Q1 2026 Fiserv Inc Earnings Call

May 5, 2026

Speaker #1: Begins following the presentation. As a reminder, today's call is being recorded. At this time, I will turn the call over to Walter Pritchard, Senior Vice President and Head of Investor Relations at FISERV.

Speaker #2: Thank you, and good morning. With me on the call today are Mike Lyons, our Chief Executive Officer; and Paul Todd, our Chief Financial Officer.

Speaker #2: Our earnings release and supplemental materials for the quarter are available on the Investor Relations section of FISERV.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed in this call, along with the reconciliation of those measures to the nearest applicable GAAP measures.

Speaker #2: Unless otherwise noted, performance references are year-over-year comparisons. Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives.

Speaker #2: Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. You should refer to our earnings release for a discussion of these risk factors.

Speaker #2: And now we'll turn the call over to Mike.

Speaker #3: Thank you, Walter, and good morning, everyone. As we began the year, we were firmly in execution mode, and our first quarter results were in line with the expectations we shared with you in February.

Speaker #3: Our teams continued to be laser-focused on executing against the one FISERV action plan, and while there are still significant work to do, we are taking the right actions with the right sense of urgency and feel really good about the progress to date.

Speaker #3: We are confident in our strategy, and the unprecedented pace of change in banking and payments is creating an extraordinary opportunity for us. As our clients and prospects want a trusted partner to deliver sophisticated technology and value-added solutions, we are uniquely positioned to do exactly that.

Speaker #3: To drive these efforts, we continue to add outstanding talent across the organization, including new heads of operations for both merchant solutions and financial solutions, new Chief Revenue Officers for Clover and Enterprise Merchant, and a new Head of Product for financial solutions.

Speaker #1: We are confident in our strategy, and the unprecedented pace of change in banking and payments is creating an extraordinary opportunity for us. As our clients and prospects want a trusted partner to deliver sophisticated technology and value-added solutions, we are uniquely positioned to do exactly that.

Mike Lyons: We are confident in our strategy, the unprecedented pace of change in banking and payments is creating an extraordinary opportunity for us as our clients and prospects want a trusted partner to deliver sophisticated technology and value-added solutions. We are uniquely positioned to do exactly that. To drive these efforts, we continue to add outstanding talent across the organization, including new heads of operations for both Merchant Solutions and Financial Solutions, new chief revenue officers for Clover and Enterprise Merchant, and a new head of product for Financial Solutions. With respect to business performance, I'll start with Merchant Solutions, where we saw solid growth in Clover GPV, supported by good execution against our strategic initiatives and a stable macro. Clover VaaS revenue represented 27% of Clover revenue in Q1, growing 18% from a year ago, driven by software and Clover Capital.

Speaker #3: With respect to business performance, I'll start with merchant solutions, where we saw solid growth in Clover GPV, supported by good execution against our strategic initiatives and a stable macro.

Speaker #3: Clover VAS revenue represented 27% of Clover revenue in Q1, growing 18% from a year ago, driven by software and Clover Capital. We also saw a steady growth in enterprise transactions.

Speaker #3: While anticipation lending volumes in Argentina remained strong, lower inflation and interest rates in Argentina were a revenue headwind to merchant in Q1. I would note that this revenue softness was largely offset by lower interest expense below the line.

With respect to business performance, I'll start with Merchant Solutions where we saw solid growth in Clover gpv.

Supported by good execution against our strategic initiatives and a stable macro.

Speaker #3: Our preliminary April merchant volume growth, including Clover GPV, remained solid around Q1 levels. Going forward in merchant, we're watching the impact of various environmental factors, including higher gas prices from the conflict in the Middle East, which, if sustained, can impact the mix of consumer spending.

Mike Lyons: We also saw steady growth in enterprise transactions. While Anticipation lending volumes in Argentina remained strong, lower inflation and interest rates in Argentina were a revenue headwind to merchant in Q1. I would note that this revenue softness was largely offset by lower interest expense below the line. Our preliminary April merchant volume growth, including Clover GPV, remained solid around Q1 levels. Going forward in merchant, we're watching the impact of various environmental factors, including higher gas prices from the conflict in the Middle East, which if sustained, can impact the mix of consumer spending. We saw some of this dynamic in the most recent Fiserv Small Business Index data. In Q1, we signed 27 new banks as merchant referral partners.

Clover of vast Revenue represented, 27% of clover, Revenue in q1. Growing 18% from a year ago. Driven by software and clover capital

We also saw a steady growth in enterprise transactions.

Speaker #3: We saw some of this dynamic in the most recent FISERV Small Business Index data. In Q1, we signed 27 new banks as merchant referral partners.

while anticipation lending volumes in Argentina, remains strong lower inflation, and interest rates in Argentina, where our Revenue headwind to merchants in q1,

Speaker #3: We also announced our largest agent-bank partnership in our history with Western Alliance Bank, which has more than $90 billion in assets, and expands our reach with merchants across the Western US.

I would note that this Revenue softness was largely offset by lower interest expense below the line.

our preliminary April, Merchant, volume growth, including Clover, gpv remains solid around q1 levels,

Going forward in merchant.

Speaker #3: We also hit important milestones in the quarter, going live with Commerce Hub omnichannel capability across a number of our largest petro customers. We also went live on Commerce Hub with built rewards in neighborhood hospitality, and via Americas, in cross-border remittance.

We're watching the impact of various environmental factors including higher gas prices from the conflict in the Middle East.

Which if sustained can impact the mix of consumer spending.

We saw some of this dynamic. In the most recent fee serve, small business, index data.

Speaker #3: Our broadening global releases in customer go-lives are driving Commerce Hub transaction growth, which was up nearly 200% in Q1. Other key enterprise merchant wins in Q1 included a retail energy provider, Blue Shield of California, a leading tax compliance platform, and a large telecom provider who added on fraud capabilities.

Mike Lyons: We also announced our largest agent bank partnership in our history with Western Alliance Bank, which has more than $90 billion in assets and expands our reach with merchants across the Western US. We also hit important milestones in the quarter, going live with Commerce Hub omni-channel capability across a number of our largest petrol customers. We also went live on Commerce Hub with Bilt Rewards in neighborhood hospitality and Viamericas in cross-border remittance. Our broadening global releases and customer go lives are driving Commerce Hub transaction growth, which was up nearly 200% in Q1. Other key enterprise merchant wins in Q1 included a retail energy provider, Blue Shield of California, a leading tax compliance platform, and a large telecom provider who added on fraud capabilities. In financial solutions, we saw solid underlying business volume growth, particularly in Finxact and our payments businesses, excluding Bill Pay.

In q1, we signed 27, New Banks, as Merchants referral partners.

We also announced our largest agent bank partnership in our history with Western Alliance Bank, which has more than $90 billion in assets and expands our reach with merchants across the Western U.S.

We also hit important milestones in the quarter.

Going live with commercehub Omni Channel capability across a number of our largest Pro customers.

Speaker #3: In financial solutions, we saw solid underlying business volume growth, particularly in FinTech and our payments businesses, excluding Bill Pay. New business sales showed continued momentum, and we hit important product delivery milestones and we saw an improvement in key client service metrics.

We also went live on Commerce Hub with built rewards in neighborhood hospitality and Via Americas in cross-border remittance.

Our broadening Global releases and customer. Go lives are driving Commerce Hub. Transaction growth, which was up nearly 200% in q1.

Speaker #3: While core bank account and revenue attrition remain above our long-term trend, we've seen early signs that our client service initiatives have been well received.

Other key Enterprise Merchant wins in q1 included a Retail Energy provider.

Blue Shield of California.

Speaker #3: We're also getting positive client feedback on our decision to continue supporting all of our cores and we are signing and renewing customers across all cores.

A leading tax compliance platform and a large Telecom provider who added on fraud capabilities.

In Financial Solutions, we saw solid underlying business, volume growth.

Speaker #3: Also contributing to an enhanced client experience is the value we are delivering from our recent acquisitions of Stone Castle and Smith Consulting. We're both our strategic and financial results are in line with our business cases.

Mike Lyons: New business sales showed continued momentum. We hit important product delivery milestones, and we saw an improvement in key client service metrics. While core bank account and revenue attrition remain above our long-term trend, we've seen early signs that our client service initiatives have been well-received. We're also getting positive client feedback on our decision to continue supporting all of our cores, and we are signing and renewing customers across all cores. Also contributing to an enhanced client experience is the value we are delivering from our recent acquisitions of StoneCastle and Smith Consulting, where both our strategic and financial results are in line with our business cases. Key new business wins in financial solutions included OceanFirst Bank, which is a fourteen and a half billion dollar Northeast regional bank that is growing rapidly through its announced acquisition of Flushing Bank.

Particularly in finsac and our payments businesses excluding bill pay.

New business sales, showed continued momentum. We hit important product delivery milestones and we saw an improvement in key client service metrics,

Speaker #3: Key new business wins in financial solutions included Ocean First Bank, which is a $14.5 billion Northeast regional bank that is growing rapidly through its announced acquisition of Flushing Bank.

while core bank account and revenue attrition remain above our long-term Trend, we've seen early signs that our client service initiative have been well received.

Speaker #3: It extended its premier core and surrounds agreement with us, adding digital payments and committing to deploy core advanced. Nikolae National Bank, a $16 billion Wisconsin-based bank, is adopting our premier core with its Midwest One acquisition.

We're also getting positive client feedback on our decision to continue supporting all of our cores, and we are signing and renewing customers across all cores.

Speaker #3: Truly a federal credit union, a $5 billion-plus North Carolina-based institution, chose to move to our debit processing platform. We expanded our long-standing digital money movement relationship with PNC Bank to include cash flow central AP and AR services for their small businesses.

Also contributing to an enhanced client experience is the value we are delivering from our recent acquisitions of Stone Castle and Smith Consulting, where both our strategic and financial results are in line with our business cases.

Mike Lyons: It extended its premier core and surrounds agreement with us, adding digital payments and committing to deploy CoreAdvance. Nicolet National Bank, a $16 billion Wisconsin-based bank, is adopting our premier core with its MidWestOne acquisition. Truliant Federal Credit Union, a $5 billion plus North Carolina-based institution, chose to move to our debit processing platform. We expanded our long-standing digital money movement relationship with PNC Bank to include CashFlow Central AP and AR services for their small businesses. We had embedded finance wins with a large payroll provider and a large retailer to bring new capabilities to their payroll members and customers. In these wins, we will leverage new integrated capabilities across Fiserv, including Finxact for ledger, Payfare for banking applications and program management, and Vision Next as a cardholder platform.

Key new business wins in Financial Solutions, included Ocean. First Bank which is a 14.5 billion dollar, Northeast Regional Bank that is growing rapidly through its announced acquisition of flushing Bank

Speaker #3: And we had embedded finance wins with a large payroll provider, and a large retailer, to bring new capabilities to their payroll members and customers.

It extended its Premiere core and surrounds agreement with us. Adding digital payments and committing to deploy Corps. Advanced

Speaker #3: In these wins, we will leverage new integrated capabilities across FISERV, including FinTech for ledger, Payfair for banking applications and program management, and Vision Next as a cardholder platform.

Nico a National Bank, a 16 billion dollar. Wisconsin Base bank is adopting. Our Premier core with its Midwest 1

Truly an Federal Credit Union, a 5 billion, plus North Carolina, based institution, chose to move to our debit processing platform.

Speaker #3: FinTech was named Best SaaS for FinTech at the 2026 FinTech Awards, recognizing the combination of its market-leading innovation and scaled customer deployments. FinTech continued to grow strongly in Q1 with accounts and positions up over 70%, as clients find value in its ability to provide financial infrastructure, to enable any asset class in any domain at scale, under a common platform and business model.

We expanded our long-standing digital money movement relationship, with PNC, Bank to include cash, flow Central AP, and AR services for their small businesses.

Capabilities to their payroll members in customers.

Speaker #3: So our execution is improving across both businesses. But as expected, that progress is not yet visible in our reported financial results, as we are still lapping a higher mix of non-recurring revenue, feeling the lingering impacts from prior client service challenges, and absorbing the incremental expense from investments that will drive long-term client-focused growth.

Mike Lyons: Finxact was named Best SaaS for FinTech at the 2026 FinTech Awards, recognizing the combination of its market-leading innovation and scaled customer deployments. Finxact continued to grow strongly in Q1 with accounts and positions up over 70% as clients find value in its ability to provide financial infrastructure to enable any asset class in any domain at scale under a common platform and business model. Our execution is improving across both businesses. As expected, that progress is not yet visible in our reported financial results as we are still lapping a higher mix of non-recurring revenue, feeling the lingering impacts from prior client service challenges and absorbing the incremental expense from investments that will drive long-term client focus growth. All necessary and important elements of our transition year in 2026.

In these winds, we will leverage new integrated capabilities across Fiserv, including finsac for Ledger, payfair for banking applications and program management and vision. Next as a card holder platform,

Finsac was named best SAS for fintech at the 2026 fintech Awards.

Recognizing the combination of its market-leading Innovation and scaled customer deployments.

Speaker #3: All necessary and important elements of our transition year in 2026. We look forward to the second half of the year and 2027 when we expect our operating performance will be more fully visible in our financial results.

Finsac continued to grow strongly in q1 with accounts and positions up over 70%, as clients find Value and its ability to provide Financial infrastructure to enable any asset class in any domain at scale under a common platform and business model.

Speaker #3: I'll now provide an update on our execution against the one FISERV action plan. Of course, we will cover all aspects of the plan in greater detail, at the May 14th Investor Day.

So our execution is improving across both businesses. But as expected, that progress is not yet visible in our reported Financial results, as we are still lapping, a higher mix of non-recurring Revenue

Filling the lingering impacts from prior client, service challenges.

Speaker #3: Under our client-first pillar, we continue to make targeted investments to raise the bar for client coverage relationship management, service delivery, and product resilience. The number of client-facing personnel we have is up significantly, meeting a key demand from clients, and importantly, we are seeing better day-to-day execution.

And absorbing the incremental expense.

From investments that will drive long-term, client-focused growth.

Mike Lyons: We look forward to the H2 of the year and 2027 when we expect our operating performance will be more fully visible in our financial results. I'll now provide an update on our execution against the One Fiserv action plan. Of course, we will cover all aspects of the plan in greater detail at the 14 May investor day. Under our client first pillar, we continued to make targeted investments to raise the bar for client coverage, relationship management, service delivery, and product resilience. The number of client-facing personnel we have is up significantly, meeting a key demand from clients. Importantly, we are seeing better day-to-day execution. Our time to resolve client inquiries is down 27% year on year. While we still have significant work to do, high-impact client incidents are down nearly 60% year on year.

All necessary and important elements of our transition year in 2026.

We look forward to the second half of the year and 2027, when we expect our operating performance will be more fully visible in our financial results.

Speaker #3: Our time to resolve client inquiries is down 27% year on year. While we still have significant work to do, high-impact client incidents are down nearly 60% year on year.

I'll now provide an update on our execution against the 15, serve action plan.

Of course, we will cover all aspects of the plan in Greater detail at the May 14th, investor day.

Speaker #3: And we launched important AI initiatives to enhance the performance of our primary client portal and call centers in financial solutions. Turning to Clover, our second pillar, we continue to make progress towards establishing it as the preeminent small business operating platform.

Under our client first pillar. We continue to make Target Investments to raise the bar for client coverage relationship Management Service delivery and product resilience.

The number of clients facing Personnel. We have is up significantly meeting a key demand from clients and importantly, we are seeing better day-to-day execution.

Speaker #3: We launched two new verticals in March, with practice pay in the healthcare space, and our professional services offering. We are seeing promising early results with annualized GPV per healthcare outlet running at double-digit levels above our existing Clover Healthcare merchants.

Our time to resolve client inquiries is down 27% year on year.

Mike Lyons: We launched important AI initiatives to enhance the performance of our primary client portal and call centers in financial solutions. Turning to Clover, our second pillar, we continue to make progress towards establishing it as the preeminent small business operating platform. We launched 2 new verticals in March with Practice Pay in the healthcare space and our professional services offering. We are seeing promising early results with annualized GPV per healthcare outlet running at double-digit levels above our existing Clover healthcare merchants, and a 20%-plus increase in new professional services outlets that attached our paid SaaS offering in the month.

While we still have significant work to do high impact client incidents are down nearly 60% year on year.

Speaker #3: And a 20%-plus increase in new professional services outlets that attached our paid SaaS offering in the month. Internationally, our momentum continued with Brazil Clover outlets up over 30% sequentially.

And we launched an important AI initiative to enhance the performance of our primary client portal and call centers in Financial Solutions.

Turning to Clover, our second pillar, we continue to make progress towards establishing it as the preeminent small business operating platform.

Speaker #3: And we had another strong Clover quarter in Canada where we remain on track to enable TD merchant solutions to provide Clover's product offering, processing, and servicing to its clients in the second half of the year.

We launched 2 new verticals, in March with practice. Pay in the health care space and our Professional Services offering.

Speaker #3: After launching in Q4, we continued to expand our digital merchant activation capability and now have 22 of our top bank partners signed. We will also add this capability to our Clover dot com online merchant referral partners.

Mike Lyons: Internationally, our momentum continued with Brazil Clover outlets up over 30% sequentially, and we had another strong Clover quarter in Canada, where we remain on track to enable TD Merchant Solutions to provide Clover's product offering, processing, and servicing to its clients in the H2 of the year. After launching in Q4, we continued to expand our digital merchant activation capability and now have 22 of our top bank partners signed. We will also add this capability to our clover.com online merchant referral partners. Through integration with Stonecastle, we remain on track to launch Clover Savings, our merchant cash management program, before the end of Q2. Through a number of important partnerships, we continue to build agentic capabilities for our Clover merchants, and we'll showcase some of these at Investor Day.

We are seeing promising early results, with annualized GPV per Healthcare Outlet running at double-digit levels above our existing Clover Healthcare merchants.

Speaker #3: Through integration with Stone Castle, we remain on track to launch Clover Savings, our merchant cash management program, before the end of Q2. Through a number of important partnerships, we continue to build agentic capabilities for our Clover merchants and will showcase some of these at Investor Day.

And a 20% plus increase in new Professional Services. Outlets that attached our paid SaaS offering in the month.

Internationally our momentum continued with Brazil Clover. Outlets up over 30% sequentially.

And we had another strong Clover quarter in Canada where we remain on track to enable TD, merchant solutions to provide, Clover's product, offering processing and servicing to its clients in the second half of the year.

Speaker #3: And finally, we are excited to share that Clover is slated to support 30 World Cup games this summer in the US and Mexico. Next on the innovation front, we continue to hit critical milestones on key strategic products, including experienced digital, cash flow central, Vision Next, Optus, and Commerce Hub, as I mentioned earlier.

After launching in Q4, we continue to expand our digital Merchant activation capability and now have 22 of our top Bank Partners signed

We will also add this capability to our clover.com online. Merchants referral partners.

Speaker #3: In our enterprise merchant business, we delivered a new developer portal supporting agentic commerce. Our teams have further ramped up their usage of AI tooling in the software development process with early results showing a significant reduction across key steps in new feature development and delivery time with mainframe modernization.

Through integration with StoneCastle, we remain on track to launch Clover Savings, our merchant cash management program, before the end of Q2.

Mike Lyons: Finally, we are excited to share that Clover is slated to support 30 World Cup games this summer in the US and Mexico. Next, on the innovation front, we continue to hit critical milestones on key strategic products, including Experience Digital, CashFlow Central, Vision Next, Optis, and Commerce Hub, as I mentioned earlier. In our enterprise merchant business, we delivered a new developer portal supporting agentic commerce. Our teams have further ramped up their usage of AI tooling in the software development process with early results showing a significant reduction across key steps in new feature development and delivery time with mainframe modernization. Finally, we are on track to launch our previously announced stablecoin pilot this summer to facilitate interbank money movement. Fourth, we are in full swing with Project Elevate. With AI at the center of this program, we are very encouraged by the early results.

Through a number of important Partnerships. We continue to build a gentic capabilities for our clover merchants and will showcase some of these at investor day.

And finally, we are excited to share that Clover is slated to support, 30 World Cup games this summer, in the US and Mexico.

Speaker #3: And finally, we are on track to launch our previously announced stablecoin pilot this summer to facilitate interbank money movement. Fourth, we are in full swing with Project Elevate.

Next, on the innovation front, we continue to hit critical milestones on key strategic products, including Experience Digital, Cash Flow Central, Vision, Next Optus, and Commerce Hub. As I mentioned earlier,

Speaker #3: With AI at the center of this program, we are very encouraged by the early results. The teams have identified hundreds of opportunities to drive revenue uplift, reduce expenses, increase simplicity, and improve productivity, and we're moving with urgency to operationalize them.

In our Enterprise merchant business, we delivered a new developer portal supporting agentic commerce.

Speaker #3: Paul will outline our financial targets for Elevate at Investor Day. Beyond Elevate, we took several important actions in Q1 to drive efficiency, including closing two sub-scale offices exiting underperforming merchant businesses in India, reducing management layers, and implementing more aggressive performance management.

Our teams have further ramped up their usage of AI tooling in the software development process, with early results showing a significant reduction across key steps in new feature development and delivery time with mainframe modernization.

Pilot this summer to facilitate interbank money movement.

Forth. We are in full swing with Project Elevate.

Mike Lyons: The teams have identified hundreds of opportunities to drive revenue uplift, reduce expenses, increase simplicity, and improve productivity, and we're moving with urgency to operationalize them. Paul will outline our financial targets for Elevate at Investor Day. Beyond Elevate, we took several important actions in Q1 to drive efficiency, including closing two subscale offices, exiting underperforming merchant businesses in India, reducing management layers, and implementing more aggressive performance management. Just last week, we completed the migration of all customer activities from a significant data center as we continue our modernization activity. Last, but certainly not least on One Fiserv, is our commitment to highly disciplined capital allocation. We continue to sharpen our focus on the businesses and assets that best align to our go-forward strategy, including evaluating potential dispositions.

With AI at the center of this program, we are very encouraged by the early results.

Speaker #3: And just last week, we completed the migration of all customer activities from a significant data center as we continue our modernization activity. Last but certainly not least on one FISERV is our commitment to highly disciplined capital allocation.

The teams have identified hundreds of opportunities to drive Revenue, uplift reduce expenses, increase Simplicity and improve productivity and we're moving with urgency to operationalize them.

Paul will outline our financial targets for Elevate at Investor Day.

Speaker #3: We continue to sharpen our focus on the businesses and assets that best align to our go-forward strategy including evaluating potential dispositions. I'll conclude by saying we look forward to seeing you at Investor Day where, among other topics, we will further highlight our strategic priorities, describe how our businesses are converging further to unlock more synergies, and share how we're using AI to transform systems of record into systems of collaboration, create new TAMs, and increase efficiency.

Beyond Elevate. We took several important actions in Q1 to drive efficiency, including closing two Subs scale offices, exiting underperforming Merchant businesses in India, reducing management layers, and implementing more aggressive performance management.

And just last week, we completed, the migration of all customer activities from a significant data center as we continue our modernization activity.

Last but certainly not least on 15 serve Is our commitment to highly disciplined Capital allocation.

Speaker #3: Together, these actions will support the mid-single-digit adjusted revenue and double-digit EPS growth that we've discussed since last fall. This will position FISERV to return to its roots and create significant shareholder value as a constant compounder.

Mike Lyons: I'll conclude by saying we look forward to seeing you at Investor Day, where among other topics, we will further highlight our strategic priorities, describe how our businesses are converging further to unlock more synergies, and share how we're using AI to transform systems of record into systems of collaboration, create new TAMs, and increase efficiency. Together, these actions will support the mid-single-digit adjusted revenue and double-digit EPS growth that we've discussed since last fall. This will position Fiserv to return to its roots and create significant shareholder value as a constant compounder. I want to thank our employees for their hard work and dedication and our clients for their continued trust. With that, I'll turn it over to Paul to cover the details of Q1 and our guidance.

We continue to sharpen our focus on the businesses and assets that best align to our go forward strategy, including evaluating potential dispositions.

Speaker #3: I want to thank our employees for their hard work and dedication, and our clients for their continued trust. With that, I'll turn it over to Paul to cover the details of Q1 and our guidance.

I'll conclude by saying we look forward to seeing you at investor day. We're among other topics. We will further highlight our strategic priorities.

Describe how our businesses are converging further to unlock more synergies.

Speaker #1: Thank you, Mike, and good morning, everyone. I will cover details on total company and segment performance in the first quarter and reiterate our guidance for 2026.

And share how we're using AI to transform systems of record into systems of collaboration.

Create new Tams and increase efficiency.

Speaker #1: Beginning on slide six, total company Q1 adjusted revenue was $4.68 billion, a decrease of 2.4% compared to the prior-year period, and was in line with our guidance as we lapped higher non-recurring revenue from a year ago.

Together, these actions will support the mid-single-digit adjusted revenue and double-digit EPS growth that we've discussed since last fall.

This will position Fiserv to return to its roots and create significant shareholder value. As a constant compounder

Speaker #1: Q1 adjusted operating income was $1.4 billion, resulting in adjusted operating margin of 29.7%, also in line with the just-below-30% view I provided on our last call.

I want to thank our employees, for their hard work and dedication and our clients for their continued Trust.

Paul Todd: Thank you, Mike. Good morning, everyone. I will cover details on total company and segment performance in Q1 and reiterate our guidance for 2026. Beginning on slide 6. Total company Q1 adjusted revenue was $4.68 billion, a decrease of 2.4% compared to the prior year period, was in line with our guidance as we lapped higher non-recurring revenue from a year ago. Q1 adjusted operating income was $1.4 billion, resulting in adjusted operating margin of 29.7%, also in line with the just below 30% view I provided on our last call. Total company organic revenue was down 3.6% in Q1, with a differential in organic to adjusted revenue of just over 1%, in line with the approximately 1% delta we communicated in February.

With that, I'll turn it over to Paul, to cover the details of q1 and our guidance.

Speaker #1: Total company organic revenue was down 3.6% in Q1, with a differential in organic to adjusted revenue of just over 1%, in line with the approximately 1% delta we communicated in February.

Thank you, Mike and good morning everyone. I will cover details on total company and segment performance in the first quarter. And reiterate our guidance for 2026 beginning on slide 6, total company q1, adjusted Revenue was 4.68 billion, a decrease of 2.4% compared to the prior year period and was in line with our guidance as we lapped higher non-recurring revenue from a year ago.

Speaker #1: First quarter adjusted earnings per share was $1.79. Our Q1 results reflect an adjusted effective tax rate of 11% driven by the release of a tax valuation allowance in the first quarter.

Q1 adjusted operating income was 1.4 billion resulting in adjusted operating margin of 29.7%. Also in line with the just below 30% view I provided on our last call.

Speaker #1: Relative to our expected annual adjusted tax rate of between 19 and 19 and a half percent, this lower tax rate resulted in a 17 cent positive impact to adjusted earnings per share in Q1.

Speaker #1: This 11% rate in Q1 is strictly a timing-related impact. Our full-year adjusted tax rate guidance of 19 to 19.5% remains unchanged and we expect higher quarterly effective tax rates through the balance of the year as an offset.

Paul Todd: Q1 adjusted earnings per share was $1.79. Our Q1 results reflect an adjusted effective tax rate of 11%, driven by the release of a tax valuation allowance in Q1. Relative to our expected annual adjusted tax rate of between 19% and 19.5%, this lower tax rate resulted in a +$0.17 impact to adjusted earnings per share in Q1. This 11% rate in Q1 is strictly a timing related impact. Our full year adjusted tax rate guidance of 19% to 19.5% remains unchanged, and we expect higher quarterly effective tax rates through the balance of the year as an offset.

total company organic Revenue was down 3.6% in q1 with a differential and organic to adjusted revenue of just over 1% in line with the approximately 1% Delta we communicated in February

First quarter adjusted earnings per share was 1.79.

Our q1 results, reflect an adjusted effective tax rate of 11% driven by the release of a tax valuation allowance in the first quarter.

Speaker #1: Free cash flow for the quarter was $259 million, and in line with our expectations, we noted in February and reflects typical seasonality where Q1 is our lowest free cash flow quarter of the year.

Relative to our expected annual adjusted tax rate of between 19 and 19 and 1.5% this lower tax rate resulted in a 17% positive impact to adjusted earnings per share in q1.

Speaker #1: Now I will turn to the performance by segment for Q1, starting on slide seven for merchant solutions. Merchant solutions organic revenue declined 1% for the quarter, while adjusted revenue was flat, which is largely in line with our expectations as we fully anniversary the CCB transaction.

This 11% rate in q1 is strictly a timing related impact.

Paul Todd: Free cash flow for the quarter was $259 million and in line with our expectations we noted in February and reflects typical seasonality where Q1 is our lowest free cash flow quarter of the year. Now I will turn to the performance by segment for Q1, starting on slide 7 for Merchant Solutions. Merchant Solutions organic revenue declined 1% for the quarter, while adjusted revenue was flat, which is largely in line with our expectations as we fully anniversary the CCB transaction. As Mike mentioned, lower inflation and interest rates in Argentina did have a negative impact on adjusted revenue in our merchant business. Small business revenue declined 1% on an organic basis in Q1 and grew 1% on an adjusted basis. Small business volume grew 7% in the quarter. Clover revenue grew 6% in Q1.

Our full-year adjusted tax rate guidance of 19% to 19.5% remains unchanged, and we expect higher quarterly effective tax rates through the balance of the year as an offset.

Speaker #1: As Mike mentioned, lower inflation and interest rates in Argentina did have a negative impact on adjusted revenue in our merchant business. Small business revenue declined 1% on an organic basis in Q1, and grew 1% on an adjusted basis.

Free cash flow for the quarter was 259 million. And in line with our expectations, we noted in February and reflects typical seasonality where q1 is our lowest free cash flow quarter of the year.

Speaker #1: Small business volume grew 7% in the quarter. Clover revenue grew 6% in Q1. However, excluding higher non-recurring revenue from the first quarter of 2025, clover revenue growth would have been in the mid-teens.

Now, I will turn to the performance by segment for q1 starting on slide. 7 for merchant Solutions.

Merchant Solutions, organic Revenue declined. 1% for the quarter, while adjusted Revenue was flat, which is largely in line with our expectations as we fully anniversary the CCV transaction.

Speaker #1: Clover revenue from payment processing grew 10%, more in line with volume trends. As we noted in February, we expect similar trends for clover in Q2, with this period representing the peak in non-recurring impacts and also expect that clover processing revenue will grow in line with clover GPV.

As Mike mentioned lower inflation and interest rates in Argentina did have a negative impact on adjusted Revenue in our merchant business.

Organic basis in q1 and grew 1% on an adjusted basis.

Small business volume grew 7% in the quarter.

Paul Todd: However, excluding higher non-recurring revenue from the first quarter of 2025, Clover revenue growth would have been in the mid-teens. Clover revenue from payment processing grew 10% more in line with volume trends. As we noted in February, we expect similar trends for Clover in Q2, with this period representing the peak in non-recurring impacts and also expect that Clover processing revenue will grow in line with Clover GPV. Clover volume grew over 9% on a reported basis and was in line with our expectations as we saw stable growth both in the US and in key international markets. Clover volume, excluding the previously discussed gateway conversion, grew 12%. As the previously discussed gateway conversion continues to run off, the delta between Clover reported and ex-gateway growth will converge.

Speaker #1: Clover volume grew over 9% on a reported basis and was in line with our expectations as we saw stable growth both in the US and in key international markets.

Clover Revenue, grew 6% in q1. However, excluding higher non-recurring revenue from the first quarter of 2025 Clover, Revenue growth would have been in the mid- teens

Speaker #1: Clover volume excluding the previously discussed gateway conversion grew 12%. As the previously discussed gateway conversion continues to run off, the delta between clover reported and ex-gateway growth will converge.

Clover revenue from Payment Processing, grew 10% more in line with volume trends.

Speaker #1: We continue to expect clover revenue growth in the low double digits for 2026 and GPV growth of 10 to 15% ex the gateway conversion.

As we noted in February, we expect similar trends for Clover in Q2 with this period representing the peak in non-recurring impacts and also expect that Clover processing, Revenue will grow in line with clover gpv.

Speaker #1: The lower end represents the core growth rate, while the higher end assumes more significant conversion of non-clover merchants. Value-added services revenue contributed 27% of clover revenue in Q1, growing 18% from a year ago driven by software attach and lending including clover capital.

Clover volume grew over 9% on a reported basis and was in line with our expectations, as we saw stable growth both in the US and in key international markets.

Clover, Vol excluding the previously discussed. Gateway conversion, crew, 12%.

Paul Todd: We continue to expect Clover revenue growth in the low double digits for 2026 and GPV growth of 10% to 15% ex the gateway conversion. The lower end represents the core growth rate, while the higher end assumes more significant conversion of non-Clover merchants. Value-added services revenue contributed 27% of Clover revenue in Q1, growing 18% from a year ago, driven by software attach and lending, including Clover Capital. Moving on to enterprise, our revenue grew 3% on an organic basis in Q1 and grew 2% on an adjusted basis. Enterprise transactions grew 8%. Finally, in processing, organic revenue declined 14%, while adjusted revenue declined 9%. First quarter adjusted operating income for Merchant Solutions segment was $626 million, down 23%, with adjusted operating margin of 26.4%.

As the previously discussed Gateway conversion continues to run off the Delta between Clover reported and X. Gateway growth will converge

Speaker #1: Moving on to enterprise, our revenue grew 3% on an organic basis in Q1 and grew 2% on an adjusted basis. Enterprise transactions grew 8%.

We continue to expect Clover revenue growth in the low double digits for 2026, and GPV growth of 10 to 15 percent. The Gateway conversion.

Speaker #1: And finally, in processing organic revenue declined 14% while adjusted revenue declined 9%. First quarter adjusted operating income for merchant solutions segment was $626 million, down 23% with adjusted operating margin of 26.4%.

The lower end represents the core growth rate. While the higher end assumes, more significant conversion of non- clover, merchants

Value, added Services, Revenue, contributed 27% of clover, Revenue in q1, growing 18% from a year ago, driven by software attached and lending including Clover capital.

Speaker #1: Now I will cover financial solutions, starting on slide eight. For the quarter, organic revenue declined by 6% in financial solutions, while adjusted revenue declined by 5% relative to our expectations of adjusted revenue decline at the high end of mid-single digits that I mentioned on our last call.

Moving on to Enterprise our Revenue, grew 3%, on an organic basis in q1 and grew 2% on an adjusted basis. Enterprise transactions, grew 8%

and finally, in Processing organic Revenue declined 14% while adjusted Revenue declined, 9%,

Speaker #1: In digital payments, both organic and adjusted revenue declined by 5%. Our underlying account and volume growth in financial solutions was in line with what we expected and our recent history.

Paul Todd: Now I will cover Financial Solutions starting on slide 8. For the quarter, organic revenue declined by 6% in Financial Solutions, while adjusted revenue declined by 5% relative to our expectations of adjusted revenue decline at the high end of mid-single digits that I mentioned on our last call. In digital payments, both organic and adjusted revenue declined by 5%. Our underlying account and volume growth in Financial Solutions was in line with what we expected and our recent history. This included low single-digit growth in debit processing and low double-digit debit network volume growth. Zelle transactions grew 18% in the quarter, in line with recent trends we have seen while we saw Bill Pay transactions down high single digits.

First quarter, adjusted operating income for merchant Solutions, segment was 626 million down 23% with adjusted operating margin of 26.4%.

Now, I will cover Financial Solutions starting on, slide 8.

Speaker #1: This included low single-digit growth in debit processing and low double-digit debit network volume growth. Zell transactions grew 18% in the quarter, in line with recent trends we have seen while we saw Bill Pay transactions down high single digits.

For the quarter, organic Revenue declined by 6% in Financial Solutions while adjusted Revenue declined by 5% relative to our expectations of adjusted Revenue, decline at the high end of mid single digits that I mentioned on our last call.

Speaker #1: Also, we saw further ramp in cash flow central revenue in the quarter. In issuing, revenue declined by 6% on an organic basis and 5% on an adjusted basis.

In digital payments, both organic and adjusted revenue declined by 5%.

Speaker #1: While global accounts on file grew in the low single digits, revenue comparables were impacted by non-recurring revenue in Q1 last year a trend we expect to be more pronounced in Q2.

Our underlying account and volume growth in Financial Solutions was in line with what we expected and our recent history.

This included low single-digit growth in debit processing and low, double digit debit Network volume growth.

Speaker #1: Finally, in banking, revenue decreased 6% on an organic basis and was down 4% on an adjusted basis as we continued to be impacted by certain actions taken over the last several years as well as higher non-recurring revenue in the year-ago period as well as attrition that remains above our long-term target.

Paul Todd: Also, we saw further ramp in CashFlow Central revenue in the quarter. In issuing, revenue declined by 6% on an organic basis and 5% on an adjusted basis. While global accounts on file grew in the low single digits, revenue comparables were impacted by non-recurring revenue in Q1 last year, a trend we expect to be more pronounced in Q2. Finally, in banking, revenue decreased 6% on an organic basis and was down 4% on an adjusted basis as we continued to be impacted by certain actions taken over the last several years as well as higher non-recurring revenue in the year-ago period as well as attrition that remains above our long-term target. We saw core accounts decline 2% year over year, while overall accounts and positions, including Finxact, grew 6%.

Zelle transactions grew 18% in the quarter in line with recent Trends. We have seen while we saw Bill Pay transactions down high single digits,

Also, we saw further ramp and cash flow, Central Revenue in the quarter.

In issuing Revenue declined, by 6% on an organic basis and 5% on an adjusted basis.

Speaker #1: We saw core counts decline 2% year over year, while overall accounts and positions including FinTech grew 6%. First quarter adjusted operating income for the financial solutions segment declined 24% to $877 million, and adjusted operating margin was 38.1% versus 47.5% in the prior year period.

While global accounts on file grew in the low single digits, revenue comparables were impacted by non-recurring revenue in Q1 last year, a trend we expect to be more pronounced in Q2.

Speaker #1: From a leverage standpoint, we finished the quarter with a debt-to-adjusted EBIT ratio below 3.2 times measured on a gross basis. We expect to finish the year at approximately three times.

Finally in banking Revenue, decreased 6% on an organic basis, and was down 4% on an adjusted basis. As we continue to be impacted by certain actions taken over the last several years, as well as higher non-recurring Revenue in the year ago, period, as well as attrition that remains above our long-term Target.

Paul Todd: Q1 adjusted operating income for the Financial Solutions segment declined 24% to $877 million, and adjusted operating margin was 38.1% versus 47.5% in the prior year period. From a leverage standpoint, we finished the quarter with a debt to adjusted EBITDA ratio below 3.2x measured on a gross basis. We expect to finish the year at approximately 3x. Turning to slide 9. We repurchased 3.3 million shares during the quarter for approximately $200 million. As we noted in February, we are focused on managing our leverage ratio and remain committed to returning capital to shareholders. Now with slide 10, I'll move on to our 2026 guidance.

Speaker #1: Turning to slide nine, we repurchased $3.3 million shares during the quarter for approximately $200 million. As we noted in February, we are focused on managing our leverage ratio and remain committed to returning capital to shareholders.

We saw core counts decline 2% year-over-year, while overall accounts and positions, including FinAct crew, increased 6%.

First quarter adjusted operating income for the Financial Solutions segment declined 24% to $877 million, and adjusted operating margin was 38.1% versus 47.5% in the prior year period.

Speaker #1: Now with slide 10, I'll move on to our 2026 guidance. First, on revenue, we continue to expect 2026 organic revenue growth in the range of 1 to 3 percent, with merchant solutions revenue growth in the mid-single digits and financial solutions flat to slightly down.

Gross basis.

We expect to finish the year at approximately 3 times.

Turning to slide 9.

Speaker #1: Consistent with February, we expect adjusted revenue growth in the range of 1 to 3 percent. All of this continues to assume a stable macro environment.

We repurchased 3.3 million shares during the quarter for approximately $200 million.

As we noted in February, we are focused on managing our leverage ratio, and remain committed to returning Capital to shareholders.

Speaker #1: As we told you in February, we expect the second quarter to be the trough in terms of our year-on-year revenue decline and we expect our financial solutions business to decline at the high end of mid-single digits in Q2.

Paul Todd: First, on revenue, we continue to expect 2026 organic revenue growth in the range of 1% to 3%, with Merchant Solutions revenue growth in the mid-single digits and Financial Solutions flat to slightly down. Consistent with February, we expect adjusted revenue growth in the range of 1% to 3%. All of this continues to assume a stable macro environment. As we told you in February, we expect Q2 to be the trough in terms of our year-on-year revenue decline, and we expect our Financial Solutions business to decline at the high end of mid-single digits in Q2. We expect our weighted average share count to be approximately 530 million, resulting in adjusted EPS of $8.00 to $8.30, consistent with our prior guidance. We continue to expect adjusted operating margin of approximately 34% for the year.

Now, with slide 10, I'll move on to our 2026 guidance.

Speaker #1: We expect our weighted average share count to be approximately 530 million, resulting in adjusted EPS of $8 to $8.30, consistent with our prior guidance.

First, on Revenue, we continue to expect 2026, organic Revenue growth in the range of 1 to 3% with Merchant Solutions. Revenue growth in the mid single digits and Financial Solutions flat to slightly down.

Consistent with February, we expect adjusted Revenue growth in the range of 1 to 3%.

Speaker #1: We continue to expect adjusted operating margin of approximately 34% for the year. In line with our commentary in February, we expect first half adjusted operating margin of approximately 31 to 32 percent.

All of this continues to assume a stable, macro environment.

Speaker #1: In the second half of the year, we continue to expect adjusted operating margin of 35 to 36 percent, with Q4 representing the high point in the year.

As we told you in February, we expect the second quarter to be the trough in terms of our year-on-year revenue decline, and we expect our Financial Solutions business to decline at the high end of mid-single digits in Q2.

Speaker #1: We continue to expect capital expenditures to remain approximately flat with 2025 levels. We continue to expect free cash flow conversion of approximately 90% of adjusted net income for the year in line with historical levels and our February guidance.

We expect our weighted. Average share count to be approximately 530 million resulting in adjusted EPS of 8 to 8.30 consistent with our prior guidance.

Paul Todd: In line with our commentary in February, we expect H1 adjusted operating margin of approximately 31% to 32%. In the H2 of the year, we continue to expect adjusted operating margin of 35% to 36%, with Q4 representing the high point in the year. We continue to expect capital expenditures to remain approximately flat with 2025 levels. We continue to expect free cash flow conversion of approximately 90% of adjusted net income for the year, in line with historical levels and our February guidance. With that, I will turn the call back to the operator to start the Q&A session.

We continue to expect adjusted operating margin of approximately 34% for the year.

Speaker #1: And with that, I will turn the call back to the operator to start the Q&A session.

In line with our commentary in February, we expect first half adjusted operating margin of approximately 31 to 32%.

Speaker #2: Thank you. We would now like to open the phone lines for questions. As a reminder, for today's call, please limit yourself to one question to ensure ample time to answer as many questions as possible.

And the second half of the year, we continue to expect adjusted operating margin of 35, to 36% with Q4 representing, the high point in the year.

Speaker #2: If you would like to ask a question, you may press star one on your phone. If you would like to withdraw your question, press star two.

We continue to expect Capital expenditures to remain approximately flat with 2025 levels.

Speaker #2: Our first question comes from Tien-Tsin Huang from JPMorgan. Please go ahead.

Speaker #3: Hey, thanks. Thanks for going through all of that. I wanted to ask just on maybe visibility on the banking side and retention, given some of the bank conversions that you're doing, just any surprise there?

We continue to expect free cash flow, conversion of approximately 90% of adjusted net income for the year in line, with historical levels and our February guidance.

And with that, I will turn the call back to the operator to start the Q&A session.

Operator: Thank you. We would now like to open the phone lines for questions. As a reminder, for today's call, please limit yourself to one question to ensure ample time to answer as many questions as possible. If you would like to ask a question, you may press star one on your phone. If you would like to withdraw your question, press star two. Our first question comes from Tien-Tsin Huang from JPMorgan. Please go ahead.

Speaker #3: I know that the trough comments were made, but I'd love to hear a little bit more detail on attrition and retention, that kind of thing.

Speaker #4: Yeah. Good morning, Tien-Tsin. I think broadly on banking, we continue to be obviously very proud of the leading market share position we have in the business and all the support across almost 3,000 banks and credit unions on the core side.

Thank you. We would now like to open the phone lines for questions as a reminder for today's call. Please limit yourself to 1. Question to ensure, ample time to answer as many questions as possible. If you would like to ask a question, you may press star 1 on your phone, if you would like to withdraw. Your question, press star 2, our first question comes from tingen Wong from JP Morgan. Please go ahead.

Tien-Tsin Huang: Hey, thanks for going through all of that. I wanted to ask just on maybe visibility on the banking side and retention, given some of the bank conversions that you're doing. Just any surprise there? I know that the trough comments were made, but I'd love to hear a little bit more detail on attrition and retention, that kind of thing.

Tien-tsin Huang: Hey, thanks for going through all of that. I wanted to ask just on maybe visibility on the banking side and retention, given some of the bank conversions that you're doing. Just any surprise there? I know that the trough comments were made, but I'd love to hear a little bit more detail on attrition and retention, that kind of thing.

Hey thanks. Uh, thanks for going through all of that. I wanted to ask just on um

Speaker #4: As we've said and we'll say it again today, core attrition has been above where we want it to be. In getting that back to normal is a significant focus for us.

Maybe visibility on the on the banking side and and and retention given some of the bank conversions that you're doing just any.

Speaker #4: That attrition, as you know, is the result of actions taken over the last several years especially around the client service front and we're confident we have the right fixes and addresses in the way we're addressing it is the right thing to do.

Surprise there. I know that the, the trough comments were were made but I love to hear a little bit more detail on. Um,

On nutrition and retention, that kind of thing.

Mike Lyons: Yeah. Good, good morning, Tien-Tsin.

Tien-Tsin Huang: You're welcome.

Tien-tsin Huang: You're welcome.

Mike Lyons: You know, I think broadly on banking, we continue to be obviously very proud of the leading market share position we have in the business and all the support across almost 3,000 banks and credit unions on the core side. As we've said and we said again today, you know, core attrition's been above where we want it to be, and getting that back to normal is a significant focus for us. That attrition, as you know, is the result of actions taken over the last several years, you know, especially around the client service front. We're confident we have the right fixes and addresses, and the way we're addressing it is the right thing to do.

Yeah, good. Good morning tent the, uh,

Speaker #4: And while there's significant work to do, as I said today, we feel like we're bending that curve in a positive way. And contributing to that, as we've significantly increased our client coverage efforts, which was an ask of our they came directly from the clients from that has come better service and we're seeing that show up in both our surveys and anecdotal evidence.

You know, I think broadly on banking we continue to be uh, obviously very proud of the position, leading market share position. Uh, we have in the business and, and all the support across almost 3,000, uh, Banks and Credit Unions on the core side, uh, as we've said and we said again today, you know, core attrition Cent above where we want it to be, uh, and and getting that back to normal is is a significant Focus for us.

Speaker #4: And then we've really leveraged a number of different forms of AI to help in call centers enhancing our client portal experience accelerating our tech modernization and reducing the books of work we have.

Mike Lyons: While there's significant work to do, as I said today, we feel like we're bending that curve in a positive way. Contributing to that is we've significantly increased our client coverage efforts, which was an ask of our that came directly from the clients. From that has come better service, and we're seeing that show up in both our surveys and anecdotal evidence. We've really leveraged a number of different forms of AI to help in call centers, enhancing our client portal experience, accelerating our tech modernization, and reducing the books of work we have.

Speaker #4: And then obviously the decision to support all of our cores was an important one for our clients and has taken a significant amount of pressure perceived pressure that they had on themselves to switch and obviously pressure on us.

Speaker #4: So little things or less highlighted things, the Stone Castle acquisition has been a great value-added positive supporting our clients and one of the depository clients and one of their biggest needs, which is continue to deposit growth.

Uh, that attrition as you know is uh the result of actions taken over the last several years, in our, especially around the client service front. And we're confident, we have the right fixes and uh, uh, addresses in the way we're addressing it is the the right thing to do. And while there's significant work to do as I said today, we feel like we're bending that curve in a positive way and uh, contributing to that as we've significantly increased our client coverage, which was a, uh, an Ask of our, uh, they came directly from the clients um, from that has come better service than we're seeing that show up in both our surveys and uh, anecdotal evidence and then we've really leveraged.

Speaker #4: And then our approach to embracing the consultant community and even acquiring Smith Consulting to really drive value-added services to our depository partners again is another piece.

Mike Lyons: Obviously, the decision to support all of our cores was an important one for our clients and has taken a significant amount of pressure, perceived pressure that they had on themselves to switch and obviously pressure on us. Little things or less highlighted things. The StoneCastle acquisition's been a great value-added positive, supporting our clients and depository clients and one of their biggest needs, which is continue deposit growth. Our approach to embracing the consultant community and even acquiring Smith Consulting, to really drive value-added services to our depository partners, again, is another piece.

Speaker #4: Finally, we've taken an advanced approach again using AI to measure our what we call a client health index across all their experiences with us in terms of pace of change, resolution, inquiries, client touch, and the like.

Speaker #4: And it's given us a much better view and perspective of where these clients stand, which allows us to play much more on the offensive side to getting to them.

Speaker #4: So a lot of stuff listed, but it's a complete package of behavioral changes, technology changes, service changes, alignment changes meant enhancements. We talked about continued enhancement in the quality of our leadership team, bringing in new executives to combine with the executives here.

Mike Lyons: Finally, we've taken an advanced approach, again, using AI to measure our what we call a client health index across all their experiences with us in terms of pace of change, resolution, inquiries, client touch and the like. It's given us a much better view and perspective of where these clients stand, which allows us to play much more on the offensive side to getting to them. A lot of stuff listed, but it's a complete package of behavioral changes, technology changes, service changes, alignment changes, enhancements. We talked about continued enhancement, the quality of our leadership team, bringing in new executives to combine with executives here.

Speaker #4: So I wish there was more visible in the results, but when you go through the underlying KPIs that we have, we feel really good about the progress we're making and our ability to get core revenue-related attrition back down to more normal levels.

Speaker #4: Ideally, we'd like to have none, but of course, you've got M&A and stuff. And we've had some over history, but getting it back to those historical levels, we feel like we're doing all the right stuff and we're on the path to do it.

Speaker #4: It just takes time and work.

Speaker #3: Good. It's important stuff. Thank you for going through it.

Mike Lyons: I wish it was more visible in the results, but when you go through the underlying KPIs that we have, we feel really good about the progress we're making and our ability to get core revenue-related attrition back down to more normal levels. Ideally would like to have none, but of course, you got M&A and stuff, and we've had some over history. Getting it back to those historical levels, we feel like we're doing all the right stuff and are on the path to do it, just takes time and work. Good. No, it's important stuff. Thank you for going through it.

Which is continued to continue deposit growth and then our approach, uh, to embracing the consultant community. And even acquiring Smith Consulting, uh, to really Drive value added services to our depository Partners. Uh, again, as another piece finally, we've taken a an advanced growth again using AI to, to measure our what we call a client Health index across all their experiences with us. In terms of, uh, pace of change, resolution inquiries, client touch and the like, and it's giving us much better. Uh, uh, uh View and uh, perspective of where these clients stand, which allows us to play much, much more on, on the offensive side to getting to them. So, uh, a lot of self listed, but it's a complete package of, uh, behavioral changes technology, changes service changes alignment. Uh changes meant enhancements we talked about, uh, continued enhancement, the quality of our, uh, leadership team bringing in, uh, new Executives to combine with the executive team.

Speaker #2: Next, we'll go to the line of Andrew Schmidt from TBank Capital Markets. Please go ahead.

Here. So, um,

Speaker #5: Hey, Mike. Hey, Paul. Thanks for taking the question this morning. I wanted to ask just on SMB backbook, if you could talk about the performance there, X Clover.

Speaker #5: And then I know there's a swing factor in terms of conversion of non-Clover merchants. If you did any testing there, it'd be interesting to just understand how that testing is performed and how that might influence just the go-forward emphasis on converting those non-Clover merchants to Clover.

I wish it was more visible in the results, but when you go through the underlying kpis that we have, we feel really good about, uh, the progress we're making and our ability to get, uh, uh, core, uh, Revenue related, uh, attrition back down to more normal levels. I feel like we ideally would like to have done, but, of course, you got m&a and stuff. And we've had some over history, but getting it back to those historical levels. We feel like we're doing all the right stuff and are on the path to do. It just takes time and work.

Good. No, it's important stuff. Thank you for going through it.

Speaker #5: Thanks so much.

Operator: Next, we'll go to the line of Andrew Jeffrey from KeyBanc Capital Markets. Please go ahead.

Speaker #4: Yeah. Andrew, thanks for the question. And yeah, first of all, I wouldn't call out anything unique as it relates to the backbook conversion in the first quarter.

Next, we'll go to the line of Andrew Schmidt from keeping

Andrew Jeffrey: Hey, Mike. Hey, Paul. Thanks for taking the question this morning. I wanted to ask just on SME back book, if you could talk about the performance there, ex Clover. Then I know there's a swing factor in terms of conversion of non-Clover merchants. If you did any testing there, it'd be interesting to just understand how that testing has performed and how that might influence just the go-forward emphasis on converting those non-Clover merchants to Clover. Thanks so much.

Andrew Schmidt: Hey, Mike. Hey, Paul. Thanks for taking the question this morning. I wanted to ask just on SME back book, if you could talk about the performance there, ex Clover. Then I know there's a swing factor in terms of conversion of non-Clover merchants. If you did any testing there, it'd be interesting to just understand how that testing has performed and how that might influence just the go-forward emphasis on converting those non-Clover merchants to Clover. Thanks so much.

Speaker #4: And certainly for the year, we don't have any different expectations around what that backbook conversion looks like. We've commented for some time now, we're being very mindful about how we approach any of the non-Clover to Clover transition to make sure that we're doing it in a very mindful, customer-centric way.

Speaker #4: And we've had some good tests around that, around the receptivity of those moves when there's a good product fit. But there isn't anything incremental.

Mike Lyons: Yeah, Andrew, thanks for the question. First of all, I wouldn't call out anything unique as it relates to the back book conversion in the Q1. Certainly for the year, we don't have any different expectations around what that back book conversion looks like. You know, we've commented for some time now, we're being very mindful about how we approach any of the non-Clover to Clover transition to make sure that we're doing it in a very mindful, customer-centric way. We've had some good tests around that, around the receptivity of those moves when there's a good product fit. There isn't anything incremental.

Paul Todd: Yeah, Andrew, thanks for the question. First of all, I wouldn't call out anything unique as it relates to the back book conversion in the Q1. Certainly for the year, we don't have any different expectations around what that back book conversion looks like. You know, we've commented for some time now, we're being very mindful about how we approach any of the non-Clover to Clover transition to make sure that we're doing it in a very mindful, customer-centric way. We've had some good tests around that, around the receptivity of those moves when there's a good product fit. There isn't anything incremental.

Hey Mike. Hey Paul. Thanks for taking the question this morning. Um, I wanted to ask just on SMB bakbuk. If you talk about the performance there, uh, excl Clover and then I know there's a swing factor in terms of conversion of non-load testing there. It'd be interesting to just understand how that testing is performed and how that might influence. Just the the go forward. Uh, uh. Emphasis on converting those nonverbal Merchants to Clover. Thanks so much.

Speaker #4: We've talked about in the overall Clover GPV guide for the year, the low side of the guide assumes very minimal backbook conversion and the higher side assumes a more meaningful backbook conversion.

Speaker #4: But right now, everything's on plan as it relates to how we're looking at that. And we're going to talk a lot about this at Investor Day, talk this is going to be going through just the overall Clover strategy, the overall merchant strategy.

Speaker #4: You'll see all the pieces kind of fit together related to this topic at Investor Day. But right now, nothing has changed. Mike, do you have anything to add?

Mike Lyons: You know, we've talked about in the overall Clover GPV guide for the year, you know, the low side of the guide assumes very minimal back book conversion, and the higher side assumes a more meaningful back book conversion. Right now, everything's on plan as it relates to how we're looking at that. We're gonna talk a lot of about this at Investor Day. Takis is gonna be going through just the overall Clover strategy, the overall merchant strategy. You'll see all the pieces kind of fit together related to this topic at Investor Day. Right now, nothing's changed. Mike, do you have anything to add?

Paul Todd: You know, we've talked about in the overall Clover GPV guide for the year, you know, the low side of the guide assumes very minimal back book conversion, and the higher side assumes a more meaningful back book conversion. Right now, everything's on plan as it relates to how we're looking at that. We're gonna talk a lot of about this at Investor Day. Takis is gonna be going through just the overall Clover strategy, the overall merchant strategy. You'll see all the pieces kind of fit together related to this topic at Investor Day. Right now, nothing's changed. Mike, do you have anything to add?

Speaker #5: I'd just add that we've said in the past that our ability and willingness to pursue conversions of Fiserv customers from one platform onto Clover obviously very much like to do that given the robust set of VAS we have on the Clover side.

Yeah Andrew. Uh, thanks for the question and and yeah. First of all, I wouldn't call out anything unique. As it relates to the bakbuk conversion in the in the first quarter and certainly for the year we don't have any uh different expectations around what that back book conversion. Looks like, you know, we've commented for some time. Now we're being very mindful about how we approach any of the non- Clover to Clover transition to make sure that we're doing it in a very mindful customer Centric way. And we've had some good tests around that around the receptivity of of those moves when there's a good product fit. But there isn't anything incremental, you know, we've talked about in the overall Clover, gpv guide for the year, you know, the low side of the guide assumes very minimal uh, back with conversion and the higher side as soon.

Speaker #5: But that depends on us doing certain actions and we're proud this quarter to launch two new verticals. As I mentioned in the prepared comments, in healthcare and professional services.

Speaker #5: And each time we build unique capabilities to address a certain vertical, that allows us a greater opportunity to go in and address the backbook with compelling offers.

Mike Lyons: I'd just add that we've said in the past that our ability and willingness to pursue conversions of Fiserv customers from one platform onto Clover, we'd obviously very much like to do that given the robust set of VaaS we have on the Clover side. That depends on us doing certain actions, and we were proud this quarter to launch 2 new verticals, as I mentioned in the prepared co-comments, in healthcare and professional services. Each time we build unique capabilities to address a certain vertical, that allows us a greater opportunity to go in and address the back book with compelling offers. We don't wanna just go in and try to move that to Clover without a strong rationale and mutual benefit for the customer.

Speaker #5: We don't want to just go in and try to move that to Clover without a strong rationale and mutual benefit for the customer. And as Paul said, our efforts to date have been very modest, talk as we'll talk you through that study, learn, test, and then when we have the right capabilities and the right understanding of it, you can pick up the pace of it.

Speaker #3: Perfect. Thanks so much. Look forward to hearing more at the analyst day.

Speaker #2: Next, we'll go to Dan Dolev from Mizuho. Please go ahead.

And more meaningful uh bakbuk conversion but right now, everything's on plan as it relates to to how we're we're looking at that. And and we're going to talk a lot about this at investor day. Doctors is going to be going through just the overall Clover strategy overall Merchants strategy. You'll see all the pieces kind of fit together. Um, related to this topic at investor day, but right now, nothing has changed. My, you have anything to add. I I just add that we, we've said in the past that our ability, uh, and willingness to pursue pursue conversions of, uh, 5 serve customers from 1 platform onto Clover is very much like to do that. Given the robust set of vast we have on the Clover side, uh but that depends on uh us doing certain actions and we were proud of this quarter to launch 2 new verticals. As I mentioned in the prepared, comments in healthcare and Professional Services. And each time we build unique capabilities to address a a certain uh vertical that allows us a greater opportunity to go in uh and address the back book with

Speaker #6: Hey, guys. Great progress here. Quick question on AI. I think your competitor made an announcement yesterday on AI with regards to banking bank processing.

Mike Lyons: As Paul said, our efforts to date have been very modest. Takis will talk you through that, study, learn, test, and then, when we have the right capabilities and the right understanding of it, you can pick up the pace of it.

Speaker #6: Can you maybe, Mike, elaborate on some of the initiatives and how you add value with AI to your banking clients? Thank you.

Speaker #4: Yeah. Thanks for the question. And as we keep progressing with it for our businesses, we get more and more excited about what AI is allowing us to do.

Andrew Jeffrey: Perfect. Thanks so much. Look forward to hearing more at the Analyst Day.

Andrew Schmidt: Perfect. Thanks so much. Look forward to hearing more at the Analyst Day.

Compelling offers. We, we don't want to just go in and, and, and try to move that to Clover without a strong rationale and, and mutual benefit benefit for, for the customer. Um, and as Paul said, our efforts to date have been very modest, uh, stalkers will talk talk to you through that, uh, study learn test. And then, um, when we have the right capabilities, in the right understanding of it, uh, you you can pick up the pace of it,

Perfect. Thanks so much. Look forward to hearing more at the analyst day.

Operator: Next, we'll go to Dan Dolev from Mizuho. Please go ahead.

Speaker #4: And we've seen incredible results to date recognizing it's still early in the development of it. But we're really intensely focused on four areas, which is taking those great systems of record we have into systems of greater value and systems of collaboration.

Next, we'll go to dandola from Mazoo, please go ahead.

Dan Dolev: Hey, guys. Great progress here. Quick question on AI. I think, your competitor made an announcement yesterday on AI with regards to banking, bank processing. Can you maybe, Mike, elaborate on some of the initiatives and how you add value with, AI to your banking plans? Thank you.

Speaker #4: Generating new revenue sources in TAMS, which goes a little bit to your question, enhancing client service where we I just mentioned, and then increasing our own productivity and efficiency across the company.

Mike Lyons: Yeah. Thanks for the question. You know, as we keep progressing with it for our businesses, we get more and more excited about what AI is allowing us to do, and we've seen incredible results to date, recognizing it's still early in the development of it. We're really intensely focused on four areas, which is taking those great systems of record we have into systems of greater value and systems of collaboration, generating new revenue sources and TAMs, which goes a little bit to your question, enhancing client service where I just mentioned, and then increasing our own productivity and efficiency across the company.

Hey guys, great progress here. Um, quick question on AI. I think, uh, your competitor made an announcement yesterday on AI with regards to banking, uh, Bank processing. Can can you maybe my elaborate on some of the initiatives and how you add value with, uh, AI to your banking plans? Thank you.

Speaker #4: On with respect specifically to leveraging AI on the revenue side and for the benefit of our clients, Agentic is clearly the next important phase on both the merchant side and the banking side.

Speaker #4: And we have a number of extremely exciting developments going on there, including new Agentic commerce capabilities, which we've been talking about in merchant and rolling out through important partnerships and talk us will go through that in detail next week.

Speaker #4: But we see a great opportunity especially with the Clover customer base and enabling them to access an Agentic world without building all of the backend systems needed.

Mike Lyons: Well, with respect specifically to leveraging AI on the revenue side and for the benefit of our clients, agentic is clearly the next important phase on both the merchant side and the banking side. We have a number of extremely exciting developments going on there, including new agentic commerce capabilities, which we've been talking about in merchant and rolling out through important partnerships. Takis will

And you know, as we keep progressing with it, for our businesses, we get more and more excited about what AI is allowing us to do and we've seen incredible results today. Uh, recognizing it's still early in the development of it, but we're really intensely focused on 4 are, which is, uh, taking those great systems of record we have into systems of greater value and systems of collaboration generating, new Revenue, uh, sources and Tams, which goes a little bit to your question. Enhancing client service, where we uh, I just mentioned and then increasing our own productivity and efficiency uh, across the company.

Speaker #4: And on the banking side, at IR Day, Divya will introduce a new governed AI operating layer that will importantly allow FIs to access and fully capture the power and benefit of all agents across many functions, including front, middle, and back office, and using any LLM.

Paul Todd: Go through that in detail next week. We see a great opportunity, especially with the Clover customer base and enabling them to access an agentic world without building all the back-end systems needed. On the banking side, at IR day, Dhivya Suryadevara will introduce a new governed AI operating layer that will importantly allow FIs to access and fully capture the power and benefit of all agents across many functions, including front, middle, and back office, and using any LLM. We're already live with pilot agents with two financial institutions around this today, and then have a number of others lined up with different use cases, think about loan originations, compliance, and call centers.

Mike Lyons: Go through that in detail next week. We see a great opportunity, especially with the Clover customer base and enabling them to access an agentic world without building all the back-end systems needed. On the banking side, at IR day, Dhivya Suryadevara will introduce a new governed AI operating layer that will importantly allow FIs to access and fully capture the power and benefit of all agents across many functions, including front, middle, and back office, and using any LLM. We're already live with pilot agents with two financial institutions around this today, and then have a number of others lined up with different use cases, think about loan originations, compliance, and call centers.

Speaker #4: So we're already live with pilot agents with two financial institutions around this today and then have a number of others lined up with different use cases think about loan originations, compliance, and call centers.

Speaker #4: So not to steal too much thunder for next week, but Divya will formally introduce the product and you'll be able to actually see some demos of it.

Speaker #4: So again, whether it's internally or externally, merchant or financial, we're seeing great opportunities both to drive value for ourselves and help our clients access the Agentic capabilities available to them.

On um, with respect specifically to leveraging AI on the revenue side and for the benefit of our clients, agentic is clearly. Uh, the next important phase on both, uh, the merchant side and the banking side. And we have a number of extremely uh exciting developments uh going on there including uh, new agentic, uh, Commerce capabilities, which we've been talking about in merchants and and rolling out through important Partnerships and talk us will go through that uh, in detail next week. But uh, we see a great opportunity especially with the Clover customer base and and enabling them to, to access an agentic world, uh, without building all the uh, uh, back-end systems needed. And on the banking side, uh, at IR de, uh, if you will introduce a new governed, AI operating layer that will importantly allow, uh, fees to assess employee capture a power and benefits of all agents.

Speaker #6: Thank you. Very insightful. Appreciate it.

Speaker #2: Next, we'll go to Vasu Goldville from KBW. Please go ahead.

Speaker #7: Hi. Thanks for taking my question. I just had a couple of quick ones on Clover. I guess the first one just on the non-recurring revenue that you called out, Paul, from last year.

Paul Todd: Not to steal too much thunder for next week, but Divya will formally introduce the product, and you'll be able to actually see some demos of it. Again, whether it's internally or externally, you know, merchant or financial, we're seeing great opportunities both to drive value for ourselves and help our clients access the agentic capabilities available to them.

Mike Lyons: Not to steal too much thunder for next week, but Divya will formally introduce the product, and you'll be able to actually see some demos of it. Again, whether it's internally or externally, you know, merchant or financial, we're seeing great opportunities both to drive value for ourselves and help our clients access the agentic capabilities available to them.

Speaker #7: Was that mostly hardware revenue or something else? And then more broadly, Mike, on Clover Capital, you've highlighted in prior calls how the penetration is still relatively low in your installed base.

Speaker #7: So maybe if you could just talk a little bit about what has constrained adoption so far. And as you look to scale that business, how should we think about the long-term penetration potential and sort of the mix between on-balance sheet, off-balance sheet to support that growth?

Across many functions, including front middle and back office, and using any llm. So, uh, we're already live, uh, with pilot agents, uh, with uh, 2 financial institutions around this today and then have a number of others lined up with different use cases. Uh, think about loan originations compliance and and call centers. So not to feel too much under for next week but dual formally introduce the product and you'll be able to actually see some uh, demos of it. So again, whether it's internally or externally uh you know, Merchant or financial, we're seeing great opportunities, both to drive value for ourselves and and help our clients access uh uh the agentic capabilities available to them.

Mike Lyons: Thank you. Very insightful. Appreciate it.

Dan Dolev: Thank you. Very insightful. Appreciate it.

Thank you very insightful. Appreciate it.

Operator: Next, we'll go to Vasundhara Govil from KBW. Please go ahead.

Vasundhara Govil: Hi. Thanks for taking my question. I just had a couple of quick ones on Clover. I guess the first one just on the non-recurring revenue that you called out, Paul, from last year. Was that mostly hardware revenue or something else? More broadly, Mike, on Clover Capital, you've highlighted in prior calls how the penetration is still relatively low in your installed base. Maybe if you could just talk a little bit about what has constrained adoption so far. As you look to scale that business, how should we think about the long-term penetration potential and sort of the mix between on balance sheet, off balance sheet to support that growth?

Vasu Govil: Hi. Thanks for taking my question. I just had a couple of quick ones on Clover. I guess the first one just on the non-recurring revenue that you called out, Paul, from last year. Was that mostly hardware revenue or something else? More broadly, Mike, on Clover Capital, you've highlighted in prior calls how the penetration is still relatively low in your installed base. Maybe if you could just talk a little bit about what has constrained adoption so far. As you look to scale that business, how should we think about the long-term penetration potential and sort of the mix between on balance sheet, off balance sheet to support that growth?

Next, we'll go to vasu govil from KBW. Please go ahead.

Speaker #4: Yeah. So Vasu, maybe I'll take two parts of those and then, Mike, if you want to add anything. As it relates to the non-recurring revenue on the Clover side, yes, hardware is a big piece of that.

Speaker #4: There are some other things from a non-recurring standpoint in that comparative. And we highlighted that out. That's why the Clover revenue growth's in the mid-teens.

Speaker #4: The reported growth of six. But if you take the comparative dynamics of the non-recurring, not repeating in the first quarter of this year, that puts you to the mid-teens or roughly 15%.

Speaker #4: And And hardware is the biggest or one of the biggest pieces there. On the Clover Capital side, we will talk more about this at investor day and just our strategy around Clover Capital.

Hi, thanks for taking my question. I just had a couple of quick ones on Clover. I guess the first 1 just on the non-recurring revenue that you called out Paul from last year was that mostly Hardware revenue or something else and then more broadly mic on Clover Capital. You've highlighted in Prior calls how the penetration is still relatively low in your installed base. Um, so maybe if you could just talk a little bit about what has constrained adoption so far, and as you look to scale that business, how should we think about the long term, penetration potential and sort of the mix between on-balance sheet off-balance sheet to support that growth?

Paul Todd: Yeah. Vasu, maybe I'll take two parts of those and then Mike, if you want to add anything. You know, as it relates to the non-recurring revenue on the Clover side, yes, hardware is a big piece of that. There are some other things from a non-recurring standpoint in that comparative. We highlighted that up. That's why the Clover revenue growth in the mid-teens, the reported growth of 6. If you take the comparative dynamics of the non-recurring not repeating in the first quarter of this year, that puts you to the mid-teens or roughly 15%. Hardware is the biggest or one of the biggest pieces there. On the Clover Capital side, we will talk more about this at Investor Day and just our strategy around Clover Capital.

Speaker #4: al. You're right. We are underpenetrated relative to the opportunity set. And we're going to kind of lay out a much broader strategy around how we're going to be approaching the marketplace both from a balance sheet standpoint as well as just an overall growth standpoint at investor day.

Speaker #4: So I'd rather kind of give a more wholesome view of that on a go-forward base. But we did see good Clover Capital growth in the quarter, so I'm very pleased with the underlying volume growth that we saw.

Speaker #4: And we don't see any change in that growth trajectory as we look at the forecast for the remaining part of the year. But we'll give you more color at investor day, Mike.

Paul Todd: You're right, we are under-penetrated relative to the opportunity set. You know, we're going to kind of lay out a much broader strategy around how we're going to be approaching the marketplace, both from a balance sheet standpoint as well as just an overall growth standpoint at Investor Day. I'd rather kind of give a more wholesome view of that on a go-forward basis. We did see good Clover Capital growth in the quarter, so we're very pleased with the underlying volume growth that we saw, and we don't see any change in that growth trajectory as we look at the forecast for the remaining part of the year. We'll give you more color at Investor Day. Mike, anything else?

Speaker #4: Anything else?

Speaker #8: No, I think you highlighted perfectly that the opportunity is significant in front of us. We're a couple of quarters into building our enhancing what we had as core capabilities and going after that.

Speaker #8: And it's domestic and international opportunity.

Speaker #2: Thank you. Next, we'll go to Brian Bergen from TD Cowan. Please go ahead.

Yeah, so Basu, um, maybe I'll take uh, 2 parts of those. And then Mike, if you want to add anything, you know, is it relates to the non-recurring revenue on the, on the Clover side? Yes. Hardware is a big piece of that. Um, there are some other things, um, from a non-recurring standpoint, uh, in that comparative and we highlighted that up, that's why the Clover Revenue growth in the mid teens, the reported growth of 6. But if you take the, the comparative dynamics of of the non-recurring, not repeating in the first quarter of this year that puts you to the mid teens or roughly 15% and Hardware, um, is the biggest or 1 of the biggest pieces there on the Clover Capital side? We will talk more about this at investor day and just our strategy around Clover Capital. You're right. We are under penetrated relative to the opportunity set and you know we're going to kind of lay out a much broader strategy around how we're going to be approaching the marketplace. Both from a balance sheet standpoint as as well as just an overall growth standpoint um at investor Day. So I'd rather kind of give a more wholesome view of that.

Speaker #9: Hi. Good morning. Thank you. I wanted to ask on financial solutions. Can you just give us a sense on the non-recurring revenue headwinds? Where relevant across the subsegments?

Speaker #9: And I'm thinking particularly in issuing and banking. And then the relative potential size of those headwinds in two Qs just so we could unpack the recurring performance with an overall performance.

Mike Lyons: I think you highlighted perfectly that the opportunity is significant in front of us. We're a couple quarters into enhancing what we had as core capabilities and going after that. It's domestic and international opportunity.

Speaker #4: Yeah. So specifically in the issuing area, the biggest single driver I'd point out to is the output solution, Jared, where we had some significantly sized output solutions business that is not recurring this year that is in the first half and specifically in the second quarter.

On a go forward base, but we did see. Good Clover, uh, Capital Growth in the quarter, so we're very pleased with the, the underlying volume growth that we saw. And we don't see any change in that growth trajectory, um, as we look at the forecast for the remaining part of the year but we'll give you more color and investigate Mike anything else? No. Just I think you highlighted perfectly that that the opportunity is significant in front of us. We're a couple quarters into building our kids, uh, you know, enhancing what we had as a core capabilities and and going after that and it's

Vasundhara Govil: Thank you.

Vasu Govil: Thank you.

Domestic and international opportunity.

Thank you.

Operator: Next, we'll go to Bryan Bergin from TD Cowen. Please go ahead.

Next, we'll go to Brian Bergin from TD.

Bryan Bergin: Hi. Good morning. Thank you. I wanted to ask on financial solutions. Can you just give us a sense on the non-recurring revenue headwinds where relevant across the sub-segments? I'm thinking particularly in issuing and banking. Then the relative potential size of those headwinds in Q2, just so we can unpack the recurring performance, you know, within overall performance.

Speaker #4: You'll recall we had that Teams growth rate on the issuing business in the first half or in the second quarter of last year. And so that's providing a meaningful comparative headwind on the issuing side.

Speaker #4: There are other non-recurring across the digital channel as well as in banking. But as it relates to a general sizing, we kind of gave you when we talked about the high mid-single digit and the second quarter being the trough, relative sizing of what we expect the impact to be.

Just so we can unpack the recurring performance, uh, you know, with an overall performance.

Paul Todd: Specifically in the issuing area, the biggest single driver I'd point out to is the Output Solutions area where we had some significantly sized Output Solutions business that is not recurring this year that is in H1 and specifically in Q2. You'll recall we had that teens growth rate on the issuing business in H1 or in Q2 of last year. That's providing a meaningful comparative headwind on the issuing side. There are other non-recurring across the digital channel as well as in banking, as it relates to a general sizing, we kind of gave you when we talked about the high mid-single digit and Q2 being the trough, relative sizing of what we expect the impact to be.

Speaker #4: I would say we are pleased with the fundamental growth in the across the financial solutions segment of each of the underlying growths across digital.

Speaker #4: Our issuing business, Mike commented on the banking so we're seeing consistent. So the volume picture that we see in the first quarter and the second quarter and really for the back half of the year is very stable.

Speaker #4: It's just these comparative dynamics that we have in the first half and more acutely in the second quarter of the first half is what we're needing to grow through.

Paul Todd: I would say, you know, we are pleased with the fundamental growth in the across the Financial Solutions segment of each of the underlying growths across digital, our issuing business. Mike commented on the banking. We're seeing consistent. The volume picture that we see in Q1 and Q2 and really for H2 is very stable. It's just these comparative dynamics that we have in H1 and more acutely in Q2 of H1 is what we're needing to grow through. We're gonna be to a much more visible, normalized growth picture in H2. We do have some natural tailwinds in H2 as it relates to growth.

Speaker #4: And then we're going to be into a much more visible normalized growth picture in the back half of the year. We do have some natural tailwinds in the back half of the year as it relates to growth.

Yeah. So um, specifically in the issuing area, the biggest single driver I'd point out to is the output Solutions area where we had some, uh, significantly sized output Solutions business. That is not recurring this year that is in the first half and specifically in the second quarter, you'll recall. We had that team's growth rate on the issuing business and the first half or the second quarter of last year. Um, and so, that's providing a meaningful comparative headwind. Um, on the, on the issuing side. Um, there are other non-recurring across the digital channel as well as in in banking, but as it relates to a general sizing, we kind of gave you when we talked about the high mid single digit, and the second quarter being the trough um relative sizing of what we expect the impact to be. I would say you know we are we are pleased with the fundamental growth in the across the Financial Solutions um uh segment of

Speaker #4: We have a comparative tailwind in the back half on financial solutions doing due to some of the strategic things we did in the digital space in the third quarter of last year.

Speaker #4: So that's a natural tailwind. And then we have some contracted revenue from some of the client winds that we've talked about that also will be additive in the back half of the year.

Speaker #4: Mike, anything else to add?

Speaker #8: No, I think same comments we made last quarter. It's hard to go through every single recurring revenue item. And broadly, we think and we'll talk about investor day that we're a mid-single digit growth company with FS being a low single digit growth company, probably operating flattish today on a clean basis.

Of each of the underlying growth across digital are issuing business, my commented on the banking. Um, so we're seeing consistent, so the volume picture that we see in the first quarter in the second quarter. And really, for the back half of the year, it's very stable. It's just these comparative dynamics that we have, uh, in the first half and and more acutely in the second quarter of the first half is is, is what we're

Paul Todd: We have a comparative tailwind in H2 on financial solutions due to some of the strategic things we did in the digital space in Q3 of last year. That's a natural tailwind. Then we have some contracted revenue from some of the client wins that we talked about that also will be additive in H2 of the year. Mike, anything else to add?

Speaker #8: And merchant being a mid to high single digit company today operating in mid-single digit basis. And our plan is to obviously make we're anxious to get it so it's more visible in the financial results.

Mike Lyons: No, I think it's same comments we made last quarter. It's hard to go through every single recurring revenue item. You know, broadly, we think, and we'll talk about Investor Day, that we're a mid-single-digit growth company, with FS being a low single-digit growth company probably operating flattish today on a clean basis, and Merchant being a mid to high single-digit company today operating in mid-single digit basis. Our plan is to obviously make, we're anxious to get it so it's more visible in the financial results. To Paul's point, if you look at the underlying volumes, they track very much against what we're talking about from a high level. Maintaining and growing that volume stuff, the revenue will come behind it and start to match.

Speaker #8: But to Paul's point, you look at the underlying volumes, they track very much against what we're talking about from a high level. And maintaining and growing that volume stuff, the revenue will come behind it and start to match.

Speaker #9: Okay. That's clear. Thank you.

Speaker #2: Next, we'll go to Will Nance from Goldman Sachs. Please go ahead.

Speaker #10: Hey, thank you for taking the question. Mike, if I could just follow up on the comment you made. I think you've been pretty clear in sort of telegraphing what you think the right growth rate is for this business and the message you expect to deliver.

Needing to go through. And then we're going to be to a much more visible normalized uh, growth picture in in, in the back half of the year. We do have some some, some natural Tailwind in the back, half of the years, it relates to growth. We have a comparative Tailwind in the back, half on Financial Solutions doing uh, due to some of the Strategic things we did in the digital space uh in the third quarter of last year. So that's a natural tailwind. And then we have some contracted Revenue. Um from some of the client wins that we've talked about that also will be added in the back half of the Year. Mike, anything else that? No, I think it's the same comments we made last quarter. It's hard to go through every single recurring, uh, Revenue item and um you know broadly we think. And and we'll talk about investor day that we're a mid uh single digit Growth Company uh with FS being a low single digit Growth Company. Probably operating flattish today on a clean basis and Merchants being a mid to high single digit company today operating in mid single digit basis. And

Speaker #10: At the investor day coming up, I'm wondering to the comment that maybe the underlying growth in FS is more or less flat right now and obviously the investments that you're making that are weighing on margins right now.

Uh, our plan is to, uh, obviously make we're anxious to get it, so it's more visible in in the uh, Financial results. But to Paul's point, you look at the underlying volumes, they track very much against, uh, what we're talking about uh, for for a high level and, uh, maintaining and growing that that volume stuff. The revenue will come behind it and start to match.

Bryan Bergin: Okay. It is clear. Thank you.

Speaker #10: As you look out into next year, you've talked about seeing the benefits of some of the improved execution coming through the numbers. So is it your expectation that the company can actually get to that level of performance sort of exiting the year and into 2027?

Okay, it's clear. Thank you.

Operator: Next, we'll go to Will Nance from Goldman Sachs. Please go ahead.

Will Nance: Hey, thank you for taking the question. Mike, if I could just follow up on the comment you made. I think you've been pretty clear in sort of telegraphing what you think the right growth rate is for this business and the message you expect to deliver at the Investor Day coming up. I'm wondering, you know, to the, to the comment that maybe the underlying growth in FS is more or less flat right now, and obviously the investments that you're making that are weighing on margins right now. As you look out into next year, you've talked about seeing the benefits of some of the improved execution coming through the numbers. Is it your expectation that the company can actually get to that level of performance sort of exiting the year and into 2027?

Next, we'll go to Will nonce from Goldman Sachs. Please go ahead.

Speaker #10: Or are there lingering kind of performance and attrition issues in FS? Or investments you want to make on the margin front that could delay that?

Speaker #4: I'd say that go back to the one Pfizer comments. We are confident we're taking the right actions. We obviously have to execute against those and complete them.

Speaker #4: And we are the team has rallied around those. We're laser-focused on them. We know the fundamentals that we have to get in the right place to be a mid-single digit grower.

Speaker #4: And those the efforts we need to get there are fully funded and fully resourced. And I believe that we've brought in some great talent to complement the talent we have here.

Will Nance: Are there lingering kind of performance and attrition issues in FS or, you know, investments you want to make on the margin front that, you know, could delay that?

Speaker #4: So feel good about all the execution. We have to go do it. And we've said as you exit '26, you start to look there's still comparables obviously with some of the actions we did across the business in Q3 and Q4.

Mike Lyons: Go back to the One Fiserv comments. We are confident we're taking the right actions. We obviously have to execute against those and complete them. The team has rallied around those. We're laser-focused on them. We know the fundamentals that we have to get in the right place to be a mid-single digit grower. Those, the efforts we need to get there are fully funded and fully resourced. I believe that we've brought in some great talent to complement the talent we have here. Feel good about all the execution. We have to go do it. We've said as you exit 2026, you start to look.

Hey, thank you for taking the question. Uh Mike. If I could just follow up on the comment you made I think you've been pretty clear in sort of telegraphing. What you think the right growth rate is for this business and and and the message you expect to deliver uh at the investor day coming up. I'm wondering, you know, to the to the comment that maybe the underlying growth in FS is more or less flat right now. Uh and and obviously the Investments that you're making uh that are weighing on margins right now. As you look out into next year, you've talked about seeing the benefits of some of the improved execution coming through the numbers. So is it your expectation that the company can actually get to that level of performance sort of exiting the year and into 2027, or are there lingering kind of performance and nutrition issues and Fs? Or you know, Investments you want to make on the margin front that uh you know you know could delay that

Speaker #4: Some going the other way being beneficial comps to us as you get into Q4. And then '27, we sort of see as the first full year where you can see really clear visible growth.

Well uh I'd say that you go back to the 1 F or comments. We are confident we're taking the right actions. We obviously have to execute against those and complete them and and uh

Speaker #4: But again, we're trying to give you and we'll give you more at investor day the underlying volume drivers that we're seeing that support our belief that we've got a great business.

Speaker #4: We've got two great TAMs in merchant and banking, both in a very strong position today, both in an investment mode, probably the best meetings we've had in a long time here where whether it's an enterprise merchant or an FI, you leave with a lot of stuff to work on.

Mike Lyons: They're still comparables, obviously, with some of the actions we did across the business in Q3 and Q4, some going the other way being beneficial comps to us as you get into Q4. 2027, we sort of see as the first full year where you can see really clear visible growth. Again, we're trying to give you, and we'll give you more at Investor Day, the underlying volume drivers that we're seeing that support our belief that we've got a great business. We've got 2 great TAMs in merchant and banking, both in a very strong position today, both in an investment mode. Probably the best meetings we've had in a long time here where, whether it's an enterprise merchant or an FI, you leave with a lot of stuff to work on.

Speaker #4: So the environmental support's there. The fundamentals underlying our volumes are there. And we got to put ourselves in a position where the execution resilience and service is much crisper than it's been.

Speaker #4: And that's the path we're on. But a very confident we're taking the right actions to get to where we need to get to to put the business in a position to do it.

Speaker #4: We have to execute.

Speaker #10: Got it. That's clear. Appreciate it. Look forward to the investor day next week.

Speaker #4: Yep.

Speaker #2: Next, we'll go to the line of Jason Kupferberg from Wells Fargo. Please go ahead.

Mike Lyons: The environmental support's there, the fundamentals underlying our volumes are there, and we got to put ourselves in a position where the execution, resilience, and service is much crisper than it's been, and that's the path we're on. Very confident we're taking the right actions to get to where we need to get to to put the business in a position to do it. We have to execute.

Speaker #11: Hey, thanks for taking the question. This is Melissa Chen on for Jason. I wanted to ask about the launch of Clover Practice Pay. It sounds like the initial reception there has been good.

Speaker #11: But can you talk a little bit about how big the addressable market is in healthcare POS? And who you're mainly competing with in that space?

Speaker #4: Yeah. The we were thrilled with this. This has been in we've been previewing this for some time now. We're thrilled to get it launched this quarter.

Will Nance: Got it. That's clear. Appreciate it. Look forward to the Investor Day next week.

We've got 2 great tams in merchants and banking both uh, in a very strong, uh, position today, both in an investment mode. Probably, the best meetings. We've had, uh, in a long time here where, uh, whether it's an Enterprise Merchant or an fee. Uh you leave with a lot of stuff, uh, to work on. So the environmental supports their the fundamentals. Underlying our volumes are there. And we got to put ourselves in a position where, uh, the execution resilience and service is much crisper than it's been. And that's the path we're on. But uh, a a very confident in where it's taking the right actions to get to where we need to get to to put the business in a position to do it, we have to execute

Mike Lyons: Yeah.

Got it, that's clear. Appreciate it. Look forward to the investor next week.

Operator: Next we'll go to the line of Jason Kupferberg from Wells Fargo. Please go ahead.

Speaker #4: Very optimistic about our growth in that area. It's a massive TAM. And the it was this was the number one area from our bank partners, which is a major distribution channel for us where they needed help.

Operator: Next we'll go to the line of Jason Kupferberg from Wells Fargo. Please go ahead.

[Analyst] (Wells Fargo): Hey, thanks for taking the question. This is Melissa checking on for Jason. I wanted to ask about the launch of Clover Practice Pay. It sounds like the initial reception there has been good. Can you talk a little bit about how big the addressable market is in healthcare POS and who you're mainly competing with in that space? Thanks.

Melissa Chen: Hey, thanks for taking the question. This is Melissa checking on for Jason. I wanted to ask about the launch of Clover Practice Pay. It sounds like the initial reception there has been good. Can you talk a little bit about how big the addressable market is in healthcare POS and who you're mainly competing with in that space? Thanks.

Yep. Next week. Next, we'll go to the line of Jason Kupferberg from Wells Fargo. Please go ahead.

Speaker #4: And we heard it loudly from our ISO partners also the specific TAM, as you know, is massive. We're going think about more of the local doctor practice and our penetration there is low.

Hey, thanks for taking the question. This is Melissa Chen on for Jason. Um, I wanted to ask about the launch of Clover Practice Pay. It sounds like the initial reception there has been good. Um, but can you talk a little bit about how big the addressable market is in healthcare POS and who you're mainly competing with in that space?

Mike Lyons: Yeah, we were thrilled, this has been in, we've been previewing this for some time now. We're thrilled to get it launched this quarter. Very optimistic about our growth in that area. It's a massive TAM. This was the number one area from our bank partners, which is a major distribution channel for us where they need help, and we heard it loudly from our ISO partners. Also the specific TAM, as you know, is massive. We're going to think about more of the local doctor practice.

Speaker #4: And our growth rate relative to the FSBI over time, if you measure us against a using the FSBI as a proxy for the industry, we've been below that.

Speaker #4: So this is the key component that we're missing. And it's the key component that will allow us to go after some of the backbone conversion.

Speaker #4: Got a great partner in developing with Rectangle. And we're pleased we launched this month. So it's still early. But we're very pleased with the progress we're making.

Speaker #4: And we'll continue to remain very focused on execution here.

Mike Lyons: Our penetration there is low and our growth rate relative to the FSBI over time, if you measure us against a index using the FSBI as a proxy for the industry, we've been below that. This is the key component that we're missing, and it's a key component that'll allow us to go after some of the back book conversion. Got a great partner in developing with Rectangle, and we're pleased. You know, we launched this month, so it's still early, but we're very pleased with the progress we're making and we'll continue to remain very focused on execution here.

Speaker #2: Thank you. Next, we'll go to Jamie Friedman from Susquehanna. Please go ahead.

Speaker #12: Hi. Good morning. I was wondering at a high level if you could share your perspective on the competitive dynamic and financial solutions specifically in issuing and banking because it does seem like the landscape is changing somewhat.

Yeah, the uh, we were thrilled. Uh, this, this has been in. We've been previewing this for some time. Now, we're thrilled to get it launched. This portal very uh, optimistic, uh, about our growth in that area at the massive Pam. And the, um, it was, uh, this was the number 1 area from our, uh, Bank Partners, uh, which is a major distribution channel for us where they need help. And we heard it loudly from our, uh, ISO Partners, uh, to also the, um, the specific, uh, uh, Tam. As you know, is massive. Uh, we're going, uh, think about more of the local doctor practice. Uh, and, and um, our penetration there is low and our growth rate relative to the fsbi over time. If you measure us against approx, a a index, using the fsbi as a proxy, for the industry, we've been below that. So, this is the key component that we were missing and it's the key components that allow us uh, to to go after some of the back.

Speaker #12: Investors are potentially anxious about it. Thank you.

Speaker #4: Yeah. I think Mike I made a lot of comments on core banking earlier specifically. Obviously, we got great competitors across banking digital and issuing.

Conversions got a great partner in developing with rectangle and we're pleased, you know, we launched this month so it's still early but we're very pleased with the progress we're making. And uh we'll continue to remain very focused on execution here.

Operator: Thank you. Next, we'll go to James Friedman from Susquehanna. Please go ahead.

Thank you next. We'll go to Jamie Freedman from cesco Hannah, please go ahead.

James Friedman: Hi. Good morning. I was wondering at a high level if you could share your perspective on the competitive dynamic of financial solutions, specifically in issuing and banking, because it does seem like the landscape is changing somewhat. Investors are potentially anxious about it. Thank you.

Jamie Friedman: Hi. Good morning. I was wondering at a high level if you could share your perspective on the competitive dynamic of financial solutions, specifically in issuing and banking, because it does seem like the landscape is changing somewhat. Investors are potentially anxious about it. Thank you.

Speaker #4: I think and all of them are we enjoy competing against every day. And innovation and competition fuels growth for the industry. As I said, the backdrop for the industry is very, very supportive of solutions from all of us.

Hi, good morning. I was wondering at a high level if you could share your perspective on the competitive Dynamic and Financial Solutions, specifically in issuing and banking because it does seem like the

Speaker #4: And we're focused all the stuff we're doing in one Pfizer is to put us into a position to compete very, very effectively against any of the competitors.

uh landscape is changing somewhat. Investors are uh are potentially anxious about it. Thank you.

Mike Lyons: Yeah. I think, you know, Mike, I made a lot of comments on core banking earlier, specifically. Obviously, we got great competitors across banking, digital, and issuing. I think all of them are, we enjoy competing against every day. Innovation and competition fuels growth for the industry. As I said, the backdrop of the industry is very supportive of solutions from all of us, and we're focused. All the stuff we're doing in One Fiserv to put us in a position to compete very effectively.

Speaker #4: I think a lot of the questions we hear is around the modern core space changing competitive dynamics. We are thrilled, as we said in the prepared comments, with FinTech, which is far and away the largest with the most accounts being served on the modern core platform.

Speaker #4: Cloud-agnostic asset-agnostic true modern core truly a modern core digital ledger. So we're thrilled with our competitive position there. We'll continue to that continues to be the hallmark.

Mike Lyons: Against any of the competitors. I think a lot of the questions we hear is around the modern core space, you know, changing competitive dynamics. We are thrilled, as we said in the prepared comments, with Finxact, which is far and away the largest, with the most accounts being served on the modern core platform, cloud agnostic, asset agnostic, through modern core, a truly modern core digital ledger. We're thrilled with our competitive position there. That continues to be the hallmark, and both Dhivya Suryadevara and Takis Georgakopoulos will address that at Investor Day around our embedded, the growing embedded finance space. I think no major changes in the competitive landscape as we see it. We've got great competitors.

Speaker #4: And both Vivian and Takis will address that at investor day around our embedded the growing embedded finance space. So I think no major changes in the competitive landscape as we see it.

Speaker #4: We've got great competitors there. Innovating, competing as always. And our focus is to make sure that our underlying fundamentals around service, product delivery, value-added solutions and speed to market are at the highest level to allow us to compete and maintain all the leadership positions we have across the FI businesses.

Yeah, I think, uh, you know, Mike, I I made a lot of comments on core banking earlier, specifically, obviously we got great competitors across, uh, uh, banking, uh, digital and issuing, um, I think and all of them are, uh, uh, we could, we enjoy competing against every day and uh, Innovation and competition. Uh, fuels growth for the industry, as I said, the backdrop of the industry is very, very supportive of solutions from all of us and we're focused all the stuff we're doing in, uh, 1 5 service to put us into in a position, uh, to compete. Uh, very, very, very effectively against, uh, any of the competitors. I think a lot of the questions we hear is, uh, around the modern core space. Uh, uh, you know, changing competitive Dynamics. We are thrilled. As we said in the prepared comments with finsac, which is Far and Away the largest, uh, with the most, uh, accounts, being served on the modern.

For platform uh, Cloud agnostic asset agnostic. Um,

Through Modern uh, core uh, truly modern core digital ledger. So we're thrilled with our competitive position there. Um,

Speaker #12: Thank you.

Speaker #2: Next, we'll go to the line of Timothy Chiodo from UBS. Please go ahead.

Paul Todd: They're, you know, innovating, competing, as always. Our focus is to make sure that our underlying fundamentals around service, product delivery, value-added solutions, and speed to market are at the highest level to allow us to compete and maintain all the leadership positions we have across the FI businesses.

Mike Lyons: They're, you know, innovating, competing, as always. Our focus is to make sure that our underlying fundamentals around service, product delivery, value-added solutions, and speed to market are at the highest level to allow us to compete and maintain all the leadership positions we have across the FI businesses.

Speaker #13: Great. Thank you for taking the question. I was hoping we could spend a few minutes on non-Clover SMB. So it's roughly 20% of total company revenue, roughly 40% of the merchant segment.

Speaker #13: I know that there's a lot of moving parts there in terms of some of the Argentina changes, some of the Clover migration. But I was hoping you could talk about the organic growth on an adjusted basis for that business.

Continue to that continues to be the Hallmark, and both divian tacos will address that investor day around our embedded. The growing embedded Finance space. So I think no major changes in in the competitive landscape. As we see it, we've, uh, we've got great competitors. They're, you know, innovating competing, uh, as always. And our focus is to make sure that our underlying fundamentals around service product delivery, uh, value added Solutions, uh, and speed to Market, uh, are at the highest level to allow us to compete and maintain all the leadership positions we have across the fee businesses

James Friedman: Thank you.

Jamie Friedman: Thank you.

Speaker #13: This past quarter, but also over the past few, and then what does implied in the guidance. And maybe a little bit bigger picture. I understand this might be more of an investor day topic.

Thank you.

Operator: Next, we'll go to the line of Timothy Chiodo from UBS. Please go ahead.

From UBS, please go ahead.

Timothy Chiodo: Great. Thank you for taking the question. I was hoping we could spend a few minutes on non-Clover SMB. It's roughly 20% of total company revenue, roughly 40% of the merchant segment. I know that there's a lot of moving parts there in terms of some of the Argentina changes, some of the Clover migration. I was hoping you could talk about the organic growth on an adjusted basis for that business this past quarter, but also over the past few, what is implied in the guidance. Maybe a little bit bigger picture. I understand this might be more of an Investor Day topic, to the extent that you could decompose some of the portions that are US, that are international, how large the ISV or partner business might be in there, et cetera. Any additional color?

Speaker #13: But to the extent that you could decompose some of the portions that are US, that are international, how large the ISV or partner business might be in there, etc.

Speaker #13: Any additional color? And again, I appreciate that last part might be more suited for the investor day. Thanks.

Speaker #4: Yeah, Tim. So yeah, that's exactly what I'd say on that last piece is we are going to go over this in good detail at investor day.

Speaker #4: So you'll get a lot of that clarity around some of the componentry there. We're going to provide additive disclosure of Clover just in general of the components of Clover.

Speaker #4: As well as the non-Clover. And you'll also understand maybe some of the strategic things around the non-Clover side particularly in ISV and some of the international expansion there.

Timothy Chiodo: Again, I appreciate that last part might be more suited for the Investor Day. Thanks.

Speaker #4: As it relates to the organic growth and we do have comparative dynamics here. We have the Argentina kind of noise but as I said on our last call, we're expecting our non-Clover SMB business to have slight growth this year.

Paul Todd: Yeah, Tim. Yeah, that's exactly what I'd say on that last piece is we are gonna go over this in good detail at Investor Day. You'll get a lot of that clarity around some of the componentry there. We're gonna provide additive disclosure of Clover just in general of the components of Clover, as well as the non-Clover. You'll also understand maybe some of the strategic things around the non-Clover side, particularly in ISV and some of the international expansion there. As it relates to the organic growth, we do have comparative dynamics here. We have the Argentinian kind of noise. As I said on our last call, we're expecting our non-Clover SMB business to have slight growth this year.

Great. Thank you for taking the question. I was hoping we could spend a few minutes on non Cobra FNB, so it's roughly. 20% of the total company Revenue, roughly 40% of the merchant segment. I know that there's a lot of moving Parts there in terms of some of the uh, the Argentina changes some of the Clover migration. But I was hoping you could talk about the organic growth on an adjusted basis for that business, this past quarter, but also over the past few and then what is implied in the guidance and maybe a little bit bigger picture. I understand this might be more of an investor day topic. But the to the extent that you could decompose some of the portions that are us that are international. How large the isv or partner business might be in there, Etc. Any additional color. And again, I appreciate that. Last part might be more suited for the investor day. Thanks.

Speaker #4: We were down low single digits in the first quarter. So organically, we were down in the low single digits for the first quarter. And we would expect similar kind of performance if everything kind of holds in the second quarter.

Speaker #4: As it relates to the back half, kind of what changes there is we do have incremental ISV growth that's coming in there. And specifically some of the international growth is we're seeing good ramping, particularly in Brazil.

Yeah, Tim so yeah, that's exactly what I see on that last piece is we are going to go over this, um, in in, in good detail at investor day. So you'll get a lot of that Clarity around some of the componentry there. Um, we're going to provide additive disclosure of clover, just in general of the components of clover. Um, as well as the non-color. And you'll also understand, maybe some of the Strategic things around the non- Clover side, um, particularly in ISB and some of the, um, International expansion there as it relates to the organic growth and we do have comparative Dynamics here. We have the Argentinian

Paul Todd: We were down low single digits in Q1, so organically we were down in the low single digits for Q1. We would expect similar kind of performance if everything kind of holds in Q2. As it relates to H2, kind of what changes there is we do have incremental ISV growth that's coming in there, and specifically some of the international growth is we're seeing good ramping, particularly in Brazil. There's a few international dynamics that are playing through throughout the year that help that. Generally speaking, you know, we've talked about that non-SMB, non-Clover SMB not being a growth business for us.

Speaker #4: And so there's a few international dynamics that are playing through throughout the year. That helped that. But generally speaking, we've talked about that non-SMB non-Clover SMB not being a growth business for us but relative to the overall picture.

Speaker #4: We're managing it in a more systemic way than we have in the past. So we're being very mindful about how we approach that of moving over that business to Clover over time in the right sort of way.

Speaker #4: That's the end goal is to move as much of that business to Clover where the product and the feature functionality of Clover fits with those merchants.

Speaker #4: And Takis and team will cover that in more detail. Mike, anything to add?

Speaker #13: No, I think all great topics for next week. And all in our materials to be addressed. Excellent. Thanks a lot.

Uh, kind of noise. Um, but um, as I said on our last call, we're expecting our non- clover, uh, SMD business, to have slight growth. Uh, this year we were down low, single digits, um, in the, in the, um, in the first quarter. So organically, we were down in the, in the low single digits, uh, for the first quarter and we would expect um similar kind of performance, if everything kind of holds um in the in the second quarter, as it relates to the back half kind of what changes there is, we do have incremental isv, uh, growth that's coming in there and specifically some of the international growth. Um, is we're seeing good ramping, particularly in Brazil. Um and so there's a few International dynamics that are playing through throughout the year. Um, that helped that but generally speaking, you know, we've talked about that, not SMB. Um, uh non-club, S&B not being a, a growth.

Paul Todd: Relative to the overall picture, we're managing it in a more systemic way than we have in the past and being very mindful about how we approach that of moving over that business to Clover over time in the right sort of way. That's the end goal is to move as much of that business to Clover, where the product and the feature functionality of Clover, you know, fits with those merchants. Takis and team will cover that in more detail. Mike, anything to add?

Speaker #2: Next, we'll go to James Faucette from Morgan Stanley. Please go ahead.

Speaker #14: Thank you very much. I appreciate all the commentary and apologies if I missed something because it's been bouncing between calls. But we'd like to ask quickly when you talk about moving volumes and taking advantage of Clover's strength, how are you thinking about kind of the moving targets and competitive environment, especially as we see more companies looking to add incremental functionality for omnichannel, etc., even for SMB and how do we think about that and its implications for Clover's product roadmap?

Growth, uh, business for us. But relative, um, to the overall picture. We're, we're managing it in a more, uh, systemic way than than we have in the past. So we're being bearing, mindful about how we approach that of moving over that business to Clover over time in the, in the right sort of way that's the the end goal is, is to move as much of that business, um, to Clover where the, the product and the future functionality of clover. You know, fits with those merchants and and and toxin team will will cover that in more detail.

Mike Lyons: No, I think, all great topics for next week and all in our materials to be addressed.

Timothy Chiodo: Excellent. Thanks a lot.

Detail Mike, anything dad? Know I, I think all great topics for next week and, um, all in our materials to be addressed

Operator: Next, we'll go to James Faucette from Morgan Stanley. Please go ahead.

Next, we'll go to James faucet. From Morgan Stanley, please go ahead.

James Faucette: Thank you very much. I appreciate the commentary and apologies if I missed something because I've been bouncing between calls. I would like to ask quickly, when you talk about like moving volumes and taking advantage of Clover's strength, how are you thinking about kind of the moving targets and competitive environment, especially as we see more companies looking to add incremental functionality for omni-channel, et cetera, even for SMB? How do we think about that and its implications for Clover's product roadmap? Thanks.

Speaker #14: Thanks.

Speaker #15: Yeah, again, we'll do a deep dive next week on Clover. But at a high level, we think we've got the best small business operating system in the business.

Thank you very much, appreciate all the commentary, and apologies if I missed something because I've been bouncing between calls. But I would like to ask.

Speaker #15: We're continuing to invest heavily across horizontal features and vertical features. We talked about practice pay and professional services coming in this quarter. Being great growth and opportunities on the international side.

Speaker #15: Takis and his team are digging deep on the experience piece of Clover where as well as we've done, we have room for improvement there.

Mike Lyons: Yeah. Again, we'll do a deep dive next week on Clover. High level, we think we've got the best small business operating system in the business. We're continuing to invest heavily across horizontal features, vertical features. We talked about Practice Pay and professional services coming in this quarter. Seeing great growth and opportunities on the international side. Takis and his team are digging deep on the experience piece of Clover, where as well as we've done, we have room for improvement there. Then we think we've got the best distribution channel by a significant margin, combining not only a direct sales force, but 1,000-plus banking partners, thousands of ISOs. As Paul mentioned and was in the previous question, an unbelievable ISV business that's growing at a very attractive. Great.

Quickly when you talk about like moving, um, volumes and taking advantage of clover strength, how are you thinking about, um, kind of the moving targets and and competitive environment, especially as we see, uh, more companies looking to to add incremental functionality for Omni Channel, Etc. Even for SMB and and how do we think about that? And its implications for a Clover's product roadmap. Thanks.

Speaker #15: And then we think we've got the best distribution channel by a significant margin combining not only a direct sales force but 1,000-plus banking partners and thousands of ISOs as Paul mentioned.

Speaker #15: And it was in the previous question an unbelievable ISV business that's growing at a very attractive rate. And then other great partners whether it's an ADP or some of the big district food distribution businesses.

Speaker #15: So the opportunities there, the focus, the investment around the product is strong. And when you look across retail and restaurant which we are characterized even that we have small market share and then you go into some of these other verticals and Clover market share is still single digits.

Yeah, again we'll do a deep dive, uh, next week on 12 or bed high level, uh, we think we've got the best small business operating system. In the business, we're continuing to invest heavily across horizontal, uh, features vertical features we talked about practice pay and uh uh Professional Services coming in this quarter being great growth and opportunities on this, on the international side, talk to the team or digging deep on the experience piece of clover where as well, as we've done, we have room for improvement there and then we

Speaker #15: So we see a ton of room for growth. There's always a great competitive landscape as I said to the earlier question on the banking side.

Mike Lyons: Other great partners, whether it's an ADP or some of the big food distribution businesses. The opportunity there, the focus, the investment around the product is strong. When you look across retail and restaurant, which we, you know, we are characterized, even that we have small market share. You go into some of these other verticals and Clover market share is, you know, still single digits. We see a ton of room for growth. There's always a great competitive landscape. As I said to the earlier question on the banking side, that's part of a natural part of any business with great growth opportunities.

Speaker #15: That's part of a natural part of any business with great growth opportunities. But we think we got a great platform here. And it's everything is about investing, focusing, and driving Clover growth here and abroad.

Speaker #14: Thanks so much. Looking forward to next week.

Speaker #2: Next, we'll go to Ramsey Ellisall from Cantor Fitzgerald. Please go ahead.

Speaker #16: This is Ronald from Ramsey. Thanks for taking our question today. You called out some senior hires in merchant solutions. Could you comment more broadly on the org size both in terms of whether you have all the pieces in place to execute on the plan and also whether?

Mike Lyons: We think we got a great platform here, and it's everything is about investing, focusing, and driving Clover growth here and abroad.

Speaker #4: Ramsey, we're having a hard we picked up that there were maybe some question? Maybe we'll be able to hear it senior hires but could you maybe repeat the clear.

Yushen businesses. So, uh, uh, the the opportunities there, the focus, uh, the investment, um, around around the product is strong and when you look across, uh, uh, uh, retail and restaurant, which, you know, we are characterized even that we have small market share, uh, and then you go into some of these other verticals and uh, Clover market. Share is, you know, build single digits. So, we see a ton of room for growth. There's always a great competitive landscape. As I said to the earlier, question, on the banking side, that's part of, uh, a natural part of any business with great growth opportunities, but we think we got a great platform here and it's uh, everything is about investing focusing and driving, uh, Clover growth here and abroad.

James Faucette: Thanks so much. Look forward to next week.

Thanks so much. I look forward to next week.

Operator: Next, we'll go to Ramsey El-Assal from Cantor Fitzgerald. Please go ahead.

Speaker #17: Hi, can you hear me now?

Next, we'll go to Ramsey. LSL from Cantor Fitzgerald, please go ahead.

[Analyst] (Cantor Fitzgerald): This is Ryan on for Ramsey. Thanks for taking our question. You called out some senior hires in Merchant Solutions. Could you comment more broadly on the org chart in terms of whether you have all the pieces in place to execute on the plan?

Speaker #4: Yeah. Much better. Thanks.

Speaker #17: Sorry about that. This is Ryan on for Ramsey. Thanks again for taking our question. You called out some senior hires on merchant solutions. I was hoping you could comment more broadly on the org chart in terms of whether you have all the pieces in place to execute on the plan and also if there's some more opportunities to streamline headcount by way of AI.

this is,

Senior hires emergency solutions, could you comment more broadly on the workshop both in terms of whether you have?

Mike Lyons: Hey, Ramsey, we're having a hard time hearing you.

on the plan and also,

Dan Dolev: Something about hires.

Paul Todd: Something about hires.

Ramsey, we're having a hard time hearing you. Um,

Dan Dolev: Yeah, I, we picked up that there were maybe some senior hires. Could you maybe repeat the question? Maybe we'll be able to hear it clear.

Mike Lyons: Yeah, I, we picked up that there were maybe some senior hires. Could you maybe repeat the question? Maybe we'll be able to hear it clear.

Speaker #17: Thank you.

Speaker #4: Yeah, first part of the question where mentioned in the prepared comments that we've been thrilled actually blown away by the interest of seeing talented senior people from outside of Pfizer wanting to come join Pfizer.

About higher. Yeah, we picked up that there were maybe some senior hires, but could you maybe repeat the question? Maybe we'll be able to hear it. Clear.

[Analyst] (Cantor Fitzgerald): Hi, can you hear me now?

Mike Lyons: Yeah, much better. Thanks.

Hi, can you hear me now?

[Analyst] (Cantor Fitzgerald): Sorry about that. This is Ryan on for Ramsey. Thanks again for taking our question. You called out some senior hires on Merchant Solutions. I was hoping you could comment more broadly on the org chart in terms of whether you have all the pieces in place to execute on the plan and also if there is some more opportunities to streamline headcount by way of AI. Thank you.

Speaker #4: And we've added a number of incredibly talented people on both the merchant side and the FS side who are additive to an already strong team here.

Speaker #4: So we feel very, very good about where we are in terms of critical hires remaining to have to go forward team. It's down to a very few.

Speaker #4: So yes, we've got the right team in place. It's been an outstanding team. I look forward to we'll have a series of demos at the IR day next week.

Mike Lyons: Yeah. First part of the question, we're mentioning in the prepared comments that we've been thrilled, actually blown away by the interest of talented senior people from outside of Fiserv wanting to come join Fiserv. We've added a number of incredibly talented people on both the merchant side, and the FS side who are additive to an already strong team here. We feel very, very good about where we are in terms of critical hires, remaining to have the go-forward team. It's, you know, it's down to very few. Yes, we've got the right team in place. It's an outstanding team. I look forward to, we'll have a series of demos at the IR day next week.

Yeah, much better. Thanks. Sorry about that. This is Ryan on for Ramsey. Thanks again for taking our question. You called out some senior hires on Merchant Solutions. I was hoping you could comment more broadly on the org chart in terms of whether you have all the pieces in place to execute on the plan, and also if there's some more opportunities to streamline headcount by way of AI. Thank you.

Speaker #4: So in addition to give you Paul and Takis, you'll have a chance to meet a lot of these leaders and see some of the products they're working on.

Speaker #4: But we love the team. And we love the combination of some external talent we brought in along with the great institutional knowledge that's been built here at Pfizer.

Speaker #4: On AI, allowing for efficiencies, a couple of thoughts there. First of all, we're going pillar four of the one Pfizer plan, Project Elevate. We are deep into the process of Project Elevate.

Speaker #4: We're very pleased with the portions we've gone through so far which is really the origination of ideas and sourcing of ideas as part of that.

Mike Lyons: In addition to Divya, Paul and Taka, you'll have a chance to meet a lot of these leaders and see some of the products they're working on. We love the team, and we love the combination of some external talent we've brought in, along with the great institutional knowledge that's been built here at Fiserv. On AI, allowing for efficiencies, a couple thoughts there. First of all, we're going pillar 4 of the One Fiserv plan, Project Elevate. We are deep into the process of Project Elevate. We're very pleased with the portions we've gone through so far, which is really the origination of ideas and sourcing of ideas. As part of that, there are no sacred cows. Everything's on the table. All people from around the company are involved.

Yeah, first part of the question, where, uh, mentioned in the prepared comments that we've been thrilled, uh, actually blown away by the interest of seeing talented senior people from outside of Fiserv wanting to come, join Fiserv and we've added a number of incredibly talented people on both the merchant side, uh, and the FSI who are additive to an already strong team here. So we feel very, very good about where we are, in terms of critical hires, uh, remaining to, to have the go forward team. It's uh, you know, it's down to very few. Uh, so yes, we've got the right team in place been outstanding team. I look forward to uh, we'll have a series of demos at the IR de next week. So in addition to give you uh, Paul and talk to us, you'll have a chance to meet a lot of these leaders and see, some of the products they're working on. But

Speaker #4: There are no sacred cows. Everything's on the table. All people from around the company are involved. There's a couple hundred people very focused, almost fully dedicated to this.

Speaker #4: We put all of them around Paul on the CFO floor and it's very formal and dedicated effort. And we think there's great opportunities that are going to come out of that.

Speaker #4: I think if you look at our headcount over the last four or five years, we're down double digits in headcounts. We've already and largely by leveraging early stages of automation we've already taken significant gains there.

Speaker #4: So maybe we're a little bit different from where other peers have come from over the last several years. But from here, we continue to see whether in Project Elevate or outside of Project Elevate significant opportunity to become more productive and more efficient through AI.

Mike Lyons: There's a couple hundred people, very focused, almost fully dedicated to this. We put all of them around Paul on the CFO floor. It's a very formal and dedicated effort. We think there's great opportunities that are gonna come out of that. I think, if you look at our headcount over the last four or five years, we're down double digits in headcounts. We've already, largely by leveraging early stages of automation, we've already taken significant gains there. Maybe we're a little bit different from where other peers have come from over the last several years. From here, we continue to see whether in Project Elevate or outside of Project Elevate, significant opportunity to become more productive and more efficient through AI. It's even incremental generations of AI.

Speaker #4: And it's even incremental generations of AI. For example, we've streamlined our call center services over the last four or five years using sort of "old AI." And now modern solutions show a significant opportunity to make that experience even better for the customers and more efficient for us.

We love the team and we love the combination, uh, of, um, uh, some external Talent we brought in along with the great institutional knowledge. That's been built, uh, here at Fiserv, um, on AI, uh, allowing for efficiencies a couple thoughts there. Uh, first of all, we're going pillar 4 of the 15. Sir plan project alevi. Uh, we are deep into the process of project Elevate. Uh, we're very pleased, uh, with uh, the the portions we've gone through so far, which is really the origination of ideas and and and sourcing of ideas uh, as part of that, there are no, uh, sacred cows. Everything's on the table. Uh, all people from around the company are involved. There's a couple hundred people. Uh, very focused almost fully dedicated to this. We put all of them around Paul on the CFO floor, uh, is very formal and dedicated effort, and we think there's great opportunities that are going to come out of that. I think, um, if you look at our headcount over the last 4 or 5 years, we're down uh,

Speaker #4: So yes, we see great opportunities especially in and around the areas to expect in operations and call center services app development and the like.

Double digits uh, in headcounts, we've already, uh, in largely by leveraging, early stages of automation. Uh, we've already taken significant uh gains there. So maybe we're a little bit different from where other peers have come from. Uh, oh, over the last several years. But from here, we continue to see whether in Project elevate.

Speaker #4: So I said earlier very excited about the potential for AI across all aspects of the business. And we're leaning in hard to it.

Mike Lyons: For example, we've, you know, we've streamlined our call center services over the last four or five years using sort of quote-unquote old AI, and now modern solutions show a significant opportunity to make that experience even better for the customers and more efficient for us. Yes, we see great opportunities, especially in and around the areas you'd expect in operations and call center services, app development, and the like. Generally very excited about the potential for AI across all aspects of the business, and we're leaning in hard to it.

Speaker #17: Thanks. Looking forward to hearing more at the investor day.

Speaker #2: Thank you. And our final question comes from Dave Koning from Baird. Please go ahead.

Speaker #18: Yeah. Hey, guys. Thank you. In the acceptance segment, it seems like you're implying high single-digit growth in the back half. And it seems like the first half is probably close to mid-single digits.

Speaker #18: And I'm just wondering source of acceleration. You answered Tim's question. There's going to be some in SMB non-Clover. But will Clover accelerate from the normalized 15%?

Or outside a project, Elevate significant opportunity to become more productive and more efficient uh through Ai. And it's uh even uh incremental uh generations of AI. For example, we've uh, you know, we streamlined our call center Services over the last 4 or 5 years using sort of quote, unquote old Ai, and now modern solutions show a significant opportunity to make that experience, even better for the customers and more, uh, efficient for us. So yes, we see great opportunities especially in and around uh uh the areas to expect in in uh, operations and um, uh call center Services app development and the like, so, as I said earlier, a very excited about the potential for AI, across all aspects of the business and we're leaning in hard to it.

[Analyst] (Cantor Fitzgerald): Thanks. Looking forward to hearing more at the Investor Day.

Speaker #18: And will enterprise accelerate to the high single digits and maybe how will those things happen?

Thanks looking forward to hearing more of the investor day.

Operator: Thank you. Our final question comes from David Koning from Baird. Please go ahead.

Speaker #4: Yeah, Dave. So we do obviously expect that Clover on a certainly reported basis will accelerate from the 6% because we're expecting low double-digit revenue growth for Clover for the year.

David Koning: Yeah. Hey, guys. Thank you. In the acceptance segment, it seems like you're implying high single-digit growth in H2, and it seems like H1 is probably close to mid-single digits. I'm just wondering, source of acceleration? You answered Tim's question. There's gonna be some in SMB non-Clover. Will Clover accelerate from the normalized 15%, and will enterprise accelerate to the high single digits? Maybe how will those things happen?

Dave Koning: Yeah. Hey, guys. Thank you. In the acceptance segment, it seems like you're implying high single-digit growth in H2, and it seems like H1 is probably close to mid-single digits. I'm just wondering, source of acceleration? You answered Tim's question. There's gonna be some in SMB non-Clover. Will Clover accelerate from the normalized 15%, and will enterprise accelerate to the high single digits? Maybe how will those things happen?

Prepared. Please go ahead.

Yeah. Hey guys. Thank you in the acceptance segment. Um it it seems like you're implying high single-digit growth in the back half and it seems like the first half is probably close to Mid single digits.

Speaker #4: So if you just kind of do the math, you're going to see acceleration there. I would point to two kind of favorable dynamics in the back half of the year for the Clover acceleration.

Speaker #4: One is you'll recall in the fourth quarter we had some pricing rollbacks on Clover specifically. That provided a nice tailwind in the fourth quarter from a comparative standpoint that fuels just some of the additional growth on a reported basis from the fundamental growth that you would otherwise expect just relative to static volume growth.

And I'm just wondering source of acceleration you answered Tim's question. There's going to be some in um SMB non- clover. But will clover Accelerate from the normalized, 15% and will Enterprise accelerate to the high single digits, and maybe how, how will those things happen?

Mike Lyons: Yeah, Dave. We do obviously expect that Clover on a certainly reported basis will accelerate from the 6% because we're expecting low double-digit revenue growth for Clover for the year. If you just, you know, kind of do the math, you're gonna see e-acceleration there. I would point to 2 kind of favorable dynamics in the back half of the year for the Clover acceleration. One is you'll recall in the Q4 we had some pricing rollbacks on Clover specifically that provide a nice tailwind in the Q4 from a comparative standpoint that fuels.

Paul Todd: Yeah, Dave. We do obviously expect that Clover on a certainly reported basis will accelerate from the 6% because we're expecting low double-digit revenue growth for Clover for the year. If you just, you know, kind of do the math, you're gonna see e-acceleration there. I would point to 2 kind of favorable dynamics in the back half of the year for the Clover acceleration. One is you'll recall in the Q4 we had some pricing rollbacks on Clover specifically that provide a nice tailwind in the Q4 from a comparative standpoint that fuels.

Speaker #4: And then the other nice comparative tailwind that we get on the Clover side is in the fourth quarter. We did have some weakness particularly in November on the volume side.

Speaker #4: So we actually have a volume positive compare as well. In addition to all the other things, of Clover Capital and all the other growth that you would otherwise see as we progress along the year.

Paul Todd: Some of the additional growth on a reported basis from the fundamental growth that you would otherwise expect just relative to static volume growth. The other nice comparative tailwind that we get on the Clover side, is, you know, in the Q4, we did have some weakness, particularly in November, on the volume side. We actually have a volume positive compare as well, in addition to all the other things of Clover Capital and all the other growth that you would otherwise see, as we progress along the year.

Speaker #4: So from a Clover standpoint, if you look right now, fundamentally we're at a mid-teens growth rate from the Clover side. And would expect to see a fundamental growth rate in line with being able to deliver the low double-digit Clover revenue growth.

Yeah, Dave, so, um, we do obviously expect that Clover on a on a certainly reported basis will Accelerate from the 6% because we're expecting low double digit, um, Revenue growth or Clover for the year. So if you just, you know, kind of do the math, you're going to see acceleration there. I would point to 2, kind of um favorable Dynamics and the back, half of the year for the Clover acceleration 1 is you'll recall. In the fourth quarter, we had some pricing roll backs on Clover specifically, that provide a nice Tailwind in the fourth quarter from a comparative standpoint um that uh fuels just some of the additional growth on a reported basis from the, the fundamental growth that you would otherwise expect just relative to to uh static volume growth and then the other nice comparative Tailwind that we uh, get on the Clover side. Um,

Speaker #4: On the non-Clover side, you heard me comment earlier, we are right now at a decline of low single-digit overall. And there's comparative dynamics in there as well.

Paul Todd: From a Clover standpoint, if you look right now, you know, fundamentally, we're at a mid-teens growth rate from the Clover side and would expect to see a fundamental growth rate in line with being able to deliver the low double-digit Clover revenue growth. On the non-Clover side, you heard me comment earlier, we are right now at a decline of low single digit overall. There's comparative dynamics in there as well. Given some of the growth that I talked about on the ISV side, given some of the international expansion that will come through there, as I said, we expect that to improve and largely expect that to be a very small contributor to growth, but net positive for the overall year. That's the way the shaping.

Speaker #4: But given some of the growth that I talked about on the ISV side, given some of the international expansion that will come through there as I said, we expect that to improve and largely expect that to be a very small contributor to growth.

Speaker #4: But net positive for the overall year. So that's the way the shaping. Nothing's changed in our volume assumptions. We're very pleased with the volume growth we saw in the first quarter.

Speaker #4: The shaping of the year, we still expect to be intact. And so that gives you kind of from a Clover standpoint the more moving parts.

Speaker #4: But overall, we're still expecting the same kind of growth rates for Clover and non-Clover that we did at the start of the year.

Is you know in the fourth quarter, we did have some weakness particularly in November on the volume side. So we actually have a a volume positive compared as well. In addition, to all the other things of clover, capital and all the other growth that that um, you would you would otherwise see um as uh as we progress along the year. So from a clover standpoint, if you look right now you know, fundamentally we're at a mid teens, um growth rate from the Clover side and and would expect to see, um, um, a fundamental growth rate, um, in line with being able to deliver the low double digit, uh, Clover, Revenue growth on the non- Clover side. I, you heard me comment earlier we are right now at, uh, a decline of of, of low single digit overall. Um, and there's comparative Dynamics in there as well, but given some of the growth that I talked about on the isv side, given some of the international experience.

Speaker #17: Thank you.

Speaker #4: Thanks, everyone, for joining today. We look forward to seeing you next week at the IR Day.

Paul Todd: Nothing's changed in our volume assumptions. Obviously, we're very pleased with the volume growth we saw in Q1. The shaping of the year, we still expect to be intact. You know, that gives you kind of from a Clover standpoint, the more moving parts. Overall, we're still expecting the same kind of growth rates for Clover and non-Clover that we did, you know, at the start of the year.

Speaker #2: Thank you all for participating in the FISER first quarter 2026 earnings conference call. That concludes today's call. Please disconnect at this time and have a great rest of your day.

Expansion that will come through there. As I said, we expect that to improve and and and largely expect that to be a very small contributor to growth, but net positive uh for the overall year. So that's that's the way the shaping nothing's changed, um, in our volume assumptions. As we're very pleased with the the volume growth. We saw in the first quarter, um, the shaping of the year, we still expect to be intact. And so, you know that gives you kind of from a clover standpoint the the more uh moving Parts. But overall uh we're still

Back in the same kind of growth rates, um, for Clover non-cloth, you know, at the start of the year.

David Koning: Thank you.

Dave Koning: Thank you.

Thank you.

Paul Todd: Thanks, everyone for joining today. We look forward to seeing you next week at the IR day.

[Company Representative] (Fiserv): Thanks, everyone for joining today. We look forward to seeing you next week at the IR day.

Thanks uh everyone for joining today. We look forward to seeing you, you you next week at the IR de

Operator: Thank you all for participating in the Fiserv Q1 2026 Earnings Conference Call. That concludes today's call. Please disconnect at this time and have a great rest of your day.

Thank you all for participating.

Reporter 2026 earnings conference. Call that concludes today's call, please disconnect at this time and have a great rest of your day.