will come from the line of Darren Peller with Wolf Research. Your line is open.

Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, press star 11 again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. Our first question will come from the line of Darren Peller with Wolf Research. Your line is open.

Georgios Mihalos: Thank you. As a reminder, to ask a question, please press star one-one on your telephone and wait for your name to be announced. To withdraw your question, press star one-one again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. And our first question will come from the line of Darren Peller with Wolf Research. Your line is open.

And then maybe add onto that a little bit more around the tuck in I think you mentioned just I don't know if there's anything you could help us with sizing and what a different guidance that would be helpful to understand as well, but really looking for the key drivers of what you're seeing underneath the business in the banking segment. Thanks guys.

We are raising our full year, Outlook Outlook ranges for Revenue adjusted, Evita and adjusted EPS to reflect a strong second quarter. A recently closed acquisition and the favorable impact of currencies.

Yeah Darrin. Thank you I'll take both of them and then I'll have James add onto the specific dollar amount on the acquisition you're right. We're very pleased with him the recurring growth in banking and I think we've been consistent as we came in in the fourth quarter and first quarter that.

James Kehoe: Hey, thanks, guys. Nice results. Look, putting aside just the slight pull-forward dynamic, banking trends on the recurring side continue to look pretty strong. So maybe help us understand, number one, what the key drivers are, and if you feel good about the core platforms right now showing sustainability, what's driving the growth and what's going to be an acceleration exiting the year beyond just comps? And then maybe add on to that a little bit more around the tuck-in. I think you mentioned just, I don't know if there's anything you could help us with sizing and what it did for guidance. That would be helpful to understand as well. But really looking for the key drivers of what you're seeing underneath the business in the banking segment. Thanks, guys.

Darrin Peller: Hey, thanks, guys. Nice results. Look, putting aside just the slight pull-forward dynamic, banking trends on the recurring side continue to look pretty strong. So maybe help us understand, number one, what the key drivers are, and if you feel good about the core platforms right now showing sustainability, what's driving the growth and what's going to be an acceleration exiting the year beyond just comps? And then maybe add on to that a little bit more around the tuck-in. I think you mentioned just, I don't know if there's anything you could help us with sizing and what it did for guidance. That would be helpful to understand as well. But really looking for the key drivers of what you're seeing underneath the business in the banking segment. Thanks, guys.

Darren Peller: Hey, thanks, guys. Nice results. Look, putting aside just the slight pull forward dynamic, banking trends on the recurring side continue to look pretty strong. So maybe help us understand, number one, what the key drivers are, and if you really, if you feel good about the core platforms right now showing sustainability, what's driving the growth and what's driving the what's going to be an acceleration exiting the year beyond just comps. And then maybe add on to that a little bit more around the tuck-in. I think you mentioned just, I don't know if there's anybody who could help us with sizing it, what it did for guidance. That would be helpful to understand as well. But really looking for the key drivers of what you're seeing underneath the business in the banking segment. Thanks, guys.

We are raising our Revenue Target by 75 to 85 million, resulting in adjusted. Revenue growth of 4.8 to 5.3%.

2025 was gonna be the pivotal year, where we saw a.

We Now anticipate banking, Revenue growth of 4 to 4 and a half percent and increase from 3.7 to 4.4 previously.

Step up and they're recurring banking growth I would really attribute that to the focus and our commercial excellence pillar in our future price strategy. So think about net new sales. So we are selling.

For capital markets, we are reaffirming our outlook of 6.5% to 7%.

Consistent with the performance. We have seen in the first half of the year.

Moving on to adjusted, Evita.

More and we have been over the last couple of years and the quality of those sales is strong. So we talked about a couple of years ago.

We are raising the low end of our full year. Ebita outlook by 10 billion dollars to reflect the second quarter beat.

Selling not just professional services and license, but really focusing on selling higher margin products. I think digital think payments think software that is of a recurring and that really focusing the business on those new sales and as a result, seeing a mix out of.

Stephanie Ferris: Yeah, Darren, thank you. I'll take both of them, and then I'll have James add on to the specific dollar amount on the acquisition. You're right. We're very pleased with the recurring growth in banking. I think we've been consistent as we came into the Q4 and Q1 that 2025 was going to be the pivotal year where we saw a step-up in the recurring banking growth. I would really attribute it to the focus in our commercial excellence pillar in our future forward strategy. So think about net new sales. So we are selling more, and we have been over the last couple of years, and the quality of those sales is strong. So we talked about a couple of years ago selling not just professional services and license, but really focusing on selling higher margin products.

Stephanie Ferris: Yeah, Darren, thank you. I'll take both of them, and then I'll have James add on to the specific dollar amount on the acquisition. You're right. We're very pleased with the recurring growth in banking. I think we've been consistent as we came into the Q4 and Q1 that 2025 was going to be the pivotal year where we saw a step-up in the recurring banking growth. I would really attribute it to the focus in our commercial excellence pillar in our future forward strategy. So think about net new sales. So we are selling more, and we have been over the last couple of years, and the quality of those sales is strong. So we talked about a couple of years ago selling not just professional services and license, but really focusing on selling higher margin products.

Stephanie Ferris: Yeah, Darren, thank you. I'll take both of them, and then I'll have James add on to the specific dollar amount on the acquisition. You're right. We're very pleased with the recurring growth in banking. And I think we've been consistent as we came into the fourth quarter and first quarter that 2025 was going to be the pivotal year where we saw a step up in the recurring banking growth. I would really attribute it to the focus in our commercial excellence pillar in our future forward strategy. So think about net new sales. So we are selling more, and we have been over the last couple of years, and the quality of those sales is strong. So we talked about a couple of years ago, you know, selling not just professional services and license, but really focusing on selling higher margin products.

We now expect full year. Margin expansion of approximately 20 basis points.

Reflecting. The margin dilute of impact of updated currency assumptions.

While currencies had a favorable impact on revenue of about 60 million dollars. The IBA impact was neutral

P S in license into recurring and we're seeing the benefits of that new sales activity really land and 25, and then will continue in 'twenty six that's one piece of net new sales. The other piece is really focused on retention.

and this creates a margin headwind of 25 basis points.

As such on a constant currency basis, we are tracking in line with our prior margin expansion, goal of 40 to 45 basis points. While also absorbing some dilution from closed m&a.

And high high levels of retention and making sure that our retention in our compression metrics I'll stay in line and I'm extraordinarily pleased with how well that's going so you think about higher quality, new sales and a recurring and then doing a much better job in terms of focusing on high.

We are increasing the low end of our EPS range by 2 cents. And this leads to double digit EPS growth of 10 to 11%.

Consistent with prior quarters, we have provided updated modeling assumptions in the appendix.

Stephanie Ferris: So think digital, think payments, think software that is recurring, and that really focusing the business on those new sales. And as a result, seeing a mix out of PS and license into recurring. And we're seeing the benefits of that new sales activity really land in '25 and then will continue in '26. That's one piece of net new sales. The other piece is really focused on retention and high, high levels of retention and making sure that our retention and our compression metrics all stay in line. And I'm just extraordinarily pleased with how well that's going. So you think about higher quality new sales into recurring and then doing a much better job in terms of focusing on high levels of client retention, and you start to really see the momentum we are seeing in banking. And as you know, our sales cycles are fairly long.

Stephanie Ferris: So think digital, think payments, think software that is recurring, and that really focusing the business on those new sales. And as a result, seeing a mix out of PS and license into recurring. And we're seeing the benefits of that new sales activity really land in 2025, and then we'll continue in 2026. That's one piece of net new sales. The other piece is really focused on retention and high, high levels of retention and making sure that our retention and our compression metrics all stay in line. And I'm just extraordinarily pleased with how well that's going. So you think about higher quality new sales into recurring and then doing a much better job in terms of focusing on high levels of client retention, and you start to really see the momentum we are seeing in banking. And as you know, our sales cycles are fairly long.

So think digital, think payments, think software that is recurring, and that really focusing the business on those new sales. And as a result, seeing a mix out of PS and license into recurring. And we're seeing the benefits of that new sales activity really land in 2025, and then we'll continue in 2026. That's one piece of net new sales. The other piece is really focused on retention and high, high levels of retention and making sure that our retention and our compression metrics all stay in line. And I'm just extraordinarily pleased with how well that's going. So you think about higher quality new sales into recurring and then doing a much better job in terms of focusing on high levels of client retention, and you start to really see the momentum we are seeing in banking. And as you know, our sales cycles are fairly long.

Our client retention and.

And you start to really see the momentum we are seeing in banking.

1. Item of note, is that we have updated our estimate for non-gaap cash expenses.

And as you know our sales cycles are fairly long. So we have a lot of visibility into the rest of the year and we're starting to have a high level of visibility of the first half of 2026, So we really like where our recurring is going in banking, we're pleased with it.

The increased Outlook reflects 75 million of expense related to the issuer acquisition.

As well as an additional 45 million of severance expense. As we advance right sizing initiatives in anticipation of the deal close

Importantly.

It's exactly where we expect it to be I do think there was some pull forward in second quarter as James recommended by broadly overall very happy with where our recurring is going in terms of the tuck and maybe I'll just talk about the strategic value and James can give you. The dollar amount again, we remain very committed to our buy build partner strategy.

A higher non-gaap cash. Expense will have no impact on our previously. Communicated Capital return targets.

let's now discuss our third quarter expectations on slide 13,

<unk> is executing very well for us both in terms of taking advantage of our global distribution and our marquee clients that as we bring different products into the portfolio and lean into them to to help us drive growth. So very pleased with the acquisition announcement of ever link.

For the third quarter, we anticipate Revenue growth of 3.8 to 4.4% with banking at 3 to 3 and a half percent and capital markets at 5 and a half to 6 and a half percent.

For banking.

Stephanie Ferris: So we have a lot of visibility into the rest of the year, and we're starting to have a high-level visibility of H1 2026. So we really like where recurring is going in banking. We're pleased with it. It's exactly where we expect it to be. I do think there was some pull-forward in Q2, as James recommended, but broadly overall, very happy with where recurring is going. In terms of the tuck-in, maybe I'll just talk about the strategic value, and James can give you the dollar amount. Again, we remain very committed to our buy-build partner strategy. It's executing very well for us, both in terms of taking advantage of our global distribution and our marquee client set as we bring different products into the portfolio and lean into them to help us drive growth. So very pleased with the acquisition announcement of Everlink.

So we have a lot of visibility into the rest of the year, and we're starting to have a high-level visibility of H1 2026. So we really like where recurring is going in banking. We're pleased with it. It's exactly where we expect it to be. I do think there was some pull-forward in Q2, as James recommended, but broadly overall, very happy with where recurring is going. In terms of the tuck-in, maybe I'll just talk about the strategic value, and James can give you the dollar amount. Again, we remain very committed to our buy-build partner strategy. It's executing very well for us, both in terms of taking advantage of our global distribution and our marquee client set as we bring different products into the portfolio and lean into them to help us drive growth. So very pleased with the acquisition announcement of Everlink.

Stephanie Ferris: So we have a lot of visibility into the rest of the year, and we're starting to have a high level of visibility of the first half of 2026. So we really like where recurring is going in banking. We're pleased with it. It's exactly where we expect it to be. I do think there was some pull forward in the second quarter, as James recommended, but broadly overall, very happy with where recurring is going. In terms of the tuck-in, maybe I'll just talk about the strategic value, and James can give you the dollar amount. Again, we remain very committed to our buy-build-partner strategy. It's executing very well for us, both in terms of taking advantage of our global distribution and our marquee client set, as we bring different products into the portfolio and lean into them to help us drive growth.

We are projecting moderating growth entirely due to the 100 basis. Point shift in revenue from the third quarter into the second,

We think it fits very nicely into our payments portfolio.

This implies a sequential acceleration in fourth quarter Revenue growth.

And they're also very excited to be part of the Fas umbrella. We think we can really add.

AD distribution and scale for them in terms of the guidance and the numbers included there I'll send it over to James Yes Darrin.

But you will recall that, we are lapping, 200 basis points of negative - 1 time items. And our commercial Excellence, initiatives continue to drive improved outcomes.

So thats roughly a contribution full year of 20% to 25, Bips so call it.

For Capital markets, we are projecting third quarter growth of 5 and a half to 6 and a half percent.

It's early days, yet as we start integrating them.

<unk>, starring Kelsey shorten or around $20 million.

So.

With the high-end reflecting current lending volumes and the lower end conservatively. Assuming a return, second quarter levels

And then to get back what Stephanie said, we did guide at the beginning of the year commercial excellence was about 150 bps of contribution year on year.

And we did say roughly split between the contribution of new sales and Lee.

Stephanie Ferris: So very pleased with the acquisition announcement of Everlink. We think it fits very nicely into our payments portfolio, and they're also very excited to be part of the FIS umbrella. We think we can really add distribution and scale for them. In terms of the guidance and the numbers included there, I'll send it over to James.

Significant increase in retention exiting last year.

Stephanie Ferris: We think it fits very nicely into our payments portfolio, and they're also very excited to be part of the FIS umbrella. We think we can really add distribution and scale for them. In terms of the guidance and the numbers included there, I'll send it over to James.

We think it fits very nicely into our payments portfolio, and they're also very excited to be part of the FIS umbrella. We think we can really add distribution and scale for them. In terms of the guidance and the numbers included there, I'll send it over to James.

We are projecting adjusted, ebita margin expansion of 45 to 80 80 basis points. And this is fully underpinned, by cost actions, which have already been executed. And this gives us a high level of confidence.

Continuing into this year. So both of those are very much on track with probably retention, even slightly higher than our expectations.

Lastly.

That's great to hear thanks, guys.

Thank you one moment for our next question.

James Kehoe: Yeah, Darren. So that's roughly a contribution full year of 20 to 25 bps. So call it, it's early days yet as we start integrating, and we're staring closely at this. So it's in around $20 million. And then to get back to what Stephanie said, we did guide at the beginning of the year. Commercial excellence was about 150 bps of contribution year on year. And we did say roughly split between the contribution of new sales, and the significant increase in retention exiting last year and continuing into this year. So both of those are very much on track, but probably retention even slightly higher than our expectations.

James Kehoe: Yeah, Darren. So that's roughly a contribution full year of 20 to 25 bps. So call it, it's early days yet as we start integrating, and we're staring closely at this. So it's in around $20 million. And then to get back to what Stephanie said, we did guide at the beginning of the year. Commercial excellence was about 150 bps of contribution year on year. And we did say roughly split between the contribution of new sales, and the significant increase in retention exiting last year and continuing into this year. So both of those are very much on track, but probably retention even slightly higher than our expectations.

James Kehoe: Yeah, Darren. So that's roughly a contribution full year of 20% to 25%. So call it, you know, it's early days yet as we start integrating, and you know, we're stirring closely at this. So it's in or around $20 million. And then to get back what Stephanie said, we did guide at the beginning of the year. Commercial excellence was about 150% of contribution year on year. And we did say roughly split between the contribution of new sales and the significant increase in retention exiting last year and continuing into this year. So both of those are very much on track, with probably retention even slightly higher than our expectations.

We anticipate adjusted EPS of $146 for 1.50, representing growth of 4 to 7% driven entirely by ebita growth.

And that will come from the line of Tien Tsin Huang with Jpmorgan. Your line is open.

I'll conclude on slide 14.

Thank you so much good morning, I was curious.

In summary our second quarter results. Were ahead of expectations. Thanks to a strong operational performance from banking.

If you're in your client conversations if you're hearing any potential change in client decision, making given.

For Revenue growth and margin expansion.

Whether it be the macro where all this talk about stable coin and AI are you seeing any shift in and spat and spending behavior developing at all.

And we have increased our total shareholder return goal to 12 to 13%.

Oh, Yeah, great question.

I think it's definitely be we view it as an opportunity our clients are very interested in it I think everybody's looking in terms of the use cases, but certainly every single financial institution is looking at how they serve their clients and make it available so I would say demand.

Capital returns were 460 million in the quarter and we are on track to achieve. Our 2 billion annual Target

and lastly,

The acquisition of the issuer solutions, business remains on track.

Darren Peller: That's great to hear. Thanks, guys.

James Kehoe: That's great to hear. Thanks, guys.

Darrin Peller: That's great to hear. Thanks, guys.

With that. Operator could you please open the line for questions?

Stephanie Ferris: Thank you. One moment for our next question. That will come from the line of Tien-Tsin Huang with JP Morgan. Your line is open.

Operator: Thank you. One moment for our next question. That will come from the line of Tien-Tsin Huang with JP Morgan. Your line is open.

Georgios Mihalos: Thank you. One moment for our next question. And that will come from the line of Tingjin Huang with JP Morgan. Your line is open.

As a reminder, please ask a question.

As much higher TBD in terms of what use cases take effect, but for us as we think about if I ask our job is to provide the capabilities out to our clients and that's why you know for us in terms of whether it's a digital currency or a C. H R Y our real time payments all of that is good for us.

James Kehoe: Thank you so much. Good morning. Stephanie, I was curious if you're in your client conversations, if you're hearing any potential change in client decision-making given whether it be the macro or all this talk about stablecoin and AI, are you seeing any shift in spending behavior developing at all?

Tien-tsin Huang: Thank you so much. Good morning. Stephanie, I was curious if you're in your client conversations, if you're hearing any potential change in client decision-making given whether it be the macro or all this talk about stablecoin and AI, are you seeing any shift in spending behavior developing at all?

Various Analysts: Thank you so much. Good morning. Stephanie, I was curious if you're in your client conversations, if you're hearing any potential change in client decision-making given whether it be the macro or all this talk about stablecoin and AI, are you seeing any shift in spending behavior developing at all?

Prior question, press star 1 1 again. Due to time restraints, we ask that you, please limit yourself to 1 question and 1. Follow-up question, please. Stand by while we compile the Q&A roster,

Because we enable all that I do see a lot of interest and Theres a focus in terms of.

And our first question will come from the line of Darren Peller with wolf research. Your line is open.

Stephanie Ferris: Oh, yeah. Great question. I think it's definitely, we view it as an opportunity. Our clients are very interested in it. I think everybody's looking in terms of the use cases, but certainly every single financial institution is looking at how they serve their clients and make it available. So I would say demand is much higher. TBD in terms of which use cases take effect. But for us, as we think about FIS, our job is to provide the capabilities out to our clients. And that's why for us, in terms of whether it's a digital currency, ACH, wire, or real-time payments, all of that is good for us because we enable all of that. I do see a lot of interest, and there's a focus in terms of making sure that financial institutions don't fall behind in terms of offerings, large and small.

Stephanie Ferris: Oh, yeah. Great question. I think it's definitely, we view it as an opportunity. Our clients are very interested in it. I think everybody's looking in terms of the use cases, but certainly every single financial institution is looking at how they serve their clients and make it available. So I would say demand is much higher. TBD in terms of which use cases take effect. But for us, as we think about FIS, our job is to provide the capabilities out to our clients. And that's why for us, in terms of whether it's a digital currency, ACH, wire, or real-time payments, all of that is good for us because we enable all of that. I do see a lot of interest, and there's a focus in terms of making sure that financial institutions don't fall behind in terms of offerings, large and small.

Stephanie Ferris: Oh, yeah, great question. I think it's definitely we view it as an opportunity. Our clients are very interested in it. I think everybody's looking in terms of the use cases, but certainly, every single financial institution is looking at how they serve their clients and make it available. So I would say demand is much higher, TBD in terms of which use cases take effect. But for us, as we think about FIS, our job is to provide the capabilities out to our clients. And that's why, you know, for us, in terms of whether it's a digital currency or ACH or wire real-time payments, all of that is good for us because we enable all of that. I do see a lot of interest, and there's a focus in terms of, you know, making sure that financial institutions don't fall behind in terms of offerings, large and small.

Making sure that financial institutions don't fall behind in terms of offerings large and small TBD in terms of how much ultimate demand from the the end businesses and consumers, but no bank wants to be left behind in terms of not having a capability.

Hey thanks guys. Nice results. Um look putting aside just the you know slight pull forward. Dynamic, banking Trends and the recurring side. Continue to look pretty strong so maybe help us understand number 1, what the key drivers are. And if you really, if you feel good about the core platforms right now, showing sustainability

Okay.

What's driving the growth and what's driving the what's going to be an acceleration exiting the year Beyond just comps.

Makes sense. Thank you.

Thank you one moment for our next question.

And that will come from the line of Dan Donlan with Mizuho. Your line is open.

Hey, guys great results as always.

Um and then maybe add on to that a little bit more around the tuck in. I think you mentioned just I don't know if there's anything you can help us with sizing and what it did for a guidance that would be helpful to understand as well but really looking for the key drivers of what you're seeing underneath the business in the banking segment. Thanks guys.

Quick question and then a quick follow up so we noticed the slide et cetera, or big acceleration in the world pay growth. So just wanted to make sure before we get over our skis here, obviously, great execution by you guys to make sure.

You have some comments on how much of it is organic and then I have a quick follow up thank you.

Yeah. Thanks, Dan appreciate it.

Stephanie Ferris: TBD in terms of how much ultimate demand from the end businesses and consumers, but no bank wants to be left behind in terms of not having a capability.

Stephanie Ferris: TBD in terms of how much ultimate demand from the end businesses and consumers, but no bank wants to be left behind in terms of not having a capability.

TBD in terms of how much ultimate demand from the end businesses and consumers, but no bank wants to be left behind in terms of not having a capability.

On World pay they were very pleased with their performance a couple of things if.

If you think about their growth rates, they're growing over a fairly soft quarter in the second quarter.

James Kehoe: Makes sense. Thank you.

Tien-tsin Huang: Makes sense. Thank you.

Various Analysts: Makes sense. Thank you.

And so I think it was 2% so year over year, they had an easy comp, but all hats off to them quite frankly, they have a couple of things going on one theres a bit of seasonality in the business because they do do.

Stephanie Ferris: Thank you. One moment for our next question. That will come from the line of Dan Dolev with Mizuho. Your line is open.

Operator: Thank you. One moment for our next question. That will come from the line of Dan Dolev with Mizuho. Your line is open.

Georgios Mihalos: Thank you. One moment for our next question. And that will come from the line of Dan Dolev with Mizuho. Your line is open.

Some of our tax processing payments in the second quarter, but I would say more meaningfully as really them boarding some pretty big E. Comm clients that for them is driving some pretty significant growth. So I think they're very pleased we're very pleased with their outcomes I do think it's a seasonally high.

Dan Dolev: Hey, guys. Great results as always. I have a quick question and then a quick follow-up. So we noticed the slight or big acceleration in the Worldpay growth. So just want to make sure before we get over our skis here, obviously great execution by you guys to make sure you have some comments on how much of it is organic. And then I have a quick follow-up. Thank you.

Dan Dolev: Hey, guys. Great results as always. I have a quick question and then a quick follow-up. So we noticed the slight or big acceleration in the Worldpay growth. So just want to make sure before we get over our skis here, obviously great execution by you guys to make sure you have some comments on how much of it is organic. And then I have a quick follow-up. Thank you.

Darren Peller: Hey, guys. Great results as always. I have a quick question and then a quick follow-up. So we noticed the slight or big acceleration in the whirlpool pay growth. So just want to make sure before we get over our skis here, obviously great execution by you guys to make sure you have some comments on how much of it is organic, and then I have a quick follow-up. Thank you.

Yeah, Darren. Thank you. Um, I'll take both of them and then, um, I'll have James add on to the specific dollar amount on the acquisition. You're right, we're very pleased with, um, the recurring growth in banking, and I think we've been consistent as we came into the fourth quarter, and first quarter that 2025, um, was going to be the pivotal year where we saw, um, a step up in the recurring banking growth. I would really attribute it to the focus in. Our commercial Excellence, pillar, um, in our future for our strategy. So, think about um, net new sales. So we are selling, um, more. Um, and we have been over the last couple of years and the quality of those sales is strong. So we talked about a couple of years ago, you know. Um, selling not just Professional Services and licensed but really focusing on selling higher margin products. So think digital think payments.

In order for them, but.

But you know they are stepping up their expectations in terms of revenue and I know, we're very pleased with that.

Stephanie Ferris: Yeah. Thanks, Dan. Appreciate it. So on Worldpay, they were very pleased with their performance. A couple of things. If you think about their growth rates, they're growing over a fairly soft quarter in the second quarter. And so I think it was 2%. So year over year, they had an easy comp. But all hats off to them, quite frankly. They have a couple of things going on. One, there's a bit of seasonality in the business because they do do some tax processing payments in the second quarter. But I would say more meaningfully is really them onboarding some pretty big e-com clients that for them is driving some pretty significant growth. So I think they're very pleased. We're very pleased with their outcomes.

Stephanie Ferris: Yeah. Thanks, Dan. Appreciate it. So on Worldpay, they were very pleased with their performance. A couple of things. If you think about their growth rates, they're growing over a fairly soft quarter in the second quarter. And so I think it was 2%. So year over year, they had an easy comp. But all hats off to them, quite frankly. They have a couple of things going on. One, there's a bit of seasonality in the business because they do do some tax processing payments in the second quarter. But I would say more meaningfully is really them onboarding some pretty big e-com clients that for them is driving some pretty significant growth. So I think they're very pleased. We're very pleased with their outcomes.

Stephanie Ferris: Yeah, thanks, Dan. Appreciate it. So on whirlpool, they were very pleased with their performance. A couple of things. If you think about their growth rates, they're growing over a fairly soft quarter in the second quarter. And so I think it was 2%. So year over year, they had an easy comp. But all hats off to them, quite frankly. They have a couple of things going on. One, there's a bit of seasonality in the business because they do do some tax processing payments in the second quarter. But I would say more meaningfully is really them boarding some pretty big e-com clients that for them is driving some pretty significant growth. So I think they're very pleased. We're very pleased with their outcomes.

Great. So it looks like a win win on this deal actually.

I'll Skip My next question we're good.

Okay. Thank you.

Thank you one moment for our next question.

And that will come from the line of Trevor Williams with Jefferies. Your line is open.

Great. Thanks for taking the question I wanted to go back to margins James I think the callout you'd made on banking this quarter. There was a bad debt charge, if you could quantify that.

And then even with the lower full year guide the 20 basis points. It still implies you need margins to be up I think.

Just under a 150 bps in Q4, just how we bridge to that the level of visibility. There I know you mentioned some onetime headwinds on the revenue side, but any more help there would be great. Thanks.

Stephanie Ferris: I do think it's a seasonally high quarter for them, but they are stepping up their expectations in terms of revenue, and I know we're very pleased with it.

I do think it's a seasonally high quarter for them, but they are stepping up their expectations in terms of revenue, and I know we're very pleased with it.

Stephanie Ferris: I do think it's a seasonally high quarter for them, but you know they are stepping up their expectations in terms of revenue, and I know we're very pleased with it.

Think software that is recurring and that really focusing the business on those new sales. Um and as a result seeing a mix um out of PS and license into recurring and we're seeing the benefits of that new sales activity, really land in 25 and then we'll continue in 26. That's 1 piece of net, new sales, the other piece is really focused on retention um, and high high levels of retention and making sure that our retention and our compression metrics all stay in line and I'm just extraordinarily pleased with how well that's going. So, you think about higher quality, new sales and the recurring and then doing a much better job in terms of focusing on high levels of client retention. Um, and you start to really see the momentum we are seeing in banking, um, and as you know, our sales Cycles are fairly

Yes, the bad debt was I think it was about $8 million. So maybe 45 bps out of the 70 bps year on year.

James Kehoe: Great. So it looks like a win-win on this deal. Actually, I'll skip my next question. We're good. This was, thank you so much.

Dan Dolev: Great. So it looks like a win-win on this deal. Actually, I'll skip my next question. We're good. This was, thank you so much.

Darren Peller: Great. So it looks like a win-win on this deal. Actually, I'll skip my next question. We're good. This was, thank you so much.

Long. So we have a lot of visibility into the rest of the year and we're starting to have a high level visibility of the first half of 2026.

And there were a couple of allocation changes, we didnt mentioned on the call. So the actual good thing about the banking in the second quarter is the actual you'll recall on the first quarter, we had the adverse mix because we were lapping licenses the mixing banking naturally in the second quarter was positive and it was offset by some of these.

Stephanie Ferris: Okay. Thank you. Thank you. One moment for our next question. That will come from the line of Trevor Williams with Jefferies. Your line is open.

Stephanie Ferris: Okay. Thank you.

Stephanie Ferris: Thank you.

Operator: Thank you. One moment for our next question. That will come from the line of Trevor Williams with Jefferies. Your line is open.

Georgios Mihalos: Thank you. One moment for our next question. And that will come from the line of Trevor Williams with Jeffries. Your line is open.

Trevor Williams: Great. Thanks for taking the question. I wanted to go back to margins, James. I think the callout you'd made on banking this quarter, there was a bad debt charge. If you could quantify that. And then even with the lower full year guide, the 20 basis points, it still implies you need margins to be up, I think, just under 150 basis points in Q4. Just how we bridge to that, the level of visibility there. I know you mentioned some one-time headwinds on the revenue side, but any more help there would be great. Thanks.

Trevor Williams: Great. Thanks for taking the question. I wanted to go back to margins, James. I think the callout you'd made on banking this quarter, there was a bad debt charge. If you could quantify that. And then even with the lower full year guide, the 20 basis points, it still implies you need margins to be up, I think, just under 150 basis points in Q4. Just how we bridge to that, the level of visibility there. I know you mentioned some one-time headwinds on the revenue side, but any more help there would be great. Thanks.

Various Analysts: Great. Thanks for taking the question. I wanted to go back to margins, James. I think the call out you'd made on banking this quarter, there was a bad debt charge. If you could quantify that. And then even with the lower full-year guide, the 20 basis points, it still implies you need margins to be up, I think, just under 150 BIPS in Q4. Just how we bridge to that, the level of visibility there. I know you mentioned some one-time headwinds on the revenue side, but any more help there would be great. Thanks.

So um we really like where recurring is going in banking, we're pleased with it. Um, it's exactly where we expected to be. I do think there was some pull forward and second quarter as James recommended. But broadly overall, very, happy with where we're currently is going in terms of the tuck in. Maybe I'll just talk about this strategic value in James can give you the dollar amount.

Noisy items in Opex. So we're actually really pleased with the change in trajectory from Q1 to Q2 on banking so full steam ahead.

Again we we we remain very committed to our buy build partner strategy. It's executing very well for us.

We look across the rest of the company, we said on the last call.

Most of our or a large percentage of our cost reduction initiatives are in the second half.

We are actually accelerating some of the organizational streamlining as you saw from our comments on onetime expense. So we have brilliant visibility looking forward on the cost program. So we're really happy with it.

James Kehoe: Yeah. The bad debt was, I think it was about $8 million, so maybe 45 basis points out of the 70 basis points year on year. And then there were a couple of allocation changes we didn't mention on the call. So the actual good thing about the banking in the second quarter is the actual, you recall on the first quarter, we had an adverse mix because we were lapping licenses. The mix in banking actually in the second quarter was positive, and it was offset by some of these noisy items in OpEx. So we're actually really pleased with the change in trajectory from Q1 to Q2 on banking. So full steam ahead. And as we look across the rest of the company, we said on the last call, most of our large percentage of our cost reduction initiatives are in the second half.

James Kehoe: Yeah. The bad debt was, I think it was about $8 million, so maybe 45 basis points out of the 70 basis points year on year. And then there were a couple of allocation changes we didn't mention on the call. So the actual good thing about the banking in the second quarter is the actual, you recall on the first quarter, we had an adverse mix because we were lapping licenses. The mix in banking actually in the second quarter was positive, and it was offset by some of these noisy items in OpEx. So we're actually really pleased with the change in trajectory from Q1 to Q2 on banking. So full steam ahead. And as we look across the rest of the company, we said on the last call, most of our large percentage of our cost reduction initiatives are in the second half.

James Kehoe: Yeah, the bad debt was, I was, I think it was about $8 million, so maybe 45 BIPS out of the 70 BIPS year on year. And then there were a couple of allocation changes we didn't mention on the call. So the actual good thing about the banking in the second quarter is the actual, you recall on the first quarter, we had an adverse mix because we were lapping licenses. The mix in banking actually in the second quarter was positive, and it was offset by some of these noisy items in OpEx. So we're actually really pleased with the change in trajectory from Q1 to Q2 on banking. So full steam ahead. And you know, as we look across the rest of the company, we said on the last call, most of our, a large percentage of our cost reduction initiatives are in the second half.

Get to your question is the Q4, yes, I think the implied margin builders and.

And which is a 200 basis points roughly.

You'll recall in the prior year. The war there was a true up of a termination charge plus some other items for a total of $33 million were lapping an easy comp in the fourth quarter and other costs were 100 basis points of the 200 basis points. So actually if you strip out the easy comp from last year.

So that's roughly a contribution full year of 20 to 25 bits. So call it, you know, it's early days yet as we start integrating and uh, you know, we're stirring calcia this, so it's in there around 20 million dollars. Um, so, um,

Sure.

Our implied margin in the fourth quarter was about 100 basis points.

Have cost programs stocked up but will probably even over deliver against that kind of a 100 basis point run rate. So we have a large degree of flexibility in the second half here.

James Kehoe: we're actually accelerating some of our organizational streamlining, as you saw from our comments on one-time expense. So we have brilliant visibility looking forward on the cost program. So we're really happy there. But to get to your question is the Q4, yes, I think the implied margin build is, how much is it? 200 basis points roughly. you recall in the prior year, there was a true up of a termination charge plus some other items for a total of $33 million. We're lapping an easy comp in the fourth quarter, and that accounts for 100 basis points of the 200 basis points. So actually, if you strip out the easy comp from last year, our implied margin in the fourth quarter is about 100 basis points. And we have cost programs stacked up that will probably even over-deliver against that kind of 100 basis point run rate.

James Kehoe: We're actually accelerating some of our organizational streamlining, as you saw from our comments on one-time expense. So we have brilliant visibility looking forward on the cost program. So we're really happy there. But to get to your question is, the Q4, yes, I think the implied margin build is how much is it? 200 basis points roughly. You recall in the prior year, there was a true-up of a termination charge plus some other item for a total of $33 million. We're lapping an easy comp in the fourth quarter, and that accounts for 100 basis points of the 200 basis points. So actually, if you strip out the easy comp from last year, our implied margin in the fourth quarter is about 100 basis points. And we have cost programs stacked up that will probably even overdeliver against that kind of 100 basis point run rate.

We're actually accelerating some of our organizational streamlining, as you saw from our comments on one-time expense. So we have brilliant visibility looking forward on the cost program. So we're really happy there. But to get to your question is, the Q4, yes, I think the implied margin build is how much is it? 200 basis points roughly. You recall in the prior year, there was a true-up of a termination charge plus some other item for a total of $33 million. We're lapping an easy comp in the fourth quarter, and that accounts for 100 basis points of the 200 basis points. So actually, if you strip out the easy comp from last year, our implied margin in the fourth quarter is about 100 basis points. And we have cost programs stacked up that will probably even overdeliver against that kind of 100 basis point run rate.

So we're just a just a one.

What I really want to hammer that home, we look very carefully at the implied Q4 guide on margins.

And then to get back with Stephanie said we we did guided at the beginning of the year commercial Excellence was about 150 bits of contribution year on year and and we did say roughly split between the contribution of new sales and the this significant increase in retention exiting last year and continuing into this year. So both of those are very much on track but probably retention even slightly higher than our expectations.

That's great to hear. Thanks guys.

Credibly comfortable with the cost reductions already.

Thank you. 1 moment for our next question.

Okay I appreciate that thank you.

One moment for our next question.

And that will come from the line of Ting, Jin, Huang with JP Morgan. Your line is open.

And that will come from the line of Bryan Bergin with TD Cowen Your line is open.

Thank you so much, good morning. Uh, Stephanie, I was curious.

Hey, guys. Good morning. Thank you I wanted to ask on capital markets, So a little bit slower growth in the quarter, but you mentioned I think it was slower lending syndication and a recovery I guess in July just how much visibility do you have the acceleration in the second half just talk about conviction in that re XL.

if you're in your client conversations, if you're hearing any potential change in client decision, making given

Whether it be the macro or all this talk about, stable, coin and AI, are you seeing any shift in in SP and spending Behavior? Uh, developing at all?

Oh yeah, great question. Um,

James Kehoe: So we have a large degree of flexibility in the second half here. So just, I really want to hammer that home. We look very carefully at the implied Q4 guide on margins, and we're incredibly comfortable with the cost reduction setup already.

So we have a large degree of flexibility in the second half here. So just, I really want to hammer that home. We look very carefully at the implied Q4 guide on margins, and we're incredibly comfortable with the cost reduction setup already.

James Kehoe: So we have a large degree of flexibility in the second half here. So we're just a, just a, I want to really want to hammer that home. We look very carefully at the implied Q4 guide on margins, and we're incredibly comfortable with the cost reduction set up already.

What might preclude a rare occurrence and slower lending. So I'm just trying to get a sense of the confidence there is as you forecast in the second half. Thanks, Yeah. Thanks, Brian I'll take that so I think we were very pleased and continue to be very pleased with capital markets and.

That's why we shared the first half was very strong if you think of if you look at it on a year to date basis, we have a little bit of ups and downs. So first quarter. If you'll recall, we had a we had a very significant license renewal that drove our nonrecurring up which was strong for us in the first quarter with respect to the second.

James Kehoe: Okay. I appreciate that. Thank you.

Trevor Williams: Okay. I appreciate that. Thank you.

Various Analysts: OK, I appreciate that. Thank you.

Georgios Mihalos: One moment for our next question. And that will come from the line of Brian Bergen with TD Cowan. Your line is open.

Stephanie Ferris: One moment for our next question. That will come from the line of Bryan Bergin with TD Cowen. Your line is open.

Operator: One moment for our next question. That will come from the line of Bryan Bergin with TD Cowen. Your line is open.

Bryan Bergin: Hey, guys. Good morning. Thank you. I wanted to ask on capital markets. So a little bit slower growth in the quarter, but you mentioned, I think it was slower loan syndication and a recovery, I guess, in July. Just how much visibility do you have to the acceleration in the second half? Just talk about conviction in that re-accel. What might preclude a recurrence in slower loan syndication? Just trying to get a sense of the confidence there as you're forecasting the second half. Thanks.

Bryan Bergin: Hey, guys. Good morning. Thank you. I wanted to ask on capital markets. So a little bit slower growth in the quarter, but you mentioned, I think it was slower loan syndication and a recovery, I guess, in July. Just how much visibility do you have to the acceleration in the second half? Just talk about conviction in that re-accel. What might preclude a recurrence in slower loan syndication? Just trying to get a sense of the confidence there as you're forecasting the second half. Thanks.

Various Analysts: Hey, guys. Good morning. Thank you. I wanted to ask on capital markets. So a little bit slower growth in the quarter, but you mentioned, I think it was slower lending syndication and a recovery, I guess, in July. Just how much visibility do you have to the acceleration in the second half? Just talk about conviction in that re-excel. What might preclude a reoccurrence in slower lending syndication? I'm just trying to get a sense of the confidence there as you're forecasting the second half. Thanks.

Quarter.

We did see some softness tempur.

Temporary softness in our lending business largely tied to the slowdown in large financial institutions loan syndication activity in the second quarter specifically.

Related to the macroeconomic uncertainty.

We saw that slowdown has as James mentioned and that's really what drove that recurring slow down from first quarter to second quarter. The good news is in.

I think it's a definitely view. We view it as an opportunity, our clients are very interested in it. Um, I think everybody's looking in terms of the use cases, but certainly every single financial institution is looking at how they serve their clients and make it available. So, I would say demand is much higher, um, TBD in terms of which use cases, take effect, but for us, as we think about FIS our job is to provide the capabilities, um, out to our clients. And that's why, you know, for us, in terms of, whether it's a digital currency or ACH, or wire, or real-time payments, all of that is good for us because we enable all of that. I, I do see a lot of interest, um, and there's a focus in terms of, you know, making sure that financial institutions don't fall behind in terms of offerings, um, large and small, um, TBD in terms of how much ultimate demand from the the end businesses and consumers.

Stephanie Ferris: Yeah, thanks, Brian. I'll take that. So I think we were very pleased and continue to be very pleased with capital markets. That's why we shared the first half was very strong. If you think of, if you look at it on a year-to-date basis, we have a little bit of ups and downs. So first quarter, if you'll recall, we had a very significant license renewal that drove our non-recurring up, which was strong for us in the first quarter. With respect to the second quarter, we did see some softness, temporary softness in our lending business, largely tied to the slowdown in large financial institutions' loan syndication activity in the second quarter specifically, related to some macroeconomic uncertainty. We saw that slowdown, as James mentioned, and that's really what drove the recurring slowdown from first quarter to second quarter.

Stephanie Ferris: Yeah. Thanks, Bryan. I'll take that. So I think we were very pleased and continue to be very pleased with capital markets. That's why we shared the first half was very strong. If you look at it on a year-to-date basis, we have a little bit of ups and downs. So first quarter, if you'll recall, we had a very significant license renewal that drove our non-recurring up, which was strong for us in the first quarter. With respect to the second quarter, we did see some softness, temporary softness in our lending business, largely tied to the slowdown in large financial institutions' loan syndication activity in the second quarter specifically related to some macroeconomic uncertainty. We saw that slowdown, as James mentioned, and that's really what drove the recurring slowdown from first quarter to second quarter.

Stephanie Ferris: Yeah. Thanks, Bryan. I'll take that. So I think we were very pleased and continue to be very pleased with capital markets. That's why we shared the first half was very strong. If you look at it on a year-to-date basis, we have a little bit of ups and downs. So first quarter, if you'll recall, we had a very significant license renewal that drove our non-recurring up, which was strong for us in the first quarter. With respect to the second quarter, we did see some softness, temporary softness in our lending business, largely tied to the slowdown in large financial institutions' loan syndication activity in the second quarter specifically related to some macroeconomic uncertainty. We saw that slowdown, as James mentioned, and that's really what drove the recurring slowdown from first quarter to second quarter.

Consumers. Um, but no Bank wants to be left behind in terms of not having a capability.

In July and into August we've been seeing a very nice rebound in that syndication activity. That's back in line with first quarter levels and we're also continuing to see a strong new sales activity.

Makes sense. Thank you.

Thank you. 1 moment for our next question.

And that will come from the line of Dan dolev with meizuo. Your line is open.

In our lending business. So we did see a like I said, a a downturn in the second quarter and we think it's related to macro very much where I could whether the macro uncertainty we're seeing that come back up so that gives us a lot of confidence as we move into Q3 and Q4 with respect to capital market.

Hey guys, uh, great results as always.

Uh, I have a quick question and then a quick follow-up. So we noticed the slight or big acceleration in the world pay growth.

Alright, Thank you and James just a quick one on tax.

So just want to make sure before we get over our skis here. Uh, obviously great execution, by you guys, to make sure you have some comments on how much of it is organic. Uh, and then I have a quick follow-up. Thank you.

Is there anything from one big beautiful bell applications on taxes going forward.

We're in the early stages of assessing.

Stephanie Ferris: The good news is in July and into August, we've been seeing a very nice rebound in that syndication activity that's back in line with first quarter levels. And we're also continuing to see a strong new sales activity in our lending business. So we did see a, like I said, a downturn in the second quarter. We think it's related to macro, very much related to macro uncertainty. We're seeing that come back up. So that gives us a lot of confidence as we move into Q3 and Q4 with respect to capital markets.

Stephanie Ferris: The good news is in July and into August, we've been seeing a very nice rebound in that syndication activity that's back in line with first quarter levels. And we're also continuing to see strong new sales activity in our lending business. So we did see, like I said, a downturn in the second quarter. We think it's related to macro, very much related to macro uncertainty. We're seeing that come back up. So that gives us a lot of confidence as we move into Q3 and Q4 with respect to capital markets.

The good news is in July and into August, we've been seeing a very nice rebound in that syndication activity that's back in line with first quarter levels. And we're also continuing to see strong new sales activity in our lending business. So we did see, like I said, a downturn in the second quarter. We think it's related to macro, very much related to macro uncertainty. We're seeing that come back up. So that gives us a lot of confidence as we move into Q3 and Q4 with respect to capital markets.

Just just to clarify there is no impact whatsoever on the effective tax rate. This is the timing of the cash payments. So there's there's probably some opportunity in the current year.

I would.

Ill highlight our prepared comments, our overall tax payments in the current year are about $100 million.

Higher than prior year.

It might give some slight relief on that but I think as you look forward you could see some slight tax benefit. This year next year, but then it washes itself out of the system by 2027 is broadly neutral, but no impact on our effective tax rate and were confirming the 12% range.

Yeah, um, thanks Dan. Appreciate it. Um, so on world pay, they were very pleased with their performance, a couple of things. Um, if you think about their growth rates, they're growing over a fairly soft quarter in the second quarter. Um, and so I think it was 2% so year over year, they had an easy comp but all hats off to them quite frankly. They have a couple things going on 1, there's a bit of seasonality and the business because they do do um some uh tax processing payments in the second quarter. But I would say more meaningfully is really them. Um boarding some pretty big Ecom clients um that for them is driving some pretty significant growth. So I think they're very pleased, we're very pleased with their outcomes. Um I do think it's a season.

Bryan Bergin: All right. Thank you. And James, just a quick one on tax. Is there anything from the one big beautiful bill implications on taxes going forward?

Bryan Bergin: All right. Thank you. And James, just a quick one on tax. Is there anything from the one big beautiful bill implications on taxes going forward?

Various Analysts: All right. Thank you. And James, just a quick one on tax. Is there anything from the one big beautiful bill implications on taxes going forward?

Really high quarter for them. Um, but you know they are stepping up their expectations in terms of revenue, and um, I know we're very pleased with it.

But we guided to at the beginning of the year.

Okay. Thank you.

James Kehoe: You know, we're in the early stages of assessing it. But just to clarify, there's no impact whatsoever on the effective tax rate. This is the timing of the cash payments. So there's probably some opportunity in the current year. But I would, you know, highlight our prepared comments. Our overall tax payments in the current year are about $100 million higher than the prior year. So it might give some slight relief on that. But I think as you look forward, you could see some slight tax benefit this year, next year, but then it washes itself out of the system, and by 2027, it's broadly neutral, but no impact on effective tax rate. And we're confirming the 12% rate that we guided to at the beginning of the year.

James Kehoe: We're in the early stages of assessing it. But just to clarify, there's no impact whatsoever on the effective tax rate. This is the timing of the cash payments. So there's probably some opportunity in the current year. But I would highlight our prepared comments. Our overall tax payments in the current year are about $100 million higher than the prior year. So it might give some slight relief on that. But I think as you look forward, you could see some slight tax benefit this year, next year, but then it washes itself out of the system, and by 2027, it's probably neutral. But no impact on effective tax rate. And we're confirming the 12% rate that we guided to at the beginning of the year.

James Kehoe: We're in the early stages of assessing it. But just to clarify, there's no impact whatsoever on the effective tax rate. This is the timing of the cash payments. So there's probably some opportunity in the current year. But I would highlight our prepared comments. Our overall tax payments in the current year are about $100 million higher than the prior year. So it might give some slight relief on that. But I think as you look forward, you could see some slight tax benefit this year, next year, but then it washes itself out of the system, and by 2027, it's probably neutral. But no impact on effective tax rate. And we're confirming the 12% rate that we guided to at the beginning of the year.

And one moment for our next question.

Great. So it looks like a win-win on this deal actually. Um, I'll skip my next question. We're good. This is thank you so much. Okay, thank you.

And that will come from the line of <unk> <unk> with <unk>. Your line is open.

For our next question.

Hi, Thank you for taking my question.

First one for you Stephanie just on the bank M&A activity. That's obviously consider it to be a positive for us and we're starting to see some of that play out already with recent bank mergers just curious if this pace of M&A activity into news should we think of that as incremental to your medium term guide for the banking segment or was that already.

And that will come from the line of Trevor Williams with Jeffrey. Is your line is open.

Templated.

It's a great question Vasu I I will reiterate what you said and you know it's been a thesis for F. I asked for a long time, we serve the larger financial institutions and by default. They ended up being the consolidators that in addition to that we have.

Great. Thanks for taking the question. Uh, I wanted to go back to margins James, I think the call out you'd made on banking this quarter. There was a bad debt charged if you could quantify that. Um, and then even with the lower full your guide, the 20-day basis points, it still implies, you need margins to be up. I think just under 150 bits in Q4 just how we bridge to that the level of visibility there. Um, I know you mentioned some 1 time headwinds on the revenue side but any more help, there would be great. Thanks.

Various Analysts: OK, thank you.

Bryan Bergin: Okay. Thank you.

Bryan Bergin: Okay. Thank you.

Georgios Mihalos: And one moment for our next question. And that will come from the line of Vasu Goval with KBW. Your line is open.

Stephanie Ferris: One moment for our next question. That will come from the line of Vasu Govil with KBW. Your line is open.

Operator: One moment for our next question. That will come from the line of Vasu Govil with KBW. Your line is open.

Fantastic products and solutions that serve larger financial institutions, we definitely we're thrilled with the.

Vasu Govil: Hi. Thank you for taking my question. First one for you, Stephanie. Just on the bank M&A activity, that's obviously considered to be a positive for FIS, and we're starting to see some of that play out already with recent bank mergers. Just curious if this space of M&A activity continues. Should we think of that as incremental to your medium-term guide for the banking segment, or was that already contemplated?

Vasu Govil: Hi. Thank you for taking my question. First one for you, Stephanie. Just on the bank M&A activity, that's obviously considered to be a positive for FIS, and we're starting to see some of that play out already with recent bank mergers. Just curious if this space of M&A activity continues. Should we think of that as incremental to your medium-term guide for the banking segment, or was that already contemplated?

Vasu Goval: Hi, thank you for taking my question. First one for you, Stephanie. Just on the bank M&A activity, that's obviously considered to be a positive for FIS. And we're starting to see some of that play out already with recent bank mergers. Just curious if this space of M&A activity continues. Should we think of that as incremental to your medium-term guide for the banking segment, or was that already contemplated?

The announcements that have come through already we continue to be very optimistic and I think it continues to prove out the competitiveness of the product set that we have and the focus on on clients in terms of whether it's incremental I would say for the for the rest of the year it.

Whatever M&A activity has been completed and and and frankly a lot of it we have got a lot of.

Stephanie Ferris: It's a great question, Vasu. I will reiterate what you said. It's been a thesis for FIS for a long time. We serve the larger financial institutions, and by default, they end up being the consolidators. In addition to that, we have fantastic products and solutions that serve larger financial institutions. We definitely were thrilled with the announcements that have come through already. We continue to be very optimistic. I think it continues to prove out the competitiveness of the product set that we have and the focus on clients. In terms of whether it's incremental, I would say for the rest of the year, whatever M&A activity has been completed, and frankly, a lot of it, we have a lot of view to it as we come into the year, is not incremental. However, things continue to unfold.

Stephanie Ferris: It's a great question, Vasu. I will reiterate what you said. It's been a thesis for FIS for a long time. We serve the larger financial institutions, and by default, they end up being the consolidators. In addition to that, we have fantastic products and solutions that serve larger financial institutions. We definitely were thrilled with the announcements that have come through already. We continue to be very optimistic. I think it continues to prove out the competitiveness of the product set that we have and the focus on clients. In terms of whether it's incremental, I would say for the rest of the year, whatever M&A activity has been completed, and frankly, a lot of it, we have a lot of view to it as we come into the year, is not incremental. However, things continue to unfold.

Stephanie Ferris: It's a great question, Vasu. I will reiterate what you said. And you know, it's been a thesis for FIS for a long time. We serve the larger financial institutions, and by default, they end up being the consolidators. In addition to that, you know, we have fantastic products and solutions that serve larger financial institutions. We definitely were thrilled with the announcements that have come through already. We continue to be very optimistic. And I think it continues to prove out the competitiveness of the product set that we have and the focus on clients. In terms of whether it's incremental, I would say for the rest of the year, it's whatever M&A activity has been completed. And frankly, a lot of it, we have a lot of view to it as we come into the year, is not incremental. However, you know, things continue to unfold.

You to it as we come into the year is not incremental however, you know things continue to unfold and as you know we learn of new things and solidify new things won't we'll obviously put it in the guide, but we don't have incremental M&A sitting in this guide per se.

I think it was about 8 million. So maybe 45 Pips, out of the 70 Pips here on your, and then there were a couple of allocation changes. We didn't mention on the call. So the actual good thing about the banking and the second quarter is the actual you recall on the first quarter, we had a adverse mix because we were lapping licenses, the mix in banking actually, in the second quarter was positive and it was offset by some of these, uh, noisy items in Opex. So, we're actually really pleased with the change in trajectory, from q1, to Q2 on banking. So, full steam ahead. And, you know, as we look across the rest of the company, we said on the last call, um, most of our, our, our large percentage of our cost reduction initiatives are in the second half. Um, we're actually accelerating some of our organizational streamlining, as you saw from our comments on 1 time expense. So we we have brilliant visibility looking forward on on the cost program. So we're really happy there but the

And we will continue to keep you updated as things if things move up or down on us.

That's super helpful. And then just one quick one on just the pricing backdrop in the industry I know some of your peers have called out headwinds on the pricing front and core processing are using the change in trend line sort of any color around that would be helpful. Yeah.

Yeah, I I've been hearing that I.

Our pricing is very consistent so when you think about it in terms of either what we have to price on new wins or compression.

Answer to your question is the Q4? Yes, it I think the implied margin build is how much is a 200 basis points? Roughly, um, you you recall in the prior year there were, there was a true up of a termination charge plus, um, some other items for a total of 33 million. We're lapping an easy comp in the fourth quarter, and that accounts for a 100 basis points of the 200 basis points. So actually, if you strip out the, the easy come from last year,

I think what you're hearing from a lot of people is likely challenges in terms of quality of products and then corresponding pricing that they have to take.

Stephanie Ferris: And as you know, we learn of new things and solidify new things, we'll obviously put it in the guide. But we don't have incremental M&A sitting in this guide per se. And we'll continue to keep you updated as things, if things move up or down on us.

Stephanie Ferris: And as we learn of new things and solidify new things, we'll obviously put it in the guide. But we don't have incremental M&A sitting in this guide per se, and we'll continue to keep you updated if things move up or down on us.

And as we learn of new things and solidify new things, we'll obviously put it in the guide. But we don't have incremental M&A sitting in this guide per se, and we'll continue to keep you updated if things move up or down on us.

But you know from an F. I S standpoint, again, we stand very large and scaled and so we can get pretty price competitive if we need to it is not impacting our overall revenue.

Are are implied margin in the fourth quarter is about 100 basis points and we have cost programs stacked up. That will probably even overd deliver against that kind of 100 basis point run rate. So we have a large degree of flexibility in the second half here. Um, so we're just a, just a, I want to really want to hammer that home. We we look very carefully at the implied Q4 guide on margins and we're incredibly comfortable with the cost reductions set up already.

Vasu Govil: That's super helpful. And then just one quick one on just the pricing backdrop in the industry. I know some of your peers have called out headwinds on the pricing front in core processing. Are you seeing a change in trend lines or any color around that would be helpful?

Vasu Govil: That's super helpful. And then just one quick one on just the pricing backdrop in the industry. I know some of your peers have called out headwinds on the pricing front in core processing. Are you seeing a change in trend lines or any color around that would be helpful?

Vasu Goval: That's super helpful. And then just one quick one on just the pricing backdrop in the industry. I know some of your peers have called out headwinds on the pricing front in core processing. Are you seeing a change in trend lines? Or any color around that would be helpful.

And in fact, I would say, we're winning more new business I think it's a very competitive industry and it sounds like people are struggling with making sure that they're as competitive as they need to be.

Okay, I appreciate that. Thank you.

1 moment for our next question.

With the products and the solutions. They have so interesting dialogue not seeing it show up but again I'm I have I'm generally larger and have more scale. So can absorb that and then in combination with a very competitive product set.

And that will come from the line of Brian Bergin with TD, cow, and your line is open.

Stephanie Ferris: Yeah. I've been hearing that. Our pricing is very consistent. So when you think about it in terms of either what we have to price on new wins or compression, I think what you're hearing from a lot of people is likely challenges in terms of quality of products and then corresponding pricing that they have to take. But from an FIS standpoint, again, we stand very large and scaled. And so we can get pretty price competitive if we need to. It is not impacting our overall revenue. And in fact, I would say we're winning more new business. I think it's a very competitive industry, and it sounds like people are struggling with making sure that they're as competitive as they need to be with the products and the solutions they have. So interesting dialogue, not seeing it show up.

Stephanie Ferris: Yeah. I've been hearing that. Our pricing is very consistent. So when you think about it in terms of either what we have to price on new wins or compression, I think what you're hearing from a lot of people is likely challenges in terms of quality of products and then corresponding pricing that they have to take. But from an FIS standpoint, again, we stand very large and scaled. And so we can get pretty price competitive if we need to. It is not impacting our overall revenue. And in fact, I would say we're winning more new business. I think it's a very competitive industry, and it sounds like people are struggling with making sure that they're as competitive as they need to be with the products and the solutions they have. So interesting dialogue, not seeing it show up.

Stephanie Ferris: Yeah, I've been hearing that. Our pricing is very consistent. So when you think about it in terms of either what we have to price on new wins or compression, I think what you're hearing from a lot of people is likely challenges in terms of quality of products and then corresponding pricing that they have to take. But you know, from an FIS standpoint, again, we stand very large and scaled. And so we can get pretty price competitive if we need to. It is not impacting our overall revenue. And in fact, I would say we're winning more new business. I think it's a very competitive industry. And it sounds like people are struggling with making sure that they're as competitive as they need to be with the products and the solutions they have. So interesting dialogue, not seeing it show up.

Tends to come in our favor and just to give you the stats on up.

Both businesses have positive net pricing banking in the quarter banking was up slightly.

Morning, thank you. I wanted to ask about Capital markets. So so a little bit slower growth in the quarter. But you mentioned I think it was slower lending syndication and a recovery I guess in July just how much visibility do you have to the acceleration in the second half just talk about conviction in that Rexall um what might preclude a recurrence in slower learning certification, just trying to get a sense of the confidence there as as your forecasting in the second half. Thanks.

Capital market was similar to the historic trends of somewhere between 1% to 2% of net pricing for compression. So we've seen no material change in the direction of travel on either of the businesses.

Great. Thank you for the color.

And one moment for our next question.

And that will come from the line of James Fawcett with Morgan Stanley. Your line is open.

Thank you so much I want to follow up.

Stephanie Ferris: But again, I'm generally larger and have more scale, so can absorb that. And then in combination with a very competitive product set tends to come in our favor.

But again, I'm generally larger and have more scale, so can absorb that. And then in combination with a very competitive product set tends to come in our favor.

Stephanie Ferris: But again, I'm generally larger and have more scale, so can absorb that. And then in combination with a very competitive product set tends to come in our favor.

On Boston his question or basic question.

Particularly as it relates to the pipeline et cetera.

Wondering if we're seeing things kind of evolve.

The road map of what they are looking for a phone from us.

James Kehoe: Yeah, and just to give you the stats on that, both businesses had positive net pricing. Banking in the quarter, banking was up slightly. And capital market was similar to the historic trends of somewhere between 1% to 2% of net pricing after compression. So we've seen no material change in the direction of travel on either of the businesses.

James Kehoe: Yeah. And just to give you the stats on that, both businesses had positive net pricing. Banking in the quarter, banking was up slightly, and capital market was similar to the historic trends of somewhere between 1% and 2% of net pricing after compression. So we've seen no material change in the direction of travel on either of the businesses.

James Kehoe: Yeah. And just to give you the stats on that, both businesses had positive net pricing. Banking in the quarter, banking was up slightly, and capital market was similar to the historic trends of somewhere between 1% and 2% of net pricing after compression. So we've seen no material change in the direction of travel on either of the businesses.

I think one thing is it's always striking about the banking industry stood at <unk>.

For variety of reasons, we haven't seen the move to cloud and public cloud type solutions.

And your.

Customers are beginning to talk to you about it and what are the hurdles that we could see or do you think you can clear okay to start to evolve some of the product portfolio, even faster on a on a go forward rate.

Yeah, thanks, Brian. I'll take that. So, I think we were very pleased and continue to be very pleased with capital markets. Um, that's why we shared the first half, um, was very strong if you think of, if you look at it on a year to date basis, we have a little bit of, um, ups and downs. So, first quarter, if you'll recall, we had a, we had a very significant license renewal that drove our non-recurring up, um, which was strong for us in the first quarter with respect to the second quarter. Um, we did see um, some softness um temporary softness, in our lending business, largely tied to the slowdown in large financial institutions loan syndication activity in the second quarter specifically uh related to some macroeconomic uncertainty. Um we saw that slow down as as James mentioned and that's really what drove? The recurring slowdown from first quarter to second quarter. The good news is um in July and into August.

Vasu Goval: Great. Thank you for the color.

Vasu Govil: Great. Thank you for the color.

Vasu Govil: Great. Thank you for the color.

Georgios Mihalos: And one moment for our next question. And that will come from the line of James Fawcett with Morgan Stanley. Your line is open.

Stephanie Ferris: One moment for our next question. That will come from the line of James Faucette with Morgan Stanley. Your line is open.

Operator: One moment for our next question. That will come from the line of James Faucette with Morgan Stanley. Your line is open.

Especially given all the new.

Technology.

Hello.

James Kehoe: Thank you so much. I want to follow up on Vasu's question or basic question, particularly as it relates to pipeline, etc. I'm wondering if we're seeing banks kind of evolve their roadmap or what they're looking for from FIS. I think one of the things that's always striking about the banking industry is that for a variety of reasons, we haven't seen the move to cloud and public cloud type solutions. Is that something your customers are just beginning to talk to you about? And what are the hurdles that we could see or you think we can clear to start to evolve some of the product portfolio even faster on a go-forward rate, especially given all the changes and new technologies that people are bringing to the market and talking about?

James Faucette: Thank you so much. I want to follow up on Vasu's question or basic question, particularly as it relates to pipeline, etc. I'm wondering if we're seeing banks kind of evolve their roadmap or what they're looking for from FIS. I think one of the things that's always striking about the banking industry is that for a variety of reasons, we haven't seen the move to cloud and public cloud type solutions. Is that something your customers are just beginning to talk to you about? And what are the hurdles that we could see or you think we can clear to start to evolve some of the product portfolio even faster on a go-forward rate, especially given all the changes and new technologies that people are bringing to the market and talking about?

Darren Peller: Thank you so much. I want to follow up on Vasu's question or basic question, particularly as it relates to pipeline, et cetera. I'm wondering if we're seeing banks kind of evolve their roadmap or what they're looking for from FIS. I think one of the things that's always striking about the banking industry is that it, for a variety of reasons, we haven't seen the move to cloud and public cloud type solutions. Is that something your customers are beginning to talk to you about? And what are the hurdles that we could see, or you think we can clear to start to evolve some of the product portfolio even faster on a go-forward rate, especially given all the changes with new technologies that they're bringing to the market you're talking about?

Yeah. It's a great question I would say it depends on the size of bank. So let's start with a smaller bank. So in the smaller bank standpoint, I don't see roadmap evolution per se, meaning they're looking for F. I F to provide them with their mom.

August. We've been seeing a very nice rebound, um, in that syndication activity, that's back in line with first quarter levels. Um, and we're also continuing to see a strong new sales activity, um, in our lending business. So we we, we did see a like I said, a, um, a downturn in the second quarter. Um, we we think it's related to macro very much. We're related to the macro uncertainty, we're seeing that come back up. So that gives us a lot of confidence as we move into Q3 and Q4 with respect.

Back to Capital markets.

<unk> journey.

We've already put all of our clients generally in the cloud. So that's that's a generally done for US and then as we think about modernizing them, which modernization generally is about components sensation of the core so pulling out.

All right. Thank you. Uh, and James, just a quick 1 on tax. Um, is there anything from the 1? Big beautiful, Bill, implications on taxes, going forward.

<unk> different pieces of the car and hollowing. It out as is the way banks generally look at it I think there's been a desire to do that for you know over the last 710 10 years I do think the market is moving whereby they don't want to do a big Bang approach and this is more a larger financial institutions.

Stephanie Ferris: Yeah. It's a great question. I would say it depends on the size of bank. So let's start with the smaller banks. So in the smaller bank standpoint, I don't see roadmap evolution per se, meaning they're looking for FIS to provide them with their modernization journey. We've already put all of our clients generally in the cloud, so that's generally done for us. And then as we think about modernizing them, which modernization generally is about componentization of the core. So pulling out different pieces of the core and hollowing it out is the way banks generally look at it. I think there's been a desire to do that over the last 7 to 10 years. I do think the market is moving whereby they don't want to do a big bang approach, and this is for larger financial institutions.

Stephanie Ferris: Yeah. It's a great question. I would say it depends on the size of bank. So let's start with the smaller banks. So in the smaller bank standpoint, I don't see roadmap evolution per se, meaning they're looking for FIS to provide them with their modernization journey. We've already put all of our clients generally in the cloud, so that's generally done for us. And then as we think about modernizing them, which modernization generally is about componentization of the core. So pulling out different pieces of the core and hollowing it out is the way banks generally look at it. I think there's been a desire to do that over the last 7 to 10 years. I do think the market is moving whereby they don't want to do a big bang approach, and this is for larger financial institutions.

Stephanie Ferris: Yeah, it's a great question. I would say it depends on the size of bank. So let's start with the smaller banks. So in the smaller bank standpoint, I don't see roadmap evolution per se, meaning they're looking for FIS to provide them with their modernization journey. We've already put all of our clients generally in the cloud. So that's generally done for us. And then as we think about modernizing them, which modernization generally is about componentization of the core. So pulling out different pieces of the core and hollowing it out is the way banks generally look at it. I think there's been a desire to do that for, you know, over the last seven to 10 years. I do think the market is moving whereby they don't want to do a big bang approach. And this is more larger financial institutions.

And in the larger financial institutions standpoint, there is a desire to do more component ties in and come out with products and solutions and deliver value more quickly than a big Bang core conversion. So I do think that the large financial institution.

Give some slight relief on that, but I think as you look forward, you could see some slight tax benefit this year, next year. But then it washes itself out of this system, and by 2027, it's broadly neutral. But no impact on effective tax rate. And we're confirming the 12% rate, um, that we guided to at the beginning of the year.

Business is evolving.

And 1 moment for our next question.

Even from five years ago, where they wanted to move everything at once they want to move things more in pieces and parts and deliver value out to their customer set and smaller and smaller chunks. So I think that the buying pattern is changing with respect to F. I asked.

And that will come from the line of vasu govil with KBW. Your line is open.

As you know we have a very significant large financial institution base and so we we have the benefit of working with them very directly and understanding as they change.

Stephanie Ferris: And in the larger financial institution standpoint, there is a desire to do more componentized and come out with products and solutions and deliver value more quickly than a big bang core conversion. So I do think that the large financial institution business is evolving, even from five years ago where they wanted to move everything at once. They want to move things more in pieces and parts and deliver value out to their customer set in smaller chunks. So I think that the buying pattern is changing. With respect to FIS, as you know, we have a very significant large financial institution base. And so we have the benefit of working with them very directly and understanding as they change their roadmaps from whether it's one single move to, you know, a componentization.

Stephanie Ferris: In the larger financial institution standpoint, there is a desire to do more componentize and come out with products and solutions and deliver value more quickly than a big bang core conversion. So I do think that the large financial institution business is evolving, even from five years ago where they wanted to move everything at once. They want to move things more in pieces and parts and deliver value out to their customer set in smaller chunks. So I think that the buying pattern is changing. With respect to FIS, as you know, we have a very significant large financial institution base. And so we have the benefit of working with them very directly and understanding as they change their roadmaps from whether it's one single move to a componentization.

In the larger financial institution standpoint, there is a desire to do more componentize and come out with products and solutions and deliver value more quickly than a big bang core conversion. So I do think that the large financial institution business is evolving, even from five years ago where they wanted to move everything at once. They want to move things more in pieces and parts and deliver value out to their customer set in smaller chunks. So I think that the buying pattern is changing. With respect to FIS, as you know, we have a very significant large financial institution base. And so we have the benefit of working with them very directly and understanding as they change their roadmaps from whether it's one single move to a componentization.

Hi. Thank you for taking my question. Um, first 1 for you Stephanie just on the bank and many activity that's obviously considered to be a positive for FIS and we're starting to see some of that play out already with recent bank mergers, just curious. If this piece of how many activity continues. Should we think of that as incremental to your medium-term guide for the banking segment or was that already contemplated

Their road maps from whether it's one single move to you know a component of innovation and our job and we're we feel really good about our our core strategy is that is overall driving our product roadmap. So are we we do have the ability and the majority of our clients on M. B P.

Have different capabilities on M. B P. Whether it's digital banking them, whether it is a checking account money movement a cow in a C. D account, we are seeing banks move in this direction and our core capabilities have the ability to do that it's obviously all cloud generated I do think the the new technology coming in is Super interesting.

It's a great question. Um, vasu I I will reiterate what you said and, you know, it's been a thesis for FIS for a long time. Um, we we serve the larger financial institutions and by default they end up being the consolidators. Um, that in addition to that, you know, we have fantastic products and solutions that serve larger financial institutions, we definitely were thrilled with, um, the announcements that have come through already,

I'm not sure that it's really interesting with respect to how these banks want to move but more importantly, maybe more around how they serve their clients with Jenny I thinking about digital banking et cetera, but that's probably a conversation for another day. So I guess great question.

Stephanie Ferris: Our job, and where we feel really good about our core strategy, is that overall driving our product roadmap. So we do have the ability, and the majority of our clients on MVP have different capabilities on MVP, whether it's digital banking, whether it is a checking account, a money movement account, a CD account. We are seeing banks move in this direction, and our core capabilities have the ability to do that. It's obviously all cloud-generated. I do think the new technology coming in is super interesting. I'm not sure that it's really interesting with respect to how these banks want to move, but more importantly, maybe more around how they serve their clients with GenAI, thinking about digital banking, etc. But that's probably a conversation for another day. So I guess great question.

Stephanie Ferris: And our job and where we feel really good about our core strategy is that is overall driving our product roadmap. So we do have the ability, and the majority of our clients on MVP have different capabilities on MVP, whether it's digital banking, whether it is a checking account, a money movement account, a CD account. We are seeing banks move in this direction, and our core capabilities have the ability to do that. It's obviously all cloud-generated. I do think the new technology coming in is super interesting. I'm not sure that it's really interesting with respect to, you know, how these banks want to move, but more importantly, maybe more around how they serve their clients with GenAI, thinking about digital banking, et cetera. But that's probably a conversation for another day. So I guess great question.

Our job, and where we feel really good about our core strategy, is that overall driving our product roadmap. So we do have the ability, and the majority of our clients on MVP have different capabilities on MVP, whether it's digital banking, whether it is a checking account, a money movement account, a CD account. We are seeing banks move in this direction, and our core capabilities have the ability to do that. It's obviously all cloud-generated. I do think the new technology coming in is super interesting. I'm not sure that it's really interesting with respect to how these banks want to move, but more importantly, maybe more around how they serve their clients with GenAI, thinking about digital banking, etc. But that's probably a conversation for another day. So I guess great question.

I think the pipeline remains strong like I said, which is really helping us drive the momentum in banking.

The large financial institution base is taking a different approach I think our core modernization and banking modernization strategy is delivering on that and continues to give us a bunch of opportunity.

Um, we continue to be very optimistic and I think it it continues to prove out the competitiveness of the product set that we have, um, and the focus on on clients in terms of whether it's incremental, I would say, for the, for the rest of the year, um, it's whatever m&a activity has been completed and, and, and frankly, a lot of it, um, we have a lot of uh um, view to it as we come into the year is not incremental. However um, you know, things continue to unfold and as you know, we learn of new things and solidify new things will will obviously put it in the guide but we don't have incremental m&a sitting in this guide per se. Um and and we'll continue to keep you updated um as things if things move up or down on us.

That's super helpful.

As we think about 2020 seven.

Thanks, so much for the kind of suffering.

You bet.

One moment for our next question.

And that will come from the line of Ken Celski with Autonomous Research. Your line is open.

Quick 1 on just the pricing backdrop in the industry. I know some of your peers have called out headwinds on the pricing front in core processing. I use seeing the change in trend line through any color around. That would be helpful.

Yeah, I I've been hearing that I um,

Hey, good morning, Thanks for thanks for taking the question maybe just following on I guess capital markets have been hurt.

The lower loan syndication activity been it looks like the organic growth slowed.

I think it was like three to four percentage points. So I'm just curious like how much of the slowdown was due to.

Stephanie Ferris: I think the pipeline remains strong, like I said, which is really helping us drive the momentum in banking. I think the large financial institution base is taking a different approach. I think our core modernization and banking modernization strategy is delivering on that and continues to give us a bunch of opportunity as we think about 2026 and 2027.

I think the pipeline remains strong, like I said, which is really helping us drive the momentum in banking. I think the large financial institution base is taking a different approach. I think our core modernization and banking modernization strategy is delivering on that and continues to give us a bunch of opportunity as we think about 2026 and 2027.

Stephanie Ferris: I think the pipeline remains strong, like I said, which is really helping us drive the momentum in banking. I think the large financial institution base is taking a different approach. I think our core modernization and banking modernization strategy is delivering on that and continues to give us a bunch of opportunity as we think about '26 and '27.

The lower loan activity versus other factors just seems like a pretty big driver there are big business overall.

Our pricing is very consistent. So when you think about it, um, in terms of either, what we have to price on new wins or compression, I think what you're hearing from a lot of people is likely challenges in terms of um quality of products and then corresponding pricing that they have to take. Um but you know from an FIS stand

It was three to four points of slowdown and then just on the.

The 200 basis points.

Onetime items I think that was in banking revenue growth in the prior year, just trying to understand what that was thank you.

James Kehoe: Thanks so much for the comments, Stephanie. Have a good day.

James Faucette: Thanks so much for the comments, Stephanie. Have a good day.

Darren Peller: Thanks so much for the comments, Stephanie. Have a good day.

Stephanie Ferris: You bet. One moment for our next question. That will come from the line of Ken Suchoski with Autonomous Research. Your line is open.

Stephanie Ferris: You bet.

Stephanie Ferris: You bet.

Operator: One moment for our next question. That will come from the line of Ken Suchoski with Autonomous Research. Your line is open.

Yeah, maybe maybe I'll start on capital markets and I'll, let James lean in on the capital markets piece. If you go back and you look at the Q1 to Q2 growth in.

Georgios Mihalos: One moment for our next question. And that will come from the line of Ken Suchoski with Autonomous Research. Your line is open.

Various Analysts: Hey, good morning. Thanks for taking the question. Maybe just one on, I guess, capital markets. I mean, I heard the lower loan syndication activity, but it looks like the organic growth slowed, I think it was by like 3% to 4% points. So I was just curious, like how much of the slowdown was due to the lower loan activity versus other factors? Just seems like a pretty big driver there, a big business overall, if it was 3% to 4% points of slowdown. And then just on the 200 basis points of one-time items, I think that was in banking revenue growth in the prior year. Just trying to understand what that was. Thank you.

Ken Suchoski: Hey, good morning. Thanks for taking the question. Maybe just one on, I guess, capital markets. I mean, I heard the lower loan syndication activity, but it looks like the organic growth slowed. I think it was like 3 to 4 percentage points. So I'm just curious how much of the slowdown was due to the lower loan activity versus other factors. Just seems like a pretty big driver there, a big business overall, if it was 3 to 4 points of slowdown. And then just on the 200 basis points of one-time items, I think that was in banking revenue growth in the prior year. Just trying to understand what that was. Thank you.

Ken Suchoski: Hey, good morning. Thanks for taking the question. Maybe just one on, I guess, capital markets. I mean, I heard the lower loan syndication activity, but it looks like the organic growth slowed. I think it was like 3 to 4 percentage points. So I'm just curious how much of the slowdown was due to the lower loan activity versus other factors. Just seems like a pretty big driver there, a big business overall, if it was 3 to 4 points of slowdown. And then just on the 200 basis points of one-time items, I think that was in banking revenue growth in the prior year. Just trying to understand what that was. Thank you.

And you really focus on recurring burst you know recurring had about 100 basis points slowdown and that's really related to the loan syndication activity, we talked about which was macro and the good news is that that is coming back and you can expect to see that recurring growth return.

The back half of the Air I think the rest of the difference is around just license activity through capital markets. The first quarter. If you look at it had a very significant license renewal.

Point again, we stand very large in scaled and so we can get pretty price competitive if we need to, it is not impacting our overall Revenue. Um, and in fact I would say we're winning more new business. I think it's a very competitive industry, um, and it sounds like people are struggling with making sure that there is competitive as they need to be, um, with the products and the solutions they have so interesting dialogue, not seeing it show up, but again, I'm I have, I'm generally larger and have more scale so can absorb that and then in combination with, you know, a very competitive product that, um, tends to to come in our favor. Yeah. And just to give you the stats on that, um, both businesses had positive connect pricing banking in the quarter banking was up slightly and Capital Market was similar to the historic trends of somewhere between 1 to 2% of net pricing. Now for compression. So,

We've seen no material change in in the direction of travel on either of the businesses.

Theres some theres just some.

Great, thank you for the color.

Timing around when license renewals happen each year. So you can see the revenue growth of capital markets in total was up significantly.

Stephanie Ferris: Yeah. Maybe I'll start on capital markets, and I'll let James lean in. On the capital markets piece, if you go back and you look at the Q1 to Q2 growth and you really focus on recurring first, recurring had about 100 basis points slowdown, and that's really related to the loan syndication activity we talked about, which was macro. And the good news is that that is coming back, and you can expect to see that recurring growth return in the back half of the year. I think the rest of the difference is around just license activity through capital markets. The first quarter, if you look at it, had a very significant license renewal. There's just some timing around when license renewals happen each year.

Stephanie Ferris: Yeah. Maybe I'll start on capital markets, and I'll let James lean in. On the capital markets piece, if you go back and you look at the Q1 to Q2 growth and you really focus on recurring first, recurring had about 100 basis points slowdown, and that's really related to the loan syndication activity we talked about, which was macro. And the good news is that that is coming back, and you can expect to see that recurring growth return in the back half of the year. I think the rest of the difference is around just license activity through capital markets. The first quarter, if you look at it, had a very significant license renewal. There's just some timing around when license renewals happen each year.

Stephanie Ferris: Yeah, maybe I'll start on capital markets, and I'll let James lean in. On the capital markets piece, if you go back and you look at the Q1 to Q2 growth, and you really focus on recurring first, you know, recurring had about 100 basis points slowdown. And that's really related to the loan syndication activity we talked about, which was macro. And the good news is that that is coming back. And you can expect to see that recurring growth return in the back half of the year. I think the rest of the difference is around just license activity through capital markets. The first quarter, if you look at it, had a very significant license renewal. There's just some timing around when license renewals happen each year.

And 1 moment for our next question.

And that will come from the line of James faucet with Morgan Stanley. Your line is open

But it was on the back of a really large renewal for a license. So I think you know as you think about.

The different pieces I think that we feel really good about capital markets were occurring which is again I'm talking about the health of the business and then Theres clearly some lumpiness as we go throughout the year in terms of licenses based on renewals and sales, but even leaning into the back half of this year the expectations.

Around the license and Nonprofessional services are right in line with where we've been historically James I don't know if you remember what we said on the first quarter call. When we did a nine on capital markets.

We said that wasn't the trend rate.

And then two as it was fundamentally it was coming from a 47% increase in the non recurring which essentially is the license business.

Or do you think we can clear to start to evolve some of the product portfolio even faster on a go-forward rate?

Stephanie Ferris: So you can see the revenue growth of capital markets in total was up significantly, but it was on the back of a really large renewal for a license. So I think as you think about the different pieces, I think we feel really good about capital markets recurring, which is, again, talking about the health of the business. And then there's clearly some lumpiness as we go throughout the year in terms of licenses based on renewals and sales. But even leaning into the back half of this year, the expectations around the license and non-professional services are right in line with where we've been historically. James, I don't know if you have anything.

So you can see the revenue growth of capital markets in total was up significantly, but it was on the back of a really large renewal for a license. So I think as you think about the different pieces, I think we feel really good about capital markets recurring, which is, again, talking about the health of the business. And then there's clearly some lumpiness as we go throughout the year in terms of licenses based on renewals and sales. But even leaning into the back half of this year, the expectations around the license and non-professional services are right in line with where we've been historically. James, I don't know if you have anything.

Stephanie Ferris: So you can see the revenue growth of capital markets in total was up significantly, but it was on the back of a really large renewal for a license. So I think, you know, as you think about the different pieces, I think we feel really good about capital markets recurring, which is, again, talking about the health of the business. And then there's clearly some lumpiness as we go throughout the year in terms of licenses based on renewals and sales. But even leaning into the back half of this year, the expectations around the license and nonprofessional services are right in line with where we've been historically. James, I don't know if you're.

Especially given all the new changes and new technologies.

Talking about.

<unk>.

Well, we're inclined to.

Maybe one way to look at this as the overall year to date on capital markets is just.

Just just south of 7% and that's probably a good way to look at the remainder of the year.

As you look at the.

Rest of your recurring will accelerate somewhat.

Because we saw dramatic rebound actually in July in the lending business the business almost doubled versus prior year or so we've recovered very very strongly so that will.

Yeah, it it's a it's a great question, I would say um, it depends on the size of bank. So let's start with the smaller Banks. So in the smaller Banks standpoint, I I don't see road map, Evolution per se meaning. There are looking for, um, FIS to provide them, um, with their modernization Journey. Um, we've already put all of our clients generally in the cloud, um, so that's that's generally done for us.

James Kehoe: Yeah, remember what we said on the first quarter call when we did a 9 on capital markets? We said that wasn't a trend rate. And then two is it was fundamentally, it was coming from a 47% increase in the non-recurring, which essentially is the license business. And you know, while we're inclined to, but maybe one way to look at this is the overall year-to-date on capital markets is up just just just south of 7%. And that's probably a good way to look at the remainder of the year. You know, as you look at it, and the rest of the year, recurring will accelerate somewhat because, you know, we saw a dramatic rebound actually in July on the lending business. The business almost doubled versus prior year. So we've recovered very, very strongly. So that will add a point in the successive quarter.

James Kehoe: Yeah. Remember what we said on the first quarter call when we did a 9% on capital markets? We said that wasn't a trend rate. And then, too, is it was fundamentally coming from a 47% increase in the non-recurring, which essentially is the license business. And while we're inclined to maybe one way to look at this is the overall year-to-date on capital markets is up just south of 7%. And that's probably a good way to look at the remainder of the year. As you look at it, rest of year, recurring will accelerate somewhat because we saw a dramatic rebound actually in July on the lending business. The business almost doubled versus prior year. So we've recovered very, very strongly. So that will add a point in the successive quarter. And then licenses will continue to grow in the second half, but at a slower pace.

James Kehoe: Yeah. Remember what we said on the first quarter call when we did a 9% on capital markets? We said that wasn't a trend rate. And then, too, is it was fundamentally coming from a 47% increase in the non-recurring, which essentially is the license business. And while we're inclined to maybe one way to look at this is the overall year-to-date on capital markets is up just south of 7%. And that's probably a good way to look at the remainder of the year. As you look at it, rest of year, recurring will accelerate somewhat because we saw a dramatic rebound actually in July on the lending business. The business almost doubled versus prior year. So we've recovered very, very strongly. So that will add a point in the successive quarter. And then licenses will continue to grow in the second half, but at a slower pace.

Appointing the successive quarters.

Licenses will continue to grow in the second half, but at a slower pace, we're not going to be repeating the 47% because <unk> had a lot of renewals in the quarter and then professional services will probably accelerate slightly.

Good line of sight to the implementation schedules. So we're very comfortable with the with our full year outlook on couple of mortgage.

And then Ken maybe repeat your Belonoid banking question, then what were these items.

The items that we're lapping so this was for fourth quarter.

There were two items there was a termination fee reversal.

And that was $20 million on the other one was an adjustment relating to customer contracts.

And then as we think about modernizing them which modernization generally is about componentization of the core. So pulling out um different pieces of the core and and hollowing it out is is the way Banks. Generally look at it, I I think there's been a desire to do that for, you know, over the last 7 to 10 years I do think the market is moving whereby. They don't want to do a big bang approach, um, and this is more larger financial institutions. Um, and in the larger financial institutions standpoint, there is a desire, um, to do more components and and come out with products and solutions, and deliver value more quickly than a big bang, um, core conversion. So I do, I do think

$13 million, so a total of 33.

So as you look at the fourth.

That the large financial institution business is evolving. Even from five years ago, where they wanted to move everything at once.

It's a 200 basis points call. It tailwind on revenue on its 100, <unk> 105 bps on margins.

James Kehoe: And then licenses will continue to grow in the second half, but at a slower pace. We're not going to be repeating the 47% because that had a lot of renewals in the quarter. And then professional services will probably accelerate slightly. We've good line of sight to the implementation schedule. So we're very comfortable with the full-year outlook on capital markets.

James Kehoe: We're not going to be repeating the 47% because that had a lot of renewals in the quarter. And then professional services will probably accelerate slightly. We've good line of sight to the implementation schedule. So we're very comfortable with the full-year outlook on capital markets.

We're not going to be repeating the 47% because that had a lot of renewals in the quarter. And then professional services will probably accelerate slightly. We've good line of sight to the implementation schedule. So we're very comfortable with the full-year outlook on capital markets.

On both of these items.

100% margin throughout a 100% margin.

They want to move things more in pieces and parts and deliver value out to their customer set in smaller chunks. So I think that the buying pattern is changing with respect to FIS.

Okay, Alright, thank you very much.

Sure. Thank you one moment for our next question.

And that will come from the line of Chris Kennedy with William Blair. Your line is open.

Stephanie Ferris: And then can maybe repeat your banking question.

Stephanie Ferris: And then, Ken, maybe repeat your banking.

Stephanie Ferris: And then, Ken, maybe repeat your banking.

James Kehoe: And then, oh yeah, your banking question then, what were these items that were lapping? So this was Q4. There were two items. There was a termination fee reversal, and that was $20 million. And the other one was an adjustment relating to customer contracts of $13 million. So a total of 33. So as you look at Q4, it's a 200 basis point, call it tailwind on revenue, and it's 105 basis points on margins. And both of these items are 100% margin. They're at 100% margin.

James Kehoe: And then, oh yeah, your banking question then, what were these items that were lapping? So this was Q4. There were two items. There was a termination fee reversal, and that was $20 million. And the other one was an adjustment relating to customer contracts of $13 million. So a total of 33. So as you look at Q4, it's a 200 basis point, call it tailwind on revenue, and it's 105 basis points on margins. And both of these items are 100% margin. They're at 100% margin.

James Kehoe: Oh, yeah, your banking question then, what were these items that were lapping? So this was fourth quarter. There were two items. There was a termination fee reversal, and that was $20 million. And the other one was an adjustment relating to customer contracts of $13 million. So a total of $33. So as you look at the fourth quarter, it's a 200 basis point, call it tailwind on revenue, and it's 105 BIPS on margins. And both of these items are at 100% margin. They're at 100% margin.

Good morning, Thanks for taking the question Stephanie you mentioned the ever link acquisition can you just give us an update on the international strategy.

Sure.

That's a great point so ever link obviously is a natural extension for us in payments right in line with what we do in Canada, and I think as you think about our international strategy. There's there's really two things that are going to significantly continue to advance. It one is.

The other link acquisition, but then also as you think about the issue of acquisition from global payments, both are quite international and will advance our international footprint in specifically, adding payments capabilities internationally.

James Kehoe: Okay. All right. Thank you very much.

Ken Suchoski: Okay. All right. Thank you very much.

Various Analysts: OK. All right. Thank you very much.

James Kehoe: Cheers.

James Kehoe: Cheers.

Stephanie Ferris: Thank you. One moment for our next question. That will come from the line of Cris Kennedy with William Blair. Your line is open.

Operator: Thank you. One moment for our next question. That will come from the line of Cris Kennedy with William Blair. Your line is open.

James Kehoe: Thank you.

Georgios Mihalos: Thank you. One moment for our next question. And that will come from the line of Chris Kennedy with William Blair. Your line is open.

As, you know, we have a very significant large financial institution base. Um, and so we, we have the benefit of working with them very directly and understanding as they change, um, their road maps from whether it's 1, single move to, you know, a componentization and our job and where we feel really good about our. Our core strategy is that is overall driving our product road map. So our we, we do. Um, have the ability in the majority of our clients on MBP, um, have different capabilities on MBP whether it's digital banking. Um, whether it is a checking account, a money, movement account, a CD account. We are seeing Banks move in this direction and our core capabilities have the ability to do that. It's obviously all Cloud generated. I do think the the new technology coming in is super interesting. I'm not sure that it's really interesting with respect to you know how these Banks want to move but more importantly

So that's really good for us as we think about broadening out and building momentum in our payments business. Both in terms of the U S. But also rest of world, where we continue to see a lot of momentum a lot of demand.

James Kehoe: Good morning. Thanks for taking the question. Stephanie, you mentioned the Everlink acquisition. Can you just give us an update on the international strategy?

Chris Kennedy: Good morning. Thanks for taking the question. Stephanie, you mentioned the Everlink acquisition. Can you just give us an update on the international strategy?

Various Analysts: Good morning. Thanks for taking the question. Stephanie, you mentioned the Everlink acquisition. Can you just give us an update on the international strategy?

Stephanie Ferris: Sure. That's a great point. So Everlink, obviously, is a natural extension for us in payments, right in line with what we do in Canada. I think as you think about our international strategy, there's really two things that are going to significantly continue to advance it. One is the Everlink acquisition, but then also as you think about the issuer acquisition from Global Payments. Both are quite international and will advance our international footprint in specifically adding payments capabilities internationally. So that's really good for us as we think about broadening out and building momentum in our payments business, both in terms of the US, but also rest of world, where we continue to see a lot of momentum, a lot of demand, and where we're not nearly as concentrated.

Stephanie Ferris: Sure. That's a great point. So Everlink, obviously, is a natural extension for us in payments, right in line with what we do in Canada. I think as you think about our international strategy, there's really two things that are going to significantly continue to advance it. One is the Everlink acquisition, but then also as you think about the issuer acquisition from Global Payments. Both are quite international and will advance our international footprint in specifically adding payments capabilities internationally. So that's really good for us as we think about broadening out and building momentum in our payments business, both in terms of the US, but also rest of world, where we continue to see a lot of momentum, a lot of demand, and where we're not nearly as concentrated.

Stephanie Ferris: Sure. That's a great point. So Everlink, obviously, is a natural extension for us in payments, right in line with what we do in Canada. I think as you think about our international strategy, there's really two things that are going to significantly continue to advance it. One is the Everlink acquisition, but then also as you think about the issuer acquisition from Global Payments. Both are quite international and will advance our international footprint in specifically adding payments capabilities internationally. So that's really good for us as we think about broadening out and building momentum in our payments business, both in terms of the US, but also rest of the world, where we continue to see a lot of momentum, a lot of demand, and where we're not nearly as concentrated.

And where we're not nearly as concentrated and so both of these again are great products and solutions.

That can come in and really take advantage of our dish are really scaled distribution channel. So very excited about both.

Great. Thanks for taking the question.

Maybe more around, um, how they serve their clients with Genai thinking, about digital banking Etc. But, um, that's probably a conversation for another day, so I guess. Great question. Um, I think the pipeline remains strong, like I said, um, which is really helping us drive the momentum in banking. I think the large financial institution base is taking a different approach. Um, I think our core modernization and banking modernization strategy is delivering on that. Um, and continues to give us a bunch of opportunity um, as we think about 26 and 27.

Yeah.

Thank you and we do have time for one last question and that will come from the line of Matt <unk> with <unk>. Your line is open.

Thanks so much for the comment. Stephanie have a good day.

You bet.

1 moment for our next question.

Hey, guys. Thanks for taking my question here I just wanted to go back to the capital markets question a bit.

And that will come from the line of Ken suchoski with autonomous research. Your line is open,

Just in light of the weaker loan syndication activity impacting recurring revenue growth could you guys remind us right of the revenue drivers there whether it's based on loan activity, whether it's SaaS related whether it's based on say level of AUR.

Hey, good morning, thanks for. Um, thanks for taking the question, maybe just 1 on, I guess, Capital markets. I mean, heard the, uh, the lower loan syndication activity, but it looks like the organic growth slowed.

um I think it was like like 3 to 4 percentage points, so I was just curious like how much of the Slowdown was due to

Stephanie Ferris: And so both of these, again, are great products and solutions that can come in and really take advantage of our really scaled distribution channel. So very excited about both.

And so both of these, again, are great products and solutions that can come in and really take advantage of our really scaled distribution channel. So very excited about both.

Stephanie Ferris: And so both of these, again, are great products and solutions that can come in and really take advantage of our really scaled distribution channel. So very excited about both.

Just a reminder of what is driving revenue growth would be helpful.

Yeah. So there's nothing AUM related here at all and the majority of the revenue growth is really from net new sales. So think about new sales added each year recurring revenue and then net of any attrition, which is very low in capital markets than incremental.

The lower, uh, loan activity versus other factors. Um, just seems like a pretty big driver there. A big business overall. Um, if it was 3 to 4 Points to slow down and then just on the, um, the the 200 basis points.

James Kehoe: Great. Thanks for taking the question.

Chris Kennedy: Great. Thanks for taking the question.

Various Analysts: Great. Thanks for taking the question.

Stephanie Ferris: Thank you. We do have time for one last question, and that will come from the line of Matt Coad with Truist. Your line is open.

Operator: Thank you. We do have time for one last question, and that will come from the line of Matt Coad with Truist. Your line is open.

Georgios Mihalos: Thank you. And we do have time for one last question. And that will come from the line of Matt Coad with Truist. Your line is open.

Of uh of 1 time items. Um I think that was in banking Revenue growth in the prior year just um trying to understand um what what that was. Thank you

James Kehoe: Hi, guys. Thanks for taking the question here. I just wanted to go back to the capital markets question a bit. Just in light of the weaker loan syndication activity impacting recurring revenue growth, could you guys remind us, right, of the revenue drivers there, whether it's based on loan activity, whether it's SaaS-related, and whether it's based on, say, level of AUM? Just a reminder of what's driving revenue growth would be helpful.

Matt Coad: Hi, guys. Thanks for taking the question here. I just wanted to go back to the capital markets question a bit. Just in light of the weaker loan syndication activity impacting recurring revenue growth, could you guys remind us, right, of the revenue drivers there, whether it's based on loan activity, whether it's SaaS-related, and whether it's based on, say, level of AUM? Just a reminder of what's driving revenue growth would be helpful.

Various Analysts: Hi. Hey, guys. Thanks for taking the question here. I just wanted to go back to the capital markets question a bit, just in light of the weaker loan syndication activity impacting recurring revenue growth. Could you guys remind us, right, of the revenue drivers there, whether it's based on loan activity, whether it's SaaS related, and whether it's based on, say, level of AUM? Just a reminder of what's driving revenue growth would be helpful.

Rental to that you have net pricing, which James talked about has been very consistent.

And then you have some license activity generally there isn't a significant amount of what we would call transaction or organic growth activity here. It's been you know maybe around 100 basis points, whether it's from transactions or those types of things, it's not a hum however.

There was a very big swing given the macroeconomic uncertainty you can kind of go back and look at the large financial institutions all mentioned that.

Stephanie Ferris: Yeah. So there's nothing AUM-related here at all. And the majority of the revenue growth is really from net new sales. So think about new sales added each year, recurring revenue, and then net of any attrition, which is very low in capital markets. Then incremental to that, you have net pricing, which James talked about, has been very consistent. And then you have some license activity. Generally, there isn't a significant amount of what we would call transaction or organic growth activity here. It's been maybe around 100 basis points, whether it's from transactions or those types of things. It's not AUM. However, there was a very big swing. Given the macroeconomic uncertainty, you can kind of go back and look at the large financial institutions. All mentioned it. Loan syndication just rose up. So there is a bit of organic growth that we get from transactions.

Stephanie Ferris: Yeah. So there's nothing AUM-related here at all. And the majority of the revenue growth is really from net new sales. So think about new sales added each year, recurring revenue, and then net of any attrition, which is very low in capital markets. Then incremental to that, you have net pricing, which James talked about, has been very consistent. And then you have some license activity. Generally, there isn't a significant amount of what we would call transaction or organic growth activity here. It's been maybe around 100 basis points, whether it's from transactions or those types of things. It's not AUM. However, there was a very big swing. Given the macroeconomic uncertainty, you can kind of go back and look at the large financial institutions. All mentioned it. Loan syndication just rose up. So there is a bit of organic growth that we get from transactions.

Stephanie Ferris: Yeah, so there's nothing AUM related here at all. And the majority of the revenue growth is really from net new sales. So think about new sales added each year, recurring revenue, and then net of any attrition, which is very low in capital markets. Then incremental to that, you have net pricing, which James talked about, has been very consistent. And then you have some license activity. Generally, there isn't a significant amount of what we would call transaction or organic growth activity here. It's been, you know, maybe around 100 basis points, whether it's from transactions or those types of things. It's not AUM. However, there was a very big swing. Given the macroeconomic uncertainty, you can kind of go back and look at the large financial institutions all mentioned it. Loan syndication just rose up.

Loan syndication just rose up so there is a bit of organic growth that we get from transactions. It's not generally material. However, when it swings from generally positive to almost negative <unk>. It can impact us as James said the good news is it's back in July and August.

Is coming back. Um, and you can expect to see that recurring growth return, um, in the back half of the year. I think the the rest of the difference is around just licensed activity through Capital markets, the first quarter. If you look at it had a very significant license renewal. Um, there's some there's just some um

We feel really good about recurring growth.

Going back up to 6% range and so overall this business does not have a significant amount. There's no way you I'm at all and it doesn't have a significant amount of transaction activity. There is you know maybe 100 Bev James do you have anything you want to add on this was.

This business has been performing incredibly strongly him to give you. Some context, we were growing the business sort of kind of low teens kind of number in the first quarter and it fell off to 35% decline.

Stephanie Ferris: So there is a bit of organic growth that we get from transactions. It's not generally material. However, when it swings from, you know, generally positive to almost negative to zero, it can impact us. As James said, the good news is it's back in July and August. We feel really good about recurring growth going back up to a 6% range. And so overall, this business does not have a significant amount. There's no AUM at all, and it doesn't have a significant amount of transaction activity. There is, you know, maybe 100 BIPs. James, do you have anything you want to add?

Since then it's back closer to the it's actually above the Q1 performance. So there was a market reduction in la.

Stephanie Ferris: It's not generally material. However, when it swings from generally positive to almost negative to zero, it can impact us. As James said, the good news is it's back in July and August. We feel really good about recurring growth going back up to a 6% range. And so overall, this business does not have a significant amount. There's no AUM at all, and it doesn't have a significant amount of transaction activity. There is maybe 100 basis points. James, do you have anything you want to add?

It's not generally material. However, when it swings from generally positive to almost negative to zero, it can impact us. As James said, the good news is it's back in July and August. We feel really good about recurring growth going back up to a 6% range. And so overall, this business does not have a significant amount. There's no AUM at all, and it doesn't have a significant amount of transaction activity. There is maybe 100 basis points. James, do you have anything you want to add?

Timing around when license renewals happen each year so you can see the the revenue growth of capital markets in total, um, was up significantly. Um, but it was on the back of a, of a really large renewal for a license. So I think, you know, as you think about, um, the different pieces, I think that we feel really good about Capital markets recurring. Um, which is again, um, talking about the health of the business, and then there's clearly some lumpiness as we go throughout the year, in terms of licenses based on renewals and sales. But even leaning into the, the back half of this year, um, the expectations around the license and non-professional services are right in line with where we've been historically, James, I don't know. Yeah, remember what we said on the first quarter to call when we did a 9 on Capital markets, um, we said that wasn't a trend race, um, and then 2 is it was fundamentally was coming from a 47% increase in the non-recurring, which essentially is

Loan syndication activity in the quarter. We've now had I think it's seven or eight weeks words, it's up again.

Versus prior year, it's one of the very few businesses within a couple of markets portfolio that is expose times too. So these are the loan loan activity.

is the licensed business and um, you know, while we're inclined to uh, but maybe 1 way to look at this is the overall year to date on Capital markets is up just

It's a 6 million dollar impact on our $3 billion business.

That's what's pull down to recurring in the quarter and it'll bounce back quite strongly in the second half.

James Kehoe: No. This business has been performing incredibly strongly. To give you some context, we were growing the business at a kind of low teens kind of number in the first quarter, and it fell off to a 35% decline. And since then, it's back closer to it; it's actually above the Q1 performance. So there was a market reduction in loan syndication activity in the quarter. We've now had, I think it's seven or eight weeks where it's up again versus prior year. It's one of the very few businesses within the capital markets portfolio that is exposed at times to the loan activity. But it's a $6 million impact on our $3 billion business. That's what's pulled down the recurring in the quarter, and it'll bounce back quite strongly in the second half.

James Kehoe: No. This business has been performing incredibly strongly. To give you some context, we were growing the business at a kind of low teens kind of number in the first quarter, and it fell off to a 35% decline. And since then, it's back closer to it; it's actually above the Q1 performance. So there was a market reduction in loan syndication activity in the quarter. We've now had, I think it's seven or eight weeks where it's up again versus prior year. It's one of the very few businesses within the capital markets portfolio that is exposed at times to the loan activity. But it's a $6 million impact on our $3 billion business. That's what's pulled down the recurring in the quarter, and it'll bounce back quite strongly in the second half.

James Kehoe: No, and this was, you know, this business has been performing incredibly strongly. And, you know, to give you some context, you know, we were growing the business at a kind of low teens kind of number in the first quarter. And it fell off to a 35% decline. And since then, it's back closer to the, it's actually above the Q1 performance. So there was a market reduction in loan syndication activity in the quarter. We've now had, I think it's seven or eight weeks where it's up again versus prior year. It's one of the very few businesses within the capital markets portfolio that is exposed at times to, so the loan activity. But it's a $6 million impact on our $3 billion business. That's what's pulled down a recurring in the quarter, and it'll bounce back quite strongly in the second half.

Really helpful guys. Thank you. Thank you.

You bet.

Ladies and gentlemen, thank you all for participating. This concludes today's program you may now disconnect.

Just just south of 7% and that's probably a good way to look at the remainder of the year. Um you know, as you look at it and rest of your recurring will accelerate somewhat. Um because you know we we saw dramatic rebound actually in July and the lending business, the business almost doubled versus prior year. So we've recovered very very strongly so that will add a point in the success of quarter and then licenses will continue to grow in the second half but at a slower Pace. We're not going to be repeating the 47% because that had a lot of renewals in the quarter and then Professional Services will probably accelerate slightly uh we have good line of sight to the implementation schedule so we're very comfortable with the with the full year outlook on top of the mortgage.

James Kehoe: Really helpful, guys. Thank you.

Matt Coad: Really helpful, guys. Thank you.

Various Analysts: Really helpful, guys. Thank you.

James Kehoe: Thank you.

James Kehoe: Thank you.

James Kehoe: Thank you.

Stephanie Ferris: You bet. Ladies and gentlemen, thank you all for participating. This concludes today's program. You may now disconnect.

Stephanie Ferris: You bet.

Stephanie Ferris: You bet.

Operator: Ladies and gentlemen, thank you all for participating. This concludes today's program. You may now disconnect.

Georgios Mihalos: Ladies and gentlemen, thank you all for participating. This concludes today's program. You may now disconnect.

And then can maybe repeat your bank and then no, yeah, the your banking question then, what were these uh, items that were lapping? So this was for for quarter, over 2 items. So is it termination fee reversal? And I was twenty million dollars and the other 1 was an adjustment relating to customer contracts of 13 million dollars. So a total of 33. So as you look at the Fort quarter, it's a 200 basis point.

Call a Tailwind on revenue and it's 105 Pips on margins.

And both of these items are 100% margin. They're at 100% margin.

Okay. All right. Thank you very much.

Thank you. One moment for our next question.

And that will come from the line of Chris Kennedy with William Blair. Your line is open.

Good morning. Thanks for taking the question. Stephanie, you mentioned the everlink acquisition? Can you just give us an update on the international strategy?

Sure, um, that's a great point. So everlink obviously is a natural extension for us um in payments, right in line with what we do um in Canada. Um I think as you think about our International strategy, there's there's really 2 things um, that are going to significantly continue to advance it. 1 is the everlink acquisition. But then also, as you think about the issue or acquisition from Global Payments, um, both are quite International and will advance our International footprint in specifically adding payments, capabilities internationally. Um, so that's really good for us as we think about broadening out and building momentum in our payments business, both in terms of the US, but also rest of World, um, where we continue to see a lot of momentum, a lot of demand.

Um and where we're not nearly as concentrated and so both of these again are great products and solutions um, that can come in and really take advantage of our dish. Our really scaled distribution channel, so very excited about both.

For taking the question.

That.

Thank you. And we do have time for one last question, and that will come from the line of Matt Coad with Truist. Your line is open.

I, I just wanted to go back to the capital markets question a bit, uh, just in light of the weaker loan, syndication activity, impacting, recurring Revenue growth. Could you guys remind us, right? Of of the revenue drivers there, whether it's based on loan activity, whether it's SAS related and and whether it's based on say level of AUM, um, just just a reminder of of what's driving Revenue growth would be helpful.

Yeah, so there's nothing AUM related here at all. Um and the majority of the revenue growth is really from net new sales. So think about new sales, added each year, um, recurring revenue and then net of, um, any attrition, which is very low in capital markets. Then incremental to that, you have net pricing, which James talked about has been very consistent. Um, and then you have some license activity. Generally, there isn't a significant amount of what we would call transaction or organic growth activity here. Um, it's been, you know, maybe around 100 basis points, whether it's from transactions or those types of things, it's not a. Um, however, there was a very big swing given the macroeconomic, um, uncertainty. You can kind of go back and look at the large financial institutions all mentioned it. Um, the loan syndication just froze up. Um, so there is

Is a bit of organic growth that we get from transactions. It's not generally material. However, when it swings from, you know, generally positive to almost negative to zero. Um, it can't impact us, as James said, the good news is, it's back in July and August, we feel really good about recurring growth. Um, going back up to a, you know, a 6% range and so, um, overall this business does not have a significant amount, there's no AUM at all, and it doesn't have a significant amount of transaction activity, there is, you know, maybe a 100 bits James, you have anything you want to add know. And and this was, you know, we this business has been performing incredibly strongly and you know to give you some context, you know, we were growing the business. So the kind of low teams kind of number in the first quarter and it fell off to a 35% Decline and since then it's back closer to the it's actually above the q1 performance. So there

There was a market reduction in, in loan, syndication activity in the Border we've now had I think it's 7 or 8 weeks where it's it's up again versus prior year. It's 1 of the very few businesses within the couple of markets portfolio is it is exposed at times to sew these um the loan loan activity but it's a $6 million impact on our 3 billion dollar business, um that's what's pulled down, the recurring in the quarter and it'll bounce back quite

Strongly in the second half.

Really helpful, guys. Thank you. Thank you. You bet.

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