FISERV INC

Fiserv, Inc. is a leading global provider of payments and financial services technology solutions, publicly traded on the NASDAQ Global Select Market and part of the S&P 500 Index. The company serves clients around the globe, including merchants, banks, credit unions, other financial institutions, and corporate and public sector clients. Most of the products and services provided are necessary for clients to operate their businesses and are therefore non-discretionary in nature. The company operates across various regions, including the United States and Canada; Europe, Middle East and Africa; Latin America; and Asia Pacific. In 2025, international revenue represented 16% ¹ of total revenue, compared to 15% ² in 2024 and 15% ³ in 2023. The global payments landscape continues to evolve with rapidly advancing technologies and a steady expansion of digital payments, e-commerce and real-time payments infrastructure, driving competition and rising business and consumer expectations for speed, convenience, choice and security.

The market for technology products and services is fragmented, highly competitive, and served by a multitude of large and small businesses. Principal competitors include other large, integrated providers of financial services technology and payment systems, data processing affiliates of large companies, processing centers owned or operated as user cooperatives, financial institutions, merchant acquirers, independent sales organizations, independent software vendors, payments companies and payment network operators. The company believes it competes favorably based on quality, security, innovation, breadth or novelty of features and functionality, client satisfaction, market opportunity, integration, global reach, multiple distribution channels, service reliability and performance standards, timely introduction of new products and features, platform scalability and flexibility, and value.

Fiserv generates revenue through two primary streams: processing and services revenue, which in 2025 represented 80% ⁴ of total revenue, is primarily generated from account- and transaction-based fees under multi-year contracts that generally have high renewal rates. Product revenue, which comprised 20% ⁵ of total revenue in 2025, is derived from print and card production, software license, data and analytics, and hardware (primarily POS devices) sales. The company's operations are comprised of the Merchant Solutions segment and the Financial Solutions segment. The company has grown organically by signing new clients, as well as through acquisitions, expanding products and services to existing clients, offering new and enhanced products and services developed through innovation and acquisition, and extending capabilities geographically.

The Merchant Solutions segment provides commerce-enabling products and services to companies of all sizes around the world, including merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. This segment is aggregated into three business lines: Small Business, which includes the Clover cloud-based POS and business management platform; Enterprise, which provides an integrated omnichannel operating system for large businesses; and Processing, which provides products and services to financial institutions, joint ventures, and other third-party resellers. In 2025, the Merchant segment generated total revenue of $10.140 billion ⁶, compared to $9.631 billion ⁷ in 2024. Small Business contributed 5% ⁸ to Merchant segment revenue growth in 2025, primarily driven by volume growth including from Clover, while Enterprise contributed 1% ⁹ to Merchant segment revenue growth.

The Financial Solutions segment provides products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. This segment is aggregated into three business lines: Digital Payments, which includes debit card processing, network services, bill payment, and person-to-person payments; Issuing, which includes credit card processing, prepaid card processing, card production, and government payment processing; and Banking, which provides customer loan and deposit account processing, digital banking, and financial and risk management. In 2025, the Financial segment generated total revenue of $9.664 billion ¹⁰, compared to $9.477 billion ¹¹ in 2024. Digital Payments contributed 1% ¹² and Issuing contributed 2% ¹³ to Financial segment revenue growth in 2025.

In the third quarter of 2025, the company launched the One Fiserv action plan, a strategic framework focused on five pillars: operating with a client-first mindset to win new enterprise clients and grow average revenue per client; building the pre-eminent small business operating platform through Clover; creating differentiated, innovative platforms in finance and commerce, including embedded finance and stablecoin; delivering operational excellence enabled by AI; and employing disciplined capital allocation for the long-term. During 2025, the company completed several acquisitions, including StoneCastle Cash Management for $415 million ¹⁴, net of $4 million ¹⁵ of acquired cash; CCV Group B.V. for $219 million ¹⁶, net of $34 million ¹⁷ of acquired cash; and Payfare, Inc. for $95 million ¹⁸, net of $46 million ¹⁹ of acquired cash. The company also acquired the remaining 49.9% ²⁰ ownership interest in AIB Merchant Services for $420 million ²¹ and the remaining 19% ²² ownership interest in ICICI Merchant Services Private Limited for $22 million ²³. In the third quarter of 2024, Wells Fargo provided a notice of non-renewal for the WFMS merchant alliance, and upon its expiration on April 1, 2025, the company received an initial cash payment of $453 million ²⁴. The company repurchased 32.2 million ²⁵ shares of its common stock for $5.6 billion ²⁶ during the year ended December 31, 2025. On February 19, 2025, the board of directors authorized the purchase of up to 60.0 million ²⁷ shares of common stock.

In 2025, total revenue was $21.193 billion ²⁸, compared to $20.456 billion ²⁹ in 2024, representing an increase of $737 million ³⁰, or 4% ³¹. Net income attributable to Fiserv, Inc. was $3.480 billion ³² in 2025, compared to $3.131 billion ³³ in 2024, an increase of $349 million ³⁴, or 11% ³⁵. Diluted earnings per share was $6.34 ³⁶ in 2025, compared to $5.38 ³⁷ in 2024. Operating income was $5.818 billion ³⁸ in 2025, compared to $5.879 billion ³⁹ in 2024, a decrease of $61 million ⁴⁰, or 1% ⁴¹. Net cash provided by operating activities was $6.062 billion ⁴² in 2025, compared to $6.631 billion ⁴³ in 2024.

A primary growth vector is the Clover small business operating platform. The company plans to grow Clover through enhanced product features and functionality and client service; new and expanded industries, partnerships and geographies; and the integration of Clover into Commerce Hub and embedded finance solutions. The company is strengthening Clover's global presence by establishing or expanding offerings in multiple international markets, including Australia, Singapore, Brazil, Mexico, Belgium, Spain and Japan. The company's focus remains on high-growth industry verticals such as healthcare, e-commerce, and professional services, while maintaining a strong presence in restaurant and retail.

Another major growth vector is the creation of differentiated, innovative platforms in finance and commerce, including embedded finance and stablecoin. The company is investing in modern innovative platforms, building key merchant orchestration layers and payment gateways, and growing digital asset capabilities, including with the launch of FIUSD. The company has developed a comprehensive end-to-end embedded finance solution that supports various payment flows, built on a sophisticated ledger powered by Finxact, an orchestration layer powered by Payfare, and payment acceptance powered by Commerce Hub. Through the acquisition of StoneCastle Cash Management, the company enables its network of depository institutions to easily access stable, cost-efficient deposit funding, becoming a technology-enabled source of institutional deposits.

The company is focused on delivering operational excellence enabled by AI. Through Project Elevate, a business transformation initiative, the company is enhancing its operations through the use of AI and by simplifying and standardizing business processes. The company plans to use its data and AI to create new products and services, enhance existing products and services, and deliver high-quality customer service experiences through platform analytics and fraud mitigation across multiple solutions. The company expects these efforts to strengthen efficiency, scalability, and innovation to deliver differentiated value and an exceptional experience for clients.

The company's capital allocation strategy includes internal investment, repayment of debt, return of capital to shareholders including through share repurchases, and strategic acquisitions and divestitures. Capital expenditures, including capitalized software and other intangibles, were $1.763 billion ⁴⁴ in 2025, compared to $1.569 billion ⁴⁵ in 2024. The company repurchased 32.2 million ⁴⁶ shares of its common stock for $5.6 billion ⁴⁷ during the year ended December 31, 2025. As of December 31, 2025, the company had approximately 45.9 million ⁴⁸ shares remaining under its existing repurchase authorization. The company has never paid dividends on its common stock and does not anticipate paying dividends in the foreseeable future.

The company faces headwinds from global macroeconomic conditions, including changing interest rates, inflation, disruptions in the global supply chain, changes in consumer spending, legislative changes including potential effects of new tax laws, the effects of international hostilities, political conditions, regulations restricting trade or impacting the ability to offer products or services, and trade policies and tariffs. A decline in personal consumption and consumer savings in the U.S. may also negatively impact the business and financial results. The company's operating results in certain foreign countries may be adversely impacted by fluctuations in interest rates and exchange rates for currencies other than the U.S. dollar, including the Euro, British Pound, Indian Rupee, Brazilian Real and Argentine Peso.

The company faces execution risks related to the One Fiserv action plan, which may not generate the anticipated benefits. To successfully execute the plan, the company must implement operational, technological and cultural changes across the organization, which may be difficult to do. The actual benefits of the plan may be less significant than anticipated, and the company may not be able to achieve expected benefits on the anticipated timeline or at all. The company also faces risks related to its significant investments in emerging, innovative areas of financial services and technology, including embedded finance, stablecoin and artificial intelligence based products and services, which may not achieve expected returns.

The company operates in a highly competitive business environment, and failure to compete effectively against new and existing competitors, including large technology, telecommunication, and media companies, could materially and adversely affect its business. The company faces significant risks from security incidents or other technological risks involving its systems and data, or those of its clients, partners or vendors, which could expose it to liability, damage its reputation, and result in costly litigation and significant financial liability. The company is exposed to losses due to chargebacks, refunds or returns if merchants or other parties fail to satisfy their obligations, and a default on such obligations by one or more merchants could have a material adverse effect. The company's balance sheet includes significant amounts of goodwill and intangible assets, representing approximately 60% ⁴⁹ of total assets at December 31, 2025, and the impairment of a significant portion of these assets could negatively affect results of operations. At December 31, 2025, the company had approximately $29 billion ⁵⁰ of debt, and existing or future leverage may harm its financial condition and results of operations by decreasing its ability to obtain additional financing, limiting flexibility, and increasing vulnerability to adverse economic conditions.

Management's message emphasizes a commitment to delivering exceptional client service, world-class execution, and innovative value-added solutions. The strategic priorities for the period ahead are centered on the One Fiserv action plan, which focuses on operating with a client-first mindset to win new enterprise clients and grow average revenue per client; building the pre-eminent small business operating platform through Clover; creating differentiated, innovative platforms in finance and commerce, including embedded finance and stablecoin; delivering operational excellence enabled by AI; and employing disciplined capital allocation for the long-term. Management expresses strong conviction in the company's assets, talent, strategy and ability to execute and innovate. The company is building a world-class team and fostering a customer-centric, execution-oriented culture.