Shift4 Payments — Q3 2026 Earnings Summary

Financial Performance:

• Gross revenue reached $1.319 billion, a 12% increase year-over-year.
• Gross revenue less network fees (GRLNF) totaled $648 million, up 10% year-over-year, or 9% on an organic constant currency basis.
• Payments-based GRLNF grew 18% year-over-year to $402 million.
• Gross profit was $434 million, up 6% year-over-year.
• Net income for the quarter was $40 million.
• Non-GAAP net income was $132 million, resulting in non-GAAP EPS of $1.49.
• EBITDA was $261 million, up 13% year-over-year.
• Adjusted EBITDA was $310 million, up 6% year-over-year, with an Adjusted EBITDA margin of 48%.
• Net cash provided by operating activities was $221 million, up 28% year-over-year.
• Adjusted Free Cash Flow was $200 million, a quarterly record, up 42% year-over-year.
• Payment volume for Q3 2026 was $61 billion, an 11% increase year-over-year.
• Blended spreads were 64 basis points.

Guidance and Future Outlook:

• Revised full-year 2026 Volume guidance to $240–$250 billion (previously $240–$260 billion).
• Revised full-year 2026 Gross Revenue less Network Fees guidance to $2.45–$2.46 billion (previously $2.45–$2.50 billion).
• Revised full-year 2026 Adjusted EBITDA guidance to $1.11–$1.13 billion (previously $1.15–$1.20 billion).
• Affirmed full-year 2026 Adjusted Free Cash Flow guidance of $465–$475 million.
• Adjusted Free Cash Flow conversion rate remains at 42%.
• Expects to exit 2026 with nearly $50 million in synergies from the Global Blue acquisition, progressing toward the 2027 target of $70 million.
• International expansion is on track with Shift4 One live in 15 countries, ahead of schedule.

Business Segments and Product Lines:

• Tax-Free Shopping (TFS) revenue was $139 million, up 7% year-over-year, though facing headwinds from travel disruptions.
• Subscription and Other revenue was $107 million, down 10% year-over-year.
• Signed Kahala Brands as the single largest restaurant customer.
• Added the MSG Sphere and several EU hotels as customers.
• Secured Kering (owner of Gucci) for tax-free shopping services.
• Shift4 One is now live in 15 countries across Europe, combining payment processing, luxury TFS, and DCC in one handheld device.
• Released next-generation payment application and terminal management software, including DCC.
• Introduced Location Manager 2.0, a new Unified Analytics platform for Shift4 Dine.
• Introduced Enterprise loyalty for hospitality.
• Shift4 Dine expanded to Spain and Australia.

Market and Competitive Landscape:

• Shift4 holds the #1 position in Hospitality in the U.S.
• Shift4 is #1 in Luxury Retail globally.
• Shift4 is #1 in Sports & Entertainment in the U.S.
• Shift4 is #2 in Restaurants in the U.S.
• The company continues to gain market share across the entire Experience Economy.
• Shift4 One is now live in 15 countries, enabling commerce in 75+ countries.
• The company reports a 31% CAGR in volume over the last four years.
• Gross Profit CAGR is 36% over the last four years.
• GRLNF CAGR is 35% over the last four years.

Risks and Challenges:

• Travel disruptions continue to weigh on the Tax-Free Shopping business.
• Same-store sales face pressure from low comparables.
• Macroeconomic headwinds include currency fluctuation, inflation, and weaker same-store sales.
• Competition in the financial services, payments, and payment technology industries is substantial and increasingly intense.
• Risks associated with integrating the Global Blue business and realizing synergies.
• Reliance on third-party vendors and potential cybersecurity risks.
• Compliance with complex governmental regulations regarding privacy, data protection, and financial services.
• Risks related to international expansion, including foreign exchange rates and foreign regulations.

Management Commentary and Tone:

• CEO Taylor Lauber acknowledged a "painful year" for shareholders with a share price down roughly 40% since the beginning of 2026.
• Management stated that despite headwinds, the quarter and year serve as proof points of the business's durability.
• The company noted it largely achieved guidance despite a challenging backdrop.
• Management expressed confidence that travel disruption and same-store sales headwinds will abate.
• The tone emphasized a focus on durability, capital allocation, and the power of category-leading products.
• Management highlighted a "disciplined commitment to managing dilution" and an "owner's mentality."

Other Key Points:

• Repurchased roughly 5% of shares outstanding during the quarter.
• Repurchased 4.2 million shares for $190 million in Q3 2026, bringing the total shares repurchased since 2020 to 24 million (24% of total outstanding).
• Repurchased $10 million of preferred stock in Q3 2026.
• Cumulatively returned $1.4 billion to shareholders since 2020.
• Pending acquisition of Paramount Commerce, Canada's leading A2A payments platform, for less than 8x upfront EBITDA.
• The Global Blue acquisition closed on July 3, 2025.
• Total assets as of September 30, 2026, were $9.47 billion.
• Cash and cash equivalents were $1.242 billion as of September 30, 2026.
• Long-term debt was $4.833 billion as of September 30, 2026.
• Employees and the founder own over 40% of the company.
• Since IPO, the company has grown revenues by 35% annually and improved EBITDA margins by 55%.