Q2 2025 Global Payments Inc Earnings Call
It will be recorded.
At this time I would like to turn the conference over to your host Senior Vice President Investor Relations Winnie Smith. Please go ahead.
Yeah.
Good morning, and welcome to global payments second quarter 2025 conference call our.
Our earnings release and the slides that accompany this call can be found on the Investor Relations area of our website at Www Dot global payments dotcom.
Before we begin I'd like to remind you that some of the comments made by management during today's call statements about among other matters expected operating and financial results East.
These statements are subject to risks uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements.
For additional information on these factors please refer to our press release and filings with the SEC.
We caution you not to place undue reliance on these statements forward looking statements. During this call speak only as of the date of this call and we undertake no obligation to update them.
We will also be referring to several non-GAAP financial measures, which we believe are more reflective of our ongoing performance.
For a full reconciliation of the non-GAAP financial measures discussed on this call to the most comparable GAAP measure in accordance with FCC regulations. Please see our press release furnished as an exhibit to our form 8-K filed this morning, and our supplemental material available on the Investor Relations section of our website.
Joining me on the call is our CEO Cameron Brady, our president and COO, Bob quarter Hockey and our CFO Josh Whipple.
Now I'll turn the call over to Cameron.
Thanks good.
Good morning, and thank you for joining us today.
I'm excited to have the opportunity to share with you the progress we've made across the business over the last few months.
Not only did we deliver solid results that were modestly better than our expectations, but we did so in a quarter when we announced a significant step to reposition our business with the acquisition of World Bank and divestiture of issuer solutions transactions that represent a unique opportunity to capitalize our transformation in a more significant way and streamline our business to accelerate long.
Term growth and value creation.
We also have to continue to make substantial progress against our operational transformation program that is focused on streamlining and unifying our business globally, while creating meaningful benefits that provide us with incremental capacity for reinvestment to drive growth and run a better business.
This quarter, we successfully launched our genius platform and completed the rollout of our revamped sales compensation plan across our U S sales teams as part of our sales force of the future initiative.
Our transformation initiatives are enhancing the commercial effectiveness of the business and enabling us to unlock greater operating income benefits than originally forecasted.
Further in our ongoing commitment to simplifying the business, we recently announced the sale of our payroll business for a total consideration of $1 1 billion.
Allowing for $500 million of additional shareholder returns through the accelerated share repurchase program, we announced today.
And lastly, we are already planning ahead for the close of the World pay transaction next year and have initiated our integration planning and establish critical work streams that will support a successful integration and allow us to begin unlocking the tremendous value embedded in the transaction.
Turning to our second quarter results, we're very pleased with our performance, particularly in light of the significant positive change. We're currently driving in our organization through our transformation.
And while the macro environment continues to be fluid and consumer sentiment remained somewhat muted spending has been relatively resilient with trends fairly stable through the period.
For the quarter, we reported 5% constant currency adjusted net revenue growth, excluding dispositions of 130 basis points of margin expansion and 11% constant currency adjusted EPS growth compared to the same period in 2024.
These results highlight not only the resilience of our business model, but also our team's ability to execute at scale and advance a significant number of key initiatives, while remaining focused on delivering business outcomes.
In our merchant business, we achieved a number of notable wins and delivered healthy and consistent growth across the three pillars of our strategy in line with our expectations and outlook.
Beginning with Pos and software, we successfully launched genius for restaurants and genius for retail this quarter delivering.
Two at the beginning of the year.
The launch ingenious marks an important milestone in our journey to streamline our solutions unifying all of the global payments point of sale products into an intuitive and highly configurable new platform.
While establishing a stronger and more recognizable brand in the market.
Our genius product family is more than simply a marketplace of point solutions, it's a fully integrated and seamless set of capabilities that can be deployed to clients and bearing sizes through our modern scalable cloud based software.
Winnie Smith: Today's conference will be recorded. At this time, I would like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. Please go ahead.
Our solutions are designed with a clean interface fast checkouts and native workflows without the need and reliance on third party systems.
Winnie Smith: Good morning and welcome to Global Payments' second quarter 2025 conference call. Our earnings release and the slides that accompany this call can be found on the Investor Relations area of our website at www.globalpayments.com. Before we begin, I would like to remind you that some of the comments made by management during today's conference about, among other matters, expected operating and financial results. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information on these factors, please refer to our press release and filings with the SEC. We caution you not to place undue reliance on these statements. Forward-looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them.
Genius meets the needs of small businesses, while also delivering enterprise grade reliability for large chains and complex environments.
And we couple our complete commerce enablement solutions with distinctive distribution and full local service and support that is unrivaled in the market.
While early days, we are delighted with the initial momentum we are seeing with genius.
Feedback has been overwhelmingly positive with customers highlighting genius for its ease of use intuitive design convenience and enhanced customer experience.
And sellers and dealers are excited about geniuses easy setup speed flexible and competitive pricing and increased functionality, allowing them to target a more diverse set of merchants to accelerate sales.
Our genius for restaurants platform launched in late May at the National Restaurant Association show in Chicago.
In the month of June posted rollout new restaurant growth accelerated in the mid teens sequentially compared to April and May with.
Winnie Smith: We will also be referring to several non-GAAP financial measures, which we believe are more reflective of our ongoing performance. For a full reconciliation of the non-GAAP financial measures discussed on this call to the most comparable GAAP measure in accordance with SEC regulations, please see our press release furnished as an exhibit to our Form 8-K filed this morning and our supplemental material available on the Investor Relations section of our website. Joining me on the call is our CEO, Cameron Bready, our President and COO, Bob Cortopassi, and our CFO, Joshua Whipple. Now I will turn the call over to Cameron.
With that momentum continuing in July.
We've also seen early success in our wholesale channel where monthly net new additions have already doubled since launch as we leverage the full power of our distribution platform to bring our best capabilities to market.
Our genius for retail platform, which officially launched in June has seen strong early demand as well with record sales in our U S direct channel, which delivered 37% growth from the prior year period.
This momentum from retail customers also continued through July.
Additionally, we have now integrated our market, leading software solution with genius to provide a holistic end to end offering under the genius family, including tap to pay functionality.
Cameron Bready: Thanks, Winnie. Good morning, and thank you for joining us today. I am excited to have the opportunity to share with you the progress we have made across the business over the last few months. Not only did we deliver solid results that were modestly better than our expectations, but we did so in a quarter when we announced a significant step to reposition our business with the acquisition of Worldpay and divestiture of AP Automation Solutions, transactions that represent a unique opportunity to catalyze our transformation in a more significant way and streamline our business to accelerate longer-term growth and value creation. We also continue to make substantial progress against our operational transformation program that is focused on streamlining and unifying our business globally while creating meaningful benefits that provide us with incremental capacity for reinvestment to drive growth and run a better business.
And we have launched this solution into 13 EU markets, including our most recent iOS launch in Spain, which makes us the first acquirer in the market to enable merchants to accept payments directly through their apple devices.
Unlike many of our competitors, we have a significant opportunity to continue expanding genius in international geographies and to capitalize on the strong secular growth trends and Pos demand in regions like Europe.
Given our established local presence and significant distribution capabilities in these markets today.
This is one of the most exciting aspects of the genius growth story.
Looking ahead, we will officially introduced the genius enterprise restaurant solution next month.
Cameron Bready: This quarter, we successfully launched our Genius platform and completed the rollout of our revamped sales compensation plan across our U.S. sales teams as part of our Salesforce of the Future initiative. Our transformation initiatives are enhancing the commercial effectiveness of the business and enabling us to unlock greater operating income benefits than originally forecasted. Further, in our ongoing commitment to simplifying the business, we recently announced the sale of our payroll business for a total consideration of $1.1 billion, allowing for $500 million of additional shareholder returns through the accelerated share repurchase program we announced today. Lastly, we are already planning ahead for the close of the Worldpay transaction next year and have initiated our integration planning and established critical work streams that will support a successful integration and allow us to begin unlocking the tremendous value embedded in the transaction.
But in the interim we continue to see momentum with both enterprise restaurant chains and sports and entertainment venues.
This quarter, we successfully completed the rollout of our Pos and kitchen management solutions to over 1000, ASW restaurant locations in Canada.
<unk> achieved a new partnership with one of the fastest growing coffee franchises in the U S, which will also leverage our point of sale and kitchen management offerings. In addition to payments across locations beginning this quarter.
And we were recently selected as a payments technology provider for food and beverage as part of a multi year partnership with the Minnesota Twins and target field and extended our relationship for a Mulligan AT&T Stadium.
During the period, we also achieve stadium in venue partnerships with the Tampa Bay widening and two Premier League football clubs in the U K.
Our proven ability to deliver innovative solutions that enhance speed efficiency and the overall fan experiences.
Cameron Bready: Turning to our second quarter results, we are very pleased with our performance, particularly in light of the significant positive change we are currently driving in our organization through our transformation. While the macro environment continues to be fluid and consumer sentiment remains somewhat muted, spending has been relatively resilient with trends fairly stable through the period. For the quarter, we reported 5% constant currency adjusted net revenue growth, excluding dispositions, 130 basis points of margin expansion, and 11% constant currency adjusted EPS growth compared to the same period in 2024. These results highlight not only the resilience of our business model, but also our team's ability to execute at scale and advance a significant number of key initiatives while remaining focused on delivering business outcomes.
And large scale high traffic environments has positioned us as the partner of choice for approximately 160 stadiums and venues around the world.
Moving to our education business, we signed a number of key wins this quarter, including new partnerships in the U S with Methodist University, and the University of Science and art of Oklahoma.
And a new agreement with technological University in Dublin.
I would note that we have now signed 16 partnerships with universities across the UK and Ireland.
Since expanding into this market a little over a year ago.
Our education business continues to be an area of innovation for us as well.
This fall, we are introducing a new AI tool and supportive cafeteria programs for school customers the.
This solution builds and Optimizes menu is factoring in complex requirements, such as nutrition guidelines labor availability food costs and inventory.
Cameron Bready: In our merchant business, we achieved a number of notable wins and delivered healthy and consistent growth across the three pillars of our strategy, in line with our expectations and outlook. Beginning with POS and software, we successfully launched Genius for Restaurants and Genius for Retail this quarter, delivering on the line we committed to at the beginning of the year. The launch of Genius marks an important milestone in our journey to streamline our solutions, unifying all the Global Payments point-of-sale products into an intuitive and highly configurable new platform while establishing a stronger and more recognizable brand in the market. Our Genius product family is more than simply a marketplace of point solutions. It's a fully integrated and seamless set of capabilities that can be deployed to clients of varying sizes through our modern, scalable, cloud-based software.
With this our customers will be able to unlock significant efficiency benefits, while improving food quality and offerings.
And the real estate vertical we signed a multiyear extension with our largest partner and are excited about the opportunity to expand our relationship to include additional products.
And both our communities and real estate vertical market software solutions delivered impressive bookings for the second quarter with expected annual revenue from new sales, increasing 30% and 20% respectively compared to the prior year period.
Turning to our integrated embedded business I am pleased to highlight that software partner signings remain strong in particular in our international markets around the world in fact international signings are up more than 30% over the last six months compared to the prior year period, and we continue to have a strong pipeline across the United Kingdom Asia, Australia.
Cameron Bready: Our solutions are designed with a clean interface, fast checkouts, and native workflows without the need and reliance on third-party systems. Genius meets the needs of small businesses while also delivering enterprise-grade reliability for large chains and complex environments. We couple our complete commerce enablement solutions with distinctive distribution and full local service and support that is unrivaled in the market. While early days, we are delighted with the initial momentum we are seeing with Genius. Feedback has been overwhelmingly positive, with customers highlighting Genius for its ease of use, intuitive design, convenience, and enhanced customer experience. Sellers and dealers are excited about Genius' easy setup, speed, flexible and competitive pricing, and increased functionality, allowing them to target a more diverse set of merchants to accelerate sales. Our Genius for Restaurants platform launched in late May at the National Restaurant Association Show in Chicago.
In Latam as we benefit from brother aligning our activities and capabilities globally.
After our core payments business, our focus on forming deeper relationships with commerce enablement and outstanding service is driving significant opportunities with both new and existing partners globally.
I am pleased to note that we recently renewed our strategic partnership with Panamax to bring leading software and payment solutions to the full spectrum of merchants in Mexico for a multiyear period.
Mexico has strong secular trends and <unk> is the right partner given its reach and scale.
We look forward to continuing to deliver best in class Commerce solutions together in Mexico.
We achieved a number of notable wins in several key fast growth geographies in Europe, this quarter, including care for Ikea, <unk> and Breo Kumar J in Poland, as well as with appliance leader experts tell us and bizarre supermarkets in Greece.
Cameron Bready: In the month of June, post the rollout, new restaurant growth accelerated in the mid-teen sequentially compared to April and May, with that momentum continuing in July. We have also seen early success in our wholesale channel, where monthly net new additions have already doubled since launch as we leverage the full power of our distribution platform to bring our best capabilities to market. Our Genius for Retail platform, which officially launched in June, has seen strong early demand as well, with record sales in our U.S. direct channel, which delivered 37% growth from the prior year period. This momentum from retail customers also continued through July. Additionally, we have now integrated our market-leading soft cost solution with Genius to provide a holistic end-to-end offering under the Genius family, including cash-to-pay functionality.
We also acquired two small product companies at the end of the quarter. These.
These buy versus build opportunities allow us to quickly improve our offerings bring innovative technology to market more rapidly control the development roadmap reduce costs and streamline our infrastructure, while also enhancing subject matter expertise and talent.
The first is a Hong Kong based software partner that meaningfully enhances our QR code in digital wallet capabilities.
This technology allows us to expand our current capabilities, providing for a more seamless integration with partners like Ali pay Wechat pay octopus and pay me.
And greater control over the client experience and development roadmap.
Support a full spectrum of merchants, including enterprise clients in APAC and beyond.
Cameron Bready: We have launched this solution into 13 EU markets, including our most recent iOS launch in Spain, which makes us the first acquirer in the market to enable merchants to accept payments directly through their Apple devices. Unlike many of our competitors, we have a significant opportunity to continue expanding Genius in international geographies and to capitalize on the strong secular growth trends and POS demands in regions like Europe, given our established local presence and significant distribution capabilities in these markets today. This is one of the most exciting aspects of the Genius growth story. Looking ahead, we will officially introduce the Genius Enterprise Restaurant solution next month. In the interim, we continue to see momentum with both enterprise restaurant chains and sports and entertainment venues.
The second is a small fraud technology partner that bolsters, our existing capabilities across the street management lifecycle.
This acquisition allows us to provide a more complete end to end support to our customers during the chargeback process on a global basis with.
With a better interface and client experience, while devising legacy technology supporting these solutions today.
Turning to issuer solutions, we delivered solid financial performance consistent with our expectations for the quarter.
This was largely driven by continued growth in accounts on file as well as stable underlying transaction volume trends.
Year to date, we have successfully converted over 15 second quarter with traditional accounts on file with more than $900 million.
We continue to have a strong pipeline of new business that extends into 2027 as well as for letters of intent with institutions worldwide.
Cameron Bready: This quarter, we successfully completed the rollout of our POS and kitchen management solutions to over 1,000 A&W restaurant locations in Canada and achieved a new partnership with one of the fastest growing coffee franchises in the U.S., which will also leverage our point-of-sale and kitchen management offerings in addition to payments across locations beginning this quarter. We were recently selected as a payments technology provider for food and beverage as part of a multi-year partnership with the Minnesota Twins and Target Field and extended our relationship for a multi-year partnership with AT&T Stadium. During the period, we also achieved stadium and venue partnerships with the Tampa Bay Lightning and two Premier League football clubs in the U.K.
Further we recently renewed several customer agreements, including our consumer partnership with President <unk> Bank and.
And commercial relationships with U S Bank, HSBC and another leading multinational financial institution based in Continental Europe.
We also continue to make steady progress on our modernization program with multiple pilots and validation and approaching completion.
Importantly, we achieved general availability for our first fully modernized cloud application during the second quarter and we remain on track for full commercial launch of all customer facing applications by the end of the year.
As I noted while producing these results. We are also making significant progress on our transformation agenda. We continue to expect a meaningful amount of our transformation work to be complete by the end of this year and are actually accelerating roughly 10% of our initiatives. Initially planned for 2026 to better position us to quickly and efficiently.
Cameron Bready: Our proven ability to deliver innovative solutions at enhanced speed, efficiency, and the overall fan experience in large-scale, high-traffic environments has positioned us as the partner of choice for approximately 160 stadiums and venues around the world. Moving to our education business, we signed a number of key wins this quarter, including new partnerships in the U.S. with Methodist University and the University of Science and Arts of Oklahoma, and a new agreement with Technological University in Dublin. I would note that we have now signed 16 partnerships with universities across the U.K. and Ireland since expanding into this market a little over a year ago. Our education business continues to be an area of innovation for us as well. This fall, we are introducing a new AI tool in support of cafeteria programs for school customers.
We integrate world pay at close.
Jonathan will provide more detail, but as a result of the milestones we achieved to date, we are raising the value of the operating income benefit we expect from our transformation initiatives in our merchant business and support functions.
Nearly 20%.
As part of our transformation journey. We are also continuing to focus on streamlining and simplifying the business.
As I noted in late May we announced the definitive agreement to divest our payroll business to acro sure. This transaction further sharpened our strategic focus and allows us to accelerate capital returns to shareholders. We expect the sale to close in the third quarter.
Cameron Bready: The solution builds and optimizes menus, factoring in complex requirements such as nutrition guidelines, labor availability, food costs, and inventory. With this tool, our customers will be able to unlock significant efficiency benefits while improving food quality and offerings. In the real estate vertical, we signed a multi-year extension with our largest partner and are excited about the opportunity to expand our relationship to include additional products. Both our communities and real estate vertical market software solutions delivered impressive bookings for the second quarter, with expected annual revenue from new sales increasing 30% and 20% respectively compared to the prior year period. Turning to our integrated embedded business, I am pleased to highlight that software partner signings remain strong, in particular in our international markets around the world.
As part of the transaction, we have entered into a mutual referral agreement and commercial partnership with <unk> supporting our ability to continue delivering integrated human capital management and payroll offerings to our merchant customers as part of our suite of Commerce enablement solutions.
Announced transactions to divest over $550 million of revenue, which is consistent with what we outlined at the time of our Investor Conference.
That said the plans we communicated in September were established well before the opportunity to acquire World day materialized.
As a result, we are reevaluating portfolio composition decisions, we made at that time in light of the World Bay acquisition, and our strategic focus some vertical exposure post closing.
Consistent with our approach thus far net proceeds from any further divestitures will be.
Cameron Bready: In fact, international signings are up more than 30% over the last six months compared to the prior year period, and we continue to have a strong pipeline across the United Kingdom, Asia, Australia, and Latin Am as we benefit from better aligning our activities and capabilities globally. As for our core payments business, our focus on forming deeper relationships with commerce enablement and outstanding service is driving significant opportunities with both new and existing partners globally. I am pleased to note that we recently renewed our strategic partnership with Banamex to bring leading software and payment solutions to the full spectrum of merchants in Mexico for a multi-year period. Mexico has strong secular trends, and Banamex is the right partner given its reach and scale. We look forward to continuing to deliver best-in-class commerce solutions together in Mexico.
For its neutrality.
We also continue our work to unlock the growth potential of our best capabilities and harmonize our go to market strategy across the globe.
I already highlighted the successful launch of our genius restaurant and retail solutions during the quarter in the U S and that we remain on track to launch our genius enterprise restaurant solution next month.
We have also begun rolling out a genius to international markets, including Canada, and Mexico and will launch in the U K this month.
Before the end of the year, we also expect introduce genius in Germany and Austria.
And in early 2026, we will bring genius to Ireland, and Spain, The Czech Republic, followed by Romania, Poland and Australia shortly thereafter.
In addition to the.
Progress we have made consolidating our 16 Pos systems to the unified genius platform. We're also executing on a number of other initiatives to improve every interaction we have with our customers.
Cameron Bready: We achieved a number of notable wins in several key fast-growth geographies in Europe this quarter, including Carrefour, IKEA, Intermarché, and Brio Komarché in Poland, as well as with appliance leader Express Helix and Bazaar Supermarkets in Greece. We also acquired two small product companies at the end of the quarter. These buy versus build opportunities allow us to quickly improve our offerings, bring innovative technology to market more rapidly, control the development roadmap, reduce costs, and streamline our infrastructure while also enhancing subject matter expertise and talent. The first is a Hong Kong-based software partner that meaningfully enhances our QR code and digital wallet capabilities.
Starting with how we go to market, we're making strides in transforming our sales and marketing organizations with targeted initiatives focus on each component critical to building high performance sales teams.
We are upscaling, our talent across all channels and regions to better leverage modern methodologies and technologies.
We have successfully rolled out our revamped sales incentive plan across all of our U S sales team.
And we're seeing positive results, which includes increases in sales production and sales capacity lower seller attrition rates and an improved ability to attract incremental high quality sales talent.
Cameron Bready: This technology allows us to expand our current capabilities, providing for a more seamless integration with partners like Alipay, WeChat Pay, Octopus, and PayMe, and greater control over the client experience and development roadmap in support of a full spectrum of merchants, including enterprise clients in APAC and beyond. The second is a small fraud technology partner that bolsters our existing capabilities across the dispute management lifecycle. This acquisition allows us to provide a more complete end-to-end support to our customers during the chargeback process on a global basis, with a better interface and client experience while optimizing legacy technology supporting these solutions today. Turning to issuer solutions, we delivered solid financial performance consistent with our expectations for the quarter. This was largely driven by continued growth in accounts on file, as well as stable underlying transaction volume trends. Year to date, we have successfully converted over 15.
Notably, we successfully converted over 90% of core payment sellers to the new plan.
Significant portion of those that did not convert have transitioned to our agent model or wholesale program.
Importantly, the sales professionals that have moved to the new structure have already increased their productivity high single digits with improvements in every month.
In the cohort of new sales professionals hired since January under this model have already been 10% more productive than those under the previous plan.
We are also enhancing the integrated digital technologies that support our sales and marketing operations to improve efficiency effectiveness and customer engagement.
As one example, we have invested in increased marketing automation technology to drive higher conversion rates.
These investments are delivering strong returns with qualified leads up 13% quarter over quarter, driven by improved targeting and engagement.
As an example, our real time messaging platform is now the top performing channel for sales qualified leads.
Cameron Bready: The second quarter, with traditional accounts on file of more than 900 million. We continue to have a strong pipeline of new business that extends into 2027, as well as four letters of intent with institutions worldwide. Further, we recently renewed several customer agreements, including our consumer partnership with President Schoen's Bank and commercial relationships with US Bank, HSBC, and another leading multinational financial institution based in continental Europe. We also continue to make steady progress on our modernization program, with multiple pilots in validation and approaching completion. Importantly, we achieved general availability for our first fully modernized cloud application during the second quarter, and we remain on track for full commercial launch of all customer-facing applications by the end of the year. As I noted, while producing these results, we are also making significant progress on our transformation agenda.
Additionally, we have made significant progress in consolidation of our over 20, CRM instances, leveraging modern infrastructure and common data platform.
We're also simplifying the way, we onboard merchants by establishing a single provisioning inactivating process versus leveraging multiple channels across our businesses and geographies and we have in the past.
As part of this program, we have more than doubled our automated approval rate as we now can support a wider range of customers and partner channels.
We're also making investments to build a single entry point for our customers to access the full suite of capabilities through one marketplace.
Enhancing our ability to cross sell our commerce enablement solutions, including loyalty embedded finance data analytics and get.
To do so we will leverage our modern real time processing and orchestration platform, we acquired last year to distribute products across channels and geographies seamlessly.
Cameron Bready: We continue to expect a meaningful amount of our transformation work to be complete by the end of this year and are actually accelerating roughly 10% of our initiatives initially planned for 2026 to better position us to quickly and efficiently integrate Worldpay at close. Jonathan will provide more detail, but as a result of the milestones we achieved today, we are raising the value of the operating income benefit we expect from our transformation initiatives in our merchant business and support functions by nearly 20%. As part of our transformation journey, we are also continuing to focus on streamlining and simplifying the business. As I noted, in late May, we announced a definitive agreement to divest our payroll business to AcreSure. This transaction further sharpens our strategic focus and allows us to accelerate capital returns to shareholders. We expect the sale to close in the third quarter.
To date, we have conducted multiple products and are now successfully leveraging this platform across our European operations.
Our integrated and embedded business, we are transforming our integration experience into an AI lab developer first platform consolidating all developer documentation code samples and tools into a single global platform that spans geos.
Geographies verticals and partner.
This provides developers with.
With access to a unified suite of API and a powerful orchestration layer capable of shifting transactions between gateways and dynamically activating value added services all without rewriting code.
This means factor faster access to innovation for new and existing partners.
We're helping developers to do more with less which one lakh speed scale and simplicity across global commerce.
This builds on the work we're already doing to integrate AI across our organization to drive innovation enhance efficiency and unlock new opportunities.
Cameron Bready: As part of the transaction, we have entered into a mutual referral agreement and commercial partnership with AcreSure, supporting our ability to continue delivering integrated human capital management and payroll offerings to our merchant customers as part of our suite of commerce enablement solutions. We announced transactions to divest over $550 million of revenue, which is consistent with what we outlined at the time of our investor conference. That said, the plans we communicated in September were established well before the opportunity to acquire Worldpay materialized. As a result, we are reevaluating portfolio composition decisions we made at that time in light of the Worldpay acquisition and our expected strategic focus and vertical exposure post-closing. Consistent with our approach thus far, net proceeds from any further divestitures will be reimbursed towards neutrality.
This includes investments in AI applications in areas, such as marketing optimization contract intelligence customer engagement and software development.
Each offering promising potential to accelerate product delivery streamline operations and elevate the way we serve our customers the key enabler of long term customer and shareholder value.
I am proud of what our team has accomplished across all of our transformation initiatives, which will position us to successfully integrate world pay in 2026.
To that end, we're making solid progress on closing both the acquisition of <unk> and divestiture of our issuer solutions business.
This includes significant strides towards receiving the regulatory approvals required for the transactions.
Cameron Bready: We also continue our work to unlock the growth potential of our best capabilities and harmonize our go-to-market strategy across the globe. I already highlighted the successful launch of our Genius restaurant and retail solutions during the quarter in the U.S. and that we remain on track to launch our Genius Enterprise Restaurant solution next month. We have also begun rolling out Genius to international markets, including Canada and Mexico, and will launch in the U.K. this month. Before the end of the year, we also expect to introduce Genius in Germany and Austria, and in early 2026, we will bring Genius to Ireland, Spain, the Czech Republic, followed by Romania, Poland, and Australia shortly thereafter.
We are initially.
The approval process with regulators and all required jurisdictions.
We're particularly pleased that the transaction cleared antitrust review in the U S. Upon expiry of the HSR waiting period in July.
Overall, the regulatory approval process is proceeding as expected.
And we remain on track to close in the first half of 2026.
Additionally, we are preparing to execute on the world pay integration and have identified and established all necessary work streams to ensure a seamless process.
We have a proven track record of integrating large acquisitions delivering on our timelines and exceeding our synergy goals.
And we will approach the integration with world pay with uncompromising plan for aligning our operating model and fully unifying our businesses for value creation.
Cameron Bready: In addition to the progress we have made consolidating our 16 POS systems to the unified Genius platform, we are also executing on a number of other initiatives to improve every interaction we have with our customers. Starting with how we go to market, we are making strides in transforming our sales and marketing organizations with targeted initiatives focused on each component critical to building high-performance sales teams. We are upskilling our talent across all channels and regions to better leverage modern sales methodologies and technology. We have successfully rolled out a revamped sales incentive plan across all of our U.S. sales teams, and we are seeing positive results, which include increases in sales production and sales capacity, lower seller attrition rates, and an improved ability to attract incremental high-quality sales talent.
Our integration strategy will emphasize accelerating growth enhancing our competitiveness synergy realization and investing in innovation. While also unifying the combined company under a single brand and leveraging the best talent from both organizations to build the industry's strongest team.
We recently held our first integration planning kickoff, bringing together over 100 leaders from both global payments and <unk> to begin developing our integration roadmap.
The team left energized about the future and we're more excited today than we were at the time of the announcement about the opportunities to accelerate our transformation and long term strategy.
We are positioning the business for a seamless closed and our work to date has further increased our confidence in revenue and expense synergy expectations, we outlined in April.
Cameron Bready: Notably, we successfully converted over 90% of core payment sellers to the new plan, while a significant portion of those that did not convert have transitioned to our agent model or wholesale program. Importantly, the sales professionals that have moved to the new structure have already increased their productivity high single digits with improvements in every month. The cohort of new sales professionals hired since January under this model have already been 10% more productive than those under the previous plan. We are also enhancing the integrated digital technologies that support our sales and marketing operations to improve efficiency, effectiveness, and customer engagement. As one example, we have invested in increased marketing automation technology to drive higher conversion rates. These investments are delivering strong returns with qualified leads up 13% quarter over quarter, driven by improved targeting and engagement.
Royalty positions, our company with unmatched global scale processing nearly four trillion.
Annual volume across 100 billion transactions and serving millions of merchants and thousands of platform and software partners globally.
Importantly, the acquisition combines complementary capabilities that will make our go to market business stronger more scalable more competitive and more valuable to our clients.
We are highly focused on the opportunities to accelerate growth as a combined business through a combination of expanded distribution and more complete suite of products and solutions to serve merchants and partners of all types and sizes globally and in an ability to invest in innovation at scale.
For example, we already discussed our ability to immediately sell genius other software and commerce enablement solutions into <unk> existing SMB merck's existing distribution channels to bring these capabilities to the market.
Cameron Bready: As an example, our real-time messaging platform is now the top-performing channel for sales qualified leads. Additionally, we have made significant progress in consolidation of our over 20 CRM instances, leveraging modern infrastructure and common data platform. We are also simplifying the way we onboard merchants by establishing a single provisioning and activating process versus leveraging multiple channels across our business and geographies as we had in the past. As part of this program, we have more than doubled our automated approval rate as we now can support a wider range of customers and partner channels while we are also making investments to build a single entry point for our customers to access the full suite of capabilities through one marketplace, enhancing our ability to cross-sell our commerce enablement solutions, including loyalty, embedded finance, data analytics, and gifts.
We will also be able to further strengthen the commerce enablement solutions integrated into genius to support the growth of our restaurants and retailers, including enhancing our merchant embedded finance offerings through existing world pay solutions.
We'll take the pay rate platform in full payback capabilities augment our ability to serve software partners marketplaces and platforms across more regions.
<unk> and operating models.
Many of the world pay solutions for platforms can enhance our offerings and the experience we deliver for our software partners.
<unk> also brings world class enterprise and e-commerce capabilities and enhance our payment acceptance solutions and enable us to deliver ads across our combined footprint and a full spectrum of merchant customer.
We have identified opportunities to cross sell existing world pay solutions, including fraud, and prime routing as well as our global payments loyalty data and analytics and other commerce enablement solutions across our combined 5 million merchant customer base.
Cameron Bready: To do so, we will leverage our modern real-time processing and orchestration platform we acquired last year to distribute products across channels and geographies seamlessly. To date, we have connected multiple products and are now successfully leveraging this platform across our European operations. Our integrated and embedded business, we are transforming our integration experience into an AI-led developer-first platform, consolidating all developer documentation, code samples, and tools into a single global platform that spans geographies, verticals, and partners. This provides developers with access to a unified suite of APIs and a powerful orchestration layer capable of shifting transactions between gateways and dynamically activating value-added services, all without rewriting code. This means faster access to innovation for new and existing partners. We are helping developers to do more with less, which will unlock speed, scale, and simplicity across global commerce.
In addition to serving the digital needs of enterprise customers, including best in class authorization capabilities, a premier FX platform credential management solutions broad offerings, and leading payout solution supporting over 100 currencies stable coins in a robust and rapidly growing list of alternative payment methods.
We intend to bring world E comm capabilities Downmarket to further differentiate our offerings for SMB clients.
We also see tremendous potential for geographic expansion as a combined company targeting new secular growth markets.
In particular, we cannot be more excited to bring robust local distribution functionality and service to complement world, leading digital offerings across the 40 markets, where we have a physical presence today.
We are also focused on innovation and new businesses, we can grow as a combined company. One such example is <unk>, where both companies possess a variety of assets and capabilities. We feel we can better harness and invest and to accelerate our growth in a market, where we've been historically underpenetrated.
Cameron Bready: This builds on the work we are already doing to integrate AI across our organization to drive innovation, enhance efficiency, and unlock new opportunities. This includes investments in AI applications in areas such as marketing optimization, contract intelligence, customer engagement, and software development, each offering promising potential to accelerate product delivery, streamline operations, and elevate the way we serve our customers, the key enabler of long-term customer and shareholder value. I am proud of what our team has accomplished across all of our transformation initiatives, which will position us to successfully integrate Worldpay in 2026. To that end, we are making solid progress on closing both the acquisition of Worldpay and divestiture of our issuer solutions business. This includes significant strides towards receiving the regulatory approvals required for the transactions. We have initiated the approval process with regulators in all required jurisdictions.
And we will enable all of this by accelerating investment more broadly across the business to further differentiate and compete putting more than $1 billion annually in high priority areas supporting our growth.
Together, we will be better positioned than ever to deliver the next generation of capabilities from point of sale and software and integrated and embedded payments to advanced Commerce enablement and Omnichannel solutions for merchants of all sizes globally.
Lastly, we will ensure the collectively we continue to meet the highest compliance and regulatory standards globally, which we will believe will increasingly be appointed differentiation in the future.
Josh.
Morning, we're pleased to have reported another solid quarter highlighted by consistent revenue growth.
Cameron Bready: We are particularly pleased that the transaction cleared anti-trust review in the U.S. upon expiry of the HSR waiting period in July. Overall, the regulatory approval process is proceeding as expected, and we remain on track to close in the first half of 2026. Additionally, we are preparing to execute on the Worldpay integration and have identified and established all necessary work streams to ensure a seamless process. We have a proven track record of integrating large acquisitions, delivering on our timelines, and exceeding our synergy goals. We will approach the integration with Worldpay with an uncompromising plan for aligning our operating model and fully unifying our businesses for value creation.
Healthy margin expansion and strong adjusted free cash flow generation, specifically, we delivered adjusted net revenue of $2 $3 6 billion.
An increase of 5% on a constant currency basis, excluding dispositions.
Adjusted operating margin for the quarter increased 130 basis points to 44, 6%. This.
This translates to a 110 basis points of expansion excluding dispositions. The net result was adjusted earnings per share of $3 10, an increase of 11% on a reported and constant currency basis.
Our adjusted net revenue performance was consistent with our expectations, while adjusted operating margin and EPS came in slightly ahead, driven by strong execution on our refocused strategy and transformation initiatives.
Cameron Bready: Our integration strategy will emphasize accelerating growth, enhancing our competitiveness, synergy realization, and investing in innovation, while also unifying the combined company under a single brand and leveraging the best talent from both organizations to build the industry's strongest team. We recently held our first integration planning kickoff, bringing together over 100 leaders from both Global Payments and Worldpay to begin developing our integration roadmap. The team left energized about the future, and we were more excited today than we were at the time of the announcement about the opportunities to accelerate our transformation and long-term strategy. We are positioning the business for a seamless close, and our work to date has further increased our confidence in revenue and expense synergy expectations we outlined in April.
Taking a closer look at performance by segment merchant solutions achieved adjusted net revenue of $183 billion for the second quarter, reflecting growth of approximately five 5%, excluding dispositions, which was in line with our expectations with our Pos in software and are integrating embedded businesses grew in the <unk>.
High single digits range, excluding dispositions, we saw strong growth in new Pos locations during the quarter and notably saw demand accelerate following the launch of our genius restaurant and retail solutions in May and June respectively.
Additionally, we added 85, new <unk> partners during the second quarter with strength in international markets as we continue to extend our offerings to new regions.
Cameron Bready: Worldpay positions our company with unmatched global scale, processing nearly $4 trillion in annual volume across 100 billion transactions and serving millions of merchants and thousands of platform and software partners globally. Importantly, the acquisition combines complementary capabilities that will make our go-to-market business stronger, more scalable, more competitive, and more valuable to our clients. We are highly focused on the opportunities to accelerate growth as a combined business through a combination of expanded distribution and a more complete suite of products and solutions to serve merchants and partners of all types and sizes globally, and in an ability to invest in innovation at scale. For example, we already discussed our ability to immediately sell Genius, other software and commerce enablement solutions into Worldpay's existing distribution channels to bring these capabilities to market.
Our core payments business delivered growth at the high end of low single digits for the second quarter with several international businesses. Notable bright spots, specifically central Europe, Latam and Asia Pacific All achieved high single digit or greater growth as we continue to benefit from the strong secular payment trends and.
These markets.
We delivered an adjusted operating margin of 51% in the merchant segment, an increase of 130 basis points 90 basis points excluding dispositions.
Our <unk> solutions business produced adjusted net revenue of $547 million for the second quarter, reflecting growth of approximately three 5% on a constant currency basis.
Cameron Bready: We will also be able to further strengthen the commerce enablement solutions integrated into Genius to support the growth of our restaurants and retailers, including enhancing our merchant embedded finance offerings through existing Worldpay solutions. Worldpay's payment platform and full Payrix platform capabilities augment our ability to serve software partners, marketplaces, and platforms across more regions and operating models. Many of the Worldpay solutions for platforms can enhance our offerings and the experience we deliver for our software partners. Worldpay also brings world-class enterprise and e-commerce capabilities that enhance our payment acceptance solutions and enable us to deliver experience across our combined footprint and a full spectrum of merchant customers. We have identified opportunities to cross-sell existing Worldpay solutions, including fraud and prime routing, as well as our Global Payments, loyalty data and analytics, and other commerce enablement solutions across our combined 5 million merchant customer base.
This performance marks an improvement from where we exited the first quarter largely driven by an increase in accounts on file and overall stable transaction volume trends.
We've added a total of 15 million traditional accounts on file year to date, driven by new implementations and growth with existing customers as our strategy of aligning with market share winners continues to drive benefits.
We have six more implementations, we expect to complete over the balance of the year and our implementation pipeline and the completion of our renewal cycle with many of our large customers gives us confidence in our outlook for improved growth in this business in the second half.
Issuer solutions delivering an adjusted operating margin.
A 48, 7%.
Which is 190 basis point improvement from the prior year.
From a cash flow standpoint, we produce strong.
Ultimately $800 million.
Representing a conversion rate of adjusted net income to adjusted free cash flow of approximately 110%.
Cameron Bready: In addition to serving the digital needs of enterprise customers, including best-in-class authorization capabilities, a premier FX platform, credential management solutions, fraud offerings, and leading payout solutions supporting over 100 currencies, stable coins, and a robust and rapidly growing list of alternative payment methods, we intend to bring Worldpay's e-commerce capabilities down market to further differentiate our offering for SMB clients. We also see tremendous potential for geographic expansion as a combined company targeting new secular growth markets. In particular, we could not be more excited to bring robust local distribution functionality and service to complement Worldpay's leading digital offerings across the 40 markets where we have a physical presence today. We are also focused on innovation and new businesses we can grow as a combined company.
This translates to roughly 95% conversion rate year to date.
We invested approximately $150 million in capital expenditures during the quarter and expect capital expenditures to be roughly $750 million in 2025 or approximately 8% of revenue.
We executed share repurchases of.
Approximately $230 million in the quarter and more than $698 million during the first half of 2025.
Our net leverage position was $3 one five times at the end of the second quarter, our balance sheet remains extremely healthy and we ended the period with approximately $3 billion of available liquidity. Our total indebtedness is 95% fixed with a weighted average cost of debt of three 5%.
Turning to our outlook for the full year 2025, we continue to expect constant currency adjusted net revenue growth of 5% to 6% over 2024, excluding dispositions.
Cameron Bready: One such example is in B2B, where both companies possess a variety of assets and capabilities we feel we can better harness and invest in to accelerate our growth in a market where we've been historically underpenetrated. We will enable all this by accelerating investment more broadly across the business to further differentiate and compete, putting more than $1 billion annually in high-priority areas supporting our growth. Together, we will be better positioned than ever to deliver the next generation of capabilities from point-of-sale and software and integrated and embedded payments to advanced commerce enablement and omnichannel solutions for merchants of all sizes globally. Lastly, we will ensure that collectively we continue to meet the highest compliance and regulatory standards globally, which we believe will increasingly be a point of differentiation in the future. Josh?
We still anticipate dispositions will impact reported adjusted net revenue by over 300 basis points, which does not account for the sale of payroll as we've not yet closed that transaction will.
We will provide an update on this impact at close.
We now expect a headwind from foreign currency exchange rates to be approximately 50 basis points for the full year compared to the 125 basis point impact we guided to previously given the weakening of the U S. Dollar we have seen in the first part of the year.
That said foreign currency exchange rates remain quite volatile given trade uncertainties.
We now expect annual adjusted operating margin to expand slightly more than 50 basis points for 2025, excluding the effect of dispositions due to the progress we are making with our transformation agenda.
Bob Cortopassi: Morning. We are pleased to have reported another solid quarter highlighted by consistent revenue growth, healthy margin expansion, and strong adjusted free cash flow generation. Specifically, we delivered adjusted net revenue of $2.36 billion, an increase of 5% on a constant currency basis, excluding dispositions. Adjusted operating margin for the quarter increased 130 basis points to 44.6%. This translates to 110 basis points of expansion, excluding dispositions. The net result was adjusted earnings per share of $3.10, an increase of 11% on a reported and constant currency basis. Our adjusted net revenue performance was consistent with our expectation, while adjusted operating margin and EPS came in slightly ahead, driven by strong execution on our refocused strategy and transformation initiatives.
At the segment level, we still expect our merchant business to deliver adjusted net revenue growth of roughly 6% on a constant currency basis, excluding dispositions for the full year. However, we now expect adjusted operating margin expansion for this business to be slightly above 50 basis points, excluding dispositions in 2025.
Moving to issuer solutions, we continue to anticipate adjusted net revenue growth and roughly 4% range on a constant currency basis for the full year compared to 2024.
And we now expect adjusted operating margin for the issuer business to also extend by slightly more than 50 basis points in 2025.
We continue to anticipate adjusted free cash flow conversion will be greater than 90% for the full year.
And we still expect to be approximately three times net levered at the end of 2025.
Bob Cortopassi: Taking a closer look at performance by segment, Merchant Solutions achieved adjusted net revenue of $1.83 billion for the second quarter, reflecting growth of approximately 5.5%, excluding dispositions, which was in line with our expectations. Both our point-of-sale and software and our integrated embedded businesses grew in the high single digits range, excluding dispositions. We saw strong growth in new point-of-sale locations during the quarter and notably saw demand accelerate following the launch of our Genius restaurant and retail solutions in May and June, respectively. Additionally, we added 85 new ISV partners during the second quarter, with strength in international markets as we continue to extend our offerings to new regions. Our core payments business delivered growth at the high end of low single digits for the second quarter, with several international businesses notable bright spots.
Putting it altogether, we remain confident in the trajectory of the business for the remainder of the year and now expect adjusted earnings per share growth to be at the high end of the 10% to 11% range for the full year on a constant currency basis.
Regarding capital, we are entering into a $500 million accelerated share repurchase program in connection with the payroll divestiture, which we expect to close this quarter.
Further we expect tax provisions included within the recently passed one Big Beautiful Bill Act to modestly improve our cash flow generation going forward and allow us to increase our capital returns to shareholders to a total of $7 5 billion between 2025 and 2027 exactly.
Consistent with our capital allocation plan, we outlined at our Investor Conference last September before the announcement of the world pay transaction.
Bob Cortopassi: Specifically, Central Europe, Latin America, and Asia Pacific all achieved high single digit or greater growth as we continue to benefit from the strong secular payment trends in these markets. We delivered an adjusted operating margin of 50.1% in the merchant segment, an increase of 130 basis points, 90 basis points, excluding dispositions. Our issuer solutions business produced adjusted net revenue of $547 million for the second quarter, reflecting growth of approximately 3.5% on a constant currency basis. This performance marks an improvement from where we exited the first quarter, largely driven by an increase in accounts on file and overall stable transaction volume trends. We have added a total of 15 million traditional accounts on file year to date, driven by new implementations and growth with existing customers as our strategy of aligning with market share winners continues to drive benefits.
It is important to note that any repurchase activity related to divestitures, including the ASR announced today is incremental to the $7 5 billion of capital returns, we committed to over the street.
Three year period.
Finally, given the significant information we are now pleased to be.
Be able to raise our annual run rate operating income benefit for them.
The go forward business to $650 million.
This increase translates to a $100 million more in benefits and our go forward business compared to our prior estimate and also reflects the elimination of run rate benefits related to issuer solutions, which represented roughly 10% of the overall transformation benefits previously outlined.
We continue to be pleased with the significant progress we've made with our transformation efforts, which will allow us to accelerate the integration of oral pay post close.
And with that I'll turn the call back over to Cameron.
Bob Cortopassi: We have six more implementations we expect to complete over the balance of the year, and our implementation pipeline and the completion of our renewal cycle with many of our large customers gives us confidence in our outlook for improved growth in this business in the second half. Issuer solutions delivered an adjusted operating margin of 48.7%, which is a 190 basis point improvement from the prior year. From a cash flow standpoint, we produced strongly at approximately $800 million, representing a conversion rate of adjusted net income to adjusted free cash flow of approximately 110%. This translates to a roughly 95% conversion rate year to date. We invested approximately $150 million in capital expenditures during the quarter and expect capital expenditures to be roughly $750 million in 2025, or approximately 8% of revenue.
Thanks, Josh.
At our Investor Conference last September we talked in great detail about our intention to become a more focused organization recognizing that we can unlock substantially more value in our business through greater clarity of purpose.
To accomplish this we reoriented our business under a single unified operating model and launch a significant operational transformation program.
Driving meaningful efficiencies in operating income benefits, which we now expect the total $650 million in annual run rate operating income benefit for our merchant business and support functions once complete.
We also reviewed our portfolio and identified assets for potential divestiture or exit in order to better focus our energy and investments on the most attractive opportunities where we can differentiate in the market.
As I highlighted earlier, we have now exited or announced transactions to divest over $550 million of revenue consistent with what we outlined at the time of our Investor Conference.
Bob Cortopassi: We executed share repurchases of approximately $230 million in the quarter and more than $690 million during the first half of 2025. Our net leverage position was 3.15 times at the end of the second quarter. Our balance sheet remains extremely healthy, and we ended the period with approximately $3 billion of available liquidity. Our total indebtedness is 95% fixed, with a weighted average cost of debt of 3.5%. Turning to our outlook for the full year 2025, we continue to expect constant currency adjusted net revenue growth of 5% to 6% over 2024, excluding dispositions. We still anticipate dispositions will impact reported adjusted net revenue by over 300 basis points, which does not account for the sale of payroll as we have not yet closed that transaction. We will provide an update on this impact at close.
Including the payroll divestiture of these portfolio efforts will have allowed us to Opportunistically return $1 2 billion to shareholders in less than 12 months.
And we are reevaluating the portfolio composition in light of the World pay acquisition and remain committed to using proceeds from any additional business exits to return capital to shareholders.
And further we now expect to returned $7 5 billion in capital excluding returns associated with dispositions to our shareholders over the 2025 to 2027 period consistent with what we outlined at our Investor Conference last year.
And as a result of moral pay an issuer transactions by 2028, our annual run rate Levered free cash flow and total capital return expectations will be nearly 50% higher than they would've been previously providing us with greater flexibility to invest in growth and return meaningfully more capital to shareholders.
We have even greater conviction today than we did when we announced the <unk> acquisition about the potential to enhance our competitive strengths open new opportunities and accelerate our growth trajectory, while maximizing value creation and amplifying our capital return expectations.
Bob Cortopassi: We now expect the headwind from foreign currency exchange rates to be approximately 50 basis points for the full year compared to the 125 basis point impact we guided to previously, given the weakening of the U.S. dollar that we have seen in the first part of the year. That said, foreign currency exchange rates remain quite volatile given trade uncertainties. We now expect annual adjusted operating margin to expand slightly more than 50 basis points for 2025, excluding the effect of dispositions due to the progress we are making with our transformation agenda. At the segment level, we still expect our merchant business to deliver adjusted net revenue growth of roughly 6% on a constant currency basis, excluding dispositions for the full year. However, we now expect adjusted operating margin expansion for this business to be slightly above 50 basis points, excluding dispositions in 2025.
And by diversifying our business across an SMB to enterprise customer base with millions of merchant customers and thousands of platform and software partners.
Extending our global reach and expanding our comprehensive capabilities spanning physical card present environments to global ecommerce. We are building a more focused stronger and more durable model for the long run.
Many thanks.
Thanks Cameron.
Before we begin our question and answer session I would like to ask everyone to limit their questions to one with one follow up to accommodate everyone in the queue. Thank you.
Operator, we will now go to questions.
Thank you.
Bob Cortopassi: Moving to issuer solutions, we continue to anticipate adjusted net revenue growth in roughly 4% range on a constant currency basis for the full year compared to 2024, and we now expect adjusted operating margin for the issuer business to also expand by slightly more than 50 basis points in 2025. We continue to anticipate adjusted free cash flow conversion will be greater than 90% for the full year, and we still expect to be approximately three times net levered at the end of 2025. Putting it all together, we remain confident in the trajectory of the business for the remainder of the year and now expect adjusted earnings per share growth to be at the high end of the 10% to 11% range for the full year on a constant currency basis.
At this time, if you would like to ask a question. Please press star one on your Touchtone keypad.
If you would like to remove yourself from the queue you May press star two.
Please limit yourself to one question and one follow up once again that is star one to ask a question.
And our first question will come from Dave Koning with Baird. Please go ahead.
Yes, Hey, guys great great.
Great momentum.
And I guess first of all just to kind of understand the sequential pattern through the year now with merchant. It sounds like you have pretty good momentum should we expect pretty normal seasonal patterns in Q3, and Q4 and then maybe layer in there when should we take out payroll is at about $60 million a quarter.
Bob Cortopassi: Regarding capital, we are entering into a $500 million accelerated share repurchase program in connection with the payroll divestiture, which we expect to close this quarter. Further, we expect tax provisions included within the recently passed One Big Beautiful Bill Act to modestly improve our cash flow generation going forward and allow us to increase our capital returns to shareholders to a total of $7.5 billion between 2025 and 2027, exactly consistent with the capital allocation plan we outlined at our investor conference last September before the announcement of the Worldpay transaction. It is important to note that any repurchase activity related to divestitures, including the ASR announced today, is incremental to the $7.5 billion of capital returns we committed to over this three-year period.
Just kind of want to understand the momentum of normalized sequential growth.
Yes, Thanks, David its Josh.
As we've talked about before.
The first half of the year, we expected growth for merchant to be approximately that five 5% range. In Q3 Q4, we expect to see some acceleration as the transformation benefits you start to go ahead and flow through with genius.
We announced that we launched that in the May timeframe at the National Restaurant Association.
And then retail the following month. So we expect that to go ahead and contribute to the slightly above that 6% range in the back half of the year and you get you to approximately 6% from an overall guide perspective.
Bob Cortopassi: Finally, given the significant transformation, we are now pleased to be able to raise our annual run rate operating income benefit for the go-forward business to $650 million. This increase translates to $100 million more in benefits in our go-forward business compared to our prior estimate and also reflects the elimination of run rate benefits related to issuer solutions, which represented roughly 10% of the overall transformation benefits previously outlined. We continue to be pleased with the significant progress we have made with our transformation efforts, which will allow us to accelerate the integration of Worldpay post-close. With that, I will turn the call back over to Cameron Bready.
Where are we where we place our guide and then as it relates to the overall payroll we expect to close that at the end of the at.
At the end of the second quarter, and that's about $65 million approximately from an overall revenue perspective per quarter.
That.
That you can factor into it.
Great.
One other just follow up just what's really encouraging I think you talked about 289 million shares at close I.
I think you ended the quarter at $2 43, and I know youre, adding another 43 with the with the purchase but then taking out maybe six for the payroll.
Are you going to be down to $2 <unk> on my math well below the 289, you guided to kind of on the right track there and then should we expect some incremental buybacks even through the rest of the year.
Cameron Bready: Thanks, Josh. At our investor conference last September, we talked in great detail about our intention to become a more focused organization, recognizing that we can unlock substantially more value in our business through greater clarity of purpose. To accomplish this, we reoriented our business under a single unified operating model and launched a significant operational transformation program, driving meaningful efficiencies and operating income benefits, which we now expect to total $650 million in annual run rate operating income benefit for our merchant business and support functions once complete. We also reviewed our portfolio and identified assets for potential divestiture or exit in order to better focus our energy and investments on the most attractive opportunities where we can differentiate in the market.
Yes, that's approximately I think youre right around.
That general area and so year to date, we bought back approximately $690 million worth of shares.
And then we have the $500 million, ASR, which which you can expect that.
We'll buyback.
Once we go ahead and close.
Closed the transaction with payroll.
And David Cameron just to your last point, we commented on the call, but the one big beautiful Bill.
He has back provisions that improve our cash flows that's how we're able to increase our overall expectation for share repurchases and capital returns over the 2025 to 2027 range. So that $7 $5 billion number we expect roughly an incremental half a billion dollars.
Cameron Bready: As I highlighted earlier, we have now exited or announced transactions to divest over $550 million of revenue, consistent with what we outlined at the time of our investor conference. Including the payroll divestiture, these portfolio efforts will have allowed us to opportunistically return $1.2 billion to shareholders in less than 12 months. We are reevaluating the portfolio composition in light of the Worldpay acquisition and remain committed to using proceeds from any additional business exits to return capital to shareholders. Furthermore, we now expect to return $7.5 billion in capital, excluding returns associated with dispositions, to our shareholders over the 2025 to 2027 period, consistent with what we outlined at our investor conference last year.
Cash flow benefits coming from the one big beautiful Bill App, so as it relates to the balance of the year. It also gives us a little bit of flexibility in 2025 to consider additional share repurchases or more leverage pay down to make sure that the balance sheets and a very healthy place when we get to the close of the World Bay transaction, while continuing to remain committed to.
Returning as much capital to shareholders as possible, assuming the balance sheet in a good place.
Yes, the only thing I would just reiterate is that we're very focused on getting back up three times levered by the end of the year as Cameron mentioned, so with the payroll divestiture will also remain key.
Keep leverage new quality with that and use the excess proceeds to buy back shares.
Cameron Bready: As a result of Worldpay and issuer transactions, by 2028, our annual run rate leverage free cash flow and total capital return expectations will be nearly 50% higher than they would have been previously, providing us with greater flexibility to invest in growth and return meaningfully more capital to shareholders. We have even greater conviction today than we did when we announced the Worldpay acquisition about the potential to enhance our competitive strengths, open new opportunities, and accelerate our growth trajectory while maximizing value creation and amplifying our capital return expectations. By diversifying our business across an SMB to enterprise customer base with millions of merchant customers and thousands of platform and software partners, extending our global reach and expanding our comprehensive capabilities spanning physical card present environments to global e-commerce, we're building a more focused, stronger, and more durable model for the long run. Winnie?
Momentum thanks.
Thanks, David.
Thank you.
Our next question will come from Dan Perlin with RBC capital markets.
Thanks, Good morning.
I wanted to just circle back on the commentary around additional divestitures.
And make sure we're kind of aligning ourselves. So obviously you kind of hit the target that you originally planned.
Got world pay now contemplated so that changes the dynamics a little bit here. So are you thinking that there's other businesses.
Typically or geographies or maybe it's both.
But I'm just trying to think as we attempt to identify who those or what those businesses are here isn't going to be just which ones maybe it wouldnt align with the world pay strategy and you'd want to get.
You want to basically monetize near term. Thank you.
Yeah, Thanks, Dan It's Cameron.
It's a fair question and not surprisingly my answer is going to be I can't give you a lot more detail than what we've already shared.
Winnie Smith: Thanks, Cameron. Before we begin our question and answer session, I would like to ask everyone to limit their questions to one with one follow-up to accommodate everyone in the queue. Thank you. Operator, we will now go to questions.
I wanted to protect the integrity of any process that we may look to run.
And around particular assets that we may choose to divest so I think the.
The main point is when we made our decisions previously and came up with the conclusions that resulted in the actions that we've taken thus far having hit the target that we laid out at the September Investor Conference.
Operator: Thank you. At this time, if you would like to ask a question, please press star one on your touchtone keypad. If you would like to remove yourself from the queue, you may press star two. Please limit yourself to one question and one follow-up. Once again, that is star one to ask a question. Our first question will come from Dave Koning with Baird. Please go ahead.
That was obviously in advance of even thinking about world pay as an opportunity as we think about what we're trying to drive the business long term, we think about the scale scope of the combined business. We also think about vertical market sort of exposure given their partner base. Our partner base. The combined business. We are just going back and kind of refreshing our thinking around the port.
Dave Koning: Yeah, hey guys, great momentum. First of all, just to kind of understand the sequential pattern through the year now with merchants, it sounds like you have pretty good momentum. Should we expect pretty normal seasonal patterns in Q3 and Q4? Then maybe later in there, when should we take out payroll? Is that about $60 million a quarter? Just kind of want to understand the momentum of normalized sequential growth.
Palio composition, and we are assessing whether any of the decisions. We made prior to our September Investor Conference. We would take a different view now in light of what the business is going so more to come as we take specific actions, but I think it's fair to say that there probably are some incremental things we would choose to do in light of the world pay transaction and consistent.
Our past thus far to the extent that we're successful in exiting any other assets. We would use that capital returned to shareholders again, assuming that we're able to achieve leverage neutrality through the through the transaction.
Joshua Whipple: Yeah, thanks, David. It's Josh. As we've talked about before, the first half of the year, we expected growth for merchants to be in approximately that 5.5% range. In Q3, Q4, we expect to see some acceleration as the transformation benefits start to flow through with Genius. We announced that and we launched that in the May timeframe at the National Restaurant Association, and then retail the following month. So we expect that to contribute to the slightly above that 6% range in the back half of the year and get you to approximately 6% from an overall guide perspective, where we play fair guide. As it relates to overall payroll, we expect to close that at the end of the third quarter. That's about $65 million approximately from an overall revenue perspective per quarter that you can factor into it.
That's great just a quick follow up on the genius brand consolidation I know when you had originally.
The contemplated putting those things together there was concerns that there might be some portfolio attrition or some noise in there.
Book It doesn't sound like that is kind of manifesting, but I would just be interested to hear if there is any friction at least near term, but it sounds like the kind of run rate go forward is certainly more than more than enough to offset any of that thank you.
Yes, it's a good question and maybe I'll ask Bob to give a little more detail because he's closer to it obviously than I am every day I wouldn't say I don't think we've seen sort of attrition in the base per se and that's not something that we're overly concerned about as it relates to the Bemis rollout, we did see a little bit of pause in the buying behavior as people knew.
The new platform was coming and obviously, we saw a little bit of pause kind of leading up to the official launch in may for a restaurant in June for retail, but obviously as we commented in our script. This morning, we've seen very good momentum from a new sales perspective once those launches materialized in the timeframe that we've outlined so not surprisingly buyers are kind of.
Dave Koning: Yeah, great. And one other just follow-up, just what's really encouraging, I think you talked about 289 million shares that close. I think you ended the quarter at 243, and I know you're adding another 43 with the purchase, but then taking out maybe six for the payroll ASR, you're going to be down to 280 on my math, you know, well below the 289 you guided to. Am I kind of on the right track there? And then should we expect some incremental buybacks even through the rest of the year?
<unk> for the new platform and we did see a little bit of that behavior, but as it relates to the underlying base I don't think we've seen much.
From that perspective that is that was wondering jos.
Yes, I think it's important to understand that in small business services in particular, the biggest driver of attrition isn't detection to another product or service frankly, its business failure and thats the largest driver of attrition for us as well as for the industry more broadly I think the trends that we see to Cam.
Joshua Whipple: Yeah, that's approximate. I think you're right around that general area. Look, year to date, we bought back approximately $690 million worth of shares. Then we have the $500 million ASR, which you can expect that we'll buy back once we go ahead and close the transaction with Payrix platform.
<unk> point are consistent with what we've seen historically and we do feel really good about not only being able to grow through attrition, which we've done over over the course of time, but also to accelerate that growth in meaningful ways also a lot of the <unk>.
Cameron Bready: David, Cameron, just to your last point, we commented on the call that the One Big Beautiful Bill Act obviously has tax provisions that improve our cash flows. That is how we are able to increase our overall expectation for share repurchases and capital returns over the 2025 to 2027 range. So that $7.5 billion number, we expect roughly an incremental $0.5 billion of cash flow benefits coming from the One Big Beautiful Bill Act.
Greenfield for genius or end markets that we don't have significant pass penetration today, we may have significant payments penetration, but many of our Pos solutions, where regional certainly a higher concentration in the U S and Canadian markets and when you get into Latin America, Europe and Asia Pacific.
So the growth is not only coming out of our existing.
Cameron Bready: As it relates to the balance of the year, it also gives us a little bit of flexibility in 2025 to consider additional share repurchases or more leverage pay down to make sure that the balance sheet is in a very healthy place when we get to the close of the Worldpay transaction while continuing to remain committed to returning as much capital to the shareholders as possible, assuming the balance sheet is in a good place.
Mature poss market, but also greenfield opportunities for us and we think Theres, a real opportunity to get there in a way that maybe is tougher for our competitors given the scale and scope of our distribution our service capabilities.
Worldwide.
That's a really good point. Thank you so much for that.
Joshua Whipple: The only thing I'd just reiterate is that, we're very focused on getting back to 3 times leverage point by the end of the year, as Cameron Bready mentioned. With the payroll divestiture, we'll also remain, keep leverage neutrality with that and use the excess proceeds to buy back shares.
Thank you. Thank you.
Our next question will come from Dan Donlan with Mizuho. Please go ahead.
Hey, guys excellent results here looking really good great job it sounds like it looks like the Genie is going back to the genius rollout looks like.
Dave Koning: Momentum, thanks.
Cameron Bready: Thanks, Dave.
On a really good trajectory.
Operator: Thank you. Our next question will come from Dan Perlin with RBC Capital Markets.
Cameron can you maybe talk about the confidence in the acceleration in the second half like some of the puts and takes and exiting at six to seven and then maybe some comments on sort of recent trends and then have a very quick follow up thank you.
Dave Koning: Thanks, good morning. I wanted to just circle back on the commentary around additional divestitures and make sure we are kind of aligning ourselves. You kind of hit the target that you originally planned. You have Worldpay now contemplated, so that changes the dynamics a little bit here. Are you thinking that there are other businesses specifically or geographies, or maybe it is both? I am just trying to think as we attempt to identify maybe who those or what those businesses or geos are going to be, just which ones maybe would not align with the Worldpay strategy and you would want to get them, you would want to basically monetize in the near term. Thank you.
Yeah, maybe I'll start and then I'll ask Bob to comment on the recent trends just as it relates maybe to the second part of your question I think look we have a lot of confidence in the outlook that we provided today for the back half of the year as Scott highlighted we do expect to have growth in the merchant business to be slightly above six in the back half of the year with a good exit rate as we head.
In 2027, and a lot of that confidence is bolstered by one the early success, we've seen with genius, which we commented on the call and then two I think the successful execution of our conversion of our sales force in the U S through our new sales compensation model as part of our salesperson of the future program, so with that behind.
Cameron Bready: Yeah, thanks, Dan. It's Cameron. It's a fair question and not surprisingly, my answer is going to be I cannot give you a lot more detail than what we have already shared. I want to protect the integrity of any process that we may look to run around particular assets that we may choose to divest. I think the main point is when we made our decisions previously and came up with the conclusions that resulted in the actions that we have taken thus far, having hit the target that we laid out at the September investor conference, that was obviously in advance of even thinking about Worldpay as an opportunity. As we think about where we are trying to drive the business long term, we think about the scale scope of the combined business.
And us we feel good about the momentum we're building from a commercial go to market perspective, and obviously, we think that positions us well as we get to the back half of the year I wouldn't say like anything else. There's a lot of change that we're driving through the business, we tried to be upfront and transparent about that and not everything is going perfectly, but I think overall I'm really proud of our team's ability to balance.
<unk> execution, and delivering a business outcome, particularly our financial performance with driving the magnitude of positive change that we're trying to put through the organization as we prepare for the closing of oil pay in the integration program that will begin on the heels of that so I think we're in a really good place from an execution standpoint could not be more proud of the team and the way that they are embracing that.
Cameron Bready: We also think about vertical market sort of exposure, given their partner base, our partner base, the combined business. We are just going back and kind of refreshing our thinking around the portfolio composition. We are assessing whether any of the decisions we made prior to our September investor conference, we would take a different view of now in light of where the business is going. More to come as we take specific actions, but I think it's fair to say that there probably are some incremental things we would choose to do in light of the Worldpay transaction. Consistent with our path thus far, to the extent that we are successful in exiting any other assets, we would use that capital return to shareholders again, assuming that we are able to achieve leverage neutrality through the transaction.
Rainbow driving but its a lot and I think we're doing it well, but it's something we're very cautious about as we head into the balance of the year, just making sure we continue to get that balance right.
Do you want to talk about genius more specifically.
Yes, I think we've got a lot of confidence.
Both on the subjective side as well as the objective side the receptor the reception that genius.
Had both on the retail side as well as on the restaurant side from all of our distribution partners that would include our direct sales team our Fi partners, our Pos software dealers.
Dave Koning: That's great. Just a quick follow-up on the Genius brand consolidation. I know when you had originally contemplated putting all these things together, there were concerns that there might be some portfolio attrition or some noise in the book. It doesn't sound like that's kind of manifesting, but I would just be interested to hear if there is any friction, at least near term. It sounds like the kind of run rate go forward is certainly more than enough to offset any of that. Thank you.
Domestically and internationally has been really very encouraging and look we recognized as a market share matter, we're playing a little bit of catch up in some of these areas, but our teams feel really confident about the strength of solutions the quality of the new bespoke hardware the <unk>.
Modular architecture Thats been developed with our OEM partners and our distribution plans, including the pipeline in each one of those distribution channels on.
Cameron Bready: It is a good question. Maybe I will ask Bob Cortopassi to give a little more detail because he is closer to it, obviously, than I am every day. I would say I do not think we have seen sort of attrition in the base per se. That is not something that we are overly concerned about as it relates to the Genius point-of-sale rollout. We did see a little bit of pause in the buying behavior as people knew the new platform was coming. Obviously, we saw a little bit of pause kind of leading up to the official launch in May for restaurant and June for retail. However, as we commented in our script this morning, we have seen very good momentum from a new sales perspective once those launches materialized in the timeframes that we had outlined.
The objective side.
A couple of quick metrics that might be interesting our U S. Direct sales team is up something close to 30%.
Just in this quarter, if you look at it on a sequential basis.
Our dealer channel has been reinvigorated in ways that we haven't seen in a number of quarters not only with the success of their sales in period, but the momentum in the pipeline that they are building our wholesale partners.
Cameron Bready: Not surprisingly, buyers were kind of waiting for the new platform. We did see a little bit of that behavior. As it relates to the underlying base, I do not think we have seen much from that perspective that is worrying to us. Bob?
Many of them in the Fi space had been craving. These sorts of technology solutions to complement their stack of banking finance treasury other sorts of solutions.
And they're all very excited as well.
Bob Cortopassi: Yeah, I think it's important to understand that in small business services in particular, the biggest driver of attrition isn't defection to another product or service. Frankly, it's business failure. That's the largest driver of attrition for us as well as for the industry more broadly. I think the trends that we see, to Cameron Bready's point, are consistent with what we've seen historically. We do feel really good about not only being able to grow through attrition, which we've done over the course of time, but also to accelerate that growth in meaningful ways. A lot of the greenfield for Genius point-of-sale are in markets that we don't have significant POS penetration today. We may have significant payments penetration, but many of our POS solutions were regional, certainly a higher concentration in the U.S. and Canadian market than when you get into Latin America, Europe, and Asia Pacific.
You didn't ask about it but talking about sales transformation relative to Pos we mentioned that we were retooling the sales team. It wasn't just a comp plan change. We're upskilling. We were re training every one of our direct sellers has four we unlock Pos sales to them that demonstrates that they understand the products they understand.
The value proposition they can provide the level of service to customers and prospective customers that we expect and we've already done that with about 20% of the sales force. So far so I would say, we feel really good about the addressable market about the receptivity about the competitiveness of the offerings, we feel very confident about both the <unk>.
Segment and energy as well as the early execution that we're seeing in distribution channels and that gives us a lot of confidence as we get into the back of the year and think about the synergy opportunities that we have on the other side of closing world pay.
Bob Cortopassi: So the growth is not only coming out of our existing, you know, kind of mature POS markets, but also greenfield opportunities for us. We think there's a real opportunity to get there in a way that maybe is tougher for competitors, given the scale and scope of our distribution, our service capabilities worldwide.
Thanks, Ed.
A very quick follow up here, we're getting a lot of questions. This morning from investors.
Can you maybe clarify the capital location drivers it looks like there is a lot of incremental here, which is additive to everything you've said in the past, which looks really good but can you maybe clarify sort of all the incrementals and how you view capital allocation through 2007 that would be great and again great results.
Dave Koning: is a really good point. Thank you so much for that.
Yes, Dan I'm happy to cover that let me, let me hit it and I'll have to ask if he wants to add any more color to it I want to be very clear because I know it can get a little bit confusing. So today, we announced the $500 million ASR, that's tied to the sale of our payroll business. We've always said any dispositions of assets, we would return capital to shareholders, assuming leverage neutrality that would be it.
Cameron Bready: Thanks, Dave.
Operator: Thank you. Our next question will come from Dan Dolev with Mizuho. Please go ahead.
Dave Koning: Hey guys, excellent results here. Looking really good. Great job. It sounds like it looks like the Genius, going back to the Genius rollout, looks like it is on a really good trajectory. Cameron, can you maybe talk about the confidence in the acceleration in the second half, like some of the puts and takes in exiting at 6% to 7% and maybe some comments on sort of recent trends? Then I have a very quick follow-up. Thank you.
Incremental to what we would view it as kind of our normal run rate capital returns to shareholders.
As part of that to one side. We also increased our outlook for capital returns excluding capital returns associated with dispositions to seven $5 billion this quarter as well, which again is up from where we were when we announced the World Bay transaction, where we said that number would be $7 billion that.
Cameron Bready: I will start, and then I will ask Bob Cortopassi to comment on the recent trends, just as it relates maybe to the second part of your question. I think, look, we have a lot of confidence in the outlook that we provided today for the back half of the year. As Josh Whipple highlighted, we do expect the growth in the merchant business to be slightly above 6% in the back half of the year with a good exit rate as we head into 2027. A lot of that confidence is bolstered by, one, the early success we have seen with Genius, which we commented on in the call. Then two, I think the successful execution of our conversion of our sales force in the U.S. to our new sales compensation model as part of our salesperson of the future program.
Incremental half 1 billion largely associated with benefits and we expect to see from the one Big Beautiful Bill Act.
That was enacted a month or so ago that gives us incremental tax benefits and cash improvement over the three year horizon, which allows us to raise our total expectation for normal kind of run rate capital returns to shareholders to that $7 5 billion dollar number which again is exactly consistent with what.
We were targeting at our Investor Conference last September so as we step back and look at the landscape. Thus.
Cameron Bready: With that behind us, we feel good about the momentum we are building from a commercial go-to-market perspective. Obviously, we think that positions us well as we get to the back half of the year. I would say, like anything else, there is a lot of change that we are driving through the business. We tried to be upfront and transparent about that. Not everything is going perfectly. I think overall, I am really proud of our team's ability to balance execution in delivering of business outcomes, particularly our financial performance, with driving the magnitude of positive change that we are trying to put through the organization as we prepare for the closing of Worldpay and the integration program that will begin on the heels of that.
Thus far we've returned $1 $2 billion through asset dispositions to shareholders, we're targeting an incremental seven $5 billion of capital returns to shareholders over the 2005 to 2007 timeframe.
And executing the world pay transaction positions us by the time, we get to 2028 with roughly 50% more levered free cash flow and capacity to return capital to shareholders as we get to that timeframe. So in terms of how we're positioned from a capital allocation perspective, we couldnt be more pleased with where we are we're delivering on exactly what we said we would do at the <unk>.
Cameron Bready: I think we are in a really good place from an execution standpoint. I could not be more proud of the team and the way that they are embracing the change we are driving. It is a lot. I think we are doing it well. It is something we are very cautious about as we head into the balance of the year, just making sure we continue to get that balance right. Bob Cortopassi, do you want to talk about Genius more specifically?
Comprehends, while also doing the world pay acquisition and ensure divestiture and positioning the business for better more and more capital flexibility and capacity to return incremental amounts in the future.
Thank you.
Our next question will come from Darrin Peller with Wolfe research.
Bob Cortopassi: Yeah, I think we've got a lot of confidence, both on the subjective side as well as the objective side. The reception that Genius point-of-sale had, both on the retail side as well as on the restaurant side, from all of our distribution partners, that would include our direct sales team, our FI partners, our POS software dealers, both domestically and internationally, has been really very encouraging. Look, we recognize that as a market share matter, we're playing a little bit of catch-up in some of these areas, but our teams feel really confident about the strength of solutions, the quality of the new bespoke hardware, the modular architecture that's been developed with our OEM partners, and our distribution plans, including the pipeline in each one of those distribution channels. On the objective side, a couple of quick metrics that might be interesting. Our U.S.
Guys. Thanks.
I just wanted to touch on the sales force realignment again, and then a quick follow up on the financial side I'll ask after but.
Really quickly on the sales force it sounds like you I think you said, 90% of Corp, and sellers have now converted to the new plan and Theres been a lot more productivity as we just heard from Bob as well and so maybe just help us understand exactly where you are now in terms of what needs to be done between now or you really almost got already has it actually almost that full run rate of where you want it to be.
Because obviously that was a question that investors out of whether or not there is going to be disruption around there. It sounds like it's coming along pretty well and then just quickly also on genius what percent of your total merchant portfolio actually is addressed by <unk>.
The newer Pos potential.
Hey, Darren its Bob.
Let me jump in on the sales transformation. So it's important to understand that we view the sales transformation holistically, but it's really built of multiple individual initiatives.
Bob Cortopassi: direct sales team is up something close to 30% just in this quarter, if you look at it on a sequential basis. Our dealer channel has been reinvigorated in ways that we haven't seen in a number of quarters, not only with the success of their sales in period, but the momentum and the pipeline that they're building. Our wholesale partners, many of them in the FI space, have been craving these sorts of technology solutions to complement their stack of banking, finance, treasury, other sorts of solutions. They're all very excited as well. You didn't ask about it, but talking about sales transformation relative to POS, we mentioned that we were retooling the sales team. It wasn't just a comp plan change. We were upskilling. We were retraining.
The first one that's gotten kind of the most conversation to date has been around the compensation plan changes and that is 100% complete.
The 90% comment that Cameron made in his prepared remarks prepared remarks really has to do with the retention of sales talent through that transition I think.
The reality that we acknowledged not every seller was going to come along on that journey with us.
New expectations and all the rest of that so roughly 10% or so of the salesforce turned over as part of that exercise that we embarked upon.
Some of those as Cameron mentioned converted to other ways of continuing our relationship with global payments. They are no longer full time employees.
Bob Cortopassi: Every one of our direct sellers has, before we unlock POS sales to them, that demonstrates that they understand the products, they understand the value proposition, they can provide the level of service to customers and prospective customers that we expect. We've already done that with about 20% of the sales force so far. I would say we feel really good about the addressable market, about the receptivity, about the competitiveness of the offerings. We feel very confident about both the excitement and energy, as well as the early execution that we're seeing in distribution channels. That gives us a lot of confidence as we get into the back of the year and think about the synergy opportunities that we have on the other side of closing Worldpay.
On our sales team, but they've converted to an <unk>.
The agent program or more of a wholesale program.
So all of that 10% in terms of.
Productivity is not lost it switched from direct.
More indirect distribution.
The second thing is that the comp plan was really designed to do two primary things one was to drive the right sort of behavior as we as we seek to distribute comprehensive bundled solutions not point solutions and so the comp plan directly incense bundled selling where the unit economic.
Dave Koning: Thanks. I have a very quick follow-up here. We are getting a lot of questions this morning from investors. Can you maybe clarify the capital allocation drivers? It looks like there is a lot of incremental here, which is additive to everything you have said in the past, which looks really good. Can you maybe clarify sort of all the incrementals and how you view capital allocations through 2027? That would be great. Again, great results.
Can be really desperate, but theres a lot of value to the client as well as the global payments and having them adopt more holistic solution. So the comp plan is structured to do that.
The second thing it was really targeted to do frankly was to increase our ability to recruit and retain high caliber sales talent.
When we began the journey the comp plan with our sales team was on was called 94 comp and that wasn't a catchy code name that referred to the year that the 94 comp plan was rolled out and now 30 years later the needs of the market the expectations of the sales team.
Cameron Bready: Yeah, Dan, I am happy to cover that. Let me hit it and I will ask Josh if he wants to add any more color to it. I want to be just very clear because I know it can get a little bit confusing. Today we announced a $500 million ASR. That is tied to the sale of our payroll business. As we have always said, any disposition of assets, we would return capital to shareholders, assuming leverage neutrality. That would be incremental to what we would view as kind of our normal run rate capital returns to shareholders. Let us park that to one side. We also increased our outlook for capital returns, excluding capital returns associated with dispositions, to $7.5 billion this quarter as well, which again is up from where we were when we announced the Worldpay transaction, where we said that number would be $7 billion.
Go to market motions those have all evolved and so.
And ability to attract top talent to have them be successful in early days and want to stay with global payments as they build a successful career that was a core component of that and on both of those fronts. The bundled selling the seller productivity as well as our ability to recruit and retain talent, we're seeing the benefits that we expected from that.
On all fronts.
And then the only thing Im sorry.
The only thing I would add to that is one I don't think we are at run rate today. We finished the conversion in the second quarter Theres still some ramp that's obviously occurring as people get used to the new plan, we continue to roll out training and certifications as Bob highlighted earlier. So there is still more work to do I think the ramp the productivity levels.
Cameron Bready: That incremental half a billion dollars is largely associated with benefits that we expect to see from the One Big Beautiful Bill Act that was enacted a month or so ago. That gives us incremental tax benefits and cash improvement over the three-year horizon, which allows us to raise our total expectation for normal kind of run rate capital returns to shareholders to that $7.5 billion number, which again is exactly consistent with what we were targeting at our investor conference last September. As we step back and look at the landscape, thus far we have returned $1.2 billion through asset dispositions to shareholders. We are targeting an incremental $7.5 billion of capital returns to shareholders over the 2025 to 2027 timeframe.
<unk> of the sales force under the new model to the level that we like to see but obviously the early signs are I think quite quite effective on that front.
The second thing I would say in response to the back part of your question.
I really view it in two ways one yes, we haven't embedded book of customers today, using our quote unquote I hate to use this term legacy sort of point of sale solutions naturally that is a target for us to be able to convert them to our new cloud based genius offering over time.
Cameron Bready: Executing the Worldpay transaction positions us by the time we get to 2028 with roughly 50% more leverage free cash flow and capacity to return capital to shareholders as we get to that timeframe. In terms of how we are positioned from a capital allocation perspective, we could not be more pleased with where we are. We are delivering on exactly what we said we would do at the investor conference while also doing the Worldpay acquisition and issuer divestiture and positioning the business for better, more and more capital flexibility and capacity to return incremental amounts in the future.
Not a huge population of the portfolio today, we also have a number of restaurant and retail clients in our portfolio today that are using some other point of sale environment, whether it's legacy or perhaps even newer where we're providing the payment solutions for them, but not at the point of sale, obviously that creates an incremental opportunity.
Entity for us to pursue but the more important opportunity is obviously the front book.
There is still a substantial portion of the market in the U S and even more so internationally that ultimately will convert to cloud based restaurant in modern retail point of sale platforms over time.
Operator: Thank you. Our next question will come from Darren Peller with Wolf Research.
Very focused on making sure that we're highly competitive for that front book offering and ensuring that net new wins tied to our point of sale offering.
Dave Koning: Guys, thanks. I just want to touch on the sales force realignment again, then a quick follow-up on the financial side I will ask after. But really quickly on the sales force, it sounds like you, I think you said 90% of core payment sellers have now converted to the new plan. There has been a lot more productivity, as we just heard from Bob Cortopassi as well. So maybe just help us understand exactly where you are now in terms of what needs to be done between now. Are you really almost done already? Is it actually almost that full run rate of where you want it to be? Because obviously that was a question that investors had of whether or not there is going to be disruption around that. It sounds like it is coming along pretty well.
Competition in restaurant and retail prepayments to point of sale and having our genius platform, which is a highly competitive solution in the marketplace gives us a lot of confidence around our ability to win more front book opportunity going forward and of course as Bob highlighted well the international opportunity is something we're particularly excited about because the.
Competitive intensity in the international markets are certainly less than it is here in the U S and obviously, we're well positioned as a scaled distribution capability in those markets to be able to I think get a lot of traction with genius as we roll it out over the balance of 25 and enter 2000 and <unk> as we commented on in our prepared remarks.
Dave Koning: Then just quickly also on Genius, what % of your total merchant portfolio actually is addressed by the newer POS potential?
That's great to hear guys. Charles just a quick financial question, the inorganic contribution putting aside divestitures, but the M&A contribution from <unk>.
Bob Cortopassi: Hey Darren, it's Bob. Let me jump in on the sales transformation. It's important to understand that we view the sales transformation holistically, but it's really built of multiple individual initiatives. The first one that's gotten kind of the most conversation to date has been around the compensation plan changes. That's 100% complete. The 90% comment that Cameron Bready made in his prepared remarks really has to do with the retention of sales talent through that transition. I think the reality that we acknowledge, not every seller was going to come along on that journey with us, new expectations and all the rest of that. Roughly 10% or so of the sales force turned over as part of that exercise that we embarked upon. Some of those, as Cameron Bready mentioned, converted to other ways of continuing a relationship with Global Payments.
Take payments, but was there anything else also I think we just looked at the cash flow and it looked like about $150 million of.
Inorganic so I'm just curious if that's about right and what was that from thanks guys.
Yes, so Eric so a couple of things I'd say.
The first two small product companies that Cameron mentioned in his prepared remarks that was about half of what you see there in the cash flow and then the.
The other half was deferred consideration and.
From a prior acquisition and investment in the venture partners fund that we that we invest in periodically.
Yeah, Darrin, it's Cameron.
Contribution ex take payments is de Minimis, so take payments anniversary earlier in the quarter.
So that is that's really only thing notable I would say in Q2 for the balance of the year. We comment that we did two small product deals that job. Just noted we close around the end of the quarter those contribute relatively de minimus amount for the balance of the year. So it's really organic.
Bob Cortopassi: They're no longer full-time employees on our sales team, but they've converted to an agent program or more of a wholesale program. All of that 10% in terms of productivity is not lost. It switched from direct to more indirect distribution. The second thing is that the comp plan was really designed to do two primary things. One was to drive the right sort of behavior as we seek to distribute comprehensive bundled solutions, not point solutions. The comp plan directly incents bundled selling where the unit economics can be really disparate. There's a lot of value to the client as well as Global Payments in having them adopt more holistic solutions. So the comp plan is structured to do that. The second thing it was really targeted to do, frankly, was to increase our ability to recruit and retain high-caliber sales talent.
Thank you.
Our next question will come from Kenneth Makowsky with Autonomous research.
Hey, good morning, Thanks for taking the question I'll ask months since it's getting late here, maybe you could talk about scaling genius in some of these international markets I mean, how do you bring the brand into.
These markets Jeff too.
Sort of a partner on that side on the distribution side and any comments.
Regarding the reinvestment required to stand up a genius in these markets just because it feels like a bit of a land grab right now so I'm curious.
Thats, how youre thinking about that thank you.
Yes, Ken it's Bob again so.
I think first and foremost it doesn't require incremental distribution partnerships to bring genius into those markets. So we're not thinking about at least not today, we're not thinking about brand new markets de Novo that global payments doesn't already have a presence. So we're really thinking about our established businesses across <unk>.
Bob Cortopassi: When we began the journey, the comp plan that the sales team was on was called 94 Comp. That wasn't a catchy code name. That referred to the year that the 94 Comp plan was rolled out. Now 30 years later, the needs of the market, the expectations of the sales team, our go-to-market motions, those have all evolved. An ability to attract top talent, to have them be successful in early days and want to stay with Global Payments as they build a successful career, that was a core component of that. On both of those fronts, the bundled selling, the seller productivity, as well as our ability to recruit and retain talent, we're seeing the benefits that we expected from that on all fronts.
K in Ireland Continental Europe Asia Pacific Latin America, the places that we've already got distribution in business at scale today.
As you probably already know some of those are through partnerships, whether they are joint ventures, whether theyre bank referral partnerships, but in all of those geographies kind of regardless of the construct we also have direct sales teams, we have digital customer acquisition capabilities and.
Those combination of distribution modes, whether its our direct sales force, our direct digital customer acquisition or partnerships referrals.
Cameron Bready: The only thing I would add to that is, one, I do not think we are at run rate today. We finished the conversion in the second quarter. There is still some ramp that is obviously occurring as people, one, get used to the new plan. We continue to roll out training and certifications, as Bob Cortopassi highlighted earlier. So there is still more work to do, I think, to ramp the productivity levels of the sales force under the new model to the levels that we like to see. But obviously, the early signs are, I think, quite effective on that front. The second thing I would say in response to the back part of your question, I really view it in two ways. One, yes, we have an embedded book of customers today using our, quote unquote, I hate to use this term, legacy sort of point-of-sale solutions.
Referral partnerships joint ventures, other sorts of things all of those are vehicles through which we can deploy and distribute genius.
The Great News I think is there.
The core components genius as we mentioned before part of part of the strategy around genius, consolidating and collapsing, particularly common retail and restaurant platform and we've already experienced success with less feature rich and less fully integrated versions. The genius stack in those market. So we don't have any question.
Theres not a lot of speculative.
Research around the receptivity of the market or the fit for purpose nature of the product capabilities, we feel really confident about that in fact really every one of our business leaders internationally is chomping at the bit to be able to go full speed ahead with genius, whether thats the mobile the tap on mobile capability.
Cameron Bready: Naturally, that is a target for us to be able to convert them to our new cloud-based Genius point-of-sale offering over time. That is not a huge population of the portfolio today. We also have a number of restaurant and retail clients in our portfolio today that are using some other point-of-sale environment, whether it is legacy or perhaps even newer, where we are providing the payment solutions for them, but not the point-of-sale. Obviously, that creates an incremental opportunity for us to pursue. But the more important opportunity is obviously the front book.
Is that Cameron mentioned in the soft cost commentary in his script or the full genius retail and restaurant staff, whether that's for shops are for enterprise.
All of those are getting a lot of early pipeline build and the rollout pace is pretty rapid largely because much of the architecture underneath genius was built to be international from the start. So we don't have to re architect the solution in every market.
Cameron Bready: There is still a substantial portion of the market in the U.S., and even more so internationally, that ultimately will convert to cloud-based restaurant and modern sort of retail point-of-sale platforms over time. We are very focused on making sure that we are highly competitive for that front book offering and ensuring that net new wins are tied to our point-of-sale offering. We all know that the mode of competition in restaurant and retail for payments is through the point-of-sale. And having our Genius point-of-sale platform, which is a highly competitive solution in the marketplace, gives us a lot of confidence around our ability to win more front book opportunity going forward. And of course, as Bob Cortopassi highlighted well, the international opportunity is something we are particularly excited about because the competitive intensity in the international markets is certainly less than it is here in the U.S.
It's easy to add multi lingual capabilities to adopt multiple currencies to deal with the physical location requirements in each of those geographies. There is a lift no doubt you've got to do <unk> work, you've got to do some language work, but it's not a large re architecture and re architected the platform, it's really kind of incremental.
The regular way product roadmap, we continue to look for ways to accelerate that but we feel really good about the aggressive pace that we're taking that to market in Europe and into Latin America and the other regions that Cameron mentioned in his prepared remarks.
Ken the only thing I would add we're a well recognized brand in these markets already either global payments or the joint venture that we might be running with a partner in the market. So we have good brand recognition and I think we have the trust of the market to be able to bring to that market scale. It effectively puts it through our distribution and to your point capture as much of.
Cameron Bready: And obviously, we are well positioned as a scale distribution and capability in these markets to be able to, I think, get a lot of traction with Genius point-of-sale as we roll it out over the balance of 2025 and into 2026, as we commented on in our prepared remarks.
Dave Koning: That's great to hear, guys. Josh, just a quick financial question. The inorganic contribution, putting aside divestitures, but the M&A contribution from, I think, PayFabric platform, was there anything else also? I think we just looked at the cash flow and it looked like about $150 million of inorganic. So, I am just curious if that's about right and what was that from. Thanks, guys.
The land is possible in markets again, where the competitive intensity I think is less significant than it is here in the U S around point of sale. So.
We've talked about the international quite a bit largely because we think it's such an attractive opportunity and a little bit of a distinctive elements of our story versus some of our peers, who also bring pointed.
Joshua Whipple: Yeah, so yeah, thanks, Darren. So a couple of things. I'd say the first were the two small product companies that Cameron Bready mentioned in his prepared remarks. That was about half of what you see there in the cash flow. The other half was deferred consideration from a prior acquisition and investment in a venture partners fund that we invest in periodically.
Point of sale capabilities to market.
Thank you Bill.
Thanks, Kent.
Our last question will come from Tien Tsin Huang with Jpmorgan.
Hey, so quickly.
Digging into the answer that you gave I think that Darren <unk> question on the initial momentum behind genius does it.
Is it coming more from net new versus converting existing customers just wanted to clarify that and then also on the issuer side you mentioned.
Cameron Bready: Yeah, Darren, it's Cameron. The contribution at take payments is de minimis. Take payments anniversary earlier in the quarter. That's really the only thing notable, I would say, in Q2. For the balance of the year, we commented that we did two small product deals that Josh just noted. We closed those around the end of the quarter. Those contribute a relatively de minimis amount for the balance of the year. It's really organic.
I know on the merchant front, some pause in decision, making in front of the genius launch any similar behavior on the issuer side for prospects that I presume implementations in backlogs and things like that are still on time, sorry for all the questions I just want to be efficient.
No no no no problem Tien tsin so.
I'll hit them and I'll ask Bob to jump in with any commentary as well I think on the junior side, It's really front book net new opportunity Thats, where our focus is right now.
Operator: Thank you. Our next question will come from Ken Sucher with Autonomous Research.
Obviously, if we have a client who is ready to make a transition from one of our existing point of sale environment the genius.
Dave Koning: Hey, good morning. Thanks for taking the question. I will ask him one just since it is getting late here. Maybe you could talk about scaling Genius in some of these international markets. I mean, how do you bring the brand into these markets? Do you have to sort of partner on that side, on the distribution side? Any comments regarding the reinvestment required to stand up Genius in these markets just because it feels like a bit of a land grab right now. I am curious how that is, how you are thinking about that. Thank you.
Going to pursue that and create easy pathways for them to be able to make that conversion without having to think about a different solution that is clearly front and center for us, but a lot of the emphasis that we're talking about today is on the front book opportunity and our ability to win net new clients by virtue of bringing genius to market and pushing it through the distribution.
Form that we've commented on I think pretty extensively today.
Over time, we'll continue to work the backlog will create pathways for existing clients. We have that relationship we've talked about that multiple times I think over the course of several calls now we think we have the right to earn their business. When they are ready to make a transition to a new cloud native environment. We have a good relationship with them today, they like the product that they're using with US we're serving our clients well in <unk>.
Bob Cortopassi: Yeah, Ken, it's Bob again. First and foremost, it doesn't require incremental distribution partnerships to bring Genius into those markets. We are not thinking about, at least not today, brand new markets de novo that Global Payments doesn't already have a presence. We are really thinking about our established businesses across U.K. and Ireland, continental Europe, Asia Pacific, Latin America, the places that we have already got distribution and business at scale today. As you probably already know, some of those are through partnerships, whether they are joint ventures, whether they are bank referral partnerships. In all of those geographies, regardless of the construct, we also have direct sales teams. We have digital customer acquisition capabilities.
We think we'll obviously be able to convert them as theyre ready to do that but we're very focused on building net new customers and using genius is a means by which to win more front book opportunity domestically here in the U S and internationally as well.
As it relates to issuer just switching gears everything very much remains on track for the business to deliver on sort of the expectations that we have for the full year and as we head into 2026, we think the business is well positioned for the future modernization continues on the right path as we talked about we will be complete with all the customer facing applications and those will be ready for general avail.
Bob Cortopassi: Those combination of distribution modes, whether it's our direct sales force, our direct digital customer acquisition, or partnerships, referral partnerships, joint ventures, other sorts of things, all of those are vehicles through which we can deploy and distribute Genius. The great news, I think, is that the core components of Genius, as we mentioned before, part of the strategy around Genius was consolidating and collapsing the common retail and restaurant platform. We have already experienced success with less feature-rich and less fully integrated versions of the Genius stack in those markets. We do not have any question. There is not a lot of speculative research around the receptivity of the market or the fit-for-purpose nature of the product capabilities. We feel really confident about that.
The ability by the end of the year and were obviously on track with the implementations that we're doing we talked about 15 million cards in the first half I think we have six so we're still completing for the balance of the year. We have four LOI in place and I think where we've seen good momentum in the issuer business is around cross selling of products I think our teams have done a really nice job getting better.
Our penetration with our existing client base around incremental product, which obviously positions the business well for future growth potential also so everything with the insurer business on track with the expectations. We have as we prepare for closing of that transaction and the divestiture of the Fas.
The business continues to be in a healthy place.
The only thing I'd add to what Cameron.
From an already said accurately depicting how we think about the back book and our Pos and software space.
Bob Cortopassi: In fact, every one of our business leaders internationally is chomping at the bit to be able to go full speed ahead with Genius, whether that's the mobile, the tap-on mobile capabilities that Cameron mentioned in the soft pause commentary in his script, or the full Genius retail and restaurant stack, whether that's for shops or for enterprise. All of those are getting a lot of early pipeline build. The rollout pace is pretty rapid, largely because much of the architecture underneath Genius was built to be international from the start. We do not have to re-architect the solution in every market. It's easy to add multilingual capabilities, to adopt multiple currencies, to deal with the fiscalization requirements in each of those geographies. There is a lift, no doubt. You have got to do fiscalization work. You have got to do some language work.
There are a lot of cross sell opportunities that the team is working of our existing payments customers, who are excited to take genius they may be using.
A legacy solution from another provider a competitor, but but that that part of the customer base is also excited about genius and we are getting traction there we feel real good about that as well as the front book opportunities, but to Camerons point, the kind of legacy Pos conversions were here when they are ready, but we're not we're not putting against anybody's.
We're not forcing conversion, we're not doing anything unnatural around that other than continue the relationship and being prepared when our customers are very.
Very clear thank you.
And with that that concludes our Q2 2025 earnings call. Thank you very much for joining us This morning, and thanks for your interest in global payments have a great day.
Bob Cortopassi: It's not a large re-architecting of the platform. It's really incremental to the regular way product roadmap. We continue to look for ways to accelerate that, but we feel really good about the aggressive pace that we are taking at the market in Europe, into Latin America, and the other regions that Cameron mentioned in his prepared remarks.
Thank you ladies and gentlemen this.
Concludes today's program and we appreciate your participation you may disconnect at any time.
Everyone else has left to come.
Cameron Bready: The only thing I would add, you know, we are a well-recognized brand in these markets already, either Global Payments or the joint venture that we might be running with a partner in these markets. So we have good brand recognition, and I think we have the trust of the market to be able to bring Genius point-of-sale to that.
It looks like no one else is going to join this call.
Goodbye.
Winnie Smith: scale it effectively, push it through our distribution, and to your point, capture as much of the land as possible in markets, again, with a competitive intensity, I think, is less significant than it is here in the U.S. around point of sale. So, we talked about the international quite a bit, largely because we think it's such an attractive opportunity and a little bit of a distinctive element of our story versus some of our peers who also bring point of sale capabilities to market.
Winnie Smith: Thank you both.
Cameron Bready: Thank you.
Winnie Smith: Thanks, Andy.
Cameron Bready: Our last question will come from Tien-Tsin Huang with JPMorgan.
Bob Cortopassi: Hey. Quickly, dig into the answer that you gave. I think that Darren's question on the initial momentum behind Genius, is it coming more from net new versus converting existing customers? Just wanted to clarify that. Also, on the issuer side, you mentioned, I know on the merchant front, some pause in decision-making in front of the Genius launch. Any similar behavior on the issuer side for prospects? I presume implementations and backlogs and things like that are still on time. Sorry for all the questions. Just want to be efficient.
Winnie Smith: No, no, no. No problem, Tien-Tsin Huang. I will hit him, and I will ask Bob Cortopassi to jump in with any commentary as well. I think on the Genius side, it is really front book net new opportunity. That is where our focus is right now. Obviously, if we have a client who is ready to make a transition from one of our existing point-of-sale environments to Genius, we are going to pursue that and create easy pathways for them to be able to make that conversion without having to think about a different solution. That is clearly front and center for us.
Winnie Smith: A lot of the emphasis that we are talking about today is on the front book opportunity and our ability to win net new clients by virtue of bringing Genius to market and pushing it through the distribution platforms that we have commented on, I think, pretty extensively today. Over time, we will continue to work the back book. We will create pathways for existing clients. We have that relationship. We have talked about that multiple times, I think, over the course of several calls now. We think we have the right to earn their business when they are ready to make a transition to a new cloud-native environment. We have a good relationship with them today. They like the product that they are using with us. We are serving those clients well. We think we will obviously be able to convert them as they are ready to do that.
Winnie Smith: We are very focused on building net new customers and using Genius as a means by which to win more front book opportunity domestically here in the U.S. and internationally as well. I think as it relates to the issuer, just switching gears, everything very much remains on track for the business to deliver on sort of the expectations that we had for the full year. As we head into 2026, we think the business is well positioned for the future. Modernization continues on the right path. As we have talked about, we will be complete with all the customer-facing applications. Those will be ready for general availability by the end of the year. We are obviously on track with the implementations that we are doing. We talked about 15 million cards in the first half.
Winnie Smith: I think we have six that we are still completing for the balance of the year. We have four LOIs in place. I think where we have seen good momentum in the issuer business is around cross-selling of products. I think our teams have done a really nice job getting better penetration with our existing client base around incremental products, which obviously positions the business well for future growth potential also. So everything with the issuer business on track with the expectations we have as we prepare for closing of that transaction and the divestiture to FIS, the business continues to be in a healthy place.
Winnie Smith: Excellent. Thanks, Kevin.
Operator: Tingyun, the only thing I would add to what Cameron already said, accurately depicting how we think about the back book in our POS and software space, there are a lot of cross-sell opportunities that the team is working of our existing payments customers who are excited to take Genius. They may be using a legacy solution from another provider, a competitor. That part of the customer base is also excited about Genius. We are getting traction there. We feel real good about that as well as the front book opportunities. To Cameron's point, the kind of legacy POS conversions, we are here when they are ready. We are not putting a gun to anybody's head. We are not forcing conversion. We are not doing anything unnatural around that other than continuing the relationship and being prepared when our customers are.
Winnie Smith: Very clear. Thank you.
Winnie Smith: That concludes our Q2 2025 earnings call. Thank you very much for joining us this morning. Thanks for your interest in Global Payments. Have a great day.
Cameron Bready: Thank you, ladies and gentlemen. This concludes today's program, and we appreciate your participation. You may disconnect at any time.
Dave Koning: Everyone else has left the call. It looks like no one else is going to join this call. Goodbye.